In the present scenario, there is a continuous rise in the cost of goods and services like food, housing, and medicines. This indicates that individuals should opt for new approaches to a robust financial planning to tackle rising costs soon. Going for the right investment mix happens to be one of the primary strategies that can serve the purpose.
The government on March 24, 2023, announced the financial bill 2023. The Finance Bill 2023 gives effect to the financial proposals of the central government for the financial year 2023-24 to be taken into consideration.
A change that will only count capital gains from debt mutual funds as short-term capital gains has been made to the Finance Bill 2023. It indicates that gains from debt mutual funds will be taxed at your income tax slab rate and added to your taxable income.
The Financial Bill 2023
· The Finance Bill 2023 makes a few changes, including taxing mutual funds with less than 35% AUM in domestic stock as short-term capital gains and providing additional tax incentives to offshore banking entities operating in GIFT City, which will enjoy a 100% deduction on profits for ten years.
· In addition, a 20% tax now applies to royalties and technical fees received by international corporations, up from 10% previously.
· Additional changes include creating a committee to address the demands of the pension system and suggesting a marginal tax cut that would only apply to income over Rs. 7 lakhs.
· The Bill also suggests that Tax Collection at Source apply to all Liberalized Remittance Scheme (LRS) payments made via credit cards for international travel (TCS).
· Also, on a turnover of Rs. 1 crore, the Securities Transaction Tax on the sale of options has been increased from Rs. 1,700 to Rs. 2,100.
Financial bills can help in investment planning in several ways:
1. Tax benefits: Some financial bills, such as the Individual Retirement Account (IRA) and 401(k), offer tax benefits for investors. By contributing to these accounts, investors can reduce their taxable income and potentially save on taxes.
2. Investment options: Financial bills can also provide investors with access to a wider range of investment options, such as mutual funds, exchange-traded funds (ETFs), and stocks. These investment options can help investors diversify their portfolios and potentially increase their returns.
3. Risk management: Financial bills can also help investors manage risk. For example, investing in a bond fund can help reduce the risk of a stock market downturn, while investing in a stock index fund can help investors participate in the growth of the stock market while reducing the risk of investing in individual stocks.
4. Long-term planning: Financial bills can also help investors plan for their long-term financial goals, such as retirement. By contributing regularly to an IRA or 401(k), investors can build a retirement nest egg over time.
Overall, financial bills can be a useful tool for investors to achieve their investment goals, manage risk, and potentially save on taxes. It is important for investors to carefully consider their investment options and consult with a financial advisor before making any investment decisions.
Good investment options to choose in 2023
1 - Fixed deposits
A fixed deposit is a safe investment option that provides profitable returns. FDs are an ideal investment option for those who want to invest in a safe and secure instrument with low risk.
Here are some features of Bajaj Finance FD:
Higher interest rates
Bajaj Finance offers one of the highest Fixed deposit interest rates of up to 8.20% p.a. for senior citizens and up to 7.95% p.a. for customers below 60 years of age (w.e.f 4 March, 2023)
Flexible tenure
You can choose a tenure between 12 months to 60 months, based on your financial goals. Special tenures have higher FD rates.
Senior citizen benefit
Bajaj Finance offers an additional rate benefit to senior citizens of up to 0.25% p.a. This is a great benefit for senior citizens who are looking for a safe investment option with high returns.
Easy online application process
With an end-to-end online process, Bajaj Finance FD can be easily opened, making it a convenient option for investors.
2. Systematic Deposit Plan
SDP, a monthly investment programme, is like a fixed deposit but allows for the flexibility of making smaller, more frequent deposits. Each deposit you make under your Systematic Deposit Plan is recognised as a brand-new FD. Also, the interest that accrues on each new deposit is determined using the interest rate that is in effect on the day the deposit is made. You get return at FD interest rates of up to 8.20% p.a. (w.e.f. 4 March 2023) that are competitive with current FD rates in exchange for your monthly deposits.
The optimal time to invest your money, according to financial experts, is as soon as you have the chance. As a result, investing should be a part of your financial plan from the beginning of your career. This will provide you a substantial window of opportunity to observe the growth of your money. Also, it will allow you enough time to make up for any losses caused by underperforming assets. Having said that, depending on your specific objectives, you can select from a variety of long- and short-term investing options.
