AVFINPAL- Your Financial Pal

The rise in the popularity of mutual funds has increased tremendously during the last two decades. The systematic investment plan as a tool of investing has become a game changer in the world of investing. The SIPs has offered a chance to small investors to get into the world of investing and allowed them to think for a long term investment and plan their retirement life . Just like any other brilliant idea, even the traditional SIPs had to go through a makeover to match the rising popularity and advancement of mindsets. The demand for innovation in plain vanilla SIPs has given birth to two of the new kind of SIPs which cater to the need of investors even more precisely but are these new SIPs a good option for you. Well, that's what we will find out in this article. What is a SIP?   A traditional SIP  or systematic investment plan is a method to regularly invest in mutual funds. As an investment tool, SIP enables an investor to spread its investment over a period of time. T

There are three mediums by which an individual pays taxes in India. 1. Advance tax 2. TDS 3. Self Assessment Tax. What Is TDS? TDS stands for the tax deducted at source. As per income tax act any person, making a payment is required to deduct tax at source if the payment exceeds the certain threshold limit at the prescribed rates.    The person who makes the payment after deducting the tax at source is known as the deductor and person to whom payment is made i.e. the receiver is called deductee. The deductor is liable to deduct tax while making the payment to deductee and later deposit the same to the government.  TDS has to be deducted irrespective of the mode of payment and has to be linked to the PAN of deductor and deductee.  It is to be noted that individuals are not required to deduct TDS on the payment of rents and professional fees paid by them.  TDS is on basics is close to advance tax as it has to be deposited periodically with the government. The deductee

The hedge funds have seen exponential growth in the last two decades and have become a global phenomenon. yet it is still an underexplored segment of funds in the Indian market. With an increase in awareness about personal finance , the Indian market has seen massive growth in the number of investors taping into the new territory. Hedge funds are still in an emerging phase in India and are not as widely known as other class of mutual funds. Though like other mutual fund classes these funds also collect funds from investors that is where the similarity ends. The hedge fund uses highly complex strategy to hedge the risk and generate higher returns. In this article, we will be discussing hedge fund with context to the Indian market and will be discussing the major factors about it. What are Hedge Funds?  As the word "Hedge " itself suggests it means to safeguard and in context to the investment and in financial terms it means to safeguard against the risk. Like any other m

Determination of residential Status is very important for the filing of the income tax return as income tax is charged on the basis of the residential status of the taxpayer. The period of stay in India is the base for determining the residential status of the taxpayers. If any person satisfies any one of the following conditions, he will be considered as the resident of India during the relevant financial year. The conditions are: 1. He is in India for a period of 182 days or more, during the relevant financial year.                                             OR 2. He is in India for 60 or more days during the relevant financial year and has been in India for 365 days or more during the 4 financial years immediately preceding the relevant financial year. If any of the above condition is satisfied by the person than he will be said to be the resident of India. If he doesn't satisfy either of the two conditions, he will be treated as non- resident (NR). Exception:

Paying income tax and filing your return can be a confusing task especially if you lack the basic knowledge of income tax. If you are someone who has been just out of college or someone who will be filing his or her return for the first time the nitty-gritty of income tax may bother you but we have got your back. Your finpal aims to simplify investment and taxation for you and make your financial lives easier. In this taxation series, we previously shared the importance of filing the return . Continuing that here is the basic structure of income tax. 1. Taxation year.  The financial year or previous year refers to the year in which the income which is subject to tax has been earned or accrued. This is usually a 12 month period starting from 1st April and ending on 31st March. No matter which month you start your job your financial year ends on 31st March. Assessment year: It is the most common term you will come across while filing your return. It refers to the year subsequent