Secure ₹5 Crore for Retirement with Ideal SIP

Many seek guidance on building a ₹5 crore retirement fund. Financial experts emphasize the crucial need to start saving early in your career for favorable investment returns. A year’s delay in retirement planning significantly impacts the corpus, highlighting the importance of early initiation to leverage the power of compounding.

1. Ideal SIP for ₹5 Crore if You’re in Your 20s

“Transforming the ₹5 crore dream into reality is practical through early and consistent SIPs, letting compounding work its magic. Initiating SIPs in your 20s with ₹8,000 per month in quality equity funds delivering 12% CAGR can make you a crorepati by 45 and amass ₹5 crore by 60,” states Ashish Aggarwal, Director, Acube Ventures.

Also Read: Secure ₹5 Crore for Retirement with Ideal SIP

2. Ideal SIP for ₹5 Crore if You’re in Your 30s

Starting in your 30s requires a higher monthly SIP of about ₹21,000 for the same impact. Extending investment horizons beyond 25 years, careful fund selection, and increasing contributions during earnings peaks are key. Making every rupee work hard from a young age achieves financial freedom and surpasses inflation by a considerable margin, emphasizes Ashish Aggarwal.

3. Ideal SIP for ₹5 Crore if You’re 35 Years Old

As per the Upstox SIP calculator, a 35-year-old needs to invest ₹27,000 per month for the next 25 years to build a ₹5 crore corpus by 60, assuming a 12% annual rate of return and monthly compounding. The invested amount of ₹81 lakh will grow to ₹5 crore 12 lakh 36 thousand 147.

Also Read: Secure ₹5 Crore for Retirement with Ideal SIP

4. Ideal SIP for ₹5 Crore if You’re 40 Years Old

For a 40-year-old aiming for ₹5 crore by 60, the Upstox SIP calculator suggests investing ₹33,000 per month for the next 20 years. Assuming a 15% annual return and monthly compounding, the invested amount of ₹79.2 lakh will grow to ₹5 crore 26 thousand 514.

To enhance retirement planning, diversify your investment portfolio, considering factors like risk tolerance, investment horizon, and financial goals. Regularly monitor investment performance, making necessary adjustments to stay aligned with objectives.

Also Read: Secure ₹5 Crore for Retirement with Ideal SIP

Disclaimer: The views and recommendations made above are those of individual analysts, and not of TheNewsay. We advise investors to check with certified experts before taking any investment decisions.

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Relief for Small Tax Demands Cleared: Income Tax 2024

How to Check Your Status?

To verify if your tax demand has been waived, follow these steps:

A. Visit: pending action > response to outstanding demand.

B. Look for the status of ‘extinguished demands’ in your case.

C. For queries, call 1800-309-0130.

D. Email your concerns to taxdemand@cpc.incometax.gov.in.

Also Read: Relief for Small Tax Demands Cleared

Withdrawal of Tax Demands

The government proposed to withdraw outstanding direct tax demands dating back years, causing anxiety to honest taxpayers.

“There are disputed tax demands some of them dating back to 1962 causing anxiety to the honest tax payers, so I propose to withdraw such outstanding direct tax demand up to ₹25,000 pertaining to the period up to FY 2009-10 and up to ₹10,000 up to 2010-11 to 2014-15,” said Sitharaman in the Budget speech. This is expected to benefit one crore tax payers, she added

In another development, Life Insurance Corporation of India announced receiving refund orders totaling ₹21,740.77 crore from the Income Tax Department for Assessment Years 2012-13 to 2019-20.

Also Read: Relief for Small Tax Demands Cleared

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Many subscribers have complained about delays in claim settlement on EPFO’s official handle. EPFO, the world’s largest social security organization with over 277 million accounts and a corpus of nearly ₹20 lakh crore, responded that it normally takes 20 days to settle a claim if all required documents are submitted.

EPFO Rejects One Third of Claims: Reports Indian Express

In the financial year 2022-23, out of 73.87 lakh claims for final PF settlement, 33.8% (24.93 lakh) were rejected, 46.66 lakh were settled, and 2.18 lakh remained as the closing balance, according to official data.

This rejection rate is significantly higher than in 2017-18 and 2018-19, which were around 13% and 18.2%, respectively. In 2019-20, the rejection rate was 24.1%, and in 2020-21, it rose to 30.8%. In 2021-22, the rejection rate for final settlement claims increased to 35.2%.

Also Read: EPFO Rejects One Third of Claims

Pressure on EPFO Officials

EPFO officials expressed concern about being under “extreme pressure” due to the return to manual annual account updates. The outdated IT system is blamed for delays in claim settlements beyond the stipulated 20-day timeframe.

Interest Announcement

On Feb 10, the Central Board Trustees of EPFO recommended an annual interest rate of 8.25% to be credited on EPF accumulations in members’ accounts for the financial year 2023-24. The Board also proposed a distribution of income of ₹1,07,000 crores to EPF members’ accounts on a total principal of around ₹13 lakh crores, marking the highest total income recommended for distribution so far.

Also Read: EPFO Rejects One Third of Claims

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These steps, along with advanced encryption, authentication technologies, second channel notifications, and risk-based transaction monitoring, aim to foster a secure and reliable digital payments ecosystem.

RBI uses various channels like digital, print, and audio-visual media through the “RBI Kehta Hai” program to create customer awareness. The central bank issues master directions on digital payment security controls to banks and regulated entities to safeguard customer data confidentiality and integrity.

Also Read: RBI Takes 8 Steps for Secure Digital Payments

Shikhar Aggarwal, Chairman of BLS E-Services, advises users not to share sensitive information like card details, passwords, PINs, OTPs, CVVs, UPI-PIN, and to avoid financial transactions on public Wi-Fi networks. Additionally, users are urged not to store crucial banking data on their mobiles, emails, electronic wallets, or purses.

RBI Takes 8 Steps for Secure Digital Payments: List

1. Specific OTPs required from a secondary channel for adding new payees.
2. New OTPs mandated for high-value transactions.
3. Managed time limits for OTPs to minimize misuse.
4. Use of digital signatures and Key-based Message Authentication Codes (KMAC) to prevent unauthorized transactions.
5. Customer education on rights, responsibilities, and risks under the Consumer Protection Act and internet banking.
6. Alternate notification method for transactions exceeding a specified value.
7. Guidance on responding to SSL or EV-SSL certificate alerts to prevent phishing.
8. Implementation of systems to assess transaction patterns and highlight unusual activities, ensuring alignment with customer behavior.

Also Read: RBI Takes 8 Steps for Secure Digital Payments

Disclaimer: The views and recommendations made above are those of individual analysts, and not of TheNewsay. We advise investors to check with certified experts before taking any investment decisions..

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7 Valuable Lessons from Farming Practices: Investing Insights

1. Keep Calm with Your Investments

Patience is key in both farming and investing. Farmers don’t yell at their crops; likewise, investors should avoid impulsive decisions driven by frustration or fear. Focus on long-term goals amid market fluctuations.

2. Growth Takes Time

Investments, like crops, need time to grow. Understand the compounding power, allowing returns to snowball with time. Early investments enable compounding over an extended period, transforming modest gains into substantial wealth.

3. Avoid Premature Actions

Just as crops vary in growth rates, investments also differ. Don’t hastily redeem investments due to impatience. Strategic planning, like farmers choosing crops, is crucial. Consider advantages and disadvantages before engaging in new investments.

Also Read: 7 Valuable Lessons from Farming Practices

4. Choose Wisely

Selecting the right investments is akin to farmers choosing suitable plants. Understand financial terms, conduct thorough research, and base decisions on equities, debt, and financial goals rather than hearsay.

5. Nurturing Investments

Cultivate investments like farmers nurture crops. Stay vigilant, recognize market downturns, and use opportunities to accumulate quality stocks or units in high-yield mutual funds.

6. Eliminate Non-Performers

Removing weeds in farming is like getting rid of underperforming investments. Proactively eliminate undesirable elements, strategically timing actions to optimize returns. Regular assessment ensures enduring financial success.

7. Prepare for Ups and Downs

Similar to farmers preparing for diverse weather conditions, diversify your investments across asset classes and sectors. Create a “rainy day” fund for unforeseen expenses without selling investments during market downturns. Stay informed but avoid fixating on daily fluctuations. Be ready to adapt strategies based on significant changes or economic indicators.

Also Read: 7 Valuable Lessons from Farming Practices

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ITR Filing Income Tax Return Forms for FY 2023-24

I. Increased Scrutiny on Deductions

The Income Tax Department has tightened regulations on tax deductions. Taxpayers now need to provide more details on various aspects, including political party donations, disabled dependents, and high-value life insurance policies. This aims to prevent false claims and ensure accurate deductions under Section 80GGC.

Also Read: ITR Filing Income Tax Return Forms for FY 2023-24

II. Political Party Donations under the Scanner

Donations to political parties under Section 80GGC require a detailed breakdown. Taxpayers must now specify the contribution amount, mode of payment, and transaction number for bank transfers. This scrutiny aims to prevent inflated claims for tax deductions.

III. In-depth Reporting on Life Insurance Policies

Taxpayers receiving annual bonuses from life insurance policies now face a new reporting requirement. The ITR forms include a dedicated column for declaring bonus payments received during the financial year. Additionally, individuals must disclose whether money received from high-premium life insurance policies is taxable, bringing clarity to the taxation of life insurance proceeds.

Also Read: ITR Filing Income Tax Return Forms for FY 2023-24

IV. Comprehensive ESOP Reporting

Employees with stock options from select startups now face a more comprehensive reporting process. Alongside tax amounts and linked years, taxpayers must provide the PAN of the eligible startup and the Department for Promotion of Industry and Internal Trade (DPIIT) registration number to claim ESOP-related tax benefits.

V. Crypto Investments and Online Winnings Disclosure

The growing significance of virtual assets and online earnings prompts detailed disclosures. Taxpayers must now provide quarter-wise breakdowns of their crypto investments under ITR-1, 2, and 4. Additionally, online game winnings are explicitly addressed in Schedule OS, ensuring a thorough examination of income from online games.

VI. Cash Turnover Disclosure in ITR-4

For businesses filing under ITR-4, a new column requires the disclosure of cash turnover or gross receipts. This ensures transparency in financial transactions, with the turnover threshold for presumptive taxation under Section 44AD raised to INR 3 crores.

Also Read: ITR Filing Income Tax Return Forms for FY 2023-24

VII. Companies Face Enhanced Reporting Requirements

ITR-6, designed for companies, introduces additional reporting requirements, including the Legal Entity Identifier (LEI), MSME registration number, reasons for tax audits under Section 44AB, disclosure of winnings from online games taxable under Section 115BBJ, and details on virtual digital assets.

VIII. Emphasis on Timely Payments to MSMEs

ITR-6 now includes clauses requiring companies to report sums payable to micro or small enterprises, emphasizing the importance of timely payments.

As the ITR filing season approaches, taxpayers need to pay meticulous attention to the changes introduced by the CBDT.

Also Read: ITR Filing Income Tax Return Forms for FY 2023-24

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Significant Changes in India Income Tax Return Forms for FY 2023-24

1. Increased Scrutiny on Deductions

The Income Tax Department, utilizing artificial intelligence, has tightened regulations on tax deductions. Taxpayers are now required to provide additional details on various fronts, including political party donations, disabled dependents, and high-value life insurance policies. The aim is to prevent false claims and ensure the accuracy of deductions under Section 80GGC.

Also Read: Significant Changes in India Income Tax Return Forms for FY 2023-24

2. Political Party Donations under the Scanner

Donations to political parties under Section 80GGC now require a meticulous breakdown. Taxpayers must provide not only the contribution amount but also details such as the mode of payment and the transaction number linked to bank transfers. This granular scrutiny aims to thwart any attempts at inflating claims for tax deductions.

3. In-depth Reporting on Life Insurance Policies

Taxpayers receiving annual bonuses from life insurance policies face a new reporting requirement. The ITR forms now feature a dedicated column for declaring bonus payments received during the financial year. Additionally, individuals must disclose whether money received from high-premium life insurance policies is taxable, ushering in greater clarity on the taxation of life insurance proceeds.

4. Comprehensive ESOP Reporting

Employees with stock options from select startups now face a more comprehensive reporting process. Alongside tax amounts and linked years, taxpayers must provide the PAN of the eligible startup and the Department for Promotion of Industry and Internal Trade (DPIIT) registration number to claim ESOP-related tax benefits.

Also Read:
ITR Filing Income Tax Return Forms for FY 2023-24
7 Key Advantages of e-Filing Income Tax Returns in India
Significant Changes in India Income Tax Return Forms for FY 2023-24

5. Crypto Investments and Online Winnings Disclosure

The rising prominence of virtual assets and online earnings has prompted the tax department to seek detailed disclosures. Taxpayers must now provide quarter-wise breakdowns of their crypto investments under ITR-1, 2, and 4. Moreover, online game winnings are now explicitly addressed in Schedule OS, ensuring a thorough examination of income from online games.

6. Cash Turnover Disclosure in ITR-4

For businesses filing under ITR-4, a new column requires the disclosure of cash turnover or gross receipts. This aims to ensure transparency in financial transactions, with the turnover threshold for presumptive taxation under Section 44AD raised to INR 3 crores.

7. Companies Face Enhanced Reporting Requirements

ITR-6, tailored for companies, introduces several additional reporting requirements. These include the Legal Entity Identifier (LEI), MSME registration number, reasons for tax audits under Section 44AB, disclosure of winnings from online games taxable under Section 115BBJ, and details on virtual digital assets.

Also Read: Significant Changes in India Income Tax Return Forms for FY 2023-24

8. Emphasis on Timely Payments to MSMEs

Acknowledging the importance of timely payments to micro or small enterprises, ITR-6 now incorporates clauses requiring companies to report sums payable to such entities.

In order to the significant changes in India Income Tax Return Forms for FY 2023-24, As taxpayers gear up for the ITR filing season, the changes introduced by the CBDT demand meticulous attention.

Also Read:
ITR Filing Income Tax Return Forms for FY 2023-24
7 Key Advantages of e-Filing Income Tax Returns in India
Significant Changes in India Income Tax Return Forms for FY 2023-24

Get the Business News along with India’s Latest Updates at TheNewsay and Follow for Live Updates – Facebook, Instagram, Threads, Twitter, Pinterest, KooApp and YouTube.

7 Key Advantages of e-Filing Income Tax Returns in India

1. Complete Transparency and Confidentiality on the e-Filing Portal

The e-filing portal ensures transparency and confidentiality. You can file your tax returns honestly, with only those with whom you share your e-filing user ID and password able to access your data.

Also Read: 7 Key Advantages of e-Filing Income Tax Returns in India

2. Safe and Secure e-Filing Process

The e-filing portal is built with the latest internet security technology, ensuring a safe user experience. There’s no fear of discrimination; all Indian citizens receive the same services.

3. Convenient DIY Filing from Home

You can file your Income Tax Returns from the comfort of your home using the straightforward and regularly updated e-filing portal. No need for a qualified accountant or standing in queues; the portal is accessible 24*7.

4. Easy Correction of Errors on the e-Filing Portal

Correcting errors is a simple online process. You can edit your form multiple times before saving and submitting it. Digital forms eliminate the need to refill information in case of mistakes.

5. Organized Paper-Free Records and Access to the 26AS Form

E-filing eliminates physical paperwork, organizing your information by year. Access and maintain well-organized paper-free records, including the view of your 26AS Form.

Also Read: 7 Key Advantages of e-Filing Income Tax Returns in India

6. Faster Income Tax Refunds with Online Verification

The online verification process makes it easier for the Income Tax Department to verify your information, leading to faster processing of refunds. Receive SMS alerts and use the e-filing portal to track the status of your refund.

7. Immediate Confirmation and Online Query Status

Receive an immediate e-verification message upon filing your returns. No need for paper cheques; use e-payment modes. Receive an email confirmation upon completing the e-verification process. Submit and track the status of your queries using the e-Nivaran service on the Income Tax website.

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