CHAPTERS

1. Introduction to topic 2. Objectives of study 3. Rese rc! "et!odo#o$y %. &i"it tions '. Scope (. )ib#io$r p!y *. Anne+ure

I,TRO-.CTIO,
Tax is an amount of money that you have to pay to the government so that it can pay for public services.

/e nin$ of T + S vin$ 0unds in Indi 1

Tax Saving Funds in India offer to the investors rebates in taxes under the Income Tax Act, Section 88 and they are also no!n as e"uity#lin ed savings schemes. Tax Saving Funds in India usually have a period of loc # !hich is generally of three years. As a result of this, the manager of the fund is not concerned about factors such as the pressures of redemption, performance of the fund during a short time, and thus does his $ob by eeping in vie! the long term goal. The fund manager of the Tax Saving Funds in India invests the money in instruments that are related to e"uity. Tax Saving Funds in India are suitable for those investors !ho !ant to increase their investments and also !ant to benefit from the rebates in taxes. The advantage of Tax Saving Funds in India is that they grant the investors an opportunity to ma e investments in an avenue that is mar et# lin ed and at the same time claim benefits in taxes. The dividends that are earned in Tax Saving Funds in India are tax free. Any income earned by an individual is assessed under any one of the follo!ing five heads of income %# i. ii. iii. iv. v. Income from salary. Income from house property. Income under the head profits and gains of business or profession . &apital gains. Income from other sources. Any income !hich does not find a place under the find four heads of income from other sources. So under section '()*+ of income tax act , 1,(* all such income in this head of income . there are follo!ing income !hich this heads . * taxed under

Income coming as a dividend paid by a company to an assessee. Income coming from !inning in lottery .race !ord pu--les , races , and card games , gambling or other such sports .

Income coming as an amount received by assesses from his employer as a fund for !elfare as an employee .

Income as an interest on securities . Income coming by letting on hire machinery , plant , furniture , building or other goods income coming from insurance .

TA2 SA3I,4 SCHE/E P.)&IC PRO3I-E,T 0.,-S 5PP06 Open

Pub#ic Provident 0unds ccount1 An individual %

o o o

in his o!n name, on behalf of a minor of !hom he is a guardian, a .indu /ndivided Family.

at designated post offices throughout the country and at designated branches of 0ublic Sector 1an s throughout the country.

The various types of income earned by an individual apart from income from salary , house property , capital gains business and profession these include both specific and other income include under the head other sources and treatment of such income for income tax purposes . Specific income that are included under the head income from other sources are as follo!s . i. ii. -ividends 7 other than the dividends referred to in section 11'#d. /innin$ fro" #otteries , cross!ord pu--les , horse race , gambling , betting etc.

iii.

Any sum received by the assesse from his employer as other 8e#f re fund #i9e PP0.

iv. v.

Income by !ay of interest on securities . Income from machinery , plant business nd profession . or furniture belonging to him and also

building and let on hire , provided the under the head profits any $ in of

vi.

3here an assesses lets on hire machinery , plant or furniture belonging to him and also buildings , and the letting of the said machinery , plant or furniture , the income from such letting , if is not chargeable to income tax under the head 4 profits and gains of business or profession .5

vii.

Any sum received under

insur nce po#icy 5#i9e &IC7 )ir# sun#ife po#icy7

ICICI pro #ife etc.6 7 including the sum allocated by !ay of bonus on such income is not chargeable to income tax under the head 4 profits and gains of business and profession 4 or under the head 4 salaries4 So basically 4 income from other sources 4 is the residuary head of income , !hich ta es !ithin it6s ambit any income ,!hich does not specifically fall under any other head of income.

)I)&IO4RAPH:
1778S 1halla 9.8 )*::1+, Investment ;anagement, Tata ;c<ra! hill, =e! >elhi . 0andian 0unithavathy )*::2+, Security Analysis and 0ortfolio ;anagement, 9i as publication. 8othari )*::1+, ?esearch ;ethodology Fisher @ >onald)*::2+, Security Analysis and 0ortfolio ;anagement, sixth edition 3@1SIT@S

!!!.moneycontrol.com !!!.investopedia.com !!!.nse#india.com !!!.stoc chart.com !!!.!i ipedia.com

;O.R,A&S International ?esearch Journal of Finance and @conomics Indian Journal of Finance

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