Dilzer Consultants - Investments and Financial Planning

An ISO 9001 (2008) Certified Company



Financial Planners in Bangalore

Your World of Finance Matters made Easy

Tax planning and tax saving options

A financial plan is the blue print of your financial life- Dilshad Billimoria in Mint

A Financial Plan is a blue print one's financial life- http://www.livemint.com/Money/JZt5p2f9o1g66gYdvLkBOL/A-financial-plan-is-the-blue-print-of-your-financial-life.html

Dilshad Billimoria in Mint - 20 July 2015

Bullet proof your health - COFP Article

My article on Importance of Health Insurance and Cover benefits http://dilzer.net/2015/06/20/bullet-proof-your-health-cofp-fp-pulse-article-by-dilshad-billimoria/

Claim Ratio- Dallal Times- by Dilshad Billimoria 6th June 2015

My article in Dalal Times on Claim Ratio and its intricacies- http://www.dalaltimes.com/article/investing/did-you-consider-these-things-while-buying-insurance-105937.aspx

Interview of Dilshad Billimoria in Fundoo.com

My Interview here

Dilshad Billimoria

Dilzer Consultants Pvt Ltd Promotional Video

Dilzer Consultants Pvt Ltd Promotional Videohttps://youtu.be/PbH31KUCbhI

Dilshad Billimoria writes in Dalal Times 15 April 2015

Dilshad Billimoria writes in Dalal Times 

Best Ways to Manage with Single Income

Best ways to manage with single income

Dilshad Billimoria
Dilzer Consultants

The Truth Behind Number Tricks- Mint 10 March 2015

Budget 2015: Expectation from the Salaried Class. Dilshad writes in Dalal Times.

Budget 2015:
Expectation from the Salaried Class. 

Dilshad writes in Dalal Times. 

Dilshad Billimoria writes in Mint on teaching the value of money to your children.

Dilshad Billimoria writes in Mint

Teaching Value of Money to your children

Dilshad Billimoria
Director Dilzer Consultants Pvt Ltd.

Market Valuation- March 2015

Markets are Still Under Valued-  March 2015

Dilshad Billimoria- Dilzer Consultants Pvt Ltd

Budget 2015- Snapshot

Budget 2015 Presented by Mr Arun Jaitley - Finance Minister.

On 28th February 2015, Budget 2015 was presented by our honourable Finance Minister.
The underlying objective throughout his 1.5 hours speech has been accelerating growth, enhancing investment, and creating employment benefits for the poor in the country.

He emphasised, this is what they practise and  preach.

Below is the highlights of some of key factors relating to finance:

1. Fiscal deficit to meet target of 4.1% of GDP in 2014-15. in 2015-16, it will meet 3.90%, 16-17 3.50% and 17-18, 3% of GDP
2. Public and infrastructure spending to be increased to 70,000 crore.
3. Defence- RS 246000 crore outlay  for Defence.
4. Tax free bonds to be introduced in Road, Rail and Irrigation.
5. Universal Social Security Benefit Scheme(Atal Pension Yojna) to provide for social security benefits to the non employed workforce of our country.
6. Senior Citizens Welfare Benefit Scheme to benefit Senior Citizens with pension benefits from the huge unclaimed amount lying in EPF and PPF pool.
7. Everlasting Fame- A corpus of 3700 crore set up to showcase / exhibit Parsee culture and heritage in India. Global Heritage fund in Hampi, Goa, Wlephanta Caves, Rajisthan, Leh and Hyderabad promoting tourism and culture in our country.
8. IT Support fund for start ups in IT.
9. The Power Sector gets a major boom- Over 4000 MW projects to be set up.
10. Financial Redressel Cell to be set up protecting interest of investors against financial service providers.
11. Gold Monetisation scheme to help the common man, earn interest on their gold, and enable banks to provide loan against the same. Also a Sovereign Gold bond with a fix interest rate to be introduced. This will check black money inflow through import of gold in our country.
12. Woman Social Security and benefit fund with 50,000 toilets to be set up and 1000 crore towards Nirbhanya fund.(Hope something is actually utilised from this fund.)
13. In Indirect taxation- GST to be introduced by next year (2016) to benefit uniform pricing of goods and services in our country.
14. High checks on black money circulation and imprisonment with penalties  of upto 10 years and  fine of upto 300% of tax on concealment of income and assets overseas
15. Wealth Tax to be Abolished.
16. Corporate Tax Rate reduced to 25% from 30%, however exemptions and deductions allowed will be phased away slowly.
17. Service tax net increased from 12% to 14% and the negative list of Service tax payees to be trimmed further.
18. Under Direct Taxes- Income tax, no change in slabs, however surcharge of 2% on taxable income over 1 crore  to be charged.
19. Health deduction benefit to increase from Rs 15000- RS 25000 deduction under Section 80D for individuals. Very Senior Citizens to benefit upto Rs 60,000 deduction.
20. Under Section 80CCD - Pension scheme investment benefit allowed upto Rs 50,000  per annum over and above Rs 1,50,000 allowed under Sec 80C.
21. Salaried Class benefit- Transport Allowance deduction, increased from Rs 800 to RS 1600 per month

With the overall macro situation now benign and inflation coming under control, Jaitley realizes this was his best chance to lay the broad reform framework in place, and execute the various elements over time.
 However, what will be keenly watched is how the Budget initiatives play out in the days and months ahead and whether Jaitley’s gamble on growth actually pays off.
While the ultimate test for Jaitley will be in how the various Budget proposals are implemented, the finance minister does deserve full marks this time round for putting forward a Budget which aims to address multiple challenges. As a statement of intent, it gets full marks. And that is a pretty good beginning.

Thank you
Dilshad Billimoria

Dilzer Consultants Financial Planning Division attains ISO Certification: The how! November 2012

Dilzer Consultants Financial Planning Division attains ISO Certification: The how!
November 2012

On the last day of the Comprehensive Financial Plan workshop, Sadique laid out almost 77 marketing tips & strategies on how to improve our business, acquire clients and build better relationship with clients. One of the 77 struck me hard and I said, I need to get this done for my practice. It was getting an ISO certification for my firm "DIlzer Consultants".
So, I started googling and stumbled upon OSS certification company, which had a accredtion given by Australia and New Zealand! I asked for a brief on the company profile and background of the organization and the process needed for certification.
After the initial interaction, I was told to keep the following documents ready;
  • Registration Certificate and Organization route map.
  • Organisation chart and process flow chart.
  • Responsibility and authority of concerned departments.
  • Legal requirements as applicable.
  • Establishment and Incorporation certificate (we had almost misplaced the original!)

The fees was divided as stage 1 audit (basically to check if your firm can be audited) and stage 2 (which involves review and evaluation of management systems documents and would comprise of onsite audit. There would be two annual follow ups 12 and 24 months from the date of certification and renewal would be based on procedures and practices laid down and followed! Therefore, the ISO Certification would be valid for 3 years, subject to annual review every year for 2 years.
The date was fixed and I was very excited. (Apparently, the date we got the certification  26 July 2012 marked the 11th anniversary of commencing my financial advisory division of business. It was a pleasant and god given coincidence)
On the arrival of the auditor, we were asked for the above documents and to my surprise a host of other documents which we were not told of earlier and had to start gathering as, he asked for the same.
Luckily for us, we follow a very detailed process driven Action plan for our clients. Right from the Initial Welcome letter to ongoing service details, we have outlined the process and follow the same for every client. This ensures standardization of delivery and process, which is the basis of an ISO certified company.
The following additional documents were requested from the ISO person for the onsite audit.
  • List of client names
  • Process followed on initial client acquisition with the details of mails communicated and follow up.
  • Sample Financial Plan.
  • Sample Account statement.
  • Financial Plan construction process
  • Categories / Types of clients.
  • Services provided to our clients.
  • Service Execution process and delivery for AUM clients.
  • Services execution and delivery for NRI clients.
  • Financial Plan review and coverage and why review is so important.
  • Investment execution process
  • Newsletters
  • Asset Allocation
  • Feedbacks and Feedback Form
  • HR and in house development
  • Job Responsibilities and Duties
  • Staff questionnaire, performance review and monitoring the same.

This method has helped our organization streamline the requirements to meet client expectations and show them we follow a well defined process in their interest.

What is your Asset Allocation.

Are Arbitrage funds really useful.

How Three year FMPs Still score over FDs: Economic Times

How Three year FMPs Still score over FDs. Please read this from Economic Times here

Thank you

Goal Calculations.

You can calculate your goal amounts very basically here: Pl note these are not considered the final calculations, since there are other parameters that form part of the calculation,like evaluating existing resources etc, which vary from person to person


Dilshad Billimoria
Certfied Financial Planner

New Pension Scheme: Livemint

Check List for Home loan Buyers: Dilshad Billimoria.

Checklist for home loan buyers.

These are some of the questions a client must ask the bank before signing on the dotted line.

Checklist for Home loan buyers:

  1. What is the rate of interest for various tenures, which will help you decide which tenure is best suitable depending on your cash flows and interest outflow.
  2. What is the interest option: floating or fixed. If interest rate regime is low, and expected to reduce further, floating option is best. If interest rate regime is high, and expected to increase, then fixed rate option is best.(Pl check terms and conditions on fixed rates. Sometimes, even though interest option choosen by borrower is fixed, when interest rate  changes are announced by RBI, like, bank rate and CRR rate changes, banks have said to increase the fixed rate also. Sometimes there is a ladder rate applied, which is a combination of fixed and floating for specific periods. Best to check with your financial planner on the option with flexibilities to change the option, depending on the economic environment in which you are investing.
  3. What is the processing charge and can it be reduced.(Should not exceed 0.50%) Flat fee better.
  4. What is the documentation? Too much probing hassles?
  5. What are pre payment rules? Some banks have a charge if more than 25% of the home loan is pre paid in one year. This should not happen.
  6. What is the frequency at which interest rate is reset? Daily, fortnightly, monthly, annual rest. Daily reducing balance is best, based on EMIs paid.
  7. Is their a sweep-in account, which acts as a current bank account and also sweeps any balance from this account towards interest repayment as and when a balance is available.
  8. When EMI can be increased from current EMI by the borrower, is higher pre payment possible: If yes, what reduces? Interest/ principal/ tenure. Principal must reduce and therefore interest, which automatically reduces tenure.
  9. Is loan portability possible with other banks easily. If so, what are foreclosure charges with current bank. Is portability within the same bank at new interest rates possible, if so, find out what the charges are? Sometimes, cost involved in foreclosing loan from one bank and transferring to another bank is higher, than the balance amount to be paid. Hence a calculation is to be done by your financial planner before the switch is made.
  10. If pre EMI is an option(where only simple interest payment is made proportionate to level of construction) in under construction projects, one can switch to EMI option(where principal and interest payment is made) and claim tax exemptions in later years.
  11. Pre EMI interest ca be written off at 1/5 every year after possession of property us taken.
  12. Can an add-on loan be taken at the same terms for interiors at a later date?
  13. Are registration costs included in loan sanction?

Dilshad Billimroia
Founder and Certified Financial Planner

Dilzer Consultants (An ISO 9001 (2008) certified company.

Power of Subconscious Mind in Investor’s Risk Tolerance & Risk Taking Capacity: Dilshad Billimoria

Power of Subconscious Mind in Investor’s Risk Tolerance & Risk Taking Capacity

Risk tolerance is the amount of risk that an investor is comfortable taking, or the degree of uncertainty that an investor is able to handle. Risk tolerance often varies with age, income and financial goals. It can be determined by many methods, including questionnaires designed to reveal the level at which an investor can invest, but still be able to sleep at night.
Risk capacity, unlike tolerance, is the amount of risk that the investor "must" take in order to reach financial goals. The rate of return necessary to reach these goals can be estimated by examining time frames and income requirements. Then, rate of return information can be used to help the investor decide upon the types of investments to engage in and, the level of risk to take on. 
There are many questionnaires and software’s available in the market today to measure risk tolerance; but the human mind feasts on irrationality and sometimes, the logic of a well laid out set of questions, graphs, and plans falls in the flush.
After a Financial Planner has spent hours on a client and his family, listening, understanding, educating, probing and twisting questions on their financial needs, goals, risk, attitude towards money, how they have grown up with the values of money and its scarcity or abundance, all this becomes obsolete on the face of changing events, situations.
If you recognize and accept the Power of the Subconscious mind, believe that it is the law of life and belief, of your internalized truths, and when there is a blend between the conscious and the sub conscious mind, then the outcome is harmony in being. The harmony of acceptance and truth that prevails.
Mind you, the power of the sub conscious can be good or bad, but what is important, is that decision is “entirely yours”. The other advantage of the subconscious mind, is that it never takes decisions on the spur of the moment unlike the conscious mind. The feelings and thoughts are internalized and beliefs grown into your system before it overtakes the conscious mind. Therefore, the control, again, is “You”.
Some of the factors which I have encountered that have changed the perception of client’s ability to take on risk are:
1. Wants dominate needs
Very often, man, being the greedy mammal that he is, is led into temptation made available from various materialistic offerings available around us. Today, there is no dearth of eating the best food, choosing the best vacations, buying top end cars, living in the luxury of multiple condominiums, (like one can live in more than one home at a time!). In all this, logic does not prevail. It is the power of our subconscious overcoming the conscious that ultimately leads to the action of suddenly pulling out one’s investments or digressing from the risk level or goal planned for the future.
2) External factors beyond our control affect decision making
Do we have control, if Narendra Modi, becomes our next Prime Minister? Do we have control over the falling rupee? Do we have control on the gold imports in India, Do we have control if Portugal and Spain are facing economic slowdowns? None, of the above factors, you will agree, is in our control. What is in our control, however, is how we react to such situations. To educate, empower and communicate to clients, about the happenings of the market, the acceptance, that these events are not in our control and that they are presumably temporary. What needs to be communicated, is, what can be done to keep the portfolio in place and ensure the final goals laid out are met.
3. Circumstantial / Situational Conditioning
With nature and life changing eventslike a divorce, or a marriage, or a mid-life crisis, or a pregnancy, or menopause or a widowed situation, (luckily I have faced all with clients, friends and/or family), people become suddenly more cautious and react completely different from what they have agreed earlier, and signed on the dotted line for!  The hormonal imbalances during such situations drive such irrational behavior, and many people turn defensive, angry, lack self worth, sometimes, even denying what they have mutually agreed upon earlier in terms of their risk appetite, goals or plan and this leads to a change in the whole plan carefully created for them.

4. Daily distractions
Sometimes, it is the daily distractions of say a fight with someone that matters, or a dislike for someone, or lack of feeling of self worth, procrastination or plain boredom, that creates imbalances in our actions and makes our take hasty decisions against what we ourselves have agreed and planned for before.
5. Uncanny truth about retiring
Have you heard some investors telling you, they want to retire tomorrow or yesterday? Well, such clients are probably the one’s not certain about their financial well being and are more likely to take irrational decisions on wealth and health, while deciding on when to retire. Such clients are also prepared to take on any amount of risk to meet the short and impractical deadline. For such clients, risk tolerance is subconsciously very low, but consciously high and this leads to a mismatch between the known and the unknown in decision making process.
While some others who have created their nest egg, or are close to it, the likes of Bill Gates and Warren Buffet, really do not want to retire, or retire only at 80! Some others who depend on other sources of retirement corpus creation, like social security, pension, feel, that saving would suffice for their retiring years, inflation and tax adjusted! They fall weak on the third leg, which is personal savings for creation of corpus.
Some feel, it is not important to save for retirement, until it is imminent, which is far from the truth. The situation gets graver, if the individual is older and still lies in the comfort of not awakening to the reality of their nest egg. This is when generally panic strikes and risk tolerance is thrown out the window in creation of a pool of savings.
6. Emotional ability to handle financial loss
Sometimes, the high risk takers, are also the herd mentality people and want to follow the latest trend in meeting their goals. What happens in such “too good to be true situations” They never last! Along with the mayhem on seeing his portfolio slide, his emotional decision of taking on high risk is demoralized and he resorts to panic selling, without having a clear thought process to his decision making.
7. Changing time horizon of life goals
Haven’t you come across clients, who agree, in principle, that they need to buy a car or a house in 5 years,  and you have designed their risk and portfolio accordingly, but suddenly, they fancy a latest car of the road or a  real estate opportunity, too good to sound true and bam they knock on your door and all the analysis and work on portfolio selections, asset allocation, is stamped with one redemption, irrespective of losses made, exit loads lost, capital gains tax paid or most important at the cost of his other non negotiable financial goals.
Is this all correct? NO… But the human mind loves irrationality!

Dilshad Billimoria CFP
Founder and Chief Financial Planner
Dilzer Consultants (An ISO 9001(2008) Certified Company.

Tax planning and tax saving options FY2012_13

Dilshad Billimoria
Since the full amount invested upto Rs 1,00,000 is eligible for 100% tax deduction benefit. This investment is reduced from your Gross Income and therefore, can reduce your tax slab and therefore tax liability. The benefit is a deduction and not a rebate, so, in effect, the entire amount saved is tax deductible.

Snapshot of Tax rates specific to Mutual FundsThese rates are subject to enactment of the Finance Bill 2011. The rates are for the Financial Year 2012-13.
1.Income Tax RatesFor Individuals, Hindu Undivided Families, Association of Persons and Body of Individuals

For general tax payers

 Income tax slab (in Rs.)Tax 
 0 to 2,00,000  No tax
 2,00,001 to 5,00,000  10%
 5,00,001 to 10,00,000    20%
 Above 10,00,000   30%

For female tax payers

 Income tax slab (in Rs.) Tax
 0 to 2,00,000  No tax
 2,00,001 to 5,00,000  10%
 5,00,001 to 10,00,000 20%
 Above 10,00,000  30%

For senior citizens (Aged 60 years but less than 80 years

 Income tax slab (in Rs.)    Tax
 0 to 2,50,000  No tax
 2,50,001 to 5,00,000 10%
 5,00,001 to 10,00,000 20%
 Above 10,00,000    30%

For very senior citizens (Aged 80 and above)

 Income tax slab (in Rs.)Tax 
 0 to 5,00,000    No tax
 5,00,001 to 10,00,000     20%
 Above 10,00,000      30%

Note : Surcharge is nil and 3% cess will be charged on above tax.(a) In the case of a resident woman below the age of sixty years, the basic exemption limit is Rs 2,50,000

b) In the case of a resident individual of the age of sixty years or above but less than eighty years, the basic exemption limit is Rs 2,50,000

(c) In the case of a resident individual of the age of eighty years or above, the basic  exemption limit is Rs 500,000

(d) Surcharge is not applicable, education cess of 3% on income-tax is levied

(e) Marginal relief may be available

Capital Gains

 Particulars Short-term capital gains tax rates (a) Long-term capital gains tax rates (a)
Sale transactions of equity shares / unit of an equity oriented fund which attract STT 15% Nil
Sale transaction other than mentioned above:
Individuals (resident and non-residents)Progressive slab rates 20% with indexation; 10% without indexation(for units/ zero coupon bonds)
 Firms including LLP (resident and non-resident) 30% 20% with indexation; 10% without indexation(for units/ zero coupon bonds)
Resident Companies 30% 20% with indexation; 10% without indexation(for units/ zero coupon bonds)
 Overseas financial organizations specified in section 115AB 40% (corporate) 30% (non-corporate) 10%
 FIIs 30% 10%
 Other Foreign companies 40% 20% / 10%
 Local authority 30% 10% without indexation(for units/ zero coupon bonds) / 20% (for others)
 Co-operative societyProgressive slab rates 10% without indexation(for units/ zero coupon bonds) / 20% (for others)

(a) These rates will further increase by applicable surcharge & education cess.

Eligible Investments for deduction under Sec 80C>Public Provident fund PPF upto Rs 100000 p.a -It is recommended investments are made in this avenue, before the 3rd of any month, to ensure, compounding is available for the full month, since calculations are made for interest on the balance lying in the account within the 3rd day of any month for the full month. This option provides for safe and guaranteed returns and a small allocation of savings for tax must be made in this, especially for retirement benefits.
>Equity Linked Savings Scheme (ELSS) in mutual funds. This option provides for market linked returns with a 3 yr lock in period. This is a liquid option and provides for high return with a corresponding higher risk proposition.

>Post Office investments- These investments have lost their attractiveness since the returns have reduced and the same is taxable. The lock in periods in these schemes also are high.

>Principal component of Home loan. The principal component of EMI in the home loan is eligible for deduction upto Rs 100,000 under Sec 80C.

>Tuition fees for child education. This is allowed as an exemption upto a maximum of 2 children.

>Five year fixed deposit in a scheduled commercial bank.

>Other eligible investments under Sec 80C.

>Senior Citizen Savings Scheme 2004- This option has recently been introduced as a savings option . The interest is taxable.

>Employee Provident Fund (EPF) This is the employee contribution made to the provident fund of 12% of Basic and DA. The rate of interest is 8.60% p.a. Only the employees contribution is eligible for tax deduction benefit. Although the employer contributes a similar amount to the EPF fund.

>Voluntary Provident fund: This option is available to salaried individuals who can invest upto the balance  88%(100-12% EPF) of their salary towards VPF. With the new DTC coming in, the amount on withdrawal maybe subject to TDS.

>Life Insurance and ULIP plans-This is an option for persons who would like to save in insurance.

>Pension plans- This is a must for planning for the long term. The younger you are, the lower would be your outflow for a retirement plan. Also, since retirement planning is the longest plan to be planned for which considers pre and post retirement interest rate and inflation rate, this goal must be planned for everyone. Therefore, any contribution made to these plans, is eligible for tax deduction under Sec 80C upto Rs 100000.

>Please note for Salaried Individuals, additional tax benefit can be sought through the following components of the Salary Structure:

1.HRA Deduction.
2.Conveyance Deduction.
3.Medical Benefit Deduction.
4.Leave Travel Allowance Deduction.
Therefore, the above deductions, can help reduce taxable income of an individual to a large extent.
In addition to the above, it is important to plan for your goals, and structure your savings accordingly. A Certified Financial Planners in Bangalore can help you on the same.

For more details visit: www.dilzer.net

Types of tax benefits available for home loan purchase

A home is a ‘once-in-a-lifetime’ investment for many of us. It is natural that we want to make it as big and better as practically possible. But the shooting cost of property nowadays makes it difficult to acquire your desired property. No doubt, having the possibility of availing a home loan has improved affordability. It is difficult to buy a dream house entirely with our savings.  Availing a home loan not only increases our affordability but also give us a huge savings in our tax liability too.  The home loan is one of the most efficient tax saving instrument, which not only helps us to acquire an asset, but also gives the tax benefit on the principal as well as the interest amount we re-pay to the loan. There is no other loan like home loan which gives this much of tax befit to an individual, especially to the salaried class.

So, let’s look at what are the tax benefits an individual can enjoy by availing the home loan.

Tax Benefit on home loan

Our government has always shown a great inclination to encourage citizens to invest in house. Many schemes like Pradhan Mantri Awas Yojana are flashing green light on the Indian housing sector by striving to bring down the issues of affordability and accessibility. And when you buy a house on a home loan, it comes with multiple tax benefits too that significantly reduce your tax outgo since home loan is eligible for tax deduction under different sections of Income Tax Act (IT ACT). The tax benefit from a home loan can be availed in two ways:

  • Tax benefit on the registration fee and principal repayment
  • Tax benefit on the interest paid

Tax benefit on registration and principal repayment. Under Sec (U/S) 80C

On the registration of the property: – Whenever you buy a property, it has to be registered in your name to transfer the rights of the property from the builder/seller to you. For registering a property in India, you have to pay a certain percentage of the value of the property to the government as the stamp duty and certain expenses in respect of the registration. Stamp duty & registration charges and other expenses which are directly related to the transfer are allowed as a deduction under Section 80C. The maximum deduction amount allowed under this section is capped at Rs.1,50,000. This deduction can only be claimed in the year the actual payment is made towards these expenses. If you buy the property on 15th Dec 2017, then you can claim this deduction U/S 80c only in the FY 2017-18.

The principal Repayment:-  As a home loan buyer, Sec 80C can bring you relief as you are required to pay hefty Equated Monthly Instalments (EMI). The EMI paid by you every month has two components – principal and interest. The principal portion of the EMI paid for the year can be claimed as a deduction from gross total income under section 80C before calculating the net taxable income. The maximum amount that can be claimed is up to Rs 1.5 lakh. One can get a loan certificate from the lending bank’s branch or go online. The certificate will show how much of the total EMI paid in a year was repayment of the principal amount borrowed.

But Sec 80C (5) also states that in case the assesse transfers the house property, on which he has claimed tax deduction under Section 80C, before the expiry of 5 years from the end of the Financial Year in which the possession has been obtained by him, then no deduction and tax benefit on Home Loan shall be allowed under Section 80C.

Tax benefit on interest paid U/S 24 of IT Act

The interest payment towards the home loan usually arises in two situations

Pre-construction:- When you pay the interest only on the home loan when the property is under construction.

Post-construction:- When you pay the interest along with the regular EMI after the completion of the property.

Pre-construction (Under construction):- This is the time when your property is under construction and you pay only the interest for the portion of loan you have availed. This is otherwise called as Moratorium period in the loan terms.  The interest paid during this period cannot be claimed for tax deduction on that Financial Year (FY). But, your eligibility to claim interest on the home loan as a deduction begins only upon completion of construction or immediately if you buy a fully constructed property. The income tax law provides deduction for such interest in five equal instalments starting from the year in which the property is acquired or construction is completed. The maximum eligibility remains capped at Rs.2 lakh per FY.

Post-construction: The income tax act provides tax deduction on the interest portion of your EMI which you pay towards your home loan. The interest portion of the EMI paid for the year can be claimed as a deduction from your total income up to a maximum of Rs.2 lakh under Section 24. For Assessment Year 2018-19, maximum deduction for interest paid on Self Occupied house property is Rs.2 Lakh. In case of a let out property, there is no upper limit for claiming interest. For claiming this benefit, the loan must be taken for the purchase/construction of a house and the construction of the house must be completed within 5 years from the end of financial year in which loan was taken. You can claim this deduction for interest repayment on loans taken from anyone provided the purpose of the loan is purchase or construction of a property. You can also claim deduction for money borrowed from individuals for reconstruction and repairs of property. It does not have to be from a bank. “For tax purposes, the loan is not relevant, the usage is”. This Deduction can be claimed from the year in which construction of the house is completed.

Other Deductions

Further deduction on Home loan interest on Sec 80EE

The Section 8EE of the income tax provides the first time home buyers a further deduction of Rs.50000 in a FY over and above Sec 24 towards the interest payment on home loan EMI. The section also says that the deduction will be available only if the individual met the following conditions.

  • This is the 1st house you have purchased
  • Value of this house is Rs 50 lakhs or less
  • Loan taken for this house is Rs 35 lakhs or less
  • Loan has been sanctioned by a Financial Institution or a Housing Finance Company
  • Loan has been sanctioned between 01.04.2016 to 31.03.2017
  • As on the date of sanction of loan no other house is owned by you

Tax deduction on the home loan processing fee

As per the income tax law, the processing charges paid for the home loan are considered as interest and therefore deduction on the same can be claimed. “Under the Income Tax Act, Section 2(28a) defines the term interest as ‘interest payable in any manner in respect of any money borrowed or debt incurred (including a deposit, claim or other similar right or obligation)’. This includes any service fee or other charge in respect of the loan amount. 

All deduction at a glance

Tax benefit on Home loan for joint owners

If you have purchased the property jointly, the co-owners can claim these expenses in their respective income tax returns based on their share in the property. Each of the loan holders can claim a deduction for home loan interest up to Rs.2 lakh each under sec24 and principal repayment under sec 80C up to Rs 1.5 lakh each in their individual tax returns. To claim this deduction, they should also be co-owners of the property taken on loan. So, loan taken jointly with your family can help you claim larger tax benefit.

For Eg:-Mr. Sharan Shetty have taken a home loan of Rs. 35,70,000 along with his wife Gauri. When they generate the home loan statement for the FY2017-18, the total principal payment towards home loan amounted Rs.71051 and the interest amounted Rs.300724. For this financial year along with above they have a pre-construction interest of Rs. 55565 also. The property is owned jointly with 50% ownership each.

The following are the deductions available while computing the income tax.

The total deduction availed by both of them jointly is Rs. 427340. In the same case if Sharan was the only owner then the maximum deduction they can avail will be limited to Rs. 271051. So, it will be better if you can avail the home loan jointly and if the co-owner is a women you will get interest reduction also.


Once the loan is fully paid and the borrower gets the complete ownership, it becomes an asset that can help to guard from future troubles. So, now a days investors started seeing home loan not only as a loan but also as a great tool to create asset and save tax on his hard earned money.





Tax Benefit on Home Loan: Section 24, 80EE & 80C















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Ishq 104.8FM

Have a family Budget in place? Here are some heads you need to delve into to get it right.

Is your WILL ready? Learn about what needs to be done

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Product Categorization

Product Categorization as per SEBI Rule – Research Desk Dilzer. Dear Clients some of your schemes have undergone product categorization changes. We are aware of this change and will need to see if firstly there is a category and attributes change in the scheme and also monitor its performance and suggest changes if it does not fall in line with the stated objective, and your goals.  We will revert to you individually should there be a change after monitoring the scheme attributes.


Dilzer Research Desk

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Difference between Portfolio Evaluation and Portfolio Re-Balancing

Once you’ve thought about your goals, considered your time horizon and risk tolerance, researched your options and made your investments. Now you can just sit back and relax, right? Not so fast. In order to maximize the performance of your investments (both individually and across the board) and ensure you’re staying on track with your specific goals, you need to monitor your portfolio – making changes and reallocation is needed.

Portfolio Evaluation

A typical portfolio evaluation will have the below parameters-

1. Risk Profile and Asset Allocation – Evaluate if your portfolio will be – Conservative / Moderate / Aggressive based on the asset mix and proportions.
2. Portfolio Risk-Return against benchmark – Analyse your current portfolio mix across asset classes – Debt / Equity / Cash / MF / Alternate. The returns on a portfolio should be evaluated with the risk associated with the investments. It is obvious to expect higher returns from a riskier portfolio. Compare your risk return with a similar product of similar allocation mix. Compare the Standard Deviation of your risk to the Standard deviation of a market standard product.
3. Historical return of Portfolio – Individually and collectively as an asset class, compile and compare the returns of investments over the same time frame. Returns of each stock and also as a part of an asset class / sector is examined.
4. Stock Portfolio Diversification Risks – Is an analysis of the Diversification of your portfolio and tests if the portfolio is on the efficient frontier. Diversification reduces the company specific risks in your portfolio.
Using Mean Variance Optimization ( MVO ) or the Sharpe Ratio . Generally, the greater the value of the Sharpe ratio, the more attractive the risk-adjusted return.

Sharpe ratio = (Mean portfolio return − Risk-free rate)/Standard deviation of portfolio return
Treynor Ratio = (Average Return of a Portfolio – Average Return of the Risk-Free Rate)/Beta of the Portfolio.

Portfolio Rebalancing

So you’ve established an asset allocation strategy that is right for you, but at the end of the year, you find that the weighting of each asset class in your portfolio has changed. What happened?

Over the course of the year, the market value of each security within your portfolio earned a different return, resulting in a weighting change. Portfolio rebalancing is like a tune-up for your car: it allows individuals to keep their risk levels in check and minimize risk.

The optimal frequency of portfolio rebalancing depends on your transaction costs, personal preferences, and tax considerations—including what type of account you are selling from and whether your capital gains or losses will be taxed at a short-term versus long-term rate.

Usually, about once a year is sufficient; however, if some assets in your portfolio haven’t experienced a large appreciation within the year, longer time periods may also be appropriate.

Additionally, changes in an investor’s lifestyle may warrant changes to his or her asset-allocation strategy.

Rebalancing your portfolio will help you maintain your original asset-allocation strategy and allow you to implement any changes you make to your investing style. Essentially, rebalancing will help you stick to your investing plan regardless of what the market does.

A good rule of thumb is that you check your portfolio once each year to rebalance it and stay in line with your target asset allocation.




Sneha Ramamurthy

Dilzer Consultants Pvt Ltd















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Analysis of Dividend Payout vs Systematic Withdrawal Option

Please find our in-house analysis of Dividend vs Systematic Withdrawal Option as per the new tax regime effective Budget 2018.

IN the below analysis a real life example of a funds Net Asset Value, Dividend paid and Growth is assumed. In the Dividend Payout illustration, dividends paid out are assumed after DDT in the new tax regime. In the SWP illustration, a fixed withdrawal is assumed and capital gains under the new regime (FY18-19) is considered.


Under the new tax regime LTCG rate of 11.96% or 11.44% & DDT rate 11.648% are almost similar, hence the post tax returns are also almost similar- assuming similar cash flows are considered in both the situations.


Geeta C and Dilzer Research Team.

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How often is portfolio evaluation needed

The portfolio performance evaluation primarily refers to the determination of how an investment portfolio has performed relative to its comparison benchmark in the specified category. The evaluation can indicate the extent to which the portfolio has outperformed or under-performed, or whether it has performed at par with the benchmark.

What is a Portfolio?

A combination of various investment products like bonds, shares, securities, mutual funds and so on is called a portfolio.
In the current scenario, individuals hire well trained and experienced portfolio managers who as per the client’s risk-taking capability combine various investment products and create a customized portfolio for returns in the long run.
It is essential for every individual to save some part of his/her income and put into something which would benefit him in the future. A combination of various financial products where an individual invests his money is called a portfolio.

What is Portfolio Evaluation?

The art of changing the mix of securities in a portfolio is called as portfolio evaluation.
The process of addition of more assets in an existing portfolio or changing the ratio of funds invested is called as portfolio revision. The sale and purchase of assets in an existing portfolio over a certain period to maximize returns and minimize risk is called as Portfolio evaluation.
The evaluation of portfolio performance is important for several reasons. First, the investor, whose funds have been invested in the portfolio, needs to know the relative performance of the portfolio. The performance review must generate and provide information that will help the investor to assess any need for rebalancing of his investments. Second, the management of the portfolio needs this information to evaluate the performance of the manager of the portfolio and to determine the manager’s compensation, if that is tied to the portfolio performance.

Why is portfolio evaluation needed?

Evaluation of the performance measurement is necessary for investors and portfolio managers both. However, the need for evaluating may be different for these two sets of people. Performance evaluation also shows the areas of effectiveness as well as improvements in the investment scheme. Some of the benefits for evaluating the portfolio performance include the following:

The return performance of the investment over time (performance measurement)
How the observed performance is attained (performance attribution)
If the performance is due to investment decisions (performance appraisal)

An individual at certain point of time might feel the need to invest more. The need for portfolio revision arises when an individual has some additional money to invest.
Change in investment goal also gives rise to revision in portfolio. Depending on the cash flow, an individual can modify his financial goal, eventually giving rise to changes in the portfolio i.e. portfolio revision.
Financial market is subject to risks and uncertainty. An individual might sell off some of his assets owing to fluctuations in the financial market.

Methods of portfolio evaluation
There are two broad categories of portfolio performance evaluation methods:

1. Conventional Method

The conventional method of performance evaluation doesn’t take into account the risks taken by the portfolio manager. In this method, the performance of a portfolio is evaluated by comparing the portfolio returns to the returns of a benchmark, which can be a market index, such as S&P 500, or another similar portfolio.
Comparing only the returns, your portfolio has given better returns (20%) than the market index, which gave 15%, irrespective of the fact that it had higher risk than the market.

2. Risk-adjusted Methods

In these methods, the returns of the portfolio are compared to the returns of the benchmark, considering the difference in their risk levels. The most common methods to do this are:
Sharpe Ratio
The Sharpe ratio is defined as the risk premium of the portfolio per unit of total risk in the portfolio. Risk premium calculated by subtracting risk-free returns from the portfolio returns. The risk-free returns are measured as the risk-free interest rate of Treasury bonds.
Treynor Ratio
The Treynor ratio of a portfolio is calculated by dividing the risk premium by the systematic risk of the portfolio. It assumes that no diversifiable risk is present in the portfolio.

Here are 5 tips on evaluating your investment portfolio performance-

1) Review your present net worth and particularly, the value of your investment portfolio regularly. Knowing where you stand is the first step to gauging how well you’re doing overall.

2) Check how your portfolio is doing against its benchmarks. With the markets, everything is relative. You’re doing very well if you’re investments are performing at least as well as their respective indexes. Check each of the asset classes that are represented in your portfolio and see how they’re doing against their comparative index and if there are discrepancies, figure out why!

3) Compare the individual investments in your portfolio against their peers in the same asset class. Each of your funds or stocks is part of a bigger universe of like investments. Compare how your individual fund or stock is behaving relative to other funds or stocks that are in the same industry or sector. You’ll have to be careful about comparing apples to apples though, but if you note some glaring differences or a pattern of underperformance, it may be time to do some switching.

4) Ensure that your investments remain on target according to your established goals. Evaluate how each investment is doing and confirm its place in your overall plan. Since our lives shift and turn with the years, it is also quite possible that our investments may need to be revisited and perhaps adjusted accordingly.

5) Make the necessary updates and tweaks to your portfolio on a regular basis. If need be, take action and do the necessary work to readjust your portfolio. If your portfolio has shifted from its desired allocation, or your life plan has put a monkey wrench on your financial picture, then make the changes.

Dilzer Consultants Pvt Ltd



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Plan ICICI Lombard Home Insurance Policy HDFC Ergo Home Insurance Bajaj Alliance my Home Insurance Plan TATA AIG Insta Choice United India 
Protection  Structure & Contents Structure & Contents Structure & Contents Structure & Contents Structure & Contents
Coverage The policy covers losses to the structure and content of your home, that might occur due to a number of natural and/or man-made calamities like fire and special perils like missile testing and explosion, earthquakes, storm, theft and burglary. Fire & allied perils and Burglary including theft and larceny under one policy. Covers risk against Fire, Lightning, Explosion, Implosion, Flood, Inundation, Storm, Riot, Strike, Earthquake, Terrorism (optional), Burglary, Theft and, Larceny Loss or damage to content, Loss or damage to portable equipment anywhere in India, Loss or damage to jewellery and valuables, Loss of or damage to “curios, works of art and paintings” whilst stored or lying in your Building  Offers a burglary cover for jewellery, Covers domestic appliances as old as 8 years making it an instant hit amongst home owners and non-owners alike, fire and special perils Any loss/damage to the building and its contents, jewelry and valuables, domestic appliances such as TV, VCR, audio systems or PC, baggage while on travel, 
Additional coverage If you are forced to shift into an alternative accommodation because your home is destroyed or damaged by any insured peril, the policy will cover your additional rent expenses. The maximum coverage is upto ` 1 lakh, for upto 6 months. This cover is available only if you are insuring the structure of your home. Terrorism Loss of Rent Cover, Temporary Resettlement cover, Key and Lock Replacement cover, ATM withdrawal Robbery cover, Lost Wallet cover, Dog Insurance cover, Public Liability cover, Employee’s Compensation cover Rent for alternative accommodation, Public Liability, Baggage Loss, Breakdown of Domestic Appliances, Personal Accident, Purchase protection Additonal cover for accidental injury causing death/disability, liability to third parties due to injury to third party or damage to third party property
How is Sum insured of structure determined  The sum insured is calculated by multiplying the built up area of your home with the construction rate per sq. feet Property valuation is done by multiplying the built up area of the property with the cost of construction per square feet. Agreed Value Basis: Under this method, the insured can cover the structure of their property on the value they and the insured agree upon which could be higher than the market value. This is applicable only for structure and not content. Reinstatement Value Basis: If the insured decides to purchase the House Insurance policy under reinstatement value basis, there will be no depreciation imposed at the time of claim and the insured will be paid the total cost of replacement depending on the sum insured. This is applicable only for structure and not content. Reconstruction Cost No specific information available
How is Sum insured of content determined  The contents of your home – furniture, durables, clothes, utensils, jewellery, etc., is to be valued on market value basis, that is the current market value of similar items after depreciation. Market Value Indemnity Value Basis: Indemnity value basis, commonly known as market value basis is a method used to insure structure that considers the depreciation amount as per the age of the building, at the time of claim. New for old basis: When this method is chosen for insuring content, the item damaged beyond repair will be replaced with a new one or the insurer will pay out the cost for replacement of the item in full, regardless of its age. Market Value No specific information available
Age limit of Property buildings not more than 50 years old on a case-to-case basis 40 years Any flat/apartment/independent building which is more than 30 years old and which is of kutcha construction No specific information available No specific information available
Discount on premium 3 year and 5 year cover with 15% and 25% discount respectively Discount up to 25% and additional 15% discount for security features under Burglary section You get to avail upto 20% discount on the total premium. Discount percentage is calculated according to the tenure years of the policy No specific information available No specific information available
Exclusions Willful destruction of property, Loss, damage and destruction caused by war, wear and tear etc Willful destruction of property, Loss, damage and destruction caused by war, wear and tear etc Misrepresentation, mis-description or non-disclosure of any material information, Damage which is pre-existing in nature (applicable to contents and building), Manufacturing defects in electrical, mechanical and electronic items, Contents and valuables of a flat/apartment/independent which is not occupied by a tenant for residential purpose Willful destruction of property, Loss, damage and destruction caused by war, wear and tear etc., First 250 for fire and special perils and burgalary loss occured while home is unoccupied War and war like perils, wear and tear depreciation consequential loss, nuclear group of perils, gross and willful negligence of insured, violation of policy conditions, loss/damage/liability where insured’s family or insured’s employee are involved as principal/accessory, intentional act/self-injury/ influence of drug/intoxicant.
Quotation  Policy sum assured : Rs 1,30,00,000 ( structure and contents)
Premium for all risks: 31,388 ( 1 year )
3 year premium : 80,039
5 year premium : 1,17,705
(Protection against Earthquake, Floods, Fire & allied perils, Cyclone, Storm,Terrorism, All Risk Jewellery cover)
Note: contents value cannot exceed 30 lakh of which jewellery is only 25%)
Policy sum assured : Rs 1,25,00,000 ( structure and contents)
Premium for all risks: 28,886 ( 2 years )
3 year premium : 37,977
5 year premium :57,348
(Protection against Fire, Lightning, Explosion, Riot, strike, malicious damage, Storm, Tempest, Flood, Inundation, Earthquake, Terrorism)
Note: contents value cannot exceed 25 lakh and  jewellery is covered only upto Rs 5 lakh
Policy sum assured : Rs 1,20,00,000 ( structure and contents)
Premium for all risks: 32,893 ( annual )
3 year premium : 79,678
(Protection against Fire, Lightning, Explosion, Riot, strike, malicious damage, Storm, Tempest, Flood, Inundation, Earthquake, Terrorism)
Note: contents value cannot exceed 20 lakh and  jewellery is covered upto Rs 5 lakh
NO QUOTE AVAILABLE ONLINE Policy sum assured : Rs 1,50,00,000 ( structure and contents)
Premium for all risks: 64,688 ( 1 year)
Premium for fire + theft: 20,700
Premium for fire: 6,900
Jointly Prepared by Members of Financial Planners Guild of India        

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Financial Independence

What is financial independence? While there are many opinions to this answer, basically, being debt free and creating a nest egg that will allow a person to live the rest of his/her life in comfort; forms the cornerstone of financial independence.  Everyone would love to live a life where they do things that they enjoy without having to work at a job only for the financial security it provides. The ability to support oneself financially without relying on a job while maintaining the same lifestyle as in the past is the key.

This is easier said than done. With easy access to credit cards and personal loans and the comfort of purchasing expensive products on EMI, remaining debt-free is a challenging task. Yet, many people do manage to achieve financial freedom with savings and investments that exceed any liabilities. But is that enough? To maintain financial independence, a financial plan is essential.

A financial plan that preserves one’s wealth earned should always include a mix of equities, bonds, gold and real estate, but in a judicious mix that does not blind one to risks of any one asset class.  Asset allocation also involves distributing assets taking into consideration not just the risk appetite, but also the overall financial goals. Age should also be a primary criterion while taking risky decisions since, the older one gets, the lesser the capacity to stomach a downturn. One other factor to keep in mind is the stability of income and its growth potential – a self-employed person needs to plough savings into less risky ventures since income levels may not be stable.

By ensuring not all wealth is in one asset class, we can hedge the risks of a class not providing adequate returns. In addition to risk being distributed, one also earn more if any one class performs superlatively. Asset allocation ensures the overall returns are superior than the rough ups-and-downs of investing in only one asset class.

In India, many people may start investing in equities, but invariably turn to the ‘safety’ of fixed deposits, gold or real estate to preserve wealth as they get older. However, these options may not be as safe as assumed. FD returns cannot match inflation growth and are taxed heavily, so real returns are low. Real estate rental yields are generally minimal, so it cannot be a source of wealth creation. . While a house is essential for security, keeping a majority of assets in an illiquid investment like real estate that cannot be divested very easily is not advised. Gold is another safe investment option for Indians but it is at best a wealth preserver and also a hedge against falling markets. Money invested in gold does not rise in value like equity, and a rise in gold value is always driven by a fear that other investments will fall Asset allocation should therefore also include a healthy mixture of equities since they are the best means to increase one’s wealth.










From the above table, we can see that equities have provided the best return in 2017, far above most other assets. In the long term, equity returns have averaged around 16% over the past 15 years exceeding other asset classes’ returns.


Our in house calculation of Returns from various asset classes and their co-relation over a 20-year period provides an in-depth analysis on performance of various asset classes. More Information here

What happens after the financial goals are achieved? What are the steps people take for preserving their hard-earned wealth? These are the questions that invariably follow.

The rich in India have three main goals in mind; to safeguard, preserve and grow wealth. While preservation happens through investing in debt instruments, the growth ensues through investing in businesses.

Creating a financial plan that allows people to prioritize wealth preservation should be the next action.  To safeguard the estate and ensure that the wealth accumulated is passed on to the next generation wisely is the idea that most wealthy people work toward.

Traditionally, people used to ”WILL” assets to the next generation, however, nowadays, wills are often contested by family members unhappy with the distribution of the assets. So, the wishes of the Testator are often ignored and family disputes become messy leading to legal cases.

One method to avoid this situation, is the creation of family trusts.. Family trusts help wealthy families ring fence their assets from future liabilities – by creating strict conditions under which assets are transferred and insulating them against legislations and taxation changes. A trust can protect assets from nasty divorce proceedings, bankruptcy filings or family disputes by allowing the settlor (or creator of the trust’s assets) to exercise control on how the assets are to be distributed.  When should one set up a Trust – More Here

Once assets are in the hands of the inheritors, often the sudden influx of wealth leads to impulsive and rash financial decisions.  If the capital inherited needs to be grown and nurtured to generate a steady income, then alternative investments are vital. These go beyond the usual equity and debt options to invest in other assets such as commodities, collectibles including works of art, vintage cars, or even race horses and sports teams. Other alternative investments can include close ended funds where the pooled resources are invested in startups, infrastructure or social ventures.

Family offices is another major trend. These are private wealth management arms of the wealthy, that deal with investments, succession planning, taxes and philanthropy. They invest a portion of the assets in alternative ventures like those mentioned above. In addition, assets may also be put into small, early-stage investments in start-up firms, or larger stakes in recognised businesses that are fast growing. Thus, wealth is not just preserved, but also increased.Family office is also involved with social investments such as charity which is often the next goal of the very wealthy after succession planning.

Philanthropy is a complex process as evidenced by the myriad efforts of Bill Gates. Wealthy people have plenty of options to help, but in India, this has been quite minimal due to a belief that the entire wealth has to be left for the next generation. Although this mindset has begun changing, philanthropy in India is mainly about opening educational or medical institutions than actually attempting to make a difference in specific areas. Still people like Azim Premji have begun making an attempt to shed these ideas and focus attention on philanthropy as the biggest goal.


Researched by

Neena Shastry

Dilzer Consultants Pvt Ltd

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Government Application papers- how to apply for aadhar and PAN Offline and Online procedure


The Aadhar card is a 12-digit unique-identity number issued by the Unique Identification Authority of India (UIDAI) to all the residents of India based on their biometric and demographic data.
The Aadhar is provided to all residents of the country – that is, they should have been resident in India for more than 182 days. This automatically means that Non-Resident Indians (NRI) are not eligible for the Aadhaar card if they have not stayed in India for 182 days or more in the last 12 months, preceding the date of application.

Procedure to apply for Aadhar
• Locate an Aadhar enrolment center by logging into https://appointments.uidai.gov.in/centersearch.aspx and search for the center closest to you
• Book an appointment online or visit the center directly with the required documents.

o The main documentation needed are copies of identification proof, address proof and proof of birth.

• The following are any of the documents that can be submitted as identification proof. These need to be in the correct name and contain a photograph.
1. Passport.
2. Ration card or PDS photo card.
3. PAN card.
4. Driving license.
5. Voter ID.
6. NREGS job card.
7. Government photo ID cards or PSU issued service photo identity card.
8. Arms license.
9. Photo ID issued by a recognized educational institution.
10. Photo credit card.
11. Photo bank ATM card.
12. Kissan photo passbook.
13. Pensioner photo card.
14. Freedom fighter photo card.
15. ECHS/ CGHS photo card.
16. Certificate of identity that has photo issued by gazetted officer or tehsildar on a letterhead.
17. Address card that has name and photo issued by the department of posts.
18. Disability ID card or handicapped medical certificate that is issued by the respective state or union territory government or administrators
• Apart from ID proof, one also needs to provide proof of residence though any of the following documents:
1. Bank statement or passbook.
2. Ration card.
3. Passport.
4. Post office statement or passbook.
5. Voter id.
6. Government photo id cards or PSU issued service photo identity card.
7. Driving license.
8. Water bill (not more than 3 months old).
9. Electricity bill (not more than 3 months old).
10. Property tax receipt (not more than 1 year old).
11. Landline telephone bill (not more than 3 months old).
12. Credit card statement (not more than 3 months old).
13. Signed letter with photo from the bank on a letterhead.
14. Insurance policy.
15. Signed letter with photo issued by a recognized educational institution on a letterhead.
16. Signed letter with photo and is issued by a registered company on a letterhead.
17. Arms license.
18. NREGS job card.
19. Pensioner card.
20. Kissan passbook.
21. Freedom fighter card.
22. Income tax assessment order.
23. ECHS/ CGHS card.
24. Certificate of address issued by the head of village panchayat or an equivalent authority
25. Certificate of address with photo issued by a MLA or MP or tehsildar or gazetted officer on a letterhead.
26. Vehicle registration certificate.
27. Registered lease/ sale/ rent agreement.
28. Caste and domicile certificate with photo issued by the state government.
29. Address card with photo issued by the department of posts.
30. Gas connection bill (not more than 3 months old).
31. Disability ID card or handicapped medical certificate issued by the respective state or union territory government.
32. Passport of parents
33. Passport of spouse.
34. Marriage certificate with address issued by the government.
35. Allotment letter of accommodation that is issued by the state or central government and is not older than 3 years
• Proof of birth is also necessary and some of the documents that can serve as proof of date of birth include
1. SSLC Book/Certificate
2. Passport
3. Certificate of Date of Birth issued by Group A Gazetted Officer on letterhead
4. PAN card
5. Mark sheets issued by Government Board or University
6. Government Photo ID Card
• Fill the enrollment form either by printing it from https://uidai.gov.in/resources/enrollment-docs/downloads.html or getting it from the enrollment center
• At the enrollment center your bio metrics – your fingerprints from all fingers of both hands, iris scan of both eyes and facial photograph – are taken.
• Once this is done, and the documents are submitted, you will get an acknowledgement slip of your enrollment which has a unique 14-digit enrollment number to help keep track of the application status.
• The data that you have provided will be confirmed and on successful verification, the Aadhaar number will be sent to your address through post. It can take up to 90 days for the Aadhaar card to be sent.
• You can also download your e-Aadhaar by clicking “Download Aadhaar” on https://uidai.gov.in . This document has the same validity as the printed version and can be used as a proof of identity.
How does one change details on the Aadhar card?
Nowadays the Aadhar has become essential to avail many essential services and errors on the card can lead to problems in linking to other databases or receiving facilities.

Some of the information that can be changed or corrected includes:
1. Name
2. Address
3. Date of Birth
4. Gender
5. Mobile number
6. Email Id
The following procedure details how to make corrections in the above fields of the Aadhar card.

Offline Method
• Go to the nearest Aadhar center and get a Aadhar card correction form.
• Fill the form and submit it along with the copy of the Aadhar card and some identity proof such as a PAN card.
• Give the required bio-metric details verification such as fingerprints and/or iris scan .
• An acknowledgment slip will be provided and changes will be made in a few days.
• An Aadhaar holder looking to correct or update the address though post can download the form from the UIDAI website and after making the required changes, post it along with the supporting documents to the following address:
Post Box No. 99
Banjara Hills
Hyderabad- 500034

• Login to the UIDAI updation website https://ssup.uidai.gov.in/web/guest/update with your Aadhar and the OTP sent to the registered mobile number
• Choose the field that needs updation
• Upload scanned copies of supporting documents
• Select BPO Service Provider and submit request
• You can check the updation status with the help of your Aadhaar and URN (Update Request Number).
Points to be noted regarding biometrics:
• If a child below the age of 5 has been enrolled for Aadhar, all biometric information has to be updated after the child turns 5 years. The card issued to such minor children will be blue in colour. The Aadhar number will however continue to be the same as before the re-enrollment.
• A child has to furnish all biometrics for updates when he/she reaches 15 years
• Residents are recommended updation of their biometric data every 10 years
Linking with other identity proof documents
The Aadhar card needs to be linked with various other government identifications, most importantly the PAN card, ration card etc.
In order to link Aadhaar with PAN, your demographic details should match. If there are differences in name, gender or date of birth, then the details need to get updated/ corrected in one of the ID documents before the linking is attempted.

How to link Aadhar with PAN card?

• Visit https://incometaxindiaefiling.gov.in/e-Filing/Services/LinkAadhaarHome.html and submit the correct PAN and Aadhar numbers along with the OTP to link the two identity documents
• The name, date of birth and gender will be validated across both documents and so needs to be identical.
• If the name has minor variations, a One Time Password will be sent to the mobile registered with Aadhaar. However, the gender and date of birth should be the same.
• A major difference in names means the two IDs will not be linked. In such a case, the name in one of the documents should be corrected before proceeding with the linkage.
• In case linking problems persist, one needs to contact the IT department helplines https://www.incometaxindia.gov.in/Pages/Tax-helpline.aspx
Permanent Account Number (PAN)
The PAN or Permanent Account Number, is a unique 10-digit alphanumeric identity issued by the Income Tax department of India to all tax payers. The PAN has been made mandatory for almost all financial transactions, so as to track taxable transactions.

Why Get a PAN?

Anybody who earns a taxable income in India or who needs to file a return, including foreign nationals and business entities must have a PAN card. PAN cards are mandatory for the following:
• Individuals whose total income exceeds the threshold amount which is not chargeable to tax.
• Charitable Trusts,
• Individuals carrying on any business or profession whose total sales, turnover, or gross receipts are or is likely to exceed Rs 5,00,000 in any financial year.
• For obtaining Import Export code by Importer/Exporter.
• Individuals who are entitled to receive any sum or income after deduction of tax at source (TDS).
• Individuals who intend to do specified financial transactions where PAN is compulsorily required such as purchase of real estate, gold or vehicles, investments in stocks or mutual funds, banking transactions such as opening a new account, availing loans or applying for credit cards.
• NRIs also need to apply for PAN if they fall into any of the above categories.
Procedure to apply for PAN Card
The income tax department allows PAN applications through two agencies: NSDL (National Securities Depository Ltd) and UTIITSL (UTI Infrastructure Technology and Services Ltd).
Procedure for PAN application
1. Form 49A is the application form for Indian citizens (to be filled online on the NSDL website at https://tin.tin.nsdl.com/pan2/servlet/NewPanAppDSCb) or on the UTIITSL website (https://www.myutiitsl.com/PAN_ONLINE/PANApp ) while 49AA is the form foreign nationals need to use ( fill online at https://tin.tin.nsdl.com/pan2/servlet/NewPanAppDSC ).
2. There are detailed guidelines available on the NDSL website on procedures to fill in the form
3. One can opt to submit all documents either physically, through E-KYC or E-sign methods.
4. Documents to be submitted with the forms include the following:

a. Proof of Identity (any of the following can be submitted)
i. Aadhaar Card issued by the Unique Identification Authority of India;
ii. Voter ID card;
iii. Driving License;
iv. Passport;
v. Ration card having photograph of the applicant;
vi. Arm’s license;
vii. Photo identity card issued by the Central Government or State Government or
viii. Pensioner card having photograph of the applicant;
ix. Central Government Health Service Scheme Card or Ex-Servicemen Contributory Health Scheme photo card
x. Certificate of identity in Original signed by a Member of Parliament or Member of Legislative Assembly or Municipal Councilor or a Gazetted officer
xi. Bank certificate on letter head from the branch (along with name and stamp of the issuing officer) containing duly attested photograph and bank account number of the applicant

b. Proof of Address (any of the following can be submitted)
i. Aadhaar Card issued by the Unique Identification Authority of India;
ii. Elector’s photo identity card;
iii. Driving License;
iv. Passport;
v. Passport of the spouse;
vi. Post office passbook having address of the applicant;
vii. Latest property tax assessment order;
viii. Domicile certificate issued by the Government;
ix. Allotment letter of accommodation issued by Central or State Government of not more than three years old;
x. Property Registration Document;
xi. Electricity Bill
xii. Landline Telephone or Broadband connection bill
xiii. Water Bill
xiv. Consumer gas connection card or book or piped gas bill
xv. Bank account statement
xvi. Depository account statement
xvii. Credit card statement
xviii. Certificate of Address in Original signed by a Member of Parliament or Member of Legislative Assembly or Municipal Councilor or a Gazetted officer,
xix. Employer certificate in original

c. Proof of Date of birth (any of the following can be submitted if they bear the name, date, month and year of birth of the applicant)
i. Aadhaar card issued by the Unique Identification Authority of India;
ii. Elector’s photo identity card;
iii. Driving license;
iv. Passport;
v. Matriculation certificate or Mark sheet of recognised board;
vi. Birth certificate issued by the municipal authority;
vii. Photo identity card issued by the Central Government or State Government or PSU;
viii. Domicile certificate issued by the Government;
ix. Central Government Health Service Scheme photo card or Ex-servicemen Contributory Health Scheme photo card;
x. Pension payment order;
xi. Marriage certificate issued by the Registrar of Marriages;
xii. Affidavit sworn before a magistrate stating the date of birth

d. For a company, trust, body of individuals, local authority or artificial juridical person all the relevant documents need to be submitted;
i. Copy of certificate of registration issued by the registrar of companies, firms, LLPs or cooperative society (competent authority)
ii. Partnership deed
iii. Trust deed

5. Under the E-sign facility, one is required to upload the photograph, signature (in black ink) and supporting documents in a prescribed format.
6. After the form is submitted along with all relevant documents, an acknowledgement with a unique 15-digit number will be displayed.
7. This acknowledgement should be printed, signed and affixed with 2 recent colour photographs and sent to NSDL within 15 days of online submission at

Income Tax PAN Services Unit,
NSDL e-Governance Infrastructure Limited,
5th floor, Mantri Sterling,
Plot No. 341, Survey No. 997/8,
Model Colony, Near Deep Bungalow Chowk,
Pune – 411016

The UTIITSL addresses are mentioned on their website https://www.myutiitsl.com/PAN_ONLINE/IPGguidelines.html

8. Payments
Payment can be either made online or a demand draft should be attached to the acknowledgement posted.
If communication address is within India, Rs 110 is the cost of the PAN card processing. Payments can be made by credit or debit card or net banking or DD while submitting the application online.
If communication address is outside India, Rs 1020 is the cost of processing the application and payments can only be made via credit/debit cards or through DD.
E-KYC Facility
While filling the PAN application form online, there are three options to choose from for submitting documents; submit digitally through e-KYC and e-sign, submit scanned images through e-Sign and forward application documents physically. The e-sign and manual processes have been described above, but if one has an Aadhar number, then the paperless option is the easiest way to file for a PAN.
The paperless facility is called e-KYC and e-sign where Aadhar details are used to authenticate the person’s identity. Here, one does not need to upload images such as photo, signature or other supporting documents since the Aadhar will be used to get this information.
The Aadhar will need to be authenticated via OTP sent to the registered mobile number and once this is done a receipt is generated. Take a print out of the receipt with the 15-digit acknowledgement number, sign it and send it to NSDL at the address mentioned earlier.
In case the authentication is not successful, post the acknowledgement receipt with signature, photographs, and a photocopy of the documents uploaded to NSDL within 15 days of online application.
How to make changes in the PAN?
In the past, many people simply used to apply for a new PAN if any corrections had to be made. However, it is illegal to have more than one PAN so an application for correction or reprint needs to be made on the NSDL website to correct the first PAN. One can surrender any new PANs by filling the correction form and mentioning all other PAN(s) that may have been allotted. The form https://www.onlineservices.nsdl.com/paam/endUserRegisterContact.html should be filled and relevant amendments to the data should be made if required.
The remainder of the process is the same as applying for a new PAN; i.e. online submission of the form along with the relevant documents, payment of the processing charges, and posting the acknowledgment.
If the old PAN has been lost or misplaced, then the same process can be followed for a reprint of the PAN. But first, the loss should be reported at a police station to safeguard against any misuse of the document.


Neena Shastry
Research Desk Dilzer Consultants Pvt Ltd



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Comparison between Exchange Traded funds (ETF) and Mutual funds

 Details ETF(Exchange Traded Fund) MF(Mutual Fund)
 Exit Load  ETFs do not charge exit load. Instead, investors pay broker commissions when they buy and sell share units of ETF. MF charge  Exit load.If redeemed before certain period the exit load is 1% before 1 year
Valuations ETFs trade throughout the trading day, like stocks mutual funds, trade only at the end of the day at the net asset value (NAV) price.
Basic Requirements You need to have Brokerage Account(DMAT)Account for ETF sell or Buy Offline or online option 
Regular Management Charges Investment management fees for exchange-traded funds (ETFs) are deducted by the ETF  company, and adjustments are made to the net asset value (NAV) of the fund on a daily basis. These management fees are never directly seen on any investor statements and are handled in-house by the fund company. Exp for ETF can vary from 0.1% to  1.5% A Mutual Fund’s Operational expense fees is knnown as the expence ratio.Exp Ratio in MF is predefined and communicated to Customers as follow: Upto 2.50%
  Details of Fees charged are: Details of Fee charged are:
  1: Trustee fee 1: Trustee fee
  2: Audit fees 2: Audit fees
  3: Custodian fees 3: Custodian fees
  4: RTA Fees 4: RTA Fees
  5: Marketing & Selling expense incl. agent commission 5: Marketing & Selling expense incl. agent commission
  6: Cost related to investor communications 6: Cost related to investor communications
  7: Cost of fund transfer from location to location 7: Cost of fund transfer from location to location
  8: Cost of providing account statements and dividend redemption cheques and warrants 8: Cost of providing account statements and dividend redemption cheques and warrants
  9: Costs of statutory Advertisements 9: Costs of statutory Advertisements
  10: Cost towards investor education & awareness (at least 2 bps) 10: Cost towards investor education & awareness (at least 2 bps)
  11: Brokerage & transaction cost over and above 12 bps and 5 bps for cash market transactions and derivative transaction respectively 11: Brokerage & transaction cost over and above 12 bps and 5 bps for cash market transactions and derivative transaction respectively
  12: Service tax on expenses other than investment and advisory fees 12: Service tax on expenses other than investment and advisory fees
  13: Investment Management & Advisory Fee 13: Investment Management & Advisory Fee
  14: Service tax on brokerage and transaction cost 14: Service tax on brokerage and transaction cost
  15: Other Expenses 15: Other Expenses
Cost Annually 0.1% to 1.5% Annually 1.0% to 2.5%
Fund Management Strategy There is not active investment management by Skilled fund manager as ETF replicates specific Benchmark and invest passively based on Benchmark There is active investment management by Skilled fund manager as a motive of MF is to outperform the market and invest actively based on In-house research and find objective
Suitability Suitable or short run investments so will  be able to save exit loads and will have good return trade-off Those who wish to remain invested for the long run
Performance Snap Reliance ETF Nifty BeES – Performance Snapshot as on Mar 05, 2018  
  Period Absolute Returns (%)
Here We are taking Large cap ETF ad Large Cap MF from the same AMC we can see the returns difference in MF and ETF get created due to active management…
1 week -2.1
1 month -2.7
3 months 2.6
6 months 4.5
1 year 17.9
2 years 41.4
3 years 19.4
5 years 82.5
Mirae Asset India Opportunities Fund – Direct Plan (G) – Performance Snapshot as on Mar 05, 2018  
Period Absolute Returns (%)
1 month -2.8
3 months 0.2
6 months 3.5
1 year 21.3
2 years 57
3 years 40.2
5 years 168.5
 Conclusion An investor who is looking for Active investment management and better returns in the long run Mutual fund is most suitable as the historical returns are better after all Management changes and Exp ratios are deducted. One condition is that before making MF investment be assured that you are selecting a good fund based on expert advice and that your advisor monitors the same for you.ETFs are suitable in a market condition where no one can outperform so one can  save expense charges from AMC and in short run load and fees.
Geeta Choudhary    
Para Planner – Dilzer Consultants Pvt Ltd  

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