Ask Money Today: How much should a 28-year-old invest for retirement, child education?
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Ask Money Today: How much should a 28-year-old invest for retirement, child education?
businesstoday.in - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from businesstoday.in Daily Mail and Mail on Sunday newspapers.
Suggested InvestmentHorizon: >3 years
Time taken to doublemoney: 1.1 Years
Chartered Accountant Naveen Wadhwa, DGM, Taxmann.com says, Section 80C allows deduction in respect of various investments such as a subscription to units of ELSS, ULIPs, etc. The Indian Stamp Act provides for the levy of stamp duty at the rate of 0.005% on purchase of units. If an investor is investing Rs 50,000 then stamp duty of Rs 2.5 shall be levied, and a balance amount of Rs 49,997.5 will be invested in the units. The provision is silent whether the amount of deduction under Section 80C shall be arrived at before excluding or after excluding the stamp duty. It is advisable to claim the deduction for the net amount, that is, after excluding the stamp duty.