CA Kanchan Gupta (Business Advisor) on LinkedIn: Let's compare MF, an index fund, and an ETF using a practical example from… (2024)

Did you know that if you've received dividend income, you can deduct interest expenses incurred in tax calculation to earn that income?Deduction is allowed, but with some limitations.You can deduct interest expenses, but this deduction is capped at 20% of the dividend income received. However, no other expenses, such as commission or salary incurred in earning the dividend income, are deductible.Example:Let’s say Ms. Priya borrowed money to invest in equity shares and earned ₹8,000 as dividend income during FY 2023-24. She also paid ₹3,000 in interest on the borrowed amount.- Dividend Income: ₹8,000- Interest Paid: ₹3,000In this scenario, Ms. Priya can only deduct up to 20% of her dividend income:- 20% of Dividend Income: 20% of ₹8,000 = ₹1,600Therefore, although she paid ₹3,000 in interest, only ₹1,600 is allowable as an interest deduction from her taxable income. Other expenses like commission or salary related to earning the dividend income cannot be deducted.

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I’ve been thinking a lot about how content creation on YouTube has evolved. It’s not just about getting millions of views anymore—there’s so much more that goes into how YouTubers actually make a living.Ofcourse, ad revenue is a big part of it, but that’s just the beginning. Many YouTubers are making serious income through sponsorships and brand deals. These partnerships can be game-changers, especially if the creator has built a strong, engaged community.Then there’s merchandise. I’ve seen YouTubers launch everything from t-shirts to full-blown product lines. It’s amazing how a simple idea can turn into a thriving business.Affiliate marketing is another big one—promoting products and earning a commission on sales. It’s a win-win for both creators and brands.Platforms like Patreon, where fans can directly support their favorite creators. It’s incredible to see how communities rally around the content they love.Lastly, YouTube Premium is another revenue stream that often flies under the radar. Creators get a share of the subscription revenue based on how much their content is watched by Premium members.It’s clear that making money on YouTube requires creativity, strategy, and a deep understanding of your audience. It’s not just a hobby—it’s a full-fledged career path for many.#linkedin #YouTube #ContentCreation #DigitalBusiness #SocialMediaMonetization #PersonalGrowth

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🎯 Simplify Your Finances: Take the Quiz!Are you ready to take control of your finances? Answer these quick questions, and I’ll guide you to the tips that will help simplify your financial life.1. Do you have multiple bank accounts?Yes: Consider consolidating your accounts to simplify tracking. Contact your bank to merge unnecessary accounts into one primary account.No: Great! Keeping things simple is key. Let’s move on to the next question.2. Do you automatically save a portion of your income?Yes: Fantastic! Automating savings is a smart way to ensure consistency. Keep it up!No: Set up an automatic transfer from your checking to your savings account on payday through your bank’s online portal.3. Do you know where your money goes each month?Yes: Awesome! Tracking your expenses helps you stay in control. How about reviewing them regularly?No: Download a budgeting app like Mint or YNAB, or use a spreadsheet to categorize your expenses over the past month.4. Do you have high-interest debt?Yes: Focus on paying down that debt first to save money. List all your debts, prioritize them by interest rate, and allocate extra funds to the highest one.No: That’s excellent! Debt can be a burden, and avoiding high-interest debt is a big step towards financial freedom.5. Do you have an emergency fund?Yes: You’re ahead of the game! Maintaining an emergency fund is crucial. Keep building it as your expenses grow.No: Start by setting a goal to save Rs.10,000 over the next three months. Automate contributions to reach this goal.6. Are you investing in a diversified portfolio?Yes: Good work! Diversification reduces risk. Consider low-cost index funds or ETFs if you haven’t already.No: Review your current investments and consider reallocating to simpler options. Consult with a financial advisor if needed.7. Do you regularly review your financial status?Yes: Excellent habit! A monthly “money check-in” is crucial to stay on track.No: Schedule a monthly “money check-in” on your calendar to review your budget, track progress, and adjust as needed.8. Do you have any subscriptions you rarely use?Yes: It’s time to declutter! Review your last three months of bank statements, identify recurring charges, and cancel subscriptions you don’t need.No: Great! Keeping only the essentials is a good way to manage your expenses.9. Are your bills paid automatically?Yes: You’re doing a great job! Automating bill payments avoids late fees and stress.No: Set up automatic payments for all regular bills like utilities, rent, and credit cards through your bank’s online system.Some More tips:1. Implement a “No-Spend Day” Each Week2. Use a Password Manager3. Use Cash for Discretionary Spending4. Review Your Insurance PoliciesLet’s connect and discuss more strategies for financial success! 🌟#FinanceTips #MoneyManagement #FinancialFreedom #PersonalFinance#FinancialPlanning #ActionableSteps

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Understanding when, for what purpose, and where to save versus invest is essential for effective financial planning.When: Savings are ideal for short-term goals, such as building an emergency fund or planning for a major purchase within a few years. Investing, on the other hand, is better suited for long-term goals like retirement or growing wealth over a decade or more.For: Save for immediate needs and security—emergency funds, vacations, or upcoming expenses. Invest for wealth creation, retirement, and achieving financial independence.Where: Save in high-yield savings accounts, money market accounts, or certificates of deposit for safety and liquidity. Invest in a diversified portfolio of stocks, bonds, ETFs, or mutual funds to balance risk and return over time.Balancing both strategies allows you to navigate financial uncertainties while building wealth for the future.If you found this helpful, feel free to repost and share with your network for more insights on financial planning and investing.#SavingVsInvesting #FinancialPlanning #WealthManagement #SmartInvesting #PersonalFinance #FinancialGoals #MoneyManagement #InvestWisely #Savings #FinancialLiteracy

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What Is Salary Sacrifice and How Can It Help You?Salary sacrifice might sound complicated, but it’s really just a way to use your pay more wisely. Here’s how it works and how it can benefit you:Simple Tips:1️⃣ Save on Taxes: Salary sacrifice lets you take part of your salary before tax and use it for things like extra superannuation (retirement savings), a car lease, or health insurance. Since this money is taken out before taxes, you end up paying less tax overall.2️⃣ Know the Trade-Offs: While this can save you money on taxes, it might slightly reduce other benefits like overtime or leave pay. It’s important to know how it will affect your total pay package.3️⃣ Get Advice: Talk to a financial advisor to see if salary sacrifice makes sense for you. They can help you figure out the best way to use it.What You Can Do:1️⃣ Check with HR: Ask your HR team what salary sacrifice options are available to you.2️⃣ Do the Math: Look at how much you could save in taxes and if it’s worth it.3️⃣ Plan Ahead: Decide how much of your pay you want to put towards salary sacrifice and for what benefits.Why It’s Good for You:1️⃣ Pay Less Tax: By reducing your taxable income, you keep more of your hard-earned money.2️⃣ Boost Your Savings: Extra contributions to your superannuation can add up over time, helping you save more for the future.3️⃣ Customize Your Benefits: Salary sacrifice lets you choose benefits that matter to you, giving you more control over how you use your salary.Salary sacrifice is a smart way to make the most of your earnings. Are you taking advantage of it?#SalarySacrifice #SaveMoney #FinancialTips #EmployeeBenefits

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If you’ve transferred money to the wrong UPI ID, you can take the following steps to recover it:1️⃣ Check the UPI App: First, confirm if the payment has been credited to the wrong account. If it’s still pending, you might be able to cancel it.2️⃣ Contact the Recipient: If the money was sent to a known person by mistake, contact them directly and request a refund.3️⃣ Raise a Complaint with Your Bank: Contact your bank's customer service and report the incorrect transaction. Provide details such as the transaction ID, date, time, and the incorrect UPI ID.4️⃣ Lodge a Complaint with NPCI: If your bank is unresponsive, you can escalate the issue to the National Payments Corporation of India (NPCI). They can assist in resolving the matter.5️⃣ File a Complaint with the Ombudsman: If the issue isn’t resolved through the above steps, you can approach the Banking Ombudsman, who can take up the matter with the bank.Always double-check the UPI ID before confirming any transaction to avoid such errors.🔁 Repost this to spread the word.💬 Have you ever faced this situation? Share your experience in the comments below!

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We often hear that investing 15-20% of your income is a good rule of thumb. But what if we flipped the script? Rethinking Monthly Investments: Beyond the 20% RuleInstead of focusing on a percentage, consider the following unconventional approach:🟣👉 Invest in Line with Your Ambitions: What are you truly aiming for? Start by quantifying your dreams—whether it’s retiring early, starting a business, or achieving financial independence—and reverse-engineer the amount you need to invest monthly to get there.🟤👉Seasonal Investment Strategy: Life isn’t static, and neither should be your investments. Consider aligning your investment contributions with the seasons of your life. For instance, you might invest heavily in the early stages of your career, moderate during mid-life as expenses peak, and then ramp up again as retirement nears.🔵👉Investment as Self-Care:Instead of viewing investment as purely financial, think of it as a form of self-care. Just as you allocate time and resources to physical and mental well-being, allocate a portion of your earnings to future-proofing your life. This perspective shift can make investing feel more like a personal commitment rather than a financial chore.⚫👉Automate and Forget:Set up automatic investments and allow them to grow silently in the background. This "set it and forget it" strategy can reduce the emotional stress of market fluctuations and keeps your financial goals on track without constant tinkering.The key takeaway? There’s no single path to financial security. It’s about finding a strategy that aligns with your life, your values, and your unique goals. How are you tailoring your investment strategy to fit your life’s bigger picture?#InvestmentStrategy #FinancialGoals #WealthBuilding #PersonalFinance #SmartInvesting #FinancialIndependence #LongTermWealth #FinancialPlanning #FutureProof #WealthMindset

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