Union Budget 2024-25: Key Highlights
Union Budget 2024-25: Key Highlights
Budget Day is a highly anticipated event in India, drawing significant interest from both businesses and the general public, eager to learn about the schemes and initiatives that could offer them benefits. It marks a pivotal moment for India's economic trajectory.
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The Finance Minister has outlined several changes to the tax code with the goal of simplifying the overall tax structure. These modifications include:
Those opting for the new tax regime can save up to ₹17,500 as per the revised tax structure. Below are the revised tax slabs under the new tax regime:
Income Slab FY 2023-24 Tax Rates Income Slab FY 2024-25 Tax Rates
0 - 3 lakhs Nil 0 - 3 lakhs Nil
3 - 6 lakhs 5% 3 - 7 lakhs 5%
6 - 9 lakhs 10% 7 - 10 lakhs 10%
9 - 12 lakhs 15% 10 - 12 lakhs 15%
12 - 15 lakhs 20% 12 - 15 lakhs 20%
Above 15 lakhs 30% Above 15 lakhs 30%
Furthermore, the standard deduction for salaried individuals increased from Rs. 50,000 to Rs. 75,000. Deduction on family pension for pensioners increased from Rs. 15,000 to Rs. 25,000.
  • Long term gains on all financial and nonfinancial assets to attract a tax rate of 12.5%.
  • Short term gains of financial assets to attract 20% tax rate.
  • Increase in limit of exemption of capital gains on financial assets to Rs. 1.25 lakh per year from Rs. 1 lakh per year.
  • There will be only two holding periods: 12 months for all listed securities and 24 months for other assets.
To curb risky Futures and Options (F&O) trading by retail investors, the STT on these trades will be raised. STT on futures will rise from 0.0125% to 0.02% and on options from 0.0625% to 0.1%.
In an effort to draw in more foreign investment to support India's developmental goals, the government will lower the corporate tax rate for foreign companies from 40% to 35%.
To provide a more conducive atmosphere for startups, the government will completely abolish the angel tax for all investor categories.
Income from share buybacks will be taxed as dividend income for shareholders, against the current regime where an extra income tax is imposed on the company. Furthermore, the cost of these shares will be treated as a capital loss for the investor. The buyback tax was initially introduced in 2013 for unlisted companies and expanded to include listed companies in 2019.
The TDS rate for e-commerce operators will drop from 1% to 0.1%. TCS credit will be allowed as a set-off against TDS on salaries. The Finance Bill aims to simplify tax rules for charities, TDS rates, reassessment procedures, search operations, and capital gains taxation.
The Union Budget 2024 removes the criminal liability for delayed TDS payments made before the statement filing deadline. The government will establish clear guidelines for TDS defaults and simplify the calculation of penalties.

Taxation of Mutual Funds (For Residents and Non-Residents)
Product Before July 23, 2024 After July 23, 2024
Holding Period STCG Tax LTCG Tax Holding Period STCG Tax LTCG Tax
Equity oriented Mutual Fund >12 months 15.00% 10.00% >12 months 20.00% 12.50%
Specified Mutual Funds#
which has more than 65% in
debt
NA Slab Rate Slab Rate* NA Slab Rate Slab Rate*
Equity FOFs NA Slab Rate Slab Rate >24 months Slab Rate 12.50%
Overseas FoF NA Slab Rate Slab Rate >24 months Slab Rate 12.50%
Gold Mutual funds NA Slab Rate Slab Rate >24 months Slab Rate 12.50%
# Definition of Specified Mutual Fund schemes has been revised as: a) MF scheme investing more than 65% in debt and money market instruments; and b) FOF investing 65% or more in MF scheme mentioned in (a) above.

* Gains on Specified Mutual Funds which have more than 65% in Debt will always be treated as STCG.
The Union Budget 2024-25 has been widely seen as a budget that focuses on economic growth and development, with a strong emphasis on creating jobs and boosting the economy. With substantial investments in infrastructure, healthcare, education, and digital innovation, the budget aims to drive inclusive development and fortify India's position as a global economic powerhouse.

Source: Union Budget 2024-25
NJ E-wealth
Understanding Investment Performance Metrics: Point to Point Return Vs Rolling Return
Understanding Investment Performance Metrics: Point to Point Return Vs Rolling Return
As investors, we are very cautious about the value of our hard-earned money. So, we meticulously evaluate the performance of mutual funds using various metrics before making investment decisions. One of the most common methods used by mutual fund investors to evaluate performance is historical returns.
Point-to-Point Returns, measure the return of an investment from a specific starting point to an ending point. It shows performance at a particular point in time and not performance over a period of time. It is simple and easy to calculate.
Example:
1 Year Point to Point Return 5 Years Point to Point Return
Date NAV Date NAV
31/03/2023 100 31/03/2019 64
31/03/2024 117 31/03/2024 117
CAGR - 17% CAGR - 12.82%
Limitations:
  • Drawing conclusions from looking merely at these returns would be misleading as the representation does not show a true picture of events. For example, if two funds have similar returns, you cannot find which one is the more volatile fund. Let's understand with an illustration.

    Suppose, both Fund A and Fund B have delivered a 10% absolute return over the past 5 years. This snapshot looks great for both! Point to point returns don't show us the journey within those 5 years. Maybe Fund A had a steady, consistent 10% growth year-over-year for the past 5 years. While Fund B had a Fantastic first year with a 50% return, followed by 4 years of flat or even slightly negative returns, averaging out to 10% over 5 years. Here, Fund B could be a riskier option with a higher chance of volatility. But only looking at the 10% point to point return would never give you any idea about the volatility in both the fund's past performance. Trailing returns wouldn't tell us the difference between these two scenarios. They only show the end result, not the path taken to get there.
  • The point to point return of funds can paint a very different picture of performance. They are influenced either by what happened on the start date or on the end date. A scheme might have underperformed throughout the period, however if the scheme out performs in the last few days, the overall performance might improve and vice versa. For instance, let's assume that an investment in a mutual fund scheme was made 3 years ago. Between then and now, the scheme NAV has more than doubled. But for the first two years, it generated lackluster returns compared to peer funds. The scheme outperformed in the last one year. Computing the 1 year point-to-point return would show a bright picture which would be misleading.
The way to avoid being influenced in this manner is to look at returns over a longer period. Therefore, rolling returns must be referred to take into account market cycles and present a more realistic picture.
Rolling returns are the annualized average returns for a period such as 1 year, 3 years, 5 years, etc. calculated at regular intervals. In other words, a rolling return takes the average of all return points for the chosen period.
For instance, a 3-year rolling return would calculate the annualized return for every three-year period within the overall investment time frame.
Rolling returns can be calculated daily, weekly, monthly or yearly.
Example:
Period: 31st July 2009 - 31st July 2024 (Five Year daily Rolling)
Observations From Date NAV To Date NAV Ann. Returns
First Two Observations 31-Jul-2009 95 31-Jul-2014 154.6 10.23
1-Aug-2009 96 1-Aug-2014 161.77 11.00
           
Last Two Observations 30-Jul-2019 316 30-Jul-2024 707.74 17.5
31-Jul-2019 317 31-Jul-2024 695.01 17
AVERAGE ROLLING RETURNS (3654) OBSERVATIONS 13.93
Suppose we want to see a 5-year rolling return of a fund over the period of 15 years between 31 July 2009 to 31 July 2024. So, calculate the 5-year return on each day during this period i.e. the 5-year return as on 31st July 2009, 1st August 2009, and so on till 31st July 2024. It will show you a spread of returns had you invested on any day during this period.
With a higher number of observations, Rolling returns provide a more comprehensive view of the fund's performance across different market conditions. It helps in identifying the fund's consistency and ability to weather various market cycles.
One of the limitations of rolling return is that it is more complex to calculate and understand compared to point-to-point returns.
Both point-to-point returns and rolling returns provide valuable insights into investment performance, each serving a different purpose. Point-to-point returns offer a straightforward view of performance between two specific dates, ideal for short-term evaluations and comparisons. In contrast, rolling returns deliver a more comprehensive perspective, capturing performance consistency and variability over overlapping periods, making it useful for long-term assessments.
Investors should consider both metrics to gain a fuller understanding of their investments and make more informed decisions. By leveraging these performance measures, you can better evaluate your investment's historical performance and its potential for future returns.
Note: Both rolling returns and point-to-point returns rely on historical data. Past performance is not indicative of future results. While these metrics offer valuable insights, they should be used in conjunction with other factors like the fund's investment objective, portfolio composition, and expense ratio when making investment decisions.
NJ E-wealth
Health Insurance For NRIs
Health Insurance For NRIs
Living abroad as a Non-Resident Indian (NRI) brings a unique set of experiences. While you're building a life overseas, it's crucial to consider your healthcare needs back in India. Here's where NRI health insurance comes in – a safety net that safeguards your financial well-being in case of medical emergencies during your visits to India. This guide explores the intricacies of NRI health insurance, empowering you to make informed decisions about your health security.
Being an NRI means you're an Indian citizen residing outside India for more than 182 days in a year. This residency status can impact your eligibility for certain benefits, including healthcare. However, the good news is that NRIs, Persons of Indian Origin (PIOs), and Overseas Citizens of India (OCIs) can all purchase health insurance plans in India. The eligibility criteria may vary slightly depending on the insurer and the specific plan, so it's always best to check directly with the insurance company.
Imagine this: you're visiting your family in India and experience an unexpected medical situation. While you might have health insurance in your country of residence, it likely has geographical limitations and might not cover treatment in India. Additionally, healthcare costs in India have been steadily rising, making comprehensive medical coverage essential. NRI health insurance acts as a financial shield, protecting you from the burden of out-of-pocket medical expenses during your stay in India.
NRI health insurance plans offer a multitude of advantages, ensuring peace of mind and well-being. Here are some key benefits to consider:
Benefit Description
Comprehensive Coverage Hospitalization expenses, doctor consultations, diagnostic tests, and even critical illness coverage can be included, depending on the plan you choose.
Tax Benefits The premiums paid towards your NRI health insurance can be claimed as a deduction under Section 80D of the Income Tax Act of India (subject to meeting eligibility criteria).
Family Security Extend the safety net to your loved ones. Many plans allow you to cover your spouse, dependent children, and even your aging parents residing in India.
While NRI health insurance offers significant advantages, there are some important considerations to keep in mind:
Consideration Description
Geographical Coverage Most policies are designed to cover medical expenses incurred within India. In rare cases, some plans might offer limited coverage for specific treatments abroad.
Documentation and Verification NRIs might need to provide additional documents for verification due to their residency status. Provide those documents on the insurer's requests to ensure a smooth application process.
Residential Status NRIs planning to permanently return to India can benefit from purchasing health insurance early to fulfill waiting period requirements. This strategy ensures that when they relocate to India permanently, the waiting period will have already been served. By doing so, they will not have the stress of investing in a health policy immediately upon relocating or visiting India. Also buying health insurance after a certain age/ pre-existing illness may lead to coverage restrictions or prove costly.
Premium Payment Premiums can be in the range of Rs 17,000 to 26,000 for Individual male age 35 for Rs. 1 Crore Sum Insured. Premiums can vary from plan to plan, client demography, etc; Premiums are typically denominated in Indian Rupees and can be paid from your NRE (Non-Resident External) account.
If an NRI gets health insurance in India, can he/she avoid taxes back home (outside India)?
No. If an NRI purchases medical insurance in India, he/she is not eligible to save taxes in the home country. Tax savings are only possible in India if you file your ITR.

What if NRI returns to India permanently?
If an NRI returns to India permanently, they have to inform immediately about their resident status.This will have multiple impacts on the policy. You do not get NRI discounting on the renewal premium. (So the premium amount increases.)

If policy allows treatment outside India, removal of coverage restriction benefit can be availed as per policy terms & conditions.
A health insurance policy is a crucial financial safety net for NRIs visiting or residing in India. By understanding the nuances and benefits, NRIs can make informed decisions to protect themselves and their families from unexpected medical expenses.
loans
In compliance with the Know Your Customer (KYC) Guidelines issued by the RBI, NJ Capital has introduced a Video-based Customer Identification Process (V-CIP) for KYC at the time of processing loan applications.

This change is aimed at improving security, making the KYC process more efficient, and reducing fraud risk. It is designed to be seamless and user-friendly, enabling customers to complete the verification from the comfort of their places.

Consequently, w.e.f. 01 August 2024, all customers applying for a loan will need to mandatorily complete a Video Customer Identification Process (V-CIP) before the loan disbursement.

During the KYC process, NJC representatives will assist the customers to ensure a seamless V-CIP.

Prerequisites for V-CIP
  • A stable internet connection
  • A smartphone or computer with a webcam and proper audio connections
  • Original PAN Card of all holders
  • For optimal call quality, situated in a quiet environment with a white or light background and ample lighting.
Please find the V-CIP Guide.
Fund Manager INTERVIEW
patner Interview
Mr. Sanjay Chawla
Chief Investment Officer (CIO) - Equities, Baroda BNP Paribas
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Suresh Arjun Bhatode (ARN-94897)
AMFI REGISTERED MUTUAL FUND DISTRIBUTOR

Suresh Arjun Bhatode

  • Financial Assessment
  • Retirement Assessment
  • Child Future Assessment
  • Portfolio Review
  • NRI INVESTMENTS
  • mutual fund : debt/equity/elss
  • insurance : general/health/life
  • realty : plots/villas/flats
  • portfolio management services (pms)
  • fixed deposit : company fixed deposit
  • bonds : tax saving bonds

"We have taken due care and caution in compilation of this E Newsletter. The information has been obtained from various reliable sources. However it does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions of the results obtained from the use of such information. Investors should seek proper financial advise regarding the appropriateness of investing in any of the schemes stated, discussed or recommended in this newsletter and should realise that the statements regarding future prospects August or August not realise. Mutual fund investments are subject to market risks. Please read the offer document carefully before investing. Past performance is for indicative purpose only and is not necessarily a guide to the future performance."

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