1.A person without pancard can invest in mutual funds through micro-sip.But proof of other photo-identity needs to be provided.Maximum cap is rs.50000/- per annum.
2.One can not claim separate tax benefits for dividend reinvested in elss schemes.Suppose person invested rs. 50000/- in elss schemes and receives dividend of 5000/- in financial year and option he choosed is dividend reinvestment,,then he can not claim a tax benefit of rs. 55000/- u/s.80c in the financial year, but only Rs 50000/- and same thing for subsequent years also..though units received went into 3 years lock in period.
3.Free look period for insurance policies is only 15 days from receipt of policy.Policyholder can return policy only in this period if he do not find policy in line of expections.
4.Policy holder can take their complaints to insurance ombusman subject to compalaint is rejected bt insurance company and it should forward within 90 days of rejection.
5.Income arised from units of equity mutual funds kept for more than 1 year is free from income tax.
6.Tds does not applicable for recurring deposit schemes.
7.It is mandatory for mutual fund comanies to send dividend procedings within 30 days of declaration and redemptions within 10 days.Otherwise they can face late payment charges which are currently at rate of 15%.
8.Correct way to calculate mutual fund returns for more than 1 year are compounded annual basis.
