Things you didn’t knew

POSTED BY Jagoinvestor ON June 12, 2008 COMMENTS (13)


There are many things we hear and believe , but they are little different in reality, which helps if we know.

– Do you know that When you take an SIP for 6 months or 1 years or for any period , the first installment (which you make by cheque) is not counted for inside the tenure of your SIP. So if you take a SIP for 6 months , you make 6 payments other than your initial payment with cheque , so total is 7 payments.

– The short term capital gain period is 1 yr , means 365 days , but it does not work exactly that way , its 12th month other than your buying month. Means if you buy shares or MF on 12th May , 2008 and sell on 13th May , 209 it is still short term capital gain , to call it long term capital gain , it must see it after 12 months after May , 2008 (your month of buy) . which means you shall sell it on or after 1st June 2009.

– Suicide is also covered in Life Insurance after 1 yr of policy (atleast its there in my policy with SBI Life Insurance).

– ULIPS : The deductions availed under sec 80C is taken back if you surrender your ULIP before 5 yrs. If you surrender your policy in 4th or 5th year , then all hte premium paid till date will be added to your salary for that current year and you will have to pay tax on that too. ULIPS just put restriction on paying of premium fr the first 3 yrs, but offer tax benefit under 80C if you hold it for minimum 5 yrs.

– If you repay your housing loan by taking another loan , you can continue to claim tax benefit on the interest amount paid for new loan under sec 24.

– Tax deduction is available for the prepayment charges paid for the home loan .

– If you face any problem or defecieny in service from banks, you can complain at same as

– Dividend distribution tax is levied on the Dividend which you recieve , and it also affects the fall in NAV . So NAV falls not just to the extent of the dividend declared , but also by the tax which mutual fund company pays to govt (12.5% on dividend + 2.5% surcharge also , under sec 115-O )

I would be happy to read your comments or disagreement on any topic. Please leave a comment.

13 replies on this article “Things you didn’t knew”

  1. Jainik says:

    With due respect i want to clarify you that your information on short term capital gain is totally wrong. So, kindly remove it. And i also request you to refer relevant act before writing something otherwise innocent people will suffer. So if you want to remove your doubt on my statement than kindly refer section 111A of Income tax act.

    1. THis one is pretty old , Let me check for the mistakes !

  2. Anand says:

    Hi Manish,

    Do you have any link on how to calculate one year for short term capital gain?

    1. Anand says:

      Any link?

      1. Anand

        I am not clear which link you want ?


    2. Jainik says:

      Short term capital information is totally wrong provided in article.

  3. Dolly Mirchandani says:

    This is the first time I am reading that “Suicide is also covered in Life Insurance after 1 yr of policy.” Strange?

    1. Dolly

      yea , most of the term plans cover it 🙂

  4. Anand says:

    Hi Manish,

    I want to comment on ULIP section here. Let’s say I have declared the ULIP savings to the government under section 80C. Does the insurance company know that we have declared say 50000 INR under 80C? I doubt.

    If I want to surrender the policy tomorrow, ULIP companies are very happy since initial charges are very high and they have made some money out of it.

    I had asked the customer care of HDFC Std Life whether I can close the policy even if I showed premium in section 80C. They said that whether you have declared or not does not matter and I can even make partial withdrawal any time.

    Please clarify.


    1. Anand

      If you are talking about the declaration one does in company , thats only for cutting TDS , thats all . What customer care said is correct .


      1. Anand says:

        If we can close the ULIP policy or can make partial withdrawals even if we have declared it under 80C, then this fact directly conflicts with your statement above that premiums will be added to your salary etc…

        How will my company know whether I have closed my policy or not?

  5. Manish Chauhan says:

    Great !!

    Thanks Mahadevan for the information , I am sure there are many others which cover 🙂


  6. Mahadevan says:

    Yeah… Even Kotak Life Insurance covers suicide…

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