Norisma Club

Category: Savings

  • Last‑Minute Tax Saving Checklist Before 31 March (Sections 80C, 80D, 80CCD)

    Last‑Minute Tax Saving Checklist Before 31 March (Sections 80C, 80D, 80CCD)

    A last‑minute tax saving checklist works best when it tells you exactly which section to use, how much room is left, and where to park the next ₹10,000–₹50,000. This guide is for FY 2025‑26 (AY 2026‑27) under the old regime, where deductions matter most.​ Use this as a checklist, not a shopping list.

    Step 1: Check if the Old Regime Even Makes Sense

    Before chasing deductions, see whether the old regime actually beats the new one for your income and deductions.​

    • Old regime: higher slab rates but allows most deductions (80C, 80D, 80CCD, HRA, home loan interest under Section 24, etc.).​
    • New regime: lower slab rates, standard deduction, very limited deductions; suits people with few investments or benefits.​

    Use an ;old vs new regime’ calculator, plug in your expected 80C, 80D, 80CCD, and home‑loan claims; if the old regime shows lower total tax, this checklist is worth acting on.​

    Step 2: Maximise Section 80C (Limit ₹1,50,000)

    The combined limit for the most common deductions here is ₹1,50,000.​

    Covered instruments include:

    • Employee Provident Fund (EPF) and Voluntary PF
    • Public Provident Fund (PPF)
    • Equity‑Linked Savings Schemes (ELSS mutual funds)
    • 5‑year tax‑saving bank fixed deposits
    • Life insurance premiums (including term plans)
    • Principal repayment of a home loan, tuition fees for up to two children​

    If you have ₹20,000–₹50,000 left under 80C:

    • Up to ₹20,000 remaining, and you are comfortable with markets:
      • Consider a lump sum into an ELSS fund or start a short series of monthly systematic investment plans before 31 March. Lock‑in is 3 years, and gains are taxed as long‑term capital gains.​ Expect short-term volatility; this suits money you won’t need for 3+ years.
    • Around ₹50,000 remaining and you want safety:
      • Top up your PPF if you already have an account (15‑year tenure, interest is tax‑free, and contributions count under 80C).​
      • Alternatively, use a 5‑year tax‑saving fixed deposit with a scheduled bank; interest is taxable, but the principal qualifies under 80C.​
    • If you have not bought term insurance yet:
      • A pure term life policy premium also counts under 80C and simultaneously fixes a protection gap, which is often more important than squeezing another investment in.​

    Step 3: Use Section 80D for Health Insurance

    Section 80D is specifically for medical insurance premiums and preventive health check‑ups.​

    Key limits for FY 2025‑26:

    • Self, spouse, and dependent children: deduction up to ₹25,000 on health insurance premiums.
    • Parents: additional up to ₹25,000 if they are below 60 years, or up to ₹50,000 if they are senior citizens (60 years or more).​

    What to do if you have remaining room under 80D:

    • No health cover for parents, and you can spare ₹15,000–₹30,000, this year:
      • Consider a family floater or senior citizen plan for them; this can both protect savings and reduce taxable income.​
    • Already have insurance but have not claimed a preventive health check‑up:
      • A part of the 80D limit can be used for preventive check‑ups (within the overall cap), so a scheduled check‑up before 31 March can legitimately increase your claim.​

    Step 4: Add NPS on Top – Section 80CCD

    The National Pension System has its own deduction structure and can sit on top of 80C.​

    There are three relevant parts:

    • Section 80CCD(1): your own contribution, counted within the ₹1,50,000 limit of Section 80C (subject to 10% of salary for salaried employees).​
    • Section 80CCD(1B): an additional, exclusive deduction of up to ₹50,000 for your own NPS contribution, over and above the 80C limit.​
    • Section 80CCD(2): employer’s contribution to NPS (up to 10 percent of salary for private sector employees) is deductible for you and does not eat into the 80C limit.​

    If you still have room and time:

    • If your 80C bucket is already full and you have another ₹20,000–₹50,000 to invest:
      • A voluntary contribution to NPS Tier I to use the additional ₹50,000 limit under Section 80CCD(1B) is one of the clearest ways to reduce tax, plus earmark money for retirement.​
    • If your employer offers NPS and you are underusing it:
      • You can discuss redirecting part of your cost‑to‑company into NPS so that Section 80CCD(2) benefits apply from the next financial year onwards. This is not a “last‑minute” step but is worth mentioning in a March‑time review.​

    Remember that NPS is a long‑term product; partial withdrawal and exit rules are stricter than those of mutual funds or PPF, so it suits people who are consciously building a retirement pool.​

    Step 5: Sequence if You Have Limited Surplus

    If you are deciding where to allocate the next block of money before 31 March, a simple sequence many planners use under the old regime is:​

    1. Close the 80C gap with instruments that match your risk and time horizon
      • Growth‑oriented: ELSS mutual funds.
      • Stability‑oriented: PPF or tax‑saving fixed deposits.
    2. Use 80D to fix any health insurance gaps for self and parents.
    3. Add NPS for an extra ₹50,000 deduction under Section 80CCD(1B) if you can genuinely lock this money away for retirement.

    This way, each rupee just before year‑end either reduces tax, adds protection, or builds long‑term wealth rather than sitting idle in a low‑yield savings account.

    For questions, collaborations, or deeper guidance, write to us at info@nomisma.club.

    Disclaimer: This article is for educational purposes and not financial advice.

  • Passive Income in India 2025: 15 Realistic Ideas That Actually Pay

    Passive Income in India 2025: 15 Realistic Ideas That Actually Pay

    Why Passive Income Needs a Reality Check

    Passive income in India is less about “earn while you sleep” from day one and more about “build a system once, let it pay you for years.” It usually demands upfront time, skill, or capital, but the goal is to reduce how much you trade hours for rupees over time. This guide focuses on ideas that can realistically work in India in 2025, not lottery tickets or overnight riches.

    Some of these ideas pay hundreds per month, others can scale into lakhs—but none are instant.

    Low‑Effort Ideas (Money > Time)

    1. Dividend‑Paying Stocks

    Buying shares of solid, dividend‑paying companies can create a small but growing cash flow. When profits are shared as dividends, you get periodic payouts while still holding the stock for long‑term appreciation. Focus on stable businesses with a history of consistent dividends rather than chasing ultra‑high yields that may not be sustainable.

    2. Debt Mutual Funds and Target Maturity Funds

    Debt funds invest in bonds and money‑market instruments and can offer better post‑tax returns than traditional bank FDs if held for the right period. Target maturity funds (which invest in government and high‑grade bonds to a fixed maturity year) give more visibility on expected yield and reduce reinvestment risk. These work best for investors seeking relatively lower volatility with some inflation-beating potential. Returns depend on interest rate cycles and holding till maturity.

    3. REITs (Real Estate Investment Trusts)

    REITs let you earn rental‑like income from Grade‑A commercial properties without buying an office or shop outright. Units trade on stock exchanges and typically distribute a large chunk of their income as dividends or interest. They add real‑estate exposure with lower ticket size and better liquidity than owning a physical property.

    4. High‑Interest Savings and Sweep‑In Accounts

    Some banks and small finance banks offer higher interest on savings or sweep‑in FDs while still letting you access funds quickly. Setting up automatic sweeps (where surplus from your savings account is moved into FDs above a threshold) ensures idle cash earns something without manual intervention. It is not glamorous, but it is a simple way to make your emergency fund work slightly harder.

    5. Cashbacks, Rewards, and Co‑Branded Cards

    Used smartly, credit cards and reward programs can become a small passive stream in the form of points, miles, and cashbacks. Paying all bills through one or two cards and clearing dues in full avoids interest while maximizing rewards. This is not a primary income source, but over a year the value can materially reduce your travel or shopping costs.

    If you can invest some time upfront, the next set of ideas opens up higher upside.

    Medium‑Effort Ideas (Some Work, Ongoing Payouts)

    6. Rental Income from a Room or Parking Space

    Instead of buying an entire rental property, many people start by renting a spare bedroom, storage space, or even a dedicated parking slot. This drastically reduces capital needed compared to a full flat purchase. Once a tenant is found and rules are clear in writing, the income is relatively steady with occasional management effort.

    7. Recurring Digital Products (Templates, E‑Books, Planners)

    Creating a digital asset once and selling it repeatedly is a classic semi‑passive play. Think budget planners, tax checklists, niche e‑books, or Excel templates for freelancers and small business owners. Distribution can be handled through marketplaces or your own site, and once the product is built, updates are occasional rather than constant.

    8. YouTube, Reels, and Content Monetization

    Short‑form and long‑form content around finance, careers, or niche hobbies can generate ad revenue, brand deals, and affiliate commissions. The “passive” part comes once older videos keep getting views and paying months later. The upfront grind is real—scripting, editing, and consistency—but the compounding effect of a content library is powerful. This pairs well with affiliate marketing, where older content continues to convert.

    9. Affiliate Marketing and Recommendation Blogs

    Running a blog or simple website that recommends tools, apps, books, or financial products lets you earn a commission when readers sign up or buy. It fits especially well with money, travel, and tech content, where people actively search for “best” options. Once articles rank and get organic traffic, they can bring in income with only periodic updates.

    10. Royalty‑Style Income from Courses

    If you have deep expertise—say in tax filing, freelancing, or exam prep—packaging it into a structured course can generate repeated sales. Platforms that handle hosting, payments, and delivery reduce technical friction. After the initial build and a push to get reviews, a well‑positioned course can continue selling with light promotion.

    High‑Setup Ideas (Capital or Significant Build‑Out)

    11. Traditional Rental Real Estate

    Buying a residential property purely for rental income is capital‑heavy but can offer a combination of rent plus long‑term appreciation. True passivity demands doing the groundwork: choosing locations with good demand, screening tenants carefully, and having clear agreements. Net yield after maintenance, vacancy, and tax is what matters—not just the headline rent.

    12. Fractional Real Estate and Co‑Investment Platforms

    Instead of buying an entire office or warehouse, some investors participate in fractional ownership arrangements. Multiple investors co‑own a commercial property and share rental income proportionally. This reduces ticket size but requires due diligence on platform credibility, legal structure, and exit options.

    13. Peer‑to‑Peer (P2P) Lending

    P2P platforms allow you to lend small amounts to many borrowers, earning interest over time. Diversification across multiple loans is critical to reduce default risk. This can feel passive once your rules and auto‑invest settings are configured, but it is inherently higher risk than traditional bank deposits. Limit exposure to a small percentage of your overall portfolio.

    14. App‑ or Tool‑Based Micro‑Businesses

    Building a small app, plugin, or SaaS tool that solves a narrow problem—like invoicing, content planning, or Indian tax calculations—can generate subscription or one‑time sale income. The upfront build is intensive, but maintenance can be modest if the scope is tightly defined. Over time, existing users and word of mouth can turn it into a low‑touch revenue stream.

    15. Licensing Your Work or IP

    Photographers, designers, writers, and coders can license their creations rather than selling them once. Stock photos, UI kits, code snippets, or even background music can be licensed through marketplaces. The key is building a high‑quality, searchable catalogue that keeps selling long after the original effort.

    How to Choose the Right Idea for You

    • Capital vs time trade‑off: If you are early in your career with limited savings, focus on content and digital products; if you have surplus capital, lean into financial instruments and real estate exposure.
    • Risk comfort: Debt funds, REITs, and high‑interest accounts sit on the lower‑risk side; P2P lending, individual dividend stocks, and fractional properties need a stronger risk appetite.
    • Skill leverage: Play where you already have an edge—writing, coding, teaching, design, or real‑estate knowledge—so you are not starting from zero on both skills and systems.

    👉Start with one idea, get it working, and only then layer on the next.

    Seen this way, “passive income” is less a single hack and more a portfolio of cash flows that slowly decouple your lifestyle from your monthly salary.

    Passive income is a portfolio, not a shortcut.

    For questions, collaborations, or deeper guidance, write to us at info@nomisma.club 

    Disclaimer: This article is for educational purposes and not financial advice.