Tax Planning on Salaried Individuals above 10 lakhs:

The basic purpose of making investments in the instruments is to save tax on the amount obtained in the form of salaries.

You can reduce the taxable income amount by investing your obtained income into instruments like TDS and the amount gets refunded as well.

In general, you can seek tax discounting on House Rental Allowance, Leave Travel Allowance, Standard Deductions, Professional tax + Loan + education loan. However, education loans, housing loans, or personal loans are not taken just for the sake of it.

In a salaried class structure, you can reduce the tax component of your salary by carefully applying the grants and exemptions issued by the IT department. Therefore, before the IT department arrives to leive net taxable income. Here is the procedure you must depend upon.

Salary – Exemption = Taxable Salary Income

Taxable Salary Income – Deductions = Net Taxable Income

For it, you can realize that maximizing exemptions, and tax deductions can bring down the tax burden component.

You can go for basic tax planning to advance tax planning by adopting deductions in accordance with Chapter 6A:

Section 80C:

Take for instance 80C deduction in which you can avail of tax exemption up to 1.5 lakh (maximum limit).

You can make investments in several instruments that enable you in exempt from tax, such as Term Plan Insurance. In this case, you can obtain an insurance cover of up to 1 crore for a premium value of up to INR 12,000.

In a similar manner, you can opt for ULIP or Endowment LIC up to INR 12,000.00 premium value.

You can avail the benefit provided through ELSS mutual fund up to 1 lakh rupees and you can go for a monthly premium of INR 800.00 by adopting a Systematic Investment Plan. Your investment must be for a lock-in period of 3 years and you can obtain a CAGR of up to 12 percent.

In case you have school-going children, you can avail children’s education fees from INR 25,000.00 to INR 100,000.00

You must make sure that your combined amount of investment should not exceed 1.5 lakh which is the upper limit.

Section 80TTA/80TTB:

Another area to avail the tax savings is the utilization of Section 80TTA/80TTB.

The 80TTA refers to interest on the savings bank account and 80TTB applies to the deduction that is dependent on the age of the individual.

If the age of the individual is less than 60 then, the deduction will be 10,000.00 and if the age is more than 60 years then the deduction shall be INR 50,000.00.

Section 80CCD(1B):

80CCD(1B) – NPS Account ( National Pension Scheme) for pensioners beginning from 60 years of age.

You can draw a lump sum or annuity pension then the return will be 12 to 15 percent of CAGR. For a pension of INR 50,000.00, you will get a 100 percent tax deduction.

Section 80D:

Another option that is kept open for you is section 80D, which caters to the need for health insurance and expenses. You can avail your own health insurance and your parent’s health insurance.

In case you plan for health insurance, then you can own health insurance up to INR 25,000.00, and companies provide health insurance up to INR12,000.00 to INR 15000.00 and the sum assured will be up to 5 lakhs.

An individual can avail of medical checkup bills up to INR 5000.00 and shall need no submission of proof.

You can have a tax exemption when you are covering your parent’s health insurance.

You can spend a health insurance premium of INR 20,000.00 to INR 25,000.00 if your parents belong to the age group of 50 to 60 years and the insured amount can be up to 10 lakh.

If their age is above 60 years then the health insurance premium shall be between INR 30.000.00 and INR 40,000.00.

In case, your parents have no insurance policy then you can claim medical expenses on spending up to INR 50,000.00.

Section 80GG:

Another type of deduction is known as 80GG (Rent Paid Deduction):

You may be living in a rented house and your company does not provide you HRA then you can claim up to INR 60,000.00 per annum.

Donation Section (80g)

This section 80g applies to trusts, charitable institutes, or societies and you can avail of the tax exemption when you make donations to the 80g institutions.

Some of the charitable institutes provide you 100 percent tax deductions or 50 percent deduction on the amount you donate.

Most prominent institutes that provide you tax exemptions on donations are Akshay Patra, Narayan Seva Sansthan, SavetheChildren, Cry, Goonj, Crowdfunding, GiveIndia, Millaad, Donaekart, etc.

Section (80GGB): Political Party Donations

The political party donations are applicable to parties that are entitled under the Section(80GGB) and you shall be awarded 100 percent deductions to the donation amount made.

There is no ceiling limit when you are getting involved in donating to a political party.

Best YouTube Channel for Investment Education

Yadnya Investment: Nestles Stocks Info on Youtube Channel

You can get the YouTube channel uploads via the InvestYadnya website. On the YouTube channel, you can follow experts’ advice and guidance spoken in English, and Hindi.

it is well-modeled to fit in the needs of investors/traders in the stock markets. The company has a learning center where you can seek access to 1200 plus videos on a wide range of topics.

These topics cover a wide range of issues such as ‘stock market news,’ ‘companies good for long-term investments’ and general topics such as ‘why financial freedom is important,’ and a lot more.

Best Investing YouTube Channel in 2023

You can have expert advice and technical analysis by Parimal Ade, and Gaurav Jain on YouTube for a better understanding of the stock markets.

Research-Based Products: The company has designed research-based products for your financial planning and these software come up to serve a specific purpose.

They are model portfolios (Ready-made stocks and mutual funds Portfolios), stock-o-meter (Equity Research Tool and Fundamental Analysis), fund-o-meter (Comprehensive mutual fund reviews), tax yadnya (Income tax information bank), and Finplan Yadnya (Do-it-yourself financial planning)

InvestYadnya Services:

The company offers services in several segments such as Personalized Financial Planning, Research-based products, ebooks, and e-learning.

In the article section, you can get many stock analysis hosted on YouTube with its links available on the stock article web page links.

You can gain access to articles on YouTube which are easily obtainable for free. Whereas for other premium YouTube stock analysis, you are obligated to subscribe at a nominal price.

Fund-O–Meter Software:

Fund-O-Meter is a software tool designed to support your mutual fund investments through the company’s transparent and comprehensive analysis.

Each fund is analyzed on 20 parameters, and the fund ratings are highlighted by the colors.

You can experience better with graphs, multiple tables, and even depicted in the form of Videos and infographics, all hosted on YouTube for reference.

You can obtain 50 articles plus on a mutual fund basis and every week new updates are uploaded on YouTube.

Stock-O-meter Plus Features:

You can get a detailed analysis of the company and Yadnya’s five G framework is put in place for analyzing the select stocks. The framework includes financial analysis by keeping in consideration, company financials, industry, valuation, enterprise, and governance.

You can obtain detailed stock research in video form, the company uploads at least five newly researched videos.

You will be provided access to about 130 plus videos, and you can experience extra features like stock news, watchlist creation, and stock comparison, all made available on YouTube.

Model Portfolios:

Model Portfolios are ready-made portfolios (stocks and mutual funds) you can make decisions on your investment after referring to the reviews submitted by Yadnya.

These portfolios are ready-made which shall fit your investment goals. you can learn in detail about the ready-made model portfolios on the YouTube Channel.

Swing Trading – Suitable for Working Professionals

Before we get into discussing how to make life by trading in stock markets you must understand whether you fit in it or not.

First, does trading suit your appetite, if yes, then what should be your involvement? Once you are clear that you can wrestle stock markets comfortably then you should decide on whether to take part-time trading or full-time trading.

In part-time trading, you can seek guidance wherever it is essential and then continue to earn an additional income. But when you decide to live in stock trading then you must have a disciplined mind, regulate your emotions, and gather knowledge from all reliable resources.

In the trading environment, you can select different kinds of trades such as intraday, swing trading, future & options. Each sort of trade has its limited operative modes, merits, and demerits.

Now, coming up to your statement, ‘Can swing trading make a living?’ The answer is yes, you can make a decent earning provided you stick to regulated trading.

Remember, if you consider swing trading as your full-time trading activity that means you have chosen the most comforting forms of trading.

Swing trades are short-term with optimal returns and low risk. You have no time constraint like intraday trading where you need to buy and sell your stock on the same day.

In swing trades, you can hold your option call from a few days to a few weeks. While futures and options trading allows you to hold your stocks from months to years altogether.

If you prefer swing trading you will have a lot of time to make informed decisions thus cushioning you to recover from emotional breakdown as it erodes your presence of mind and dips clarity.

When you begin swing trading, remember it must be a personalized activity, and shouldn’t compare with your peers. Here are a few important factors that give you compelling results.

Important factors that are required to earn more in swing trading are analyzing charts, identifying trends, and applications of technical indicators. If you are able to acquire all essential skills then you can make the right entry & exit to generate high profit levels.

Qualities of Swing Traders:

Successful swing traders analyze market trends, identify profitable opportunities, and execute well-planned trades.

You may wonder about the initial investment that goes into the trading activity. Nice, if you opt for full-time trading, and if you are falling short of funds then you can begin with as low as INR 1000.00 to INR 100000.00.

After making a decision to aspire as a Swing Trader, you will have to overcome certain challenges from the stock markets. At the same time, you must build resistance and self-resilience at times of deep swings in the stock market volatility.

Risk Management in Swing Trading

You must understand that trading in the stock markets itself is risky because of the basic features on which the markets trade.

Yes, price fluctuations of shares are a normal aspect of trading. Depending upon the nature of trade, experts have categorized stock trading into intraday trading, swing trading, future and options trading.

Although swing trading is most comforting, due to its characteristics like short-term returns covering it from a few days to a few weeks, it does contract risks.

Let me speak about swing trading risks, and give a few tips on how to manage your trades professionally.

Such steps can help you in avoiding losses on your capital investment.

Common Risks in Swing Trading:

The most common risks that are attributed to swing trading are volatility, improper technical analysis, and unexpected news events.

Some of the risks that can be added to it are market risk, liquidity risk, operational risk, and credit risk. Volatility in share prices and international stock markets can influence your investments, they can make you lose your money.

Liquidity risk: The term liquidity risk arises when you are unable to meet short-term financial obligations. It happens whenever you are unable to convert assets into cash.

You can encounter such situations in stock markets due to a lack of stock buyers, sudden crash outflow, or imbalance in the supply-demand of a particular security.

Credit risk arises due to loss of money when the counterparty defaults on their commitments.

Liquidity risk occurs when your stocks do not sell out at your determined prices.

Operational risk occurs when you lose money due to technical errors in the stock market systems.

To cite an example, the slippage in the stock prices can cause a loss of 10% and this may not give your expected returns on investments.

Risk Management Techniques in Swing Trading:

To minimize losses that occur in swing trading, you are advised to undertake the following precautions.

Always apply a stop-loss technique that shall apply brakes to your losses when you opt for option put contracts.

Stop loss will enable you to manage your risk by exiting a position if the price of your asset begins to move in opposition to the current position.

Portfolio diversification is a key strategy to manage risk in swing trading.

Entry and exit of your stocks in trading is the key feature to manage your impending risks. You can apply the following techniques as a measure to check the risks as well. You can count on trading off support or resistance, breakout string strategy, fading trading strategy, Fibonacci retracement, and trend-catching techniques.

Earn 500 Rupees Daily from Swing Trading

To earn a profit of at least 5 percent per day on an investment of INR 100,00.00 daily.

For instance, you need to set a monthly target of at least 25 % profit. If you sum up the small profits on the invested amount of 100,00, it shall provide a return of 1.45 lakh in a year.

And, if you spread the earned money (1.45 lakh) it will make a daily profit of 500 over a year.

Below you will notice information that can serve your purpose in maintaining INR 500 as your daily earnings.

Research for swing stocks for short-term profitability.

You must maintain swing trade returns (5% -10%) gain every week.

Follow a strategy 3-to-1 profit loss management portfolio.

Identify breakout volumes for shorter time frames.

Stock Research for Swing Trading:

To earn INR 500.00 per day, swing trades need fundamental analysis for a short period.

You will have to adopt recent, and upcoming events, and tactics. You must calibrate certain parameters that turn out to be significant indicators such as sales growth, new product launches, new strategy announcements by the companies, quick ratios, etc.

Swing Trade Returns of 5% to 10% Gain Every Week:

Swing trades never focus on gains developed over months or even years. Its trading period is normally 5 to 10 days and if managed properly you can make a lot of small wins. And, when you sum up those wins it will give out good returns.

The ideal return on swing trades is up by 20% in a month or about 5% to 10% gain every week which leads to a noticeable profit level.

3-to-1 Profit Loss Portfolio Management Strategy:

Experts suggest portfolio management to succeed in your attempts to earn decently, often referred to as a 3-to-1 profit-to-loss ratio.

The funda of earning is that you can make small gains and create growth in your portfolio provided you are attentive in keeping losses small.

If you keep a stop loss of 7% to 8%, then the losses on stocks can reach a maximum level of 3% to 4% quickly. If such a situation continues then this kind of loss can reduce the accumulated small gains considerably.