Donate and save tax; get the best room heater: Top personal finance stories

This week we tell you how making charitable donations can help in your taxes and the health effects of room heaters

Are you looking to maximise your tax savings by making charitable donations? This week’s lead story by Bindisha Sarang looks at the key sections of the Income-Tax Act, 1961 related to deductions on such donations. It focuses on Section 80G, including 80G(2)(b), for donations to religious trusts. It also discusses sections on deductions for donations to scientific, rural development, and political contributions.

If you are planning to buy a room heater to battle the bitterly cold weather sweeping across North India, read this week’s article by Namrata Kohli. It discusses the varieties of heaters available today and offers practical advice on selecting the right one. It also covers health considerations and offers safety tips to be observed while using them.

With the costs of cars rising, the percentage of buyers relying on car loans has also gone up. If you, too, are looking for a loan to fund your purchase, look up Paisabazaar’s table which offers a comprehensive overview of the interest rates and processing fees levied by key lenders.

After the recent run-up in mid- and small-cap funds, your portfolio may need to be rebalanced in favour of large-cap funds. If you are looking for a fund from this category, look up Morningstar’s review of ICICI Prudential Bluechip Fund.

Number of the week

Rs 11,140 crore: Outflow from SIP accounts in December

Mutual fund (MF) investors pulled out over Rs 11,140 crore from systematic investment plan (SIP) accounts in December 2023. It was the highest such outflow since April 2021.

The net SIP inflow stood at Rs 6,470 crore, after offsetting the outflow from the gross inflow of Rs 17,600 crore.

In December, the equity market registered its best monthly performance in 18 months with the Sensex and the Nifty rising over 7.8 per cent.

The main reason for such a high outflow was profit booking. Every time the market goes up, some investors book profits in SIP accounts.

Experts say such an approach is against the concept of SIPs, wherein the objective should be long-term wealth creation by participating in the ups and downs of the market. Frequent withdrawals come in the way of compounding.