WHY USE STOCK HOLDING

1. Stock Holding minimizes your Income Tax Liability by advising you about :
   1. Whether you should use the [Budget 2020 - Unchanged or New Income Tax Slabs/ Rates]
   2. How much you should contribute to NPS Tier 1
   3. For employees of firms registered under NPS - Corporate model, what should be the mode of contribution (100 % contribution by Employee or by Employer or Co-contribution)
      Our advice is not like the typical advertisements you might come across concerning Tax saving (most of which do not even consider your existing 80C and other deductions) arising from Income Tax Section 80 C, that allows Rs 1.5 lac or an additional Rs 50,000 available under Section 80 CCD 1 B for contributions to National Pension Scheme / NPS, ); we have made this an exact science.
   
   CASE STUDY - Employee has following details :
   
   1. Gross Salary per annum = Rs 30 lac
   2. Basic + DA Salary per annum = Rs 18 lac
   3. Tax deduction employee expects to avail under Sec 80C this year (excluding NPS contributions) = Rs 50,000
   4. Tax deduction employee expects to avail under Sections other than 80 C this year (such as 80D, 80E, Sec 24, 80G etc) as per unchanged Tax slabs/ rates of Budget 2020 = Rs 100,000
   5. Tax deductions employee expects to avail this year, as per the limited deductions allowed under New Tax slabs/ rates of Budget 2020 = Rs 20,000
   6. Amount of Yearly contribution to NPS Tier 1 account, chosen by user = Rs 3,30,000
   7. The Analysis of Income Tax liability as per the Unchanged and New tax slabs/ rates of Budget 2020 as well as the additional tax saving generated by contribution to NPS (depending on mode of contribution) is presented in the table below:
      
      
   8. CONCLUSION : Using Unchanged Income tax slabs/ rates of Budget 2020 along with Amount and mode of NPS Tier 1 contribution recommended by Stock Holding results in least tax liability for the user (Highlighted as green in the table above).

   Note : Ceiling for claiming tax deductibility of Annual Employer contribution to "NPS Tier 1 account, EPF and Superannuation along with accrued interest" = Rs 7.5 lac

2. Stock Holding uses a proprietary asset-class performance forecast model to suggest Dynamic asset-allocation strategies to it's users. So, unlike NPS regulator prescribed NPS Auto choices (where asset allocation is predefined as per a user's age) or unlike strategic asset allocation (that typically allocates more to equity when greater years to retire are available), Stock Holding combines Strategic asset allocation with it's dynamic asset allocation for different customer risk-profile. ALPHA (EXCESS-RETURN) ADDED BY STOCK HOLDING'S ASSET-ALLOCATION STRATEGY, WHEN COMPARED WITH NPS-AUTO LC 50.

   Sample the results below, for a person investing in NPS whose investment-goal is 2 years away.

   CUSTOMER'S INVESTMENT GOAL IS 2 YEARS FROM NOW

   	STOCK HOLDING Asset Allocation -Vs- NPS AUTO-CHOICE-LC 50*
   % SUCCESS (in terms of positive alpha arising from Stock Holding allocation)	85%
   % FAILURES (in terms of negative alpha arising from Stock Holding allocation)	15%
   AVERAGE ALPHA (Using Cumulative 2-year-returns) on SUCCESS	13%
   AVERAGE NEGATIVE ALPHA (Using Cumulative 2-year-returns) on FAILURE	2%
   EXPECTED ALPHA (Using Cumulative 2-year-returns)	11%

   *NPS AUTO-CHOICE-LC 50 is MODERATE RISK ASSET ALLOCATION = 10 % NPS E, 80 % NPS G, 10 % NPS C.

   For clarifications, call us at + 91 9987540266 or email us at yogesh.singh@stockholding.com.