JANUARY 2023 | VOL.

20

THE

ORANGE
BOOK
Leverage your FINANCIAL QUOTIENT

Financial Preamble
for

2023
This Republic Day, take a Financial Pledge
and make a S.M.A.R.T. Financial Plan!

We, the prudent investors of India, undertake to strive

towards our own financial well-being by constituting a
plan that is S.M.A.R.T.!

We shall seek Specific financial goals;

Our progress will be Measurable; which, we shall

review from time to time;

We shall be disciplined towards our Achievable goals;

Our financial objectives and activities shall be Relevant

to our current circumstances.

Our financial goals shall be Time-bound.

As we pursue financial prudence, we shall rationalise

our spends and prioritise our savings. We shall invest
wisely and stay invested for the long run.

Today, we affirm our commitment to making sound

financial decisions, to make our financial dreams come
true and attain financial freedom!

1800 1080 Connect with us! JANUARY 2023 | VOL.20

How to plan financially for your life’s stages?
Now that we have taken the pledge, let’s see how to make a sound financial plan. Following is a
broad framework that can help you for each life stage:

25-35 Years

Financial Goals
Life Stage Buying a car, buying a house,
Young married couple vacation, young kids-related
expenses

Top Critical Financial Skills Budgeting

Financial discipline through To start with, follow the 50:30:20 Rule
budgeting (Needs : Wants : Savings) > As your income grows,
Build savings into your budget increase allocation from Wants to Savings
Tax Planning**

Emergency Fund Investment Portfolio

Keep a fund of 6-12 months of To determine allocation towards equity investments,
your current income gradually shift from equity to debt investments as you
approach retirement
Debt To move your investments from equity to debt (such as
liquid Mutual Fund* Schemes), initiate a Systematic
Using debt intelligently and
Transfer Plan (STP)*
building your credit history
To meet your income needs at a later stage, redeem
your investments using a Systematic Withdrawal Plan
Insurance (SWP)*
A basic Health Insurance is EXPLORE THE INVESTMENT OPTION
important, particularly if you don’t have a
health cover from your employer.
Adequate Health Insurance is important Tax Planning**
for all members in the family ELSS (80C)*, HRA (80GG)***,
Life Insurance (80CC), Health Insurance (80D)
VIEW THE LIST OF TAX SAVING** INVESTMENTS

*ICICI Bank Limited is a AMFI Registered Mutual Fund Distributor. Mutual Fund investments are subject to market risk. Read all scheme related documents
carefully. T&C Apply. **Tax Benefits are subject to amendments in tax laws from time to time.
***Only those who are self-employed or who do not get HRA are eligible to claim a deduction under this section

1800 1080 Connect with us! JANUARY 2023 | VOL.20

 35-45 Years

Financial Goals
Life Stage Planning for kids’ education and marriage,
Family with young kids upgrading existing house, international vacations,
retirement planning, fund accumulation to start own
business, social commitments like charity and donations

Top Critical Financial Skills Budgeting

Avoid debt trap To start with, follow the 50:30:20 Rule
Constructing a portfolio that is (Needs : Wants : Savings) > As your income grows,
aligned to growth, income and increase allocation from Wants to Savings
liquidity needs

Investment Portfolio
Emergency Fund To determine allocation towards equity investments,
Keep a fund of 6-12 months of gradually shift from equity to debt investments as you
your current income approach retirement
To move your investments from equity to debt (such as
liquid Mutual Fund* Schemes), initiate a Systematic
Transfer Plan (STP)*
Debt To meet your income needs at a later stage, redeem
Using debt intelligently and building your investments using a Systematic Withdrawal Plan
your credit history (SWP)*
EXPLORE THE INVESTMENT OPTION

Insurance
Expand Health Insurance to Tax Planning**
cover your family. Include your Upgrade Life Insurance (80C) & Health
children in your Health Insurance cover Insurance (80D), Principle (80C) and Interest
Repayment (24B) of Housing Loan
VIEW THE LIST OF TAX SAVING** INVESTMENTS

*ICICI Bank Limited is a AMFI Registered Mutual Fund Distributor. Mutual Fund investments are subject to market risk.
Read all scheme related documents carefully. T&C Apply.
**Tax Benefits are subject to amendments in tax laws from time to time.

1800 1080 Connect with us! JANUARY 2023 | VOL.20

 45 Years to Retirement

Financial Goals
Life Stage Kids’ marriage, building retirement corpus,
Family with grown-up kids creating passive income, paying off debts (loans),
succession planning

Budgeting
Top Critical Financial Skills To start with, follow the 50:30:20 Rule
Right time to catch up on (Needs : Wants : Savings) > As your income grows,
retirement goal with excess savings increase allocation from Wants to Savings
Estate planning and creating Will.

Investment Portfolio
Emergency Fund
To determine allocation towards equity investments,
Keep a fund of 6-12 months of gradually shift from equity to debt investments as you
your current income approach retirement
To move your investments from equity to debt (such as
liquid Mutual Fund* Schemes), initiate a Systematic
Debt
Transfer Plan (STP)*
Borrow primarily for appreciating To meet your income needs at a later stage, redeem
assets your investments using a Systematic Withdrawal Plan
(SWP)*
EXPLORE THE INVESTMENT OPTION
Insurance
Update Health Insurance in
alignment to your current needs Tax Planning**
NPS (80CCD), PPF (80C), Child’s
Education Loan (80E), Charity (80G)
VIEW THE LIST OF TAX SAVING** INVESTMENTS

*ICICI Bank Limited is a AMFI Registered Mutual Fund Distributor. Mutual Fund investments are subject to market risk.
Read all scheme related documents carefully. T&C Apply.
**Tax Benefits are subject to amendments in tax laws from time to time.

1800 1080 Connect with us! JANUARY 2023 | VOL.20

 Post Retirement

Financial Goals
Life Stage Need for regular income, capital protection,
Retired adults maintaining a standard of living, succession planning

Budgeting
Top Critical Financial Skills To start with, follow the 50:30:20 Rule
Budgeting to control expenses to (Needs : Wants : Savings) > As your income grows,
stay within the available income increase allocation from Wants to Savings
Simplifying and consolidating
finances
Investment Portfolio
Emergency Fund To determine allocation towards equity investments,
gradually shift from equity to debt investments as you
Keep a fund of 6-12 months of approach retirement
your current income To move your investments from equity to debt (such as
liquid Mutual Fund* Schemes), initiate a Systematic
Transfer Plan (STP)*
Debt To meet your income needs at a later stage, redeem
Ideally zero debt your investments using a Systematic Withdrawal Plan
(SWP)*
EXPLORE THE INVESTMENT OPTION

Insurance
Adequate Health Insurance Tax Planning**
is critical Investment through Senior Citizen Savings
Scheme, which is eligible under tax deduction
in 80C
VIEW THE LIST OF TAX SAVING** INVESTMENTS

*ICICI Bank Limited is a AMFI Registered Mutual Fund Distributor. Mutual Fund investments are subject to market risk.
Read all scheme related documents carefully. T&C Apply.
**Tax Benefits are subject to amendments in tax laws from time to time.

1800 1080 Connect with us! JANUARY 2023 | VOL.20

 You are
cordially invited

The Wedding Planning

Checklist:
How to plan and spend smartly

Yes, the wedding season is upon us and trends suggest that the
wedding industry is growing bigger every year.

Weddings are a grand social affair in India with elaborate rituals

and functions, spread across multiple days. It is a very important
milestone in the lives of parents and children alike and needless to
say, is also one of the most important financial milestones.

1800 1080 Connect with us! JANUARY 2023 | VOL.20

 So, if you have a wedding to plan or want to start planning for the future
wedding of your child, we have some tips that can help!

Building the wedding corpus

Start with a budget

and set a goal:
Start with a broad ballpark figure depending
on how you envision the wedding and also
account for inflation.

Start investing early

and stay invested:

This will give your money more time to grow,

thanks to compounding and will make it easier to
reach your goal.

START AN SIP*

Start accumulating gold:

It is wise to start adding slowly to your gold

kitty, by buying gold or investing in Sovereign
Gold Bond schemes.

KNOW MORE

Common pitfalls to avoid

Getting swayed by emotions

while making financial decisions
Taking big and unaffordable loans
`

` `

Impulse-buying
`
`

Draining your entire savings

Falling prey to societal pressure

*ICICI Bank Limited is a AMFI Registered Mutual Fund Distributor. Mutual Fund investments are subject to market risk.
Read all scheme related documents carefully. T&C Apply.

1800 1080 Connect with us! JANUARY 2023 | VOL.20

 Some tips to save money when planning the wedding

Have enough time to plan:

Keep atleast 3-6 months to plan a wedding. This will help you book venues well
in advance, take advantage of sale season to buy jewellery, wedding trousseau
etc.

Categorize your wedding budget:

Decide how much you want to spend on each category like venue, jewellery,
photographer etc. and ensure you do not go beyond your allocated budget.

Focus on the big-ticket items first:

Decide on the number of events, no. of guests, venue and food, as these will
affect your wedding budget the most.

Prioritise your spends:

Divide your wish list into things you cannot do without, things you have the luxury
to afford and costs you can totally avoid, depending on your overall budget.

Look for cost-effective alternatives:

Things like e-invites instead of physical invites are environment friendly and
also cost-effective.

DIY, wherever possible:

Planning your wedding on your own instead of hiring a wedding planner can
help save a lot of money.

1800 1080 Connect with us! JANUARY 2023 | VOL.20

HUF: What is a Hindu Undivided
Family? Pros and Cons
India has a unique tradition of joint family, for generations. HUF or Hindu Undivided family was
created as a legal entity to ensure control of the properties and business remain within the family.
HUF serves as a useful planning tool for tax management and in providing financial security to all
its members.

Under Hindu Law, Coparcener is that

HUF is a family, member of HUF who
which consists of all acquires by birth an
persons lineally interest in the joint
descended from a property of the family.
common ancestor
and includes their Additionally Jain and Sikh
wives and unmarried families, even though not
daughters. governed by Hindu Law,
can form HUF.

1800 1080 Connect with us! JANUARY 2023 | VOL.20

 Scope Pros Cons

Income Tax Act treats HUF as an Additional compliance i.e. separate

independent taxable person. HUF Tax Returns for an HUF in addition
has a separate PAN for income tax to Individual Tax Returns, by family
Taxation** purposes. members.
An HUF generally enjoys all
exemptions and deductions as
applicable to an individual including
the basic exemption from income
tax.

An HUF is allowed to invest in

tax-saving** Fixed Deposits and
₹ other 80C instruments. It can also
pay insurance premium and PPF
Investments contributions on behalf of its
members and claim tax deductions
for the same.

The head of an HUF i.e. Karta, has All coparceners should have
the power to sign the relevant confidence in the Karta.
documents on behalf of other
Administration members of the family.

Automatic Addition - Under the Birth and marriages increase the

Hindu Law, an HUF is a family, number of family members and the
which consists of all persons structure becomes complex after
lineally descended from a common the first generation.
Membership ancestor and includes their wives
and unmarried daughters.

Every member of the family has Selling a joint asset without the
equal rights on all assets of the consent of all members of the HUF
Right of a HUF. can have its own set of difficulties
and challenges.
member

An HUF is recognised all over India, An HUF is not recognised in other

except Kerala. countries. Income assessment can
become a challenge for members
Recognition moving abroad or obtaining
citizenship of other countries.

**Tax Benefits are subject to amendments in tax laws from time to time.

1800 1080 Connect with us! JANUARY 2023 | VOL.20

 Scope Pros Cons

An HUF can extend loans to its Additional compliance i.e. separate

members as per the terms agreed Tax returns for HUF in addition to
upon. Individual tax returns by family
Loans members.
An HUF can also avail of a Home
Loan to purchase a residential
property and get tax benefits**.

Dissolution of an HUF is generally

more difficult than opening or
building an HUF. It is generally
seen that an HUF with a large
Dissolution number of members, may pose
challenges in operation and
management, resulting in disputes.

HUF is not a ‘one size fit all’ solution and appropriateness should ideally be examined by a
professional in context of one’s family situation and nature of income from tax perspective.

With rising income / wealth levels and reducing family sizes, the relevance of other forms of
inheritance planning like Wills and Trusts have gone up in addition to HUFs.

Thus, the above content is for general understanding only and shouldn’t be solely relied upon
while making Long term inheritance planning.

OPEN AN HUF ACCOUNT

**Tax Benefits are subject to amendments in tax laws from time to time.

1800 1080 Connect with us! JANUARY 2023 | VOL.20

 Homecoming and Investment NRI Edition

No matter where you go, an NRI always remains an Indian at heart and looks forward to coming
home! Be it savouring chole bhature in Delhi, shopping at the Colaba market in Mumbai or
managing your banking in India, there is so much to do and see, when you’ve come home!

Top things to do when in India

2 Meeting friends
Managing your banking and family
1
and investments

3 Savouring your
favourite dishes

4 Getting health
check-ups done

6 Travelling and
exploring the country

5 Shopping for
all-things-Indian

1800 1080 Connect with us! JANUARY 2023 | VOL.20

 When in India, make the most of India’s growth story; it is one of the fastest growing
economies in the world, thus offering global Indians very attractive investment opportunities
in INR as well as in other currencies.

OPEN AN FCNR DEPOSIT

Today, India offers the perfect opportunity to diversify your investment portfolio with a
plethora of options across Equity, Debt and Hybrid.

Investment Opportunities available

Equity Oriented Fixed Income Tax Saving** Others

Direct Equity through Corporate FDs, Tax Saving** National
PNS, Equity Mutual Bonds, Certificate Mutual Funds*, Pension Scheme
Funds*, Portfolio of Deposit (CD) Capital Gain (NPS), Gold
Management Services Bonds (54 EC) Bonds, Real
(PMS), Alternative Estate
Investment Funds (AIFs)

OPEN AN NRE ACCOUNT

Real estate also makes for a vital investment

opportunity, as a lasting emotional connect gets
amplified when you own a piece of real estate in
your homeland. It serves the twin purpose of
having a home and/or earning a regular stream
of rental income and capital appreciation.

HOME LOAN

*ICICI Bank Limited is a AMFI Registered Mutual Fund Distributor. Mutual Fund investments are subject to market risk.
Read all scheme related documents carefully. T&C Apply.
**Tax Benefits are subject to amendments in tax laws from time to time.

1800 1080 Connect with us! JANUARY 2023 | VOL.20

We’ve got you covered, whether you’re in India or overseas.
Coming home involves putting so many things in order in limited time, including your finances.

Hence, we have banking solutions and services, ready for you to avail in just a few clicks,
whether you are home or abroad!

Debit Card RI to NRI Taxpert

Re-KYC
Request Conversion

Mandate
Chequebook Dormancy
Holder
Request Removal
Registration

ACCESS INTERNET BANKING

These services are directly available on your Internet Banking, they’re quick and
convenient
We offer personalised query-resolution through call back facilities on Net Banking, as
well as country-specific phone banking for one-on-one client servicing

We ensure data security through multi-level authentication, to create a protected

environment.

The material in this document is derived from sources ICICI Bank believes to be reliable but which have not been independently verified. In
preparing this document, ICICI Bank has relied upon the information available from public sources and claims no ownership of the same. ICICI Bank
makes no guarantee of the accuracy and completeness of factual or analytical data and is not responsible for errors of transmission or reception
and hereby disclaim any liability with regard to the same.

1800 1080 Connect with us! JANUARY 2023 | VOL.20

 We hope you liked this volume of

We would really appreciate your feedback.

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to share your feedback and suggestions.

Thank you.

Connect with us for banking solutions:

: Call us on 1800 1080.

: WhatsApp ‘Start’ to
86400 86400.

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JANUARY 2023 | VOL.20