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Most investors start with mutual funds because they’re simple to access. You can begin with as little as ₹500 or a few thousand a month and let it grow on autopilot. However, mutual funds have a blind spot: they work well when markets rise, but struggle when markets are flat or falling.
But if you’re looking to go beyond vanilla mutual funds and explore more advanced strategies used by serious investors, there’s a category called the Specialized Investment Funds (SIFs). They use strategies similar to Portfolio Management Services (PMS) or Alternative Investment Funds (AIFs) to generate returns even when markets are falling, but with a much lower entry barrier compared to these high-ticket options.
On a separate note, many taxpayers have more TDS deducted than their actual tax liability. This means paying extra tax and waiting until ITR filing to claim a refund. Form 128 solves this by letting you request a lower or nil TDS certificate upfront, so the correct amount is deducted from the start. It’s filed on the TRACES Portal, and we’ll also walk you through the steps to file it.
We’ve handpicked these topics in today’s Digest.
TOP THREADS
What makes Specialized Investment Funds different from Mutual Funds?
Mutual funds do well when markets rise, but struggle when they’re flat or falling. To address this, Specialized Investment Funds were launched in April 2025. They use multiple strategies to generate returns in any market condition. That said, getting started isn’t as accessible, and you’ll need a minimum investment of…Continue Reading
What is Form 128?
TDS is deducted on almost every source of income, be it salary, rent, interest, or even professional fees. But standard TDS rates don’t consider your actual tax liability. So if more tax is deducted than what you’ll owe for the year, the excess stays with the ITD until you file your return and claim a refund. To avoid this, Form 128 lets you apply for a lower or nil TDS certificate, which you’ll need to…Continue Reading
How do I file Form 128 on the TRACES Portal?
Form 128 requires your estimated income, tax computation for the current year, and ITR acknowledgment numbers for the past four years. Once you have these ready, you’ll log in under the Taxpayer field on the TRACES Portal. Here’s how to complete the filing process…Continue Reading
FAQs
How is the income from SIFs taxed?
SIFs are taxed the same as mutual funds, so it depends on the fund’s asset mix. If it’s equity-oriented (65% or more in equities), gains are taxed at 20% for holdings up to 12 months (STCG) and 12.5% if held for more than 12 months (LTCG). If the fund is debt-oriented, gains are added to your total income and taxed at your slab rate if held for less than 24 months (STCG), and at 12.5% as LTCG if held for more than 24 months.
Can I get a nil TDS certificate if I have no tax liability?
If your total income is below the basic exemption limit or your deductions bring your tax liability down to zero, you can request a nil TDS certificate. You’ll need to provide your ITR details for the last four years to support your application.
Where can the details of the lower/nil TDS certificate be viewed?
Once your Form 128 application is processed, you can view the certificate details on the TRACES portal. Just log in as a taxpayer and head to e-File & View → View Filed Forms and Statements.
RESULTS FROM LAST DIGEST
Under the presumptive taxation scheme for professionals, what percentage of receipts is assumed as profit?
A) 40% (0%)
B) 50% (100%) 
C) 60% (0%)
D) Depends on how you receive the payment (0%)
Well done! 100% of people chose the right answer.