Nov 23 2018, 12:37 AM
QUOTE(saintmikal @ Nov 22 2018, 08:50 AM)
I wonder if this strategy is workable:-
Step 1 - Deposit RM 6k in by Dec 31, 2018
Step 2 - Withdraw RM 6k in Jan 2, 2019
a) Eligible to claim for Income Tax deduction in for 2018 - my guess in YES
b) How to claim for 2019? - deposit RM 14k by Dec 31, 2019. Claim for RM 8k.
c) Repeat for all years but with incremental, e.g. for 2020, need to deposit RM 22k to claim the RM 8k
Benefit of this strategy
1. Claim income tax relief
2. If PTPTN goes bust (which they claim is somewhat likely due to so many students not paying), does not affect you as the money is your hands, not theirs
Caveat - you must be disciplined and set aside this for your kids and do not be tempted to use this money at all. There are so many good FD rates available now that you can park the money in- just refer to the FD thread.
Comments are welcome.
Reckon your system works. But requires a lot of discipline and finding something secure in 11 months that can match 4% though. Of course if you're paranoid about PTPTN's sustainability of course this method is the way to go.Step 1 - Deposit RM 6k in by Dec 31, 2018
Step 2 - Withdraw RM 6k in Jan 2, 2019
a) Eligible to claim for Income Tax deduction in for 2018 - my guess in YES
b) How to claim for 2019? - deposit RM 14k by Dec 31, 2019. Claim for RM 8k.
c) Repeat for all years but with incremental, e.g. for 2020, need to deposit RM 22k to claim the RM 8k
Benefit of this strategy
1. Claim income tax relief
2. If PTPTN goes bust (which they claim is somewhat likely due to so many students not paying), does not affect you as the money is your hands, not theirs
Caveat - you must be disciplined and set aside this for your kids and do not be tempted to use this money at all. There are so many good FD rates available now that you can park the money in- just refer to the FD thread.
Comments are welcome.
Was thinking of this alternative - going by "NET" deposits for the year, one can technically "select" a year to ignore SSPN tax relief and make full withdrawal.
If tax bracket is say max at 28% for 8k, that's 2.2k loss in relief for the selected year. But pro is you can double up the tenure with the same funds la.
What you guys think?
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