April had a lot of big, if behind-the-scenes, releases.
New iOS App
We finally launched our native iOS app (the earlier version was a sort of web-app using React Native).
The new app is smoother, faster and supports face/touch id.
The feature set on the iOS app is not complete yet. We are working dedicatedly on it though. We have added the SIP centre (Stop SIP/Skip SIP/Change SIP Date) in it already and are now working on adding goals and investing.
The iOS app should be at par with the android app and the Goalwise website in a few months. We are on it!
New LTCG calculations
In this year's budget, Equity LTCG tax was re-introduced by the finance minister.
Till now, long term capital gains on stocks and Mutual Funds were tax free but starting this financial year they will be taxable at the time of sale at the rate of 10% (on gains beyond 1 lakh per FY at the PAN level).
We have updated our Equity LTCG tax calculations accordingly for the new tax rate.
New rebalancing with Tax Gain Harvesting
This was one of the biggest releases of April although you may not see it immediately in action on your rebalance portfolio page.
To mitigate the negative impact of the new Equity LTCG tax on retail investors, the government added a provision that upto Rs 1 lakh in equity capital gains will be tax-free every financial year at the PAN level.
So, if your total equity long term capital gains (across all investment accounts at PAN level) are less than Rs 1 lakh in a financial year, then you don't have to pay any LTCG tax.
(Even if the gains exceed 1 lakh, you have to pay LTCG tax only on gains exceeding 1 lakh.)
This has an interesting implication - if someone keeps booking his long term capital gains in equity (up to Rs 1 lakh) every year instead of carrying it forward, then technically he can lower his eventual LTCG tax (when the final redemption happens) by a huge amount (or even not pay any LTCG tax).
This is known as Tax Gain harvesting and guess what, the new rebalancing does that for you automatically!
The new rebalancing algorithm does all the number crunching (assuming all your investments are with Goalwise) and allows you to rebalance only that amount where the equity LTCG does not exceed the exemption limit so that you don't have to incur any taxes.
If you rebalance your equity investments every year regularly then your equity gains will keep getting booked under the LTCG exemption instead of getting carried forward and becoming taxable later on!
Our rebalancing feature was already the most cutting-edge and now we have raised the bar even higher.
Notification centre on the website
Another useful release this month was a notification centre for our website so that you don't miss anything, no matter how you are accessing Goalwise.
Renew SIP notifications
Based on feature requests by users like you, we have implemented friendly renew SIP notifications which you will receive (and see on your dashboard) when your SIP is about to expire or has already expired.
This is in line with our aim to make Goalwise a truly set and forget system for our users.
Have feedback or suggestions? Please let us know in the comments below and we will surely reply.