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Sanjeev

Sanjeev Govila  |300 Answers  |Ask -

Financial Planner - Answered on Dec 06, 2023

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I am 35, govt employee with having inhand salary of 1 lakh /month. I have a term plan of 1 cr and the medical facility is provided by the office covers both OPD and IPD. I have a home loan EMI of Rs 20000, 15 lakh are still to be paid, and Investing about Rs 9000 in mutual funds Quant tax saver-2500, Quant small cap-2000, Nippon small cap-2000, Mirae Asset emerging bluechip funds-2500 corpus of 2.5 lakh is generated. 10% of basic is been deducted in NPS. Please review my portfolio and suggest to me which funds and stocks, to have a balanced and diversified portfolio for maximum gain. I should repay my home loan have an interest rate of 9.55% or invest. Please help me to fix the amount I should repay in the loan and the amount I should invest to generate a corpus of 2cr in 20 years by means of stocks, SGB, mutual funds, and other instruments & average monthly expenses amount. I have realized that I am investing after spending so expenses are higher, it should be investing first and the remaining amount to be spent. Help me to have balanced diversified portfolio of multiple instruments to achieve the goal of 2 CR. Long-term Goal (20 years) Amount Retirement (other than NPS) 1cr Child education (2) 40 lakhs Child Marriage (2) 60lakhs Pankaj
Ans: Your current portfolio is well-diversified across different asset classes, including mutual funds, NPS, and an Insurance.

However, there is a significant high allocation to small-cap funds, which tend to be more volatile. By replacing Quant Small Cap Fund, you can add Parag Parikh Flexi Cap Fund (Returns variation can be seen but the risk exposure reduced drastically)

We do not have your home loan details. So, in brief if you have paid EMIs for more than half of the loan tenure then it is not advisable for prepayment considering financial mathematics. But it is good from a psychological aspect.

To achieve a corpus of 2 Cr. In 20 Years, you have to do monthly investment of Rs. 20,000 @ 12% p.a. It is achievable by selecting Equity and Hybrid Mutual Funds with right risk to reward ratio.
For achievement of other goals, complete details are not mentioned.

I would advice you to take the help of a good financial advisor and plan for the future properly.
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Sanjeev

Sanjeev Govila  |300 Answers  |Ask -

Financial Planner - Answered on Dec 06, 2023

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I worked in company A for 5 years and accumulated PF and then I joined company B and worked for 8 months and accumulated PF. Before I could link these 2 PFs account, I got a job abroad and worked there for 7 years. As my contract is over, I had to return to India. I am presently getting rental income of Rs. 12 Lakhs per annum and paying tax on that. My age is 55 years now. Can I withdraw both the PF amount totalling Rs. 15 Lakhs as on date? Is it taxable? To avoid Income tax, do I need to wait till 60 years of age?
Ans: The retirement age set by the Employees' Provident Fund Organization (EPFO) is 58 years for private sector employees. Therefore, you are not eligible for full PF withdrawal (contribution + pension). However, early retirement age is set at 55 years of age.

The taxability of your PF withdrawal depends on two factors:

• Your service period: If you have completed at least 5 years of continuous service (without any breaks exceeding 6 months), then the entire PF amount (including employer and employee contributions) is tax-free at the time of withdrawal.

• Your contributions made after 1 April 2004: If you have made any contributions to your PF account after 1 April 2004, then the interest earned on those contributions will be taxable.

Moreover, you need to verify the following to ensure the complete PF amount is tax-free:
• As your both accounts (company A and B) are not linked, you need to get them linked to avoid any tax implications.
• Whether there were any breaks exceeding 6 months in your service period.

Waiting until you turn 60 years old will not automatically make your PF withdrawal tax-free. The taxability still depends on your service period and contributions made after 1 April 2004, as mentioned earlier.
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Sanjeev

Sanjeev Govila  |300 Answers  |Ask -

Financial Planner - Answered on Dec 06, 2023

Asked by Anonymous - Nov 26, 2023Translate
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Money
Sir, I recently joined a new company and submitted claim to EPFO. However, EPFO has rejected my claim submission for this reason "member with date of joining in EPF as 15.7.2003 and date of exit as 17.5.2005 whereas date of joining in EPS is given as 1.7.2007 and date of exit under EPS is updated as NIL." How can I get this corrected? Please advise.
Ans: To rectify the discrepancy in your EPFO and EPS records, you'll need to follow these steps:

1. Gather Documents: Collect supporting documents that verify your employment details, including:
o Appointment letter or joining letter
o Salary slips for the relevant period
o PF contribution statements
o Any other relevant documents that verify your employment tenure

2. Submit Correction Request: Visit the EPFO regional office where your Universal Account Number (UAN) is registered. Carry the supporting documents and submit a correction request form, clearly stating the discrepancy and providing the correct dates of joining and exit.

3. Attach Documents: Attach self-attested copies of all supporting documents to the correction request form. Ensure the copies are clear and legible.

4. Submit Form and Documents: Submit the completed correction request form along with the attached documents to the EPFO officials. They will review the request and supporting documents.

5. Verify Correction: After processing your request, EPFO will update your records accordingly. You can check the status of your correction request online through the EPFO Member Portal.

6. Seek Clarifications: If you face any difficulties or delays in the correction process, contact the EPFO grievance redressal mechanism for assistance.

Please remember to provide accurate and verifiable information to expedite the correction process.
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Sunil

Sunil Lala  |71 Answers  |Ask -

Financial Planner - Answered on Dec 06, 2023

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