Answered on Mar 22, 2023

Asked by Anonymous - Mar 06, 2023

Dear Guru, My wife is working as a teacher in a school and her salary package is around 7.2 lakh per annum. She is paying the house rent @ 18000/- per month but does not have any rent agreement signed. The payment is being done by cheque and when we she approached her school for availing tax benefits under house rent she has been asked to submit the rent agreement. She has PAN card of the landlady and copy of her bank statement as proof toward making rent payment. Please advise how she can avail the benefit

Ans: A rent agreement is required to avail of HRA. Please work with your landlord to get this agreement executed.

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Answered on Mar 22, 2023

Question by Vineet - Mar 05, 2023

Dear Sir, My father recently in oct 2022 sold his house . He was staying in this house since 1973. He got this house from his father who had purchased it in 1971. In Jan 2023 my father passed away. All his money which he got from selling house was in joint account and my mother is the secondary account holder. Do my mother need to pay capital gain tax? If yes how much tax she need to pay? Can you also suggest how she can save the tax by investing in bond or any other investment. She don't want to buy a new house. Kindly suggest. Thanking you in advance

Ans: Your mother can register herself as a legal heir on the income tax website and then file the returns and pay the required tax as a representative of your father. You can invest in capital gains bonds (of REC, NHAI, etc) upto Rs 50L before 6 months from the date of sale of the property.

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Answered on Mar 22, 2023

Question by R - Feb 24, 2023

I need to know about the shifting of government NPS to individual NPS. In my case, I joined a state government organization in 2013 on an Adhoc basis and the organization opened an NPS account for me and received a PRAN. After that, we (employee and employer) continuously made monthly contributions to my NPS account. Now in the month of March 2022, my adhoc tenure is completed and I left the organization. Now I am at a different organization, where the NPS scheme is not active. Therefore, requested you to kindly suggest some solution to me. Also requested to suggest whether I can keep continuing my NPS account, if yes, kindly suggest the way for that. what to do for that? In this regard a tried a lot to know about it but still did not get any response. I shall be grateful to you if you could kindly provide a solution to my problem.

Ans: You can continue the PRAN under the All Citizen of India sector. You need to submit the Inter Sector Shifting (ISS-1) Form to the POP-SP of your choice. Subsequently if you change your job and join an organization registered under NPS, you can continue the PRAN by submitting the CS-S3 form by the Corporate which you join.

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Answered on Mar 22, 2023

Question by Vivek - Mar 22, 2023

I bought Tata Digital Fund considering the company fund to do well, but it is sinking. Kindly advise should i remain invested or exit?

Ans: This is a fund focused on the Technology Sector which has been weak due to the steep correction in Nasdaq. One needs to understand the risks associated with sectoral funds. Ideally, investors who are able to make active calls of entry and exit of sectors only should invest in such funds. Now that you have invested, I would suggest you can wait for a rally in the sector and then exit and move to a diversified equity fund.

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Answered on Mar 07, 2023

Question by Poornachandrarao - Feb 28, 2023

How do I know my old investments made to save tax over a period of a decade as mutual funds are sending only in the form of common letters which are not available due to mobility of my postings.

Ans: You can check if you are receiving the NSDL Common Account Statement (CAS) or you can trigger a CAS statement from CAMS or Karvy. However, this would be only if your PAN Number was updated for the MF schemes.

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Answered on Mar 07, 2023

Question by AGB - Feb 25, 2023

Hi, My present age is 48 yrs, my son's age is 10 yrs. I wish to have a wealth value of 25 Lacs for my son in coming 10 years. Under which child policy should I invest yearly and how much

Ans: Your query is not very clear. To create a wealth value of Rs 25 lakh, it would depend on the return that you get. At a 6% return, you need to invest Rs 15,255 per month. Similarly, at 8% return, you need 13,665 per month. At 10%: Rs 12,204 per month; and at 12%: Rs 10,867 per month.
I suggest you use an SIP in a children's gift fund or a dynamic asset allocation fund like ICICI Pru Balanced Advantage Fund

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Answered on Mar 07, 2023

Asked by Anonymous - Feb 03, 2023

Dear Sir, Am kuldeep running freelance business last 8 years my income is cross 20+ lakh should i opt for GST and how do i monitor saving if GST filling and CA fees goes high and if run short of savings due huge committed for loans EMI

Ans: You would need to register for GST if you cross the threshold.
Today, technology makes it easier for govt agencies to get this information. You run a larger risk of penalties in case non compliance is discovered by the department. Anyways you can raise bills with GST and collect it from your clients.

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Answered on Mar 07, 2023

Asked by Anonymous - Feb 22, 2023

Our house is in the name of my father and mother and i am only the child.My mother died in 1998 and my father in 2022. My father had made registered will whereby i am the beneficiary and executor. I stay in Maharashtra and got property tax transmitted in my name. Do I need to go to sub registrar office and get sale deed transmitted in my name ( or my name and my wife name) or not needed. We have two daughter . Myself and my wife will be making registered will .if i do not get property transferred in my name or myself and wife name will my daughters face any problem after we both die.

Ans: It is always better to get the property transmitted in your name with registration at the registrar's office. This will avoid difficulties for your family.

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Answered on Mar 07, 2023

Question by Tamojit - Feb 23, 2023

Good afternoon sir! This is Tamojit from kolkata my salary 3lkh pa. I have on Daughter 3.5yrs and deposit on behalf of 2000 pm sukanya samriddhi yojana and 2000 pm LIC give me advise how what are next step for my daughter future

Ans: I suggest you start an SIP in a children's gift fund or a dynamic asset allocation fund like ICIC Pru Balanced Advantage Fund. If you are ok with taking a higher risk, you can also use an equity fund for the SIP.

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Answered on Mar 07, 2023

Question by Gurumukh - Jan 28, 2023

I am having two demat account.in one account is joint account ,in which holder is myself and my wife . second account my wife is solo account holder. so can I transfer joint account to solo wife account.pl advice.

Ans: If your wife is the sole holder in both, there is no implication. However, if you are the first holder in the joint account- you can transfer the shares, but it can be considered to be a gift or sale for consideration based on how you want to execute it.

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Answered on Mar 07, 2023

Asked by Anonymous - Feb 18, 2023

I am planning to sell my Flat. The circle rate of the locality comes to 37 lakhs, while the deal is likely to be around 35-36 lakhs. Will the amount payable for Registry of the property will be calculated on 37 L or actual sale value ? Is the entire payment transaction to be carried out through bank only ?

Ans: The registration duty is typically at a minimum of the guidance value/circle rate. The entire payment can be carried out through a bank transfer/cheque or by Demand Draft. You should take the opinion of an expert on property matters.

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Answered on Mar 07, 2023

Question by AJITH - Mar 03, 2023

What is the best investment plan for myself 44 yrs old having only started one sip monthly since last month for rs 2500.iam to retire at the age of 60.have 2 children aged 12 and 7.two daughters. Pls suggest.

Ans: The data you have given is not sufficient. Hence a generic response to you:
- Ideally, you should do a financial plan to map all your needs including that of your daughters education/marriage and your retirement at least.
- Invest as much as you can on a monthly basis. Your retirement is not really far away and needs are also likely to overlap with your retirement age.
- Do take sufficient life cover since you have dependents.
- SIPs are a good way to invest. You can invest in a combination of large and midcap funds. As you come closer to retirement or your needs, you can derisk your investments.
- Take care of your tax planning and make investments that will both optimise your tax and grow your wealth.

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Answered on Mar 07, 2023

Question by yashpal - Mar 04, 2023

SIR I AM A SR. CITIZEN AND HAVING A PLOT IN JOINT NAME WITH MY WIFE. WHEN WE HAD PURCHASED THE PLOT WE HAVE EQUALLY GIVEN THE PAYMENT TO SELLLER. NOW I AM SELLLING THE PLOT , MY QUERY IS WHETHER WE SHOULD GET SALE PROCEED TRANSFERRED EQUALLY IN OUR ACCOUNTS (ME AND WIFE). WHAT WILL BE THE TAX IMPLICATION. SHOULD WE BOTH SHOW THE SALE PROCEEDS IN OUR IT RETURNS. MY WIFE IS NOW HOMEMAKER BUT FILING RETURN REGULARLY.

Ans: If the property was registered in joint names, then you can take the same equally in both account. However, keep in mind that if the source of funds at the time of investment was not out of your wife's earnings, it can trigger the provisions of clubbing income with you.

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Answered on Mar 07, 2023

Question by Jatinder - Mar 06, 2023

Hello sir, Im a pvt lecturer (age 29), earning 30,000 p.m. I hvn't invested yet. Where & how much should I invest ?

Ans: Ideally one can invest about 20% of your income. You dont need tax saving investments now, and hence you can start investing in SIPs. A more conservative way to start since this would be your first time is to invest into a dynamic asset allocation fund like ICICI Pru Balanced Advantage Fund.

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Answered on Feb 23, 2023

Question by valsson - Feb 14, 2023

I am Professor in College, As per Supreme Court direction for higher EPFO pension. How can I submit the application. I am already EPS member since 1995. At present 12% of 15k is debited as EPF amount. How can I opt to get higher pension as per Hon Supreme Court directions. No format of applications are seen on EPFO portal for the same. Please Guide

Ans: You can get it from the nearest EPFO office. The online link on the EPFO portal was not working when I tried.

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Answered on Feb 23, 2023

Question by VENKATARAMANI - Feb 07, 2023

sir, both my mother (age 83) and wife (62), aadhaar and PAN not matching. PAN COORECTION as per aadhaar applied. they are rejecting and say this is not matching or that is not matching. for old people, why they cannot little more helpful?

Ans: The department would like backup proofs for name change, etc. Change of PAN is easier. I am assuming that you had given proofs for Aadhaar as well based on which the same would have been updated. You can provide the same proofs.

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Answered on Feb 23, 2023

Asked by Anonymous - Feb 11, 2023

Hi, i will be 45 years in April this year. I have 2 kids one 14 years and other 8 years. I already have a term policy of 50 lakhs. I know it is very less. My question is how much more i should take and how many years of life coverage should it be?

Ans: If your family is fully dependent on you, it is very important to take an appropriate cover. At first sight, your cover looks very less. You at least need to take as much cover to cover so that the capital that you generate will take care of your family expenses for their lifetime (or children become independent) plus their needs like education. If you are unable to assess, pls use a financial planner. You can use a term cover so that you are not overburdened on the premiums. However, term covers are pure risk covers and there is no maturity value that you get.

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Answered on Feb 23, 2023

Asked by Anonymous - Feb 10, 2023

Hi, I am a regular follower of this column. I am working in a MNC. Currently my month salary:100000 My Investment: Mutual Fund SIP:20000 p.m(all in equity) Children Fund:1 lakh p.a (UTI CCF) PPF:1.50 lakh p.a P.F:14000 p.m NPS:6000 p.m Avg monthly expenses:30000. I have a kid age 6..My age is 39.. Is my Investment plan ok? Please let me know. Keep my name confidential.

Ans: You have done a pretty good distribution. Few inputs:
- I would think that you could take a slightly higher amount of risk, for a higher return and increase your SIPs by at least 5K per month. If you have no other option, you can reduce your PPF contribution.
- Not clear if your NPS is the one through salary or the investment under Sec 80ccd(1)- ie through salary; or 80ccd(1B)- investment for deduction under sec 80c upto Rs 50K. Suggestion is that you take advantage only till such limit that you get a tax deduction. You can use an equity-oriented fund there as well.
- Pls take care of your full tax savings if you are filing taxes in the old regime.
- I have assumed that you are comfortable only liquidity and looking for long term. If not, you would need to plan some investments towards the same.

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Answered on Feb 23, 2023

Question by Yogeshwar - Feb 08, 2023

Sir As present I am PSU employee and eligible for EPS-95 PENSION.At present supreme court directed to company for the extra pension and told to employee to opt for higher pension option . What will be your suggestion shall I got for corpus or pension as I feel how.much pension will be given also not clear by the EPFO.

Ans: You should go ahead based on your need for monthly income. Typically, the EPFO interest rates are higher than the normal rates of interest.

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Answered on Feb 23, 2023

Question by Mandar - Jan 10, 2023

Can a registered gift deed be challenged in the court of law.

Ans: A gift deed as per my knowledge can be challenged on various grounds like consent was not free for a period of 3 years from the date of execution or date when the donee finds out about it. It is better to confirm this with a lawyer.

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Answered on Feb 15, 2023

Question by Nitiksha - Feb 14, 2023

Why invest through Mutual Funds & not directly in stocks or bonds?

Ans: First of all, bonds and stocks are not comparable. You can look at investing directly in bonds VS debt mutual funds. Similarly, stocks Vs Equity Mutual Funds. If you have the expertise to invest in stocks or are able to evaluate the credit risk, you can directly invest into stocks or bonds respectively. Otherwise, you can give it to a fund manager who is likely to do a better job than most retail investors. Further, mutual funds give you benefit of diversification which you would otherwise need to do on your own. Mutual funds also offer liquidity, smaller size and it is easier to invest through STPs. Based on our experience, we find that retail investors tend to lose out much more than the fund management fees that they end up paying.

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Answered on Feb 10, 2023

Question by Binda - Feb 02, 2023

Hi , I am 62 yrs old and paying for tuition fee to University in USA and for payment transfer thru bank TCS amount is also be charged . How to avail rebate of education fee and TCS amount . What is the limit for education fee to avail the rebate . what about money being transferred for the living expenses and again TCS being charged by Bank . Pl advise as application to claim the rebate .

Ans: TCS for educational purposes is 0.5% (if funded through an educational loan from a financial institution) or 5% (without loan) of the amount exceeding Rs 7Lakh.

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Answered on Feb 10, 2023

Question by R - Feb 05, 2023

I am 83 years old. My pension and FD interest is Rs.11 lacs per annum How my tax will ne calculated in two methods? ( I have Sec 80C investment Rs,1,5 lacs , Sec.80 TTB Rs.50000 ,Std deduction in pesion Rs.50000)

Ans: The old regime will be better for you, also considering the super senior tax slabs under the old tax regime.

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Answered on Feb 10, 2023

Question by Yogesh - Feb 05, 2023

I have 200000 saving in 80c and 80ccd and 70000 housing loan interest in sec 24 and my gross is 15l which regime is better

Ans: The new regime maybe better for you. Note that you are exceeding the limit under 80c

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Answered on Feb 10, 2023

Asked by Anonymous - Feb 01, 2023

My CTC is 28 lakhs and I am still continuing with old tax regime, will it be beneficial to move to new one. If Yes, what amount will I save ?

Ans: If you can take advantage or all deductions like Sec 80C, 80D, NPS, and Home Loan Interest among others, the old tax regime will benefit you. The savings would need to be computed based on the deductions you will be availing.

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Answered on Feb 10, 2023

Question by Ujjwal - Feb 01, 2023

Hi,My CTC is 25 L and Variable is 4.12 L. Variable is separate. Please suggest tax slab

Ans: You will be in the 30%+surcharge tax slab.

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Answered on Feb 10, 2023

Question by Ashwani - Feb 01, 2023

Again will the tax slabs under old regime continue to be same? What will be standard deduction now.?

Ans: Tax slabs under the old regime continue to be the same. The standard deduction is Rs 50,000

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Answered on Feb 10, 2023

Question by Ganapathy - Feb 02, 2023

Is 80 DDB allowed in new tax regime

Ans: Not allowed

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Answered on Feb 10, 2023

Asked by Anonymous - Feb 02, 2023

mr anil, Is there any issue if father transfers or deposit 10 lacks as a financial help for my existing home loan or car loan payment?

Ans: You can choose to treat it as a gift or a loan from your dad depending on whether you need to return it. There is no gift tax between relatives.

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Answered on Feb 10, 2023

Question by Ghansham - Feb 03, 2023

Earlier in the scss account one could invest only 15 lakhs, but now the limit for investment has been raised to 30 lakhs , then can a person who invested 15 lakhs some years back can such a person now invest in scss account another 15 lakhs from his savings account.

Ans: Yes. You can invest Rs 15 lakh more.

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Answered on Feb 10, 2023

Question by Rajesh - Feb 03, 2023

For Super senior citizen, what is impact in the new regime?

Ans: The budget has no separate slabs for senior or super senior citizens. Hence, you would need to check the old regime tax slabs (for senior citizens) along with any deductions that you would be availing, with the new tax regime (same for all citizens) and choose what is best for you.

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Answered on Feb 09, 2023

Question by Nitin - Feb 01, 2023

Hi My CTC is 15 lakh how much tax benefit I get from new tax slab

Ans: The tax you save would depend on the deductions that you make (the old regime will lower taxable income for permissible deductions and thus have a lower tax to that extent). Most of these deductions are not available in the new tax regime.
If you claim no deductions other than standard deduction, the tax saving comes to about Rs 1 lakh under the new regime. If you claim Sec 80C and NPS, then new regime would be better by Rs 39,000

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Answered on Feb 09, 2023

Question by Pratik - Feb 02, 2023

Hello Contribution to NPS by Assesses (Section 80CCD (1B) is applicable in new tax regime for exemption.

Ans: Contribution by Assesse - Section 80CCD (1B) is not allowed in the new regime.

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Answered on Feb 09, 2023

Question by Ravi - Feb 08, 2023

Hello, Out of my retirement benefits, I had invested Rs.15 lakhs in my wife's name in LIC Jeevan Akshay for monthly yield. Does this monthly yield to be accounted by me as she is not a tax payer (homemaker)? Kindly advice me

Ans: Technically, investments made by you in your spouse's name is subject to clubbing with your income.

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Answered on Feb 09, 2023

Asked by Anonymous - Feb 07, 2023

Under new tax regime, NPS contribution u/s 80 CCD2 is eligible for deduction. Please clarify.

Ans: Yes, Section 80 CCD(2) is available as a deduction.

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Answered on Feb 09, 2023

Asked by Anonymous - Feb 01, 2023

I have an income of 13 lakhs. I have home loans and 1.5 lakhs 80C investments. Additionally I have NPS investment of 50000 as well. Should I continue with Old regime or move to new regime? I feel new regime does not benefit me at all.

Ans: For your level of deductions, the new regime will be better due to the lower tax slabs/rates.

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Answered on Feb 09, 2023

Question by Rakesh - Feb 03, 2023

My salary per month is 2 lakhs what will be my income tax deduction

Ans: Your question is not very clear for me to be able to respond. If you are asking about your tax liability, this also depends on various deductions that you use.

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Answered on Feb 09, 2023

Question by RAJNARAYAN - Feb 06, 2023

How in the new tax rates there is no tax till 7 lakhs income as is claimed by government. Please clarify

Ans: This is provided as a tax rebate if your income is less than Rs 7 lakh, which makes a person to be tax free.

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Answered on Feb 09, 2023

Question by Anuja - Feb 06, 2023

Can I switch to new regime for one FY and to old regime in the next FY

Ans: If you file your returns by the due date, you can switch between old and new tax regime for the financial year at the time of filing your return

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Answered on Feb 09, 2023

Question by Sadiqulla - Feb 06, 2023

My GTI around 7 lakh and I have two investment saving policy like PLI and LIC Paying premium for both policy around 72k for pli and 40k for lic which regime should i opt new or old to avail maximum tax benefit kindly guide me

Ans: Since you dont have too many deductions, and being in the lower tax slab, the new regime will work better for you

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Answered on Feb 09, 2023

Question by Avnish - Feb 06, 2023

I have income from salary more than 60 lacs which tax system in good for me

Ans: If you use all deductions among others including Home Loan Interest, Section 80C, NPS and Section 80D, the old tax regime would be beneficial for you.

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Answered on Feb 05, 2023

Asked by Anonymous - Feb 01, 2023

Hi Anil, how would the tax on insurance/mediclaim premium affect taxpayers? Who is liable to pay tax on insurance premium? What is the maximum limit beyond which mediclaim premium is taxable? Will there be any tax benefit of paying the tax on the premium?

Ans: I think you have misunderstood the tax change. This is applicable for new policies that you invest into from the next financial year(FY). This budget changes the taxation on the returns from the policies if premiums on the new policies from the next FY is above Rs 5 lakh.
Detailing this change- If aggregate of premium for insurance policies (other than ULIP) issued on or after 1st April 2023, is above Rs 5 lakh, income from only those policies with aggregate premium up to Rs 5 lakh shall be exempt.
Note that the deductions for insurance premiums (investment) under Section 80C and Section 80D are still available under the old tax regime.

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Answered on Feb 05, 2023

Question by Ujjwal - Feb 01, 2023

Hi,My CTC is 25 L and Variable is 4.12 L. Variable is separate. Please suggest tax slab

Ans: One would come under the highest tax slab (30%) on this salary.

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Answered on Feb 05, 2023

Question by Sanket - Feb 01, 2023

Housing loan interest related tax befits would continue in new tax benefits ??

Ans: Tax exemption is unavailable in the new tax regime on interest paid on home loans.

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Answered on Feb 05, 2023

Asked by Anonymous - Feb 01, 2023

Sir, what is the new tax rate for a salaried professional with an annual income between 10 and 15 lakh? Would you recommend opting for the new income tax regime?

Ans: Between 9-12L one would be taxed at 15% and between 12-15L the tax would be taxed at 20%. If you are able to claim all deductions especially home loan interest and NPS, the old tax regime would be more beneficial. The new tax regime would be effective if you are unable to claim various deductions.

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Answered on Feb 05, 2023

Question by shah - Feb 01, 2023

Is it still possible to file for tax refund even if we opt for new tax regime?

Ans: Tax refunds will be an integral part of the tax filing process and will continue.

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Answered on Feb 05, 2023

Asked by Anonymous - Feb 01, 2023

will the government abolish the old tax regime and make the new one compulsory for all tax-payers, maybe after the Lok Sabha elections next year?

Ans: This is speculative and I may not be able to comment.
However, the government is looking to transition taxpayers to the new tax regime with the objective of simplification.
With tax law, use whatever suits you in the current period. If it changes, one may not have an option anyways.

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Answered on Feb 05, 2023

Question by Rohit - Feb 01, 2023

Which tax regime is beneficial now for income 15L with investment of 1.5 L in 80C , 50000 NPS, 25000 80D and loan interest of more than 2L?

Ans: The old tax regime would be effective if you are able to claim the above deductions.

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Answered on Feb 05, 2023

Question by MAHESH - Feb 01, 2023

An income tax calculator with one-time input but showing figures simultaneously under the new and old regime would be of great help. Does rediffGURUS have one or recommend one?

Ans: You can message on contactus@righthorizons.com and we can send you a calculator.

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Answered on Feb 05, 2023

Question by Sundarlal - Feb 01, 2023

What will be effect on PPF under new tax regime. It will continue to enjoy exemption on interest & Maturity or not. As deposit is taxable.

Ans: There is no change in PPF taxation. Interest will still be exempt.
Just wanted to clarify that the Section 80C deduction is not available for a fresh investment into PPF under the new tax regime.

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