Need Expert Advice?Our Gurus Can Help

Ans: FIrstly, please ascertain whether the Old Tax Regime is beneficial to you or the New Tax Regime. If it is the new one, you do not have to bother about saving any income tax as there are hardly any deductions available in it but the tax rates are lower. If Old Tax Regime is beneficial to you, then the tax benefits are available to you only if there are special circumstances for you, eg, you take a home loan and loan interest saves a bit of tax under IT Section 24(b), education loan under Section 80E, disability of self and/or dependents under Sections 80DD, 80DDB, and/or 80U, etc.

Ans: 3 years is too small an investment period for a small cap fund. It should be for a minimum 5 years, preferably for 7 years+. If you can invest only for 3 years, I would recommend a good multi-asset or balanced advantage fund to you.

Ans: When you repay any part of the loan and that too very early during your loan tenure, you save a considerable amount of future interest. Also, the current interest rates being very high, it will always be good for you to prepay some part of the loan now, if you have the money. Every repayment reduces the tenure of your loan, which is what is bringing down your overall loan interet. Pre-payment has nothing to do with the possession of your house technically. I suggest you to go ahead and prepay now than wait, if you have the money.

Ans: No.

Ans: Please contact suitable lending agencies like your bank, a P2P lending platform, or maybe even through your family and/or friends.

Ans: Please contact the service provider you have chosen to view your credit score.

Ans: You can continue to contribute to the EPF scheme if you join a new company after availing EPF pension at the age of 58, provided that you are a full-time employee on the company’s payroll.

However, you will not be eligible to become a member of the EPS (pension) scheme again, as the EPS membership ceases once you start receiving pension after attaining the age of 58 years.

Therefore, the employer’s contribution of 8.33% that would otherwise go to the EPS will be added to your PF account instead. Hence, the total contribution of 12% employee and 12% employer will go in EPF.

Ans: As per the Hindu Succession Act 1956, all the children of Hindu male fall into class 1 heirs and all are equally eligible to get the claim or benefit in father’s property. In your case, property has been registered in your father’s name and as per the Hindu Succession Act, your sister is equally eligible to claim her portion. At the time of claim, you can showcase your expenses which you have incurred on the property with valid proofs.

If your father had made a will and declared you as a beneficiary to the same property, in that case, your sister would not have been eligible to get the share from the property.

Ans: We are sorry to hear that you were a victim of fraud. It’s important to take immediate action to address the situation.

Below are the Steps that you can take:

1. Contact your bank: To prevent any future unauthorized access, contact your bank and freeze the account, and modify the UPI pin.

2. Contact Paytm: Reach out to PAYTM as soon as possible to report the fraudulent activity and explain the situation. They will guide you through the process of filing a complaint and provide you with further assistance.

3. File a complaint: Visit your nearest cyber security cell and file a complaint about the fraudulent activity. Provide them with all the relevant details, including any evidence you may have, such as transaction records, messages, or emails.

According to RBI guidelines, anyone who falls victim to UPI fraud needs to first report the issue to the payment service provider. However, in case the UPI service provider doesn’t provide much assistance, the user can also file a complaint at the NPCI portal – npci. org. in.

Ans: The Indian stock market is currently at an all-time high and very volatile, and the outlook for the next 10 years is positive. However, there are a few factors that could impact the market in the short term, such as the ongoing war in Ukraine, inflation, and interest rate etc.

Mutual funds are a good way to grow your wealth over the long term.

When choosing a mutual fund, consider your risk tolerance and investment goals. Do your research before investing in any mutual fund.

Some good mutual fund categories for a lump sum investment of Rs 50,000 for 10 years include:

Large cap mutual funds: These funds invest in the largest and most established companies in India. They are relatively less risky than smaller cap funds, but offer lower potential returns.

Flexi-cap mutual funds: These funds invest in a mix of large cap, mid cap, and small cap companies. They offer a good balance of risk and return.

Small cap mutual funds: These funds invest in smaller companies with high growth potential. They are riskier than large cap and multi-cap funds, but offer higher potential returns

You can just good and look for the best funds to invest in.
You can invest in mutual funds directly through the mutual fund company or through a mutual fund distributor.

Ans: Considering your age and your requirement, you will need to invest in a mix of debt and equity instruments. Here are some investment options available to you:-

• Senior Citizens’ Savings Scheme (SCSS) – This is a pure debt instruments and provides guaranteed returns of 8.2% per annum. The interest is paid quarterly. The maximum amount that you can invest is Rs. 30 Lakhs.

• Corporate FDs – It provides you return more than the regular bank FDs. It contains two options i.e. cumulative and non-cumulative.

• Post Office Monthly Income Scheme (POMIS): This is another government-backed scheme that offers guaranteed monthly income. The current interest rate is 7.1%.

• Debt Mutual Funds: As your main concern is to protect the principal amount you may consider debt funds and monthly income can be achieved through the route of SWP (systematic withdrawal plan).

• Equity mutual funds: Equity mutual funds offer the highest potential returns, but they are also the riskiest. A small portion of the amount can be invested in the equity mutual funds for growth of the money in the long-term horizon.

It is good to know that you are adequately insured for any healthcare emergency.

Your requirement of Rs. 30,000 will be changing in the future due to inflation, hence you should consult with your financial advisor for a proper increasing income or SWP (systematic withdrawal plan) which can help you to ensure sufficient amount available for your monthly expenses.

Ans: This particular investment scheme primarily puts money into big company's stocks.

Over the past 3 to 5 years, this fund hasn't done as well as we'd like compared to a standard benchmark. However, if you are concerned about the fund's recent underperformance or if you need to access your money in the near term, you may consider exiting the fund.

The fund managers have been putting a lot of emphasis on specific stocks they believe in for the long term, but this approach hasn't worked out well since 2021 till date.

One of the reasons for the fund's underperformance is its heavy investments in sectors like automobiles and banks. Some specific stocks like Kotak Mahindra Bank and Bajaj FinServ didn't perform as expected.

Overall, this fund didn't provide a good balance of protection during market downturns and gains during market upswings.

If you are unsure about whether or not to continue or exit Axis Bluechip Fund, you may want to consult with a financial advisor. A financial advisor can help you assess your individual needs and goals and make a recommendation that is right for you.

Ans: I understand that your EPF withdrawal claim has been rejected due to an error in your employer's contribution. This is frustrating, but it is important to remember that you are not alone. Many people experience problems with their EPF claims, especially when their employers make mistakes.

When filing a grievance, be sure to provide clear and concise information about the issue. You should also include any relevant documentation, such as your EPF statement and the revised Form 11 from your employer (if you have one).

Once you have filed a grievance, the EPFO will investigate the matter and try to resolve it. This process can take some time, but it is important to be patient.

Here are some additional tips:

• Keep track of all your communication with the EPFO. This includes emails, phone calls, and visits to the office.
• If you are not satisfied with the EPFO's response, you can escalate the issue to the regional or national level. You can also mail on employeefeedback @ epfindia.gov.in for the redressal of your grievance.

Ans: When applying for credit or loans, it's essential to check your credit score from multiple bureaus to ensure accuracy and to understand how different lenders may perceive your creditworthiness.

While all these bureaus provide valuable credit information, individual lenders may have their preferences for which bureau's score they rely on. Therefore, monitoring and maintaining a good credit profile across all major credit bureaus can increase your chances of approval for loans and credit cards.

Ans: Before investing in a mutual fund, it is important to consider all relevant factors. Investing without careful consideration can lead to financial losses.

Risk appetite: How much risk are you comfortable with? If you are willing to take on more risk, you may want to invest more in equity mutual funds. If you are more risk-averse, you may want to invest more in hybrid mutual funds or debt mutual funds.

Investment horizon: How long are you planning to invest for? If you are investing for the long term (25 years or more), you can afford to take on more risk. If you are investing for the short term, you may want to choose less risky mutual funds.

Financial goals: What are you investing for? Are you saving for retirement, a child's education, or a down payment on a house? Once you know your financial goals, you can choose mutual funds that are aligned with those goals.

To choose a specific fund or category of fund, it is beneficial to consult with an advisor. Advisors can select investment instruments that are right for you after carefully researching your financial situation.

Ans: I understand your situation. It's common to face issues with name variations in official documents. You can cater to this issue with 2 options- 1st is that you can change your Aadhaar card or you can submit requisition form to EPF office.

1. Aadhaar Card: If you want to align all your official documents with the name "Jack Jones Harry," you have to update your Aadhaar card to reflect the full name "Jack Jones Harry" to match your EPF account. You must visit an Aadhaar enrolment centre and providing the necessary documents for the name change.

2. Name Change Requisition Form: If you prefer not to change your Aadhaar card, you can go ahead and submit the joint declaration form for a name change requisition as requested by the EPF office. In this form, you can explain the discrepancy between your EPF account name and your Aadhaar card name as you've described which will require some additional documents and processing time.
The choice between these options depends on your personal preference and the hassle involved in changing your Aadhaar card. Ensure that you update your name consistently across all your official documents to avoid future issues.

Ans: Score between 700 to 900 is considered a good CIBIL Score. However, credit score above 750 or higher is preferable for a car loan. But CIBIL score is not the only factor that is considered for the sanction of the car loan.

Lenders will consider a number of factors when deciding whether to approve your loan application, including your credit score, income, debt-to-income ratio, and employment history. The fact that you have been a part of the organisation is not necessarily an automatic disqualifier, and considering that you have been taking all the necessary precautions to improve your credit score, it will help you to get a car loan.

You can consider multiple lenders and choose based on the best interest rates, terms and conditions or a close family member with a good credit score can be a Co- applicant in your loan, which can improve your eligibility for getting a car loan.

Ans: As per your queries, we have given our recommendations below:

1. Overall, your investment portfolio is well-diversified and includes a mix of large-cap, mid-cap, and flexi-cap funds and also the funds you have in your portfolio, they all are fundamentally good and have been stable performers in their categories which is a good approach for long-term investment. You can continue to invest in these funds without any changes suggested.

2. Now if we talk about the tax planning and if you are not going to choose the old regime of tax, then we would suggest you to park this amount in mix of some equity and more in hybrid funds as you have already taken the position in pure equity-oriented funds. Also,in current scenario, Motilal Oswal Long-Term equity Fund is not performing up to the mark.

3. For long-term investment for your baby girl child, you can start a SIP in a well - diversified portfolio including some large cap, mid cap, hybrid funds (which invest in a mix of equity and debt) and small cap funds also for long term wealth building considering the long term horizon.

Also you can invest in specially designed product in mutual fund for children like Children gift funds etc which come with the lock-in of 5 years.

Apart from this you can also go with some government promoted schemes like PPF or Sukanya Samriddhi Yojana etc.

4. Yes, you can have separate investments (through monthly SIPs, not with enlarged amount otherwise clubbing of income is applicable) in the name of your wife for tax planning purpose.

Ans: No, it is not mandatory to renew PPF every 5 years with no fresh contributions. After your PPF account matures after 15 years, you have three options:

• Extending PPF account without new deposits

• Extension of PFF account with fresh deposits

• Close the PPF account after 15 years

*Extend the account without fresh deposits - A PPF account holder can continue his/her account after maturity without making any further deposits. You can continue the account for as long as you wish. The PPF account will continue to earn interest rates applicable to the scheme.

Account holders can withdraw any amount from their account balance every year. But please note that once the account is continued without new deposits for more than a year, then the account holder does not get the option to continue again with deposits.

Ans: Retirement doesn't look the same for everyone, and we all have different definitions of what's "enough" money you need to finally put to work in your rear-view mirror. But if you've accomplished the actions listed below, you're probably nearing the home stretch before your well-earned rest and relaxation

You have enough money to have the retirement you want. Figuring out how much money you need to have saved before you can quit working is a job in and of itself. Some say that you should save at least 10 times your annual salary by the time you're 67. Others point to the 4% rule, which states that you should be able to comfortably live off of about 4% of your investments in each year of retirement, thus allowing you to cover expenses for about 30 years.

You have a fund for unforeseen expenses. One of the biggest mistakes a retiree can make is not having an emergency fund. In retirement, a lot of your investments and sources of income are less liquid than cash, since you can't just go to your bank and withdraw cash from your account instantly when your money is invested in the market.

You have a diverse portfolio to protect your wealth. It's not a good idea to put all your eggs in one basket when it comes to creating sources of income for retirement. You mitigate risk by spreading your savings and investments across multiple streams of future income.

You have a plan to afford healthcare

Healthcare costs rise exponentially in retirement. Many people receive health insurance through their employers, but this benefit typically ends once the individual no longer works there.

"Retirement is not a destination, it's a journey. And like any journey, it's important to be prepared. That means being mentally as well as financially prepared."

Ans: If you are struggling to keep up with your EMI payments due to high debt, including health issues, here are some tips to help you manage your finances:

• Create a budget and track your expenses. This will help you to identify areas where you can cut back.

• Prioritize your debt payments. Pay off the debts with the highest interest rates first, such as credit card debt.

• Talk to your creditors. They may be willing to work with you to reduce your monthly payments or waive late fees.

• Shop around for health insurance. There may be more affordable options available to you.

• Increase your income. This could involve getting a part-time job, starting a side hustle, or negotiating a raise at work.

• Reduce your expenses. This could involve cutting back on unnecessary spending, such as eating out or shopping.

Remember, you are not alone. Millions of people struggle with debt each year. There are resources available to help you get back on your feet.

Ans: Since we were young, we have been told that health is wealth, and right now, prioritizing your health should be your top priority.

You also don’t have any liability or goals, which needs to be catered. Hence, your major expenses should be towards building up your physical health and well-being.

You can also be a part of social clubs where people like you get together to spend quality time by interacting with each other. The main aim is to take care of your health and lifestyle with other people of your age.

You can also engage a nurse who will take care of you on a daily basis to ensure that you receive good medical treatment and that your health is regularly monitored.

Last and most important, prepare a WILL to appoint a legal heir to transfer your assets in your absence. Your legal heir could be anyone, an individual, trust, NGO and others.

Ans: Overall, you have over-diversified your investments. It is always better to invest in one or maximum two funds of the same category.

Although, all funds chosen by you have good fundamentals, but they carry a high level of risk with them. Without the risk profile and investment time horizon, it is difficult to comment on how long to stay invested in these funds. We should not only focus on funds’ performance but also our risk appetite and investment time horizon.

Special recommendation on sectoral/thematic funds are as follows:

Tata Digital India Fund Direct Growth: It invests primarily in companies related to digital technology and innovation in India. The fund has delivered average annual returns of 20.65% since inception. You may need to review it every six months or in case of any material change in the fund or industry. As of now, the fundamentals seem good, but sectoral funds come with very high risk.

ICICI Prudential Commodities Fund: It invests in equity-related securities of companies engaged in commodities and commodities-related sectors. The fund has delivered a higher return as compared with the category average, and should be reviewed every six months or in case of any material change in the industry.

Ans: We know that the artificial intelligence is amongst futuristic new age investment themes. These large transformative tech ideas are very exciting and these sectors will shape the future of the world in the coming years. However, we should keep in mind the risks associated with it since they are sectoral, concentrated in nature and they are still at very initial stage.

One of the main risks is that AI technology is constantly evolving, and it is possible that new technologies will emerge that make existing AI technologies obsolete. Additionally, there are regulatory risks associated with AI, as governments are still developing policies and regulations to govern its use.

If you are considering investing in a mutual fund that invests in AI, it is important to do your research and understand the risks involved. You should also make sure that the fund's investment strategy aligns with your own investment goals and risk tolerance.

Ans: It is really great to see that you have started to plan for your post-retirement life and you have accumulated ample amount till now.

If you continue in the same way with a monthly SIP of Rs. 80,000, I am convinced that you will have enough corpus to support yourself throughout retirement.

Accumulated corpus in 8 years with monthly investment of 80,000 and present value 1.09 Crore will likely be 4.12 Crores. Rate of return considered for the calculation is 12% CAGR.

Assuming that you want to maintain your current monthly expense of ₹1 lakh in retirement, it is important to factor in inflation, which will erode the value of your money over time.

Since you have other avenues as well to support your expenses, this will help to create a heftier corpus.

Recommendations:
• Invest in a mix of equity and debt mutual funds to diversify your portfolio and reduce risk.
• Rebalance your portfolio regularly to maintain your appropriate asset allocation as per your requirement.
• Consult with a financial advisor to develop a comprehensive retirement plan.

Ans: Based on your query, we understand that you are looking for investment options to plan for your younger son’s future (Education and Marriage) and your retirement life. You have mentioned that both goals have a similar time duration of about 12-13 years. You also mentioned that you have a good risk appetite now and have seen a good 5-year cycle in mutual funds (MFs).

To achieve a corpus of around Rs 5Cr by then, we have evaluated both the options:-

Option 1: Fresh Investment: This is the most recommended option from our end as considering your investment horizon and knowledge, we suggest you to rebalance your current fixed income oriented investments to equity orient funds with 20-25% allocation towards mid and small caps.
Benefits on shifting:
• Lower tax liability on returns generated.
• Tax deferment and compounding (higher returns) in long run.

Option 2: Continuing with Fixed Deposits (FDs) (Not suggested by us)
As you know, FDs are very safe asset class and yielding higher returns due to current interest rate scenario. Although, we all know sooner and later rates will came down to support the economy so does the FD rates.
Also, FDs as investment are not considered good for horizon of more than 5 years because:
a) Yearly taxation reduce the compounding and returns.
b) Equity generally outperform in terms of returns over the same horizon.

Final Recommendation:
We suggest you to shift 30-40 Lakhs from FDs and reinvest the same in a well-diversified portfolio of Equity and hybrid funds. Also, considering your goal of reaching a corpus of 5cr with current mutual fund investments it will require whopping returns of 20%+ on annual basis for a period of 12-13 years which is not very likely to achieve.

As a summary, allocate a total of Rs 80-90 Lakhs towards diversified equity-oriented funds and keep invested Rs 20-30 Lakhs in FDs in your wife’s name for taxation benefit.

Ans: To calculate your corpus in 7 to 8 years down the line, we need to make some assumptions:

• Investment amount: 35k per month
• Existing Investments : Rs.1.09 Crore
• Investment horizon: 7 to 8 years
• Expected return: 12% per annum

Using a compound interest calculator, we can calculate the following:
Corpus = Investment amount * (1 + Expected return) ^Investment horizon

You will accumulate around Rs.3.3 Crores approximately after 8 years

Note: These are just estimates, and the actual corpus may vary depending on the actual investment returns.

Tips to help you reach your goals:

• Continue to invest regularly. Even if you can only invest a small amount each month, it will add up over time.
• Rebalance your portfolio regularly. This means selling some of your winners and buying more of your losers to maintain your desired asset allocation.
• Don't panic sell. The market will inevitably go up and down, but don't let your emotions get the best of you. Stay focused on your long-term goals and don't sell your investments when the market is down.

Ans: Regarding your inquiry about closing the Fixed Deposit (FD) in your minor daughter's name, you will need to visit the concerned branch. On 15 February 2017, the Union Cabinet approved a proposal to merge SBT and four other associate banks with State Bank of India. Please ensure you take the following documents with you:-

1. The FD receipt or passbook.
2. A copy of your daughter's birth certificate.
3. A copy of your wife's identity proof (as her guardian).

You'll also need to complete an FD closure form available at the branch. The bank's staff will assist you with this process.

Once the form is filled out, and all necessary documents are submitted, the bank will initiate the FD closure request. The funds from the FD will be transferred to your daughter's savings account, assuming she has one. If not, you'll need to open a savings account on her behalf.

Here are some additional tips for closing the FD:
1. If you're unsure which SBI branch the FD was opened at, you can contact the bank's customer care department for guidance.
2. If you do not have the FD receipt or passbook, you can still close the FD by providing the FD number and other relevant details to the bank staff.

Ans: To accumulate a corpus of ₹1 crore in 10 years, you will need to invest around ₹44,000/- per month, assuming a return of 12% per annum.

However, it is important to note that this is just a rough estimate. Your actual investment returns may vary depending on a number of factors, such as the type of investments you choose and the market conditions.

Let’s evaluate the popular investments option available in India to invest :-

• FDs: Poor returns and heavy losses due to taxation. Ultimately ‘negative’ post-tax-and-inflation returns.

• Insurance Policies: It is not at all a good choice for investment purposes. It has a small insurance component that your child doesn’t need and has bad investment options clubbed with it.

• Provident Funds: Reasonable returns but returns of about 7-8% per annum are not adequate to beat the way inflation and education costs are rising.

• Mutual Funds: Only equity (stock) based investments can meet your long-term wealth creation goal with compounding effect and a small 10% tax will still ensure your money grows in net terms. Equity Mutual Funds with a SIP facility would meet the requirement in the best manner. However, do check whether your risk profile matches equity investments.

Ans: After reviewing your portfolio, we propose that you discontinue your SIPs in Thematic Funds. Thematic funds are highly risky in nature and it is difficult to predict which sector will perform when and where, and begin your SIPs with funds that have proven past records. We also recommend that you keep a mix of equity and hybrid funds in your portfolio to ensure stability and recommend investing in various categories of equities mutual funds, i.e Large Cap, Mid Cap, Small Cap, and Flexi Cap. Investment across category provide proper diversification.

As you will require around 4-5 Cr in 15 years, we recommend you to increase your SIPs on yearly basis and It is recommendable to increase your SIPs by 5-10% every year as income grows. You can also invest some amount in Bulk when it is available with you such as yearly bonus, monthly or quarterly incentives etc.

We suggest you to maintain the discipline with your investments.
As it is said, “Successful investing takes time, discipline and patience”.

Ans: You are expecting to get an additional amount of Rs 1.1 Lakhs next month, from the same you have a requirement of an annual payout of Rs. 3,000/- and the remaining amount will be invested for the long term (10 years) for wealth creation purpose.

In order to meet this payout requirement, you can invest the partial amount of Rs. 60,000 in a corporate FD providing annual interest payout of 7-8%, which will help you to meet the payout requirement.

The remaining amount of Rs. 50,000 can be invested in a good large cap fund which can provide you a likely annualised CAGR of 12% or so in 10 years’ investment horizon. The value of Rs. 50,000 invested today in large cap fund @12% CAGR will come out to be Rs. 1,55,000 approx.

Ans: Assuming you have a healthy cash flow, and your income will also increase over the period, the following actions will be very helpful for you to pay off your liability at the earliest.

1. To pay off your home loan of 60 lakhs in 10 years or less, you will be requiring to increase your EMI by around 50%. This means your EMI will increase to around 82,500 pm.

2. If you are not able to afford this increase, you can consider making lump sum prepayments towards your loan whenever possible. For example, if you can prepay 10 lakhs each year, you will be able to pay off your loan in 10 years. Making extra lump sum payments on regular intervals, as it will help you to cut down many years from your loan term.

3. Refinance your loan by shorter duration to complete the payment in desired time frame.

4. You can also invest your extra surplus towards some aggressive equity funds or into any index funds (as per your risk appetite). Once your investments have grown well, you can utilize the accumulation to pay-off the loan after few years.

Ans: Although you don’t have any alternative for this you can just wait for the department to process it.

As you have done the rectification on 17th July 2023, you can follow it up with income tax department. You can also file a grievance with the department on IT portal, e mail and a call on your email.

Ans: •Generally, it takes 20 to 45 days for the refund to reach you after filing and verifying your ITR. But there could be multiple reasons that you have not received a refund.

•Firstly, you have to check whether the Income Tax Department has processed your ITR. You will get a refund only after your income tax return is processed. You can check the status of your ITR on the e-filing website of the Income Tax Department.

•To get an ITR refund, your bank account should be pre-validated. In case the bank account is not pre-validated, you will not receive a refund.

•E-verify your income tax return to get a refund. As per the latest rules, you need to verify your ITR within 30 days of filing it. So, if you haven't e-verified your return, you will not be eligible for an ITR refund.

•Your income tax refund can also be delayed if you have any outstanding demand pending from the previous financial year. If there is any outstanding demand pending, then your income tax refund will be adjusted against that demand.

Ans: Referring to your query regarding the debt and uncertain expenses at all times. Please find some suggestions for your reference.

• Get a part-time job (Increase your Source of Income): If you have the time and energy, getting a part-time job can be a great way to earn extra money to pay down your debt.

• Make a budget: Once you have a good understanding of your cash flows, you can create a budget to help you track your spending and make sure your cash flow will be managed properly (Expenses are not more than your earnings)

• Prioritize your debts: Not all debts are the same. Some debts, like credit card bills, have higher interest rates, which means that you will be paying more in interest over time. Focus on paying off these debts first.

• Negotiate with your creditors: If you are struggling to make your payments, contact your creditors and see if they are willing to negotiate with you. Many creditors may adjust the repayment schedule you can afford.

There are some resources that may be helpful:

Debt relief organizations: There are a number of organizations that can help you get out of debt. They can provide you with counseling, and they can also help you negotiate with your creditors to reduce your payments or create a repayment plan.
• National Foundation for Credit Counseling: 1-800-388-2227
• Consumer Credit Counseling Service: 1-800-642-2227
• Credit Karma: 1-888-239-7066

Ans: Gold can be a valuable addition to your portfolio. It has always been considered an asset that can hedge against inflation and other economic uncertainties. There are three popular ways to invest in gold.

Gold ETFs (Exchange-Traded Funds): Gold ETFs offer easy liquidity, as they are traded on stock exchanges just like stocks. They provide a direct exposure to the price of gold.
Taxation - Profits on the sale/redemption of Gold ETFs or units of gold saving funds bought after 31st March 2013 will be taxed as short capital gains irrespective of the holding period. So, this will be taxed as per an individual’s current tax slab.

Gold Mutual Funds: Gold mutual funds pool investments from multiple investors and provide professional fund management. They are an excellent choice for those who prefer a diversified approach.
Expense ratios and load fees can vary.
It is advisable to keep the investment in gold within 5% to 10% of one’s total investment portfolio.
Taxability is similar to that of Gold ETFs.

Sovereign Gold Bonds (SGBs): SGBs are issued by the Government of India and they provide an additional annual interest income. SGBs are suited for long-term investors who are looking for a safe haven asset and are willing to hold on to their investment for at least 5 years, preferably full 8 years to get the tax advantage of Zero capital gains tax on gains made.
The returns on SGBs are not guaranteed, and they depend on the prevailing market price of gold at the time of sale. There is a lock-in period of 5 years, so you cannot exit your investment before then.

SGBs may be the right choice. If liquidity and trading flexibility are important, consider Gold ETFs. Gold mutual funds are suitable for diversification, doing SIPs and professional management.

Ans: It is good that you are investing a good amount per month with a saving/investment ratio of 50%. To reach your goal with current accumulated portfolio, available investment surplus (Rs 15 Lakh) and current SIPs, you need to make additional SIPs of 4.71 Lakh per month, (assuming 12% annualised return). Obviously, this is not possible given current income and cash flows. Going with the current status of investment, you will be able to accumulate 1.18 Cr by the end of 5th Year.

Your stated scenario of accumulating Rs 5 Cr is definitely very difficult to achieve, but here we will suggest a practical and logical approach toward investment. Do the step up SIPs, which means you should increase the investible surplus (SIPs) every year as your income grows say 10%. With this, you should be able to accumulate approx Rs 1.29 Cr (Assuming 12% ROI). This will reduce the deficit required. Apart from this any windfall amounts received at any time should be invested towards facilitating the goal.

Currently, your SIPs are concentrated in 2 funds which is not good. You should work on diversifying the monthly investment wisely among different categories and sectors, based on your goal requirements.

Ans: Since you have already filed the revised return, we will have to wait for it to get processed from the IT department. In case they find any discrepancies, they will raise a demand from you. As of now, no action is required from your end.

Ans: You can close your NPS account prematurely only after 10 years of opening the account. And if you do, you have to utilise 80 per cent of the corpus for buying an annuity plan. Here again, you can be exempted if your total corpus does not exceed Rs 5 lakhs. In such cases, you don't have to buy an annuity plan.

You must get your regular savings bank account converted into an NRE or an NRO account. That is mandatory.

Once your bank account is converted, you need to get your status changed in the NPS records from a resident Indian to an NRI.

Ans: Section 139(9) of the Income Tax Act, 1961, states that when a return is found defective, the Income Tax Department will send a defective notice via email on the registered email id.

A defective return under Section 139(9) of the Income Tax Act, 1961 occurs when crucial information is either omitted or inaccurately entered in an income tax return. This triggers the issuance of a defective return notice by the IT Department, aimed at rectifying the inaccuracies.

Reasons and Situations Leading to Defective Return Notices:

1) Incomplete ITR
2) Missing Tax Information
3)TDS claimed without corresponding income
4)Discrepancy in Gross Receipts
5)Nil Income but tax liabity
6)Incomplete business and profession details
7)Tax payment Discrepancies
8)Mismatch in the name

Receiving and Responding to Defective Return Notices
Responding within a 15-day timeframe is crucial. Taxpayers must rectify the defects identified by the Income Tax Department by revising their return within this period. In case the revision cannot be completed within 15 days, an extension can be requested from the local Assessing Officer.

Ans: Step 1: Verify the intimation demand
The first step is to verify the intimation demand to ensure that it is accurate and that you have indeed received a demand for additional tax. You can do this by checking the following:
• The assessment year (AY) and return type should match the ITR that you filed.
• The demand amount should be accurate, based on the mismatch in tax calculation as identified by the Income Tax Department.
• The intimation demand should be issued by a valid Assessing Officer.

Step 2: File a revised return
Once you have verified the intimation demand, you should file a revised return to correct the error in your original return. To do this, you can follow these steps:
1. Go to the e-filing website of the Income Tax Department.
2. Log in to your account and select the "Revised Return" option.
3. Select the AY and return type for which you are filing the revised return.
4. Enter the required details and upload the revised JSON file.
5. Verify the details and submit the revised return.

Step 3: Pay the additional tax
If there is any additional tax payable after filing the revised return, you will need to pay it within the specified time period. You can make the payment online through the e-filing website or at a designated bank branch.

You should file the revised return under Section 139(5) of the Income Tax Act, 1961. This section allows you to file a revised return within one year from the end of the relevant assessment year.

Ans: ITRs can be filed without having the Aadhar-PAN link completed; however, such ITR filings would render the user ineligible to avail refunds and interest on such tax refunds till the time PAN is linked with Aadhar.
• After e-filing your return, you must verify it. Your return filing process is not complete unless you do so.
• The timeline for e-verification of returns filed after 1st August 2022 is 30 days from the date of submitting the return.
• As per the IT department, if the ITR filed is verified (electronically or by sending ITR-V to ITD) before the time limit of 30 days, then the date on which the return was filed will be considered as the date of furnishing ITR.
• In the offline verification case, the speed post-dispatch date of the duly verified ITR-V will be taken into account to determine the 30-day period starting from the day the income tax return was electronically transmitted.
As per the data provided by you, your return has been verified within the timeline of 30 days. Normally, it takes 20-45 days for the refund to reach you after filing and verifying your ITR but your Aadhar and PAN got linked on 12th August. The delay in refund is due to it.

We suggest you wait for some more time and regularly check the “My Pending Action option” in your income tax account portal.

Ans: Considering your current family income, your debt-to-income ratio is approx 53%, which is very high and may affect your lifestyle as also your future goals. You should consider the following-

Home Loan Repayment: Consider allocating any annual bonuses, tax refunds, or windfalls towards your home loan to make lump-sum payments and reduce the principal amount. If you receive salary hikes, consider using a portion of the increase towards your EMI payments, which will accelerate loan repayment.

Children's Education Fund: Open a separate investment account for each child's education. Invest in diversified mutual funds or fixed deposits and other assets which offer a balance between risk and returns, saving on tax perspective as well.

Emergency Fund and Insurance: Keep your emergency fund in a liquid and accessible account, like a savings account or a short-term fixed deposit, for immediate use.

Future Financial Goals: Outline your long-term financial objectives, such as retirement, and start investing towards these goals. Consider options like Employee Provident Fund (EPF), Public Provident Fund (PPF), or National Pension Scheme (NPS).

Ans: You have no question on this?

Ans: Your question is incomplete. There are 48 categories of mutual funds and each one has its own 'top funds' over various time horizons.

Ans: Please wait it out a bit. The revised ITR also needs to be processed (hoping that you would've e-verified it too) and then only the balance of refund will come. If you don't get it in say 15-20 days, then head over to your IT website login and put the details in the Grievance tab.

Ans: My inputs sent for a magazine article yesterday may help you. Please go through it:-

Strategy to get out of debt trap

1. Debt Consolidation: This is streamlining your debts for clarity. Debt without consolidation is like juggling a bunch of puzzle pieces while presuming that you’re in control. Merge your scattered debts into one manageable loan, reducing confusion and the risk of missing payments. This smart move can lead to lower interest rates and simplified monthly payments, giving you a clearer path out of the debt maze.

2. Debt Avalanche Strategy: This strategy treats your debts as mountains and tells you to start climbing the steepest ones first, that is, tackling the highest peaks first and the lower peaks will then automatically become a cake-walk. So, with this strategy, you focus on the high-interest loans while making minimum payments on others. As you conquer one peak after another, your momentum builds, and soon you'll find yourself on the summit of debt-free living.

3. Credit Card Balance Transfer: IN this strategy, you swap the high-interest credit card debts for friendlier ones. Through a balance transfer, you move your existing credit card debt to a new card with lower interest, that is, shifting to a smoother terrain. This gives you breathing room to pay off the principal without being weighed down by sky-high interest.

4. Practical Tips to Conquer Debt:
1. Budget with Purpose: Lay out a clear budget that allocates extra funds to debt repayment while covering essentials.
2. Cut Unnecessary Expenses: Trim down on luxuries, and redirect the saved money towards settling your debts faster.
3. Build an Emergency Fund: Having a financial safety net prevents you from resorting to more debt during unexpected setbacks.
4. Negotiate with Lenders: Reach out to your lenders for potential interest rate reductions or extended payment plans.
5. Financial Windfalls: Put unexpected bonuses, tax refunds, or gifts towards debt reduction to accelerate your progress.

Remember, Rome wasn't built in a day – the same applies to debt repayment. By combining strategic methods and prudent financial habits, you can pave the way to a debt-free horizon.

Ans: While Canara Robeco Bluechip Equity Fund is a good fund in the large Cap space, there are much better funds in mid cap space than UTI Midcap Funds. Please google and select yourself.

I do not agree with any body using thematic or sectoral funds for long term goals. The other three funds are cyclical and you may not be suitably placed to judge when to get out of them. I would suggest you to choose a flexicap, a multicap and an asset allocator fund instead of the three funds I am referring to.

Disclaimer:
• I have just no idea about your age, future financial goals, your risk profile, other investments and whether you would have the nerves to not get unduly perturbed if stock markets go temporarily down.
• Hence, please note that I am answering your question in absolute isolation to other parameters which should definitely be considered when answering a question of this type.
• I recommend you to also consult a good financial advisor who would look at your complete profile in totality before you act on this advice given by me.

Ans: SBI is just an account facilitator in your case – you must’ve opened your NPS account through SBI (bank). What NPS Fund Manager you choose is up to you and not on SBI. So choose wisely.

At present, there are ten pension fund managers in the country.
1. SBI Pension Funds Pvt. Ltd.
2. LIC Pension Fund Ltd.
3. UTI Retirement Solutions Ltd.
4. HDFC Pension Management Co. Ltd.
5. ICICI Prudential Pension Fund Management Co. Ltd.
6. Kotak Mahindra Pension Fund Ltd.
7. Aditya Birla Sunlife Pension Management Ltd.
8. Tata Pension Management Ltd.
9. Max Life Pension Fund Management Ltd.
10. Axis Pension Fund Management Ltd.

SBI Pension Fund, LIC Pension Fund, and UTI Retirement Solutions are the only fund managers who manage pension contributions of government employees under NPS.

Ans: I have no idea about your risk profile or what have you accumulated so far. In giving my reply, I am assuming the following:-
1. You are open to full equity investing which is actually the rightful way to go about for such long-term targets
2. Equity will give an overall 12% returns CAGR (Comp0unded Annual Growth Rate)
3. PPF will give an average 6% yearly returns.
4. Assuming that you have zero accumulation so far as you have not given anything in your data
5. You will continue the same regular investments without any increase or decrease and not take out any money from these investments.

You are likely to accumulate about Rs 16.5 Crores by the age of 60 years.
If you wish to accumulate Rs 30 Crores in the given timeframe, you would have to make an investment of Rs 1.8 Lakhs a month. If you cannot contribute this much, a good way of course would be to keep increasing your monthly contributions as your monthly income increases at say 7-10% per year.

By the way, my name is Col Sanjeev Govila and not Ulhas!