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Desh

Desh Deepak  | Answer  |Ask -

Answered on Jan 16, 2009

yog Question by yog on Jan 16, 2009Hindi
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after been fired is it wise to work with less than current pay?

Ans: No harm. In the mean time keep trying to get a better paying job
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Anu

Anu Krishna  |839 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Dec 14, 2022

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Hi, Sorry, my story is long.I'm 43 years old. My life's been on a crazy downside since the last 3 years. I lost my job a year before Covid. I worked with my last company for over 10 years. In my initial phase I developed and introduced a high-tech animated presentation that the sales team used. This gave my career a boost quickly and I got timely promotions, more responsibilities.I worked 12-18 hours on many occasions. When my boss came to know that my wife and I are going to have a baby, he even gave me an advance appraisal. From earning 3 lakhs a year, my last drawn salary was 21 lakhs a year.Things were going good until I was diagnosed with diabetes. It gave me a real scare and I started taking all the precautionary measures like timely food, timely workout and my focus on the job was only as much as it was needed. I couldn't go overboard working 12-18 hours like I used to. This didn't go down with many of my seniors and especially my boss.I remember, initially he gave me a long-term work from home opportunity. That too was going well but suddenly it was stopped as many colleagues started asking for the same and the company was not ready for this change on a large scale back then.By then the company had ventured into too many online businesses and verticals and they got me to hire 40-45 designers. Suddenly they realized that handling so many things wasn't working for them as the profit margins decreased. Now they wanted me to fire people on the basis of performance. Unwantedly I had to do that. Laying off people who were marginally falling short than others was bad.In between one of the incidents I saw my boss yell at me for no reason. He wanted the team to source a large number of images for the website. He had verbally asked me to utilize everyone on the floor to get the job done. Me being me, I wrote an e-mail officially assigning small tasks to a number of people on the floor. However there was no formal communication from the boss that gave me authority over others and to get others who were not a part of my team to get involved in that project. This was not an easy task as his perspective and other people's perspectives didn't match. The job went on slow and my boss got angry. He came to my cabin and gave me a big scare using foul language which must have been audible even outside to others. And mind you I was not at fault. This incident made me scared and doubtful of myself.I could never face my boss again. Whenever he was in office I would not come face to face with him. My interaction with him soon became zero. The appraisals were below par. The amount of work I used to get, got diverted to my juniors directly, bypassing me. And soon they asked to resign. I got 3 months compensation. But, after that, I couldn't really find another job as I feel I am not capable of handling stuff. I feel I will fail. I have tried to psyche myself into positivity but I can't.While I have noticed that as a freelancer, I have successfully handled many projects in the past 4 years and clients have been happy. It's only that I am very uncomfortable working in an office environment. That corporate culture for me is like a HORROR movie. Now the scenario is such that my projects in hand have reduced. I think I don't have the business acumen. It's becoming tougher to find new clients. I have applied to literally 1000 places but no one's taking the GAP in the jobs well. That's my guess. I'm more of a hands-on worker than a manager so I also applied for junior positions but I've had literally no luck.My wife has throughout these 4 years supported me and my freelance ventures. We have one kid who's 11 years old and can understand the situation even without us explaining it to him. When we got married, my mother-in-law was much older than my parents were, we decided to stay with her initially and it's been 14 years since we started staying here. We save on rent. Things were good when I had a well-paying job but now my wife's had to shell out a lot for the day-to-day expenses. Now, she keeps asking why I am unable to find a job. How much is she going to have to shell out? My savings have depleted, now hers too. I am ashamed of asking her to pay for stuff every month but my situation makes it compulsory. I have two loan EMIs, and our monthly expenses which we pay through credit card usually. But I don't have adequate income. Somehow, my wife thinks that the kind of lifestyle she has always led and what she has visualized is something she'll have to stick to. Even though we stay in a bungalow, the finances are not exactly alright. The colony where we live is full of crorepatis and my wife thinks that she has to maintain her lifestyle otherwise the kids outside will not be fair to our kid. They will tease him. The kids here are such that they compare a lot -- your house, my house, your car, my car etc.Of late we have been fighting a lot. She's always been stressed with my joblessness, my son's studies. She ends up scolding him too much and generally remains in a bad mood. I won't hide the fact that I have faced a lot of insults lately and some of them in front of my kid. Basically whenever my wife and I have an argument, she always ends it by mentioning the amount of money she has spent on the family and my joblessness. Add to it the fact that I am staying at her place. I can never have any further argument. It's like her Brahmastra.I used to be very patient when things were fine. Now, even I get agitated in no time. I'm one confused soul at the moment. I'm not outgoing, I'm very shy when it comes to new people. I've been watching a lot of videos about gaining self-confidence. But practical things do not really work out the way I think. My freelance venture failed. My e-commerce venture failed. Basically whatever I do, fails. It's that kind of a phase in my life when everything just goes wrong. I'm not a suicidal person and I want to spend a lot of time with my family yet. I'm just not sure now what to do. How to get my confidence back? Is there a thing called bad luck? Is this spiritual? Will things ever come back to normal?P.S. I have personally spoken to many people in my friends’ circle and clients circle and told them that I am looking for a job. Hoping that something materializes. But in the meantime, whatever I wrote above are things that I can't speak about to anyone.P.S.2 There's a pattern. My father was jobless after 40. So am I. He struggled a lot in his life and did whatever he could to give us the best. I'm trying hard too but I feel I am losing it. I don't want my child to face these kinds of things in his future. I hope this bad luck doesn't pass on.
Ans:

Dear R,

Let’s bring it down simply into Health, Work and Marriage. And of course, your added element of superstitions that aren’t helping anyway.

You were absolutely right in taking care of your health and reworking your work timings.

If the boss doesn’t care about that, well then you are stuck with a boss whose appraisal on you will be based on the number of hours v/s actual output of work.

I know you cannot choose your boss, but being led by someone like this isn’t going to let you grow either. So, whether you choose to work as a freelancer or within an office, do make sure that you are surrounded by people that can fuel your growth.

If that’s not possible always, work your mind to a point of strength where you hold fort and not allow yourself to be a pawn like you did with you boss.

With your personal story, your wife did support you when she did and maybe the lifestyle is something that is used to.

Isn’t it time for the two of you to actually talk about the future. Instead of allowing life to take you over, ever thought of setting a strong goal as a family where everyone is involved in each other’s success journey?

So, she perhaps does not understand what it means to still live with her mother, what it means for her to have a husband with a steady job, what it means to you to keep your health at its peak!

When you both don’t understand what things mean to each other, you will be caught in crossfires and not support one another. So TALK and COMMUNICATE. And if all superstitions were to be believed, we could hunt all the black cats down and hold them captives OR not walk outside for fear of them crossing our paths.

It’s just your mind mapping on this low phase into today.

What happened with your father and you repeating with you and your son becomes true only when you don’t take charge of your life now and do something different. So, think and act different and more usefully.

Create a better life. All the best!

..Read more

Latest Questions
Ramalingam

Ramalingam Kalirajan  |1896 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 10, 2024

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I am 84 year old senior citizen. I withdrew two fixed deposit prematurely. Bank levied penal charges on premature withdrawal. Can I claim penal interest as deduction while filling ITR returns. Pl guide
Ans: No, unfortunately, you cannot claim the penalty levied on premature withdrawal of your fixed deposits (FDs) as a deduction while filing your Income Tax Return (ITR).

Here's why:

Income vs. Expense: The penalty on FD withdrawal is considered an expense incurred for breaking the terms of the deposit agreement. It's not directly related to earning income from the FD interest.
Tax Deductions: Income tax deductions are allowed for expenses incurred for generating taxable income. The penalty on FD withdrawal doesn't fall under this category.
Taxation on FD Interest for Senior Citizens:

Even though you cannot deduct the penalty, there might be some relief on the interest income itself:

Section 80TTB: If your total interest income from all FDs and Savings accounts is less than ?50,000 per year, you can claim a deduction under Section 80TTB of the Income Tax Act. This eliminates tax liability on that interest income.
No TDS for Senior Citizens: For senior citizens (above 75 years old), banks don't deduct TDS (Tax Deducted at Source) on FD interest up to ?50,000 per year from a specified bank where you receive your pension.
Recommendations:

Plan for Premature Withdrawals: If you foresee needing the money before the FD matures, consider shorter tenure FDs or opting for partially withdrawable FDs to avoid penalties.
Explore Tax-Saving Options: Look into tax-saving fixed deposits or senior citizen savings schemes (SCSS) that offer better interest rates and may not have high penalties for premature withdrawal.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |1896 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 10, 2024

Asked by Anonymous - May 10, 2024Hindi
Money
Hi Ramalingam, Hope you are doing well. Age 31, IT Professional (8 Years), Married, Nuclear Family, Mid level family business in small town. 1) Currently I am NRI from last 1 year and recently have bought Few mutual funds like UTI large cap Index, Parag Parikh flexi cap, Motilala Oswal Mid Cap, Quant & Nippon small cap funds. All are just started recently with total SIP of 28k monthly. 2) I have been investing in PPF from last 4 years. 3) Minor LIC and Company PF of around 4.5L. 4) No loans, EMI as of now, own family house and agricultural unutilized land. 5) Existing Equity shares of 3L which I bought 5 year earlier. 6) I am not looking for buying flats/apartment as such. The major mistake I feel was I didn't invest till now and had kept money in savings account idle, which I regret to some extent. Queries: 1) As currently I am an NRI, I wanted to know what are the taxation rules on my shares if I buy or sell. Also, I hope there should be no issues as I bought mutual funds being NRI as anyway at point of selling I will be resident indian hopefully. Should I increase the amount of SIP? I am looking for Step up SIP Of 5-10%. Should I go for International fund now? 2) I was thinking to invest in fixed deposits and govt bonds, am I eligible to do this or this will attract me more taxation. For your better understanding, Currently I am in Saudi Arabia. 3) Your suggestions related to investment in Equity, gold, debt are highly appreciated as it will guide me further. 4) What are better things to look out from investment perspective being an NRI 5) Can you please help me plan for an excellent financial stability plan if I want to retire early around 45-48 years that is in next 15 to 18 years from now. Thanks
Ans: I appreciate your detailed overview of your financial situation and your proactive approach to investing. Let's address each of your queries systematically to ensure we cover all aspects comprehensively.

1. Taxation on Shares and Mutual Funds: As an NRI, capital gains tax rules apply to your investments in shares and mutual funds in India. For equity investments held for over one year, long-term capital gains (LTCG) are taxed at 10% without indexation. For mutual funds, equity-oriented funds are treated similarly. However, if you become a resident Indian again, you'll be taxed as per the applicable resident Indian tax laws. Increasing your SIPs by 5-10% annually is a prudent strategy, especially considering your long-term investment horizon and the power of compounding. Regarding international funds, they can provide diversification benefits, especially during periods of rupee depreciation, but ensure you understand the associated risks before investing.

2. Investment in Fixed Deposits and Government Bonds: As an NRI, you are eligible to invest in fixed deposits and government bonds in India. Interest earned on fixed deposits is taxable in India, subject to applicable tax laws. Government bonds also carry tax implications, but specific rules depend on the type of bond and your residential status. Given your current location in Saudi Arabia, consider exploring NRI-specific investment options like NRE or NRO fixed deposits, which offer tax benefits and repatriation flexibility.


3. Investment Strategy: Diversification is key to a well-rounded investment portfolio. Equity investments offer long-term growth potential, while debt instruments like PPF provide stability and tax benefits. Considering your risk appetite and investment goals, continue your SIPs in equity mutual funds, but ensure you have an adequate emergency fund in place. Explore options like international funds for global exposure and consider increasing exposure to debt instruments for capital preservation.

4. Investment Considerations for NRIs: As an NRI, it's essential to stay informed about regulatory changes and tax implications related to your investments in India. Additionally, consider factors like currency risk, repatriation restrictions, and geopolitical developments when making investment decisions. Regularly review your portfolio and consult with a financial advisor to optimize your investment strategy based on changing market dynamics.


5. Early Retirement Planning: Achieving early retirement requires careful financial planning and disciplined saving and investing. Start by setting clear retirement goals, estimating your future expenses, and determining the required corpus. Maximize contributions to tax-efficient retirement accounts like EPF, PPF, and NPS. Consider allocating a portion of your portfolio to growth-oriented assets like equity mutual funds to generate inflation-beating returns over the long term. Regularly reassess your retirement plan and adjust your investment strategy as needed to stay on track towards your retirement goals.

By following a systematic approach to investing, staying informed about regulatory changes, and regularly reviewing your financial plan, you can work towards achieving financial stability and early retirement.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |1896 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 10, 2024

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Hello Sir im turning 36 this Dec...Im not very old in MF investment however looking forward to being consistant...I want to build up a corpas of 50 lakh by age of 40..my invest as per below... Quant/kotak/axis small cap direct growth- 10K each/month(9 month old) parag parikh ELSS tax saver- 2K/month(12 month old) mirae asset ELSS tax saver-2.5K/month(3 year old) quant ELSS tax saver-3K/month(16 month old) Kotak ELSS tax saver-2K/month(16 month old) SBI PSU direct plan-3K/month( 1 month) Aditya birla sunlife PSU equity fund- 5K/month(1 month) need your expertise if I need to change funds...these are combined investment by me & my wife..TAX saver are required to avoid tax liability under 80C..aprat from this Im investing 40K/year in PPF valued 1lakh(3 year old)
Ans: It's great to see your commitment to building your investment portfolio. Let's review your current mutual fund investments and see if any adjustments are needed to align with your goal of accumulating a corpus of ?50 lakhs by the age of 40.
Your current allocation seems well-diversified across various mutual fund categories, including small-cap funds, ELSS tax savers, and sector-specific funds like SBI PSU and Aditya Birla Sunlife PSU equity funds. However, there are a few points to consider:
1. Small-Cap Funds: Investing in small-cap funds can offer high growth potential but comes with increased risk due to market volatility. Since you're relatively new to mutual fund investments, ensure you have a high risk tolerance and a long-term investment horizon for these funds.
2. ELSS Tax Saver Funds: It's wise to continue investing in ELSS funds to avail tax benefits under Section 80C. However, having multiple ELSS funds may lead to duplication of holdings and increase complexity without significantly diversifying your portfolio. Consider consolidating your ELSS investments into one or two funds with a proven track record and consistent performance.
3. Sector-Specific Funds: Funds like SBI PSU and Aditya Birla Sunlife PSU equity focus on specific sectors, which can be volatile and dependent on sectoral performance. While they offer the potential for high returns, they also carry higher risk. Ensure these funds complement your overall portfolio strategy and are not over-concentrated in a single sector.
4. PPF Investment: Investing in PPF is a good strategy for long-term wealth accumulation and tax-saving. However, keep in mind that PPF has a lock-in period of 15 years, so ensure it aligns with your liquidity needs and investment goals.
Considering the above points, here are some suggestions:
• Evaluate the performance of your existing funds and consider consolidating your ELSS investments into one or two funds with strong fundamentals and consistent performance.
• Monitor the performance of small-cap funds closely due to their higher volatility and consider rebalancing your portfolio if needed.
• Review your sector-specific fund investments periodically and ensure they align with your risk tolerance and investment objectives.
Lastly, it's essential to regularly review your investment portfolio and make adjustments as needed to stay on track towards your financial goals.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
Asked on - May 10, 2024 | Answered on May 10, 2024
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Thank you for vastly explaining my port folio.....have one question regarding ELSS funds...can I stop investing in one fund wait for balance to mature as every SIP has a lock in period!! what happens when we stop SIP in ELSS funds... we couple both are working so I'm intending for high risk/high return for next 2-3 years...I have also start investing in stock(being cautious)
Ans: Absolutely, you can stop investing in one ELSS fund and allow the existing investments to mature. ELSS funds have a lock-in period of three years from the date of each investment, so once the lock-in period is over for each SIP, you have the option to either redeem the units or continue holding them.

When you stop SIPs in ELSS funds, the existing investments continue to grow, and you retain ownership of the units. However, keep in mind that stopping SIPs doesn't impact the lock-in period of the existing investments. Each SIP installment will have its own lock-in period of three years from its investment date.

If you're looking for high-risk, high-return investments for the next 2-3 years, it's essential to assess your risk tolerance and investment horizon carefully. ELSS funds, especially those investing in small-cap or mid-cap stocks, can be volatile in the short term but may offer higher returns over the long term.

Additionally, investing in individual stocks requires thorough research and a good understanding of the stock market. It's wise to approach stock investing cautiously, especially if you're relatively new to it. Diversification and thorough research are key to managing risk in stock investments.

Overall, it's great that you and your spouse are both working towards your financial goals and are open to taking calculated risks for potentially higher returns. Remember to regularly review your investment portfolio, stay informed about market developments, and adjust your strategy as needed to stay on track towards your goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |1896 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 10, 2024

Asked by Anonymous - Apr 19, 2024Hindi
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Money
I have booked a residential flat with a developer who shall be developing a scheme comprising of 6 flats, 3 of which shall be retained by the land owners and 3 shall be sold by the developer to buyers like me. The developer has entered into an agreement for redevelopment with the land owners and he shall be receiving sale price of the flat from 3 persons purchasing the flats, I am one of them as stated earlier. The redevelopment agreement between the land owner and the developer is only for constructing the structure. The Sale-Deed shall be executed between the Vendor -that is the original land owners and the Purchasers like me. The developer shall be the Confirming Party, confirming the receipt of the entier payment, against the purchase of the flat, delivery of possession to the purchasers like me. Therefore the sale deed shall be between the purchaser and the land owners. The developer has rendered the services to be taxed under the GST Act to the land owners. The Land owners may recover the GST paid/charged/recovered by the developer, from the 3 purchasers. My queries are: 1. What is the rate at which on the services of development/construction rendered on the piece of land are taxable under the GST Act? 2. If I presume, it is at 5%, in that case am I not required to pay 1/6th of the GST paid by the land lord and nothing more than this? 3. Can developer demand the GST on the entire cost of the flat including the cost of the undivided share of land falling to my share? The land, under the Sale-Deed is sold/transferred by the Land lord and not by the developer, under what authority he can demand 5% GST on the cost of the land? 4. Are we not buying a ready to move or a ready made flat although we have to pay on the basis of the stage wise completion of the building structure and therefore only 1% GST? Please guide.
Ans: You're right to be questioning the GST implications in this situation. Here's a breakdown of your queries:

GST Rate on Development Services: The GST rate for construction services on an immovable property (land + building) is generally 5%. However, there's an exception for affordable housing projects, where the rate is 1%.

Sharing of GST by Landowners and Purchasers: Since the sale deed is directly between you (purchaser) and the landowner (vendor), you are not obligated to pay 1/6th of the GST paid by the landowner to the developer. You'll only pay GST on the value mentioned in your sale deed.

GST on Land Cost: The developer cannot demand GST on the entire cost of the flat, including the undivided land share. GST applies to the value of services rendered (construction) and not the land itself.

GST on Ready-to-Move Flats: The GST rate of 1% for ready-to-move flats only applies to completed projects where the occupancy certificate has been issued. In your case, it's an under-construction project, so the 5% rate applies.

Here's how the GST should ideally work in your scenario:

The developer pays GST to the government on his service charges for constructing the flats (5% of his construction cost).
The landowner pays stamp duty and registration charges on the land value mentioned in your sale deed.
You, the purchaser, pay GST to the developer on the value mentioned in your sale deed (excluding land cost) at the rate of 5% (assuming it's not an affordable housing project).
Recommendations:

Ask the developer to provide a breakup of the total cost, clearly mentioning the land cost and construction service charges.
Pay GST only on the construction service charges mentioned in your sale deed.
If the developer insists on including GST on the land cost, consult a tax advisor to understand your rights and explore further options.
Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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