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47, Married, 2 Kids, 25 Lakhs: Can I reach 2 Cr corpus by 55?

Ramalingam

Ramalingam Kalirajan  |7101 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 24, 2024

Ramalingam Kalirajan has over 23 years of experience in mutual funds and financial planning.
He has an MBA in finance from the University of Madras and is a certified financial planner.
He is the director and chief financial planner at Holistic Investment, a Chennai-based firm that offers financial planning and wealth management advice.... more
Vinod Question by Vinod on Jul 16, 2024Hindi
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Sir i am 47 now married and 2 children one is 7 years daughter and 13 years son. I have 25 lakhs as corpus and my monthly salary is around 1.5 lakhs. I need at least 2 cr as corpus at 55. How can make this happen. Please.

Ans: You are 47, married, with two children, aged 7 and 13.

You have a corpus of Rs 25 lakhs.

Your monthly salary is around Rs 1.5 lakhs.

You aim to accumulate Rs 2 crores by age 55.

Setting Clear Financial Goals

Identify specific goals for each financial milestone.

Prioritize your children's education and your retirement.

Allocate funds accordingly to ensure balanced growth.

Investment Strategy

Invest regularly in a diversified portfolio.

Focus on equity mutual funds for higher returns.

Allocate some funds to debt mutual funds for stability.

Consider investing in gold for diversification.

Keep a small portion in fixed deposits for safety.

Systematic Investment Plan (SIP)

Start or increase your SIP contributions.

SIPs offer disciplined investing and rupee cost averaging.

Allocate a higher percentage to equity funds for growth.

Choose actively managed funds over index funds for better returns.

Review and Adjust Portfolio Regularly

Review your investments every six months.

Adjust your portfolio based on market conditions.

Consult a Certified Financial Planner (CFP) for professional advice.

Stay informed about market trends and economic changes.

Emergency Fund and Insurance

Maintain an emergency fund equal to 6 months of expenses.

Ensure you have adequate health and life insurance coverage.

Avoid investment-linked insurance policies.

Focus on pure term insurance for life coverage.

Tax Planning

Invest in tax-saving instruments under Section 80C.

Utilize other sections like 80D for health insurance benefits.

Plan your taxes to maximize returns and minimize liabilities.

Avoid Common Investment Mistakes

Do not chase high returns without understanding the risk.

Avoid frequent buying and selling of investments.

Stick to your investment plan and be patient.

Education and Retirement Planning

Plan for your children's higher education.

Consider education loans to avoid depleting your corpus.

Ensure your retirement corpus is inflation-adjusted.

Review your retirement plan annually.

Benefits of Regular Funds through a CFP

Regular funds offer better advisory support.

Certified Financial Planners provide tailored advice.

Actively managed funds often outperform index funds.

Contingency Planning

Have a plan for unforeseen circumstances.

Ensure your family is financially secure in case of emergencies.

Consider estate planning and writing a will.

Final Insights

Stay disciplined and focused on your goals.

Review and adjust your investments regularly.

Seek professional advice when needed.

Stay informed and educated about financial planning.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
Asked on - Jul 24, 2024 | Answered on Jul 25, 2024
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Can you help me in achieving this goal!!
Ans: I appreciate your trust and willingness to connect.
Let's embark on this financial journey together.
You can reach me through my website mentioned below.
This platform has restrictions on sharing personal contact. Hope you understand.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Users are advised to pursue the information provided by the rediffGURU only as a source of information to be as a point of reference and to rely on their own judgement when making a decision.
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Ramalingam

Ramalingam Kalirajan  |7101 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 03, 2024

Asked by Anonymous - Jun 02, 2024Hindi
Money
I am 57 years . I have 1 cr corpus. How can I get 1 lakh per month.
Ans: Having a corpus of Rs 1 crore at 57 years is commendable. Your goal of obtaining Rs 1 lakh per month is ambitious. Let's explore how to achieve this sustainably.

Evaluating Your Financial Goals
Generating Rs 1 lakh per month from Rs 1 crore corpus translates to Rs 12 lakhs annually. This requires careful planning. Balancing growth and income generation while preserving capital is essential.

Understanding Withdrawal Rates
A withdrawal rate of 4-5% per year is generally considered sustainable. With Rs 1 crore, this amounts to Rs 4-5 lakhs annually, significantly less than your target. Achieving Rs 12 lakhs annually requires a higher return or drawing down your principal, which can be risky.

Investment Strategies for Monthly Income
Systematic Withdrawal Plan (SWP): This allows you to withdraw a fixed amount regularly from your mutual fund investments. It provides a steady income while keeping the remaining corpus invested for growth.

Balanced Portfolio: Invest in a mix of equity, debt, and hybrid funds. Equities offer growth, while debt provides stability and regular interest income.

Debt Instruments: Consider investments in fixed deposits, bonds, and debt mutual funds. These provide stable returns and can be a reliable source of income.

Dividend-paying Stocks and Funds: Invest in stocks and mutual funds that pay regular dividends. This provides a steady income stream, though dividends can fluctuate based on company performance.

Senior Citizen Savings Scheme (SCSS): This government-backed scheme offers regular interest payments and is a safe investment for senior citizens.

Monthly Income Plans (MIPs): These are mutual funds designed to provide regular income. They invest in both equity and debt, aiming for stability and moderate returns.

Managing Risks
Diversification is crucial. Spread your investments across different asset classes to reduce risk. Ensure a portion of your corpus is in low-risk investments to protect against market volatility. Regularly review and rebalance your portfolio based on performance and changing market conditions.

Role of Actively Managed Funds
Actively managed funds can outperform the market due to professional management. Fund managers adjust portfolios based on market conditions and aim for higher returns. This can help achieve your income goals. Although they have higher fees than index funds, the potential for better returns justifies the cost.

Benefits of Investing Through a Certified Financial Planner
A Certified Financial Planner (CFP) can provide tailored advice and expertise. They can help design an investment strategy aligned with your goals, risk tolerance, and financial situation. Investing through a CFP, even with regular funds, offers the advantage of professional guidance, portfolio management, and strategic adjustments. This is more beneficial than the lower cost of direct funds, which lack personalized advice.

Practical Steps to Generate Monthly Income
Determine Monthly Needs: Start by understanding your monthly expenses and essential needs. This will help in planning your withdrawals and investments.

Set Up SWP: Establish a Systematic Withdrawal Plan from your mutual fund investments. This ensures a regular income while allowing the remaining corpus to grow.

Invest in Diversified Assets: Allocate your corpus across equity, debt, and hybrid funds. This balances growth potential and stability.

Include Safe Investments: Invest in low-risk instruments like SCSS, fixed deposits, and bonds. These provide regular income and capital protection.

Monitor and Adjust: Regularly review your investment performance. Adjust your portfolio based on market conditions and personal financial needs.

Importance of Regular Review
Regular monitoring of your portfolio is essential. This helps in making timely adjustments to align with your financial goals and market conditions. Consulting with your CFP periodically ensures that your investment strategy remains effective and up-to-date.

Protecting Against Inflation
Inflation reduces purchasing power over time. Ensure your investments can outpace inflation. Equities and equity-oriented funds are good options for long-term growth and inflation protection. A balanced approach helps maintain the real value of your corpus.

Health and Life Insurance
Adequate health and life insurance coverage is crucial. This protects against unforeseen medical expenses and provides financial security for your dependents. Regularly review and update your policies as needed.

Conclusion
Achieving Rs 1 lakh per month from a Rs 1 crore corpus is challenging but possible with a strategic approach. Diversify your investments, use systematic withdrawal plans, and include low-risk instruments. Regularly review and adjust your portfolio with the help of a Certified Financial Planner. This balanced strategy will help you achieve your income goals while preserving your capital.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7101 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 01, 2024

Money
Hi Myself Ramesh, I earn around 1.6 Lac monthly aged 43. Don't have own house and have 2 children 15 and 7. I have 20k SIP in MF, 25 K in 3 various ULIP Plan. Pls suggest how do I create corpus of 5 Crore by age of 60. Consider income increase around 6% for 10 years.
Ans: Hi Ramesh, your goal to create a corpus of Rs. 5 crores by the age of 60 is ambitious yet achievable with proper planning. At 43 years old, earning Rs. 1.6 lakhs per month, you already have a good foundation. Your monthly investments include Rs. 20,000 in SIPs and Rs. 25,000 in ULIP plans. You also expect your income to increase by around 6% annually for the next 10 years, which is a positive factor.

Setting Financial Goals
Short-Term Goals
Emergency Fund: Ensure you have an emergency fund that covers at least 6-12 months of expenses. This should be kept in a highly liquid form like a savings account or short-term fixed deposit.

Insurance Coverage: Adequate life and health insurance are crucial to protect your family from unforeseen events. Ensure you have a term insurance plan and a comprehensive health insurance policy.

Long-Term Goals
Children’s Education: Planning for your children's education expenses is critical. Your elder child will need funds for higher education soon, and the younger one in the next 10 years.

Retirement Corpus: The primary goal is to build a retirement corpus of Rs. 5 crores by the age of 60.

Evaluating Current Investments
Systematic Investment Plan (SIP)
You are investing Rs. 20,000 per month in mutual funds through SIPs. This is a good strategy for long-term wealth creation. SIPs benefit from rupee cost averaging and the power of compounding.

Unit Linked Insurance Plans (ULIPs)
You have Rs. 25,000 per month in various ULIPs. While ULIPs offer both insurance and investment, they often come with higher charges and lower returns compared to mutual funds. It might be beneficial to surrender these ULIPs and redirect the funds to more efficient investment vehicles like mutual funds.

Creating an Optimized Investment Plan
Redirecting ULIP Investments
Consider surrendering your ULIPs and investing the proceeds in mutual funds. Mutual funds typically offer better returns and flexibility compared to ULIPs. Consulting with a Certified Financial Planner (CFP) can help you transition smoothly.

Increasing SIP Contributions
With an expected income increase of 6% annually, you can gradually increase your SIP contributions. Start by increasing your SIP amount each year to align with your income growth. This disciplined approach will help in achieving your long-term goals.

Diversification of Investments
Equity Mutual Funds
Equity mutual funds should form the core of your investment portfolio. They offer high growth potential over the long term. Given your time horizon of 17 years, a significant portion of your investments can be in equity funds.

Debt Mutual Funds
Including debt mutual funds in your portfolio can provide stability and reduce overall risk. Debt funds invest in fixed-income securities and are less volatile compared to equity funds.

Gold Investments
A small allocation to gold can act as a hedge against inflation and market volatility. You can consider gold ETFs or sovereign gold bonds for this purpose.

International Mutual Funds
Diversifying your investments internationally can provide exposure to global markets and reduce country-specific risks. International mutual funds can be a good addition to your portfolio.

Systematic Investment Plan (SIP) Strategy
Implementing a SIP strategy for different types of mutual funds can help in building a diversified portfolio. Allocate a higher percentage to equity funds and the rest to debt and gold funds. Regularly review and adjust your SIP contributions to align with your financial goals.

Planning for Children’s Education
Estimating Education Costs
Estimate the future costs of your children’s education, considering inflation. Education expenses can be significant, and planning early will ensure you have sufficient funds when needed.

Education Savings Plan
Create a dedicated education savings plan. You can use a combination of equity and debt mutual funds to build this corpus. Start a separate SIP specifically for your children's education.

Building a Retirement Corpus
Power of Compounding
Starting early and investing regularly allows you to benefit from the power of compounding. Your investments will grow exponentially over time, helping you achieve your retirement goal.

Regular Review and Rebalancing
Periodically review your investment portfolio to ensure it aligns with your financial goals and risk tolerance. Rebalancing involves adjusting your asset allocation to maintain the desired balance, optimizing returns, and managing risk.

Active Management
Actively managed funds, overseen by a CFP, can potentially deliver higher returns compared to passive index funds. They offer flexibility to respond to market changes and capitalize on opportunities.

Tax Efficiency in Investments
Tax Planning
Effective tax planning can enhance your investment returns. Utilize tax-saving instruments such as Equity Linked Savings Scheme (ELSS) to reduce your taxable income while investing for long-term goals.

Capital Gains Management
Understanding the tax implications of capital gains is essential. Long-term capital gains from equity investments are taxed differently from short-term gains. Plan your investments and withdrawals to minimize tax liability.

Role of a Certified Financial Planner
Professional Guidance
A CFP can provide personalized advice, helping you create a comprehensive financial plan. They offer expertise in investment management, tax planning, and retirement strategies, ensuring your financial goals are met.

Regular Monitoring
A CFP regularly monitors your investments, making adjustments based on market conditions and life changes. This proactive approach helps in optimizing returns and managing risks effectively.

Building a Disciplined Investment Approach
Setting Clear Goals
Define clear financial goals with timelines. This provides direction and helps in selecting appropriate investment vehicles to achieve these goals.

Consistent Savings and Investing
Consistently save and invest a significant portion of your income. This discipline is crucial for building wealth over time. Automate your investments to ensure regular contributions.

Financial Education
Continuously educate yourself about personal finance and investments. Staying informed empowers you to make better financial decisions and adapt to changing market conditions.

Final Insights
Ramesh, your goal to accumulate Rs. 5 crores by the age of 60 is ambitious but achievable with a disciplined and strategic approach. Start by setting a strong foundation with an emergency fund and adequate insurance coverage.

Consider surrendering your ULIPs and redirecting the funds to mutual funds. Increase your SIP contributions gradually to align with your income growth. Diversify your investments across equity, debt, gold, and international markets.

Implement a SIP strategy for different types of mutual funds and regularly review and rebalance your portfolio. Effective tax planning and capital gains management can further enhance your returns. Seek guidance from a Certified Financial Planner to create and monitor a comprehensive financial plan.

Your commitment to your financial goals and willingness to adapt your strategy will help you achieve a comfortable and secure retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7101 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 30, 2024

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Hello Sir, I am 55 running. Running small Engineering Unit. Wife 50 working in Pvt Ltd Company. We both earn Rs 1.5 Lacs a month. I have loan on my unit worth Rs 1.3 Lacs per month till 2025. I have MF 1.3Cr, PPF 53L , FDs 30 L, HDFC policy 31L getting matured in 2027. Expenses daughter is MDS in 2nd year. yearly fees 15 L, Son in 3rd year B'tech fr NIT. Would like to have 5 cr at the age 60, Pl guide....
Ans: Understanding Your Financial Goals
Age: 55
Wife's Age: 50
Combined Monthly Income: Rs 1.5 lakh
Monthly Loan EMI: Rs 1.3 lakh until 2025
Children: Daughter in MDS (fees Rs 15 lakh/year), Son in 3rd year B'Tech at NIT
Current Investments
Mutual Funds: Rs 1.3 crore
PPF: Rs 53 lakh
Fixed Deposits (FDs): Rs 30 lakh
HDFC Policy: Rs 31 lakh (maturing in 2027)
Financial Goals
Retirement Corpus: Rs 5 crore by age 60
Investment Strategy
Increasing Mutual Fund Contributions
Continue SIPs: Keep investing in mutual funds for growth.
Focus on Actively Managed Funds: These can provide better returns than index funds.
Diversify: Invest in large-cap, mid-cap, and balanced funds for stability and growth.
Enhancing Fixed Deposits
Reinvest Maturing FDs: Put maturing FDs into higher-yield debt funds.
Avoid Long-Term Lock-in: Keep some funds in short-term FDs for liquidity.
Maximizing PPF
Annual Contributions: Maximize your PPF contributions for tax-free returns.
PPF Maturity: Align PPF maturity with your retirement goals.
Utilizing HDFC Policy
Hold Till Maturity: Let the policy mature in 2027 to receive Rs 31 lakh.
Reinvest Proceeds: Reinvest the maturity amount into mutual funds or debt funds for growth.
Loan Repayment Strategy
Pay Off Loan: Focus on repaying your loan by 2025.
Free Up Income: Post-loan, redirect Rs 1.3 lakh EMI into investments.
Children's Education
Daughter’s MDS Fees: Continue to pay Rs 15 lakh/year until completion.
Son’s Education: Ensure funds are available for his B'Tech completion.
Insurance and Safety Nets
Life Insurance
Term Insurance: Ensure you have adequate term insurance.
Policy Review: Reevaluate your HDFC policy upon maturity.
Health Insurance
Adequate Coverage: Ensure comprehensive health insurance for your family.
Regular vs Direct Mutual Funds
Disadvantages of Direct Funds
Complex Management: Requires significant time and expertise.
Risk of Mistakes: Higher risk without professional guidance.
Benefits of Regular Funds
Professional Guidance: Managed by Certified Financial Planners (CFPs).
Easier Management: Less time-consuming and easier to track.
Final Insights
Stay Focused: Keep your retirement goal of Rs 5 crore in mind.
Regular Reviews: Periodically review your investments and adjust as needed.
Disciplined Saving: Stay disciplined with your savings and investments.
Emergency Fund: Maintain an emergency fund for unforeseen expenses.
Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Ramalingam

Ramalingam Kalirajan  |7101 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Aug 13, 2024

Money
hello sir, I am 51 years, I have a corpus of 1cr in mutual funds , 5 lacs in PPF , my PF is 25 lacs, KVP 10 lacs, monthly sip in mutual funds is 27000, daughter is employed and have set a side 40 lacs for her marriage , my son is still studies in Bcom hrs . 3rd years. have an agricultural land of worth 1 crores . Have three flats worth , 25 lacs 40 lacs and 80 lacs and the one i am living in is 20 lacs. I want to generate a corpus of 5cr at the age of 60. Apart from this I want to generte an extra income of around 1 lacs per month. from the age of 55. Prsently my income is 1lacs per month.
Ans: At 51, you have built a significant corpus. You’ve invested wisely in mutual funds, PPF, PF, KVP, and real estate. Your current situation includes:

Mutual Funds: Rs 1 crore, which is a substantial investment.

PPF: Rs 5 lakhs, a secure, tax-saving investment.

Provident Fund: Rs 25 lakhs, a reliable source of retirement income.

Kisan Vikas Patra (KVP): Rs 10 lakhs, providing safe and guaranteed returns.

Real Estate: Three flats worth Rs 25 lakhs, Rs 40 lakhs, and Rs 80 lakhs. Plus, the one you live in is worth Rs 20 lakhs.

Agricultural Land: Worth Rs 1 crore, a valuable asset.

You’ve also set aside Rs 40 lakhs for your daughter’s marriage, which is prudent planning. Your son is in his final year of B.Com, so his education is almost complete.

Assessment of Your Financial Goals
You have two main financial goals:

Building a Corpus of Rs 5 Crores by Age 60: This is your retirement goal.

Generating an Extra Income of Rs 1 Lakh per Month from Age 55: This will supplement your retirement.

Evaluating Your Investment Strategy
To achieve your goals, we need to assess and possibly enhance your current investment strategy.

Increasing Your SIP Contributions
Your current SIP of Rs 27,000 per month is good, but you may need to increase this amount to reach your Rs 5 crore target. Consider raising your SIP to Rs 50,000 or more. This will give your portfolio the boost it needs over the next 9 years.

Focus on Actively Managed Funds
It’s crucial to focus on actively managed mutual funds rather than index funds. Actively managed funds have the potential to outperform the market, especially over a long period. These funds are managed by experienced professionals who can make strategic decisions to maximize returns.

Review Your Asset Allocation
Your current allocation includes mutual funds, PPF, PF, KVP, and real estate. While these are good, it’s important to ensure your portfolio is well-diversified and aligned with your risk profile.

Equity Funds: Continue with your mutual fund investments, but ensure you are diversified across large-cap, mid-cap, and flexi-cap funds. This will balance risk and return.

Debt Funds: As you approach retirement, gradually increase your exposure to debt funds. These funds are less volatile and provide steady returns, which is essential for preserving capital as you near retirement.

Avoid Direct Funds: Direct funds may seem cost-effective, but regular funds offer the advantage of professional advice. Certified Financial Planners can guide you in selecting the best funds, tailored to your goals.

Consider Hybrid Funds
Hybrid funds, which invest in both equity and debt, can provide a balanced approach. They offer moderate growth with reduced risk, making them ideal as you get closer to retirement.

Generating an Extra Income of Rs 1 Lakh Per Month
To generate Rs 1 lakh per month from age 55, you need to create a reliable income stream.

Systematic Withdrawal Plans (SWPs)
SWPs from your mutual fund investments can provide a steady monthly income. This allows you to withdraw a fixed amount regularly, while the remaining investment continues to grow.

Dividend-Paying Mutual Funds
Consider investing in dividend-paying mutual funds. These funds distribute dividends regularly, providing you with an additional income stream. However, remember that dividends are subject to market performance and are not guaranteed.

Fixed Deposits and Debt Instruments
You can also consider placing a portion of your corpus in fixed deposits or debt instruments that provide regular interest income. While these offer lower returns, they are secure and can provide a steady income.

Tax Efficiency
As you plan for retirement, it’s important to keep tax efficiency in mind.

Long-Term Capital Gains (LTCG) Tax: Ensure your equity investments are held for more than one year to benefit from LTCG tax advantages.

Tax-Efficient Withdrawals: Plan your withdrawals in a tax-efficient manner. For example, SWPs are generally more tax-efficient than lump-sum withdrawals.

Managing Your Real Estate Assets
Your real estate assets are valuable, but they may not generate significant income unless sold or rented out. Since you’re not looking to invest further in real estate, consider the following:

Rent Out Your Flats: If you haven’t already, renting out your flats can provide additional monthly income. This income can be reinvested or saved for future needs.

Diversify Away from Real Estate: As you approach retirement, consider selling one or more properties. The proceeds can be reinvested in more liquid and income-generating assets like mutual funds or debt instruments.

Final Insights
You’ve done an excellent job of building a strong financial foundation. To reach your Rs 5 crore goal and generate Rs 1 lakh monthly income, consider increasing your SIP contributions, focusing on actively managed funds, and exploring hybrid and debt funds. Additionally, create a reliable income stream through SWPs, dividend-paying funds, and fixed deposits.

Keep in mind the importance of tax efficiency and gradually shift your focus from growth to capital preservation as you approach retirement. Regular reviews with a Certified Financial Planner will help you stay on track and adjust your strategy as needed.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
T S Khurana

T S Khurana   |197 Answers  |Ask -

Tax Expert - Answered on Nov 23, 2024

Asked by Anonymous - May 11, 2024Hindi
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Money
Can you please suggest on capital gains as per Indian taxation laws arising in the below two queries : 1) property purchased with joint ownership, me and my wife’s name in 2015 at a cost of 64,80,000, housing improvements done for the cost of 1000000 and brokerages of 200000 paid and sold the same property at 10000000 in Dec 2023? 2) 87% of the proceeds got from the deal i.e 8700000, have been reinvested to pay 25% amount in purchasing another joint ownership property in Dec 2023, 3) I have invested in another under construction property in Nov 2023 by taking housing loan, which is on me and my wife’s name worth 1.4 cr, here the primary applicant is me only while wife is just made a Co applicant in the builder buyer agreement and also on the housing loan . So what are the LTCG tax liabilities arising from the above 3 scenarios for FY 2023-2024 and FY 2024-2025. I intend to sale off the property acquired in (2) by Dec 2024 and use that proceeds to close the housing loan for the property acquired in (3), will this sale of property be inviting any tax liabilities if the complete proceeds received from the sale of the property in (2) would be utilised to close the housing loan taken in Nov 2023 for the property in (3) ? Since in FY 23-24, I would be claiming the LTCG from the sale proceeds of 1) invested in the purchase of property in 2), and I intend to sale off this property in Dec 2024, will the LTCG claim be forfeited on the property sale in (1), should I hold this property at least for further 1 year so that sale of this property in 2) will not invite STCG?
Ans: (A). Let's first talk about F/Y 2023-24 :
You jointly sold a Property during the year for Rs.76.80 lakhs (64.80+10.00+2.00), & sold the same for Rs.100.00 lakhs.
You have jointly also purchased Property No.3 (I suppose it is Residential only), for Rs.140.00 lakhs.
You should avail exemption u/s-54 & file your ITR accordingly. Please disclose all details about sale & purchase in your ITR.
02. Now coming to the F/Y 2024-25 :
You intend to Sell Property No.2, which was acquired in 2023-24. Any Gain on Sale of it would be Short Term capital Gains & taxed accordingly.
Alternatively, you may hold this sale of property no.2 (for 2 years from its purchase) & avoid STCG
You are free to utilize the sale proceeds in a way you like, including paying off your housing Loan.
Please note to avail exemption u/s 54 only from investment in property no.3 & not 2.
Most welcome for any further clarifications. Thanks.

...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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