Recently on 7 November 2023, changes made in SCSS scheme . Please guide me 1) what is penalty on premature payment after one year of deposit ? 2) whether new changes are also applicable to deposit kept prior to 7 November 2023.Thanks

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

Ans: For senior citizen specifically no new benefits are announced. However, Senior citizen can take benefit of revised rate of tax under new tax regime and if income is upto 7 lacs, senior citizen can also take benefit of 100% rebate of tax.

Ans: It's commendable that you've initiated SIPs (Systematic Investment Plans) to grow your wealth. However, life can be unpredictable, and circumstances may change, affecting your ability to continue these investments.

If you're unable to continue your SIPs after a certain period, it's essential to understand the implications. Firstly, discontinuing your SIPs prematurely can impact the potential growth of your investments. The longer you stay invested, the greater the power of compounding, which can significantly boost your returns over time.

Secondly, abruptly stopping your SIPs may lead to missed opportunities. Market timing is notoriously difficult, and exiting your investments at an inopportune moment could result in lost potential returns, especially if you're invested in mid-cap and small-cap funds, which tend to be more volatile.

Moreover, redeeming your investments prematurely might subject you to exit loads or penalties, further eroding your returns.

As a Certified Financial Planner, I would advise you to assess your financial situation carefully and explore alternatives before discontinuing your SIPs. Consider options like reducing the SIP amount temporarily, switching to a lower-cost plan, or pausing the SIPs if feasible, rather than stopping them altogether.

It's also crucial to have an emergency fund in place to handle unexpected financial challenges without resorting to withdrawing your investments prematurely.

Ultimately, every financial decision comes with its own set of consequences, and it's essential to weigh the pros and cons carefully before taking any action.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: If advance tax is missed, quarterly interest of 3% will be levied. If advance tax is not paid by 15th Sep, additional interest will be charged.