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Ramalingam Kalirajan |7838 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on May 06, 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

Question by Kambhampati on Apr 13, 2024Hindi

Money

Can you please advise me on exemption of short term capital gains after one year of sale of shares/mutual funds in new tax regime ?

Ans: No, there is no exemption on short-term capital gains tax in the new tax regime or the old tax regime in India for selling shares or equity-oriented mutual funds held for less than one year. Short-term capital gains from these assets are taxed at a flat rate of 15% irrespective of your income tax slab.

Here's a breakdown of the relevant points:

Short-term capital gains (STCG): Profits earned from selling shares or equity mutual funds within one year are considered STCG.
Tax rate on STCG: A flat rate of 15% applies to STCG from equity shares/funds.
New vs Old tax regime: Both regimes follow the same STCG tax treatment.
Exemption applies to Long-term Capital Gains (LTCG) only:

Long-term capital gains (LTCG): Profits earned from selling shares or equity mutual funds held for more than one year are considered LTCG.
LTCG tax exemption: Up to Rs. 1 lakh of LTCG from equity shares/funds is exempt from tax. However, any LTCG exceeding Rs. 1 lakh is taxed at 10% (without indexation benefit).
Looking for tax benefits?

Consider holding your equity investments for more than a year to qualify for LTCG benefits. You can also explore other tax-saving investment options under sections like 80C, 80D etc., which are applicable under both new and old tax regimes.

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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Tejas Chokshi | Answer |Ask -Follow

Tax Expert - Answered on Apr 25, 2023

Asked by Anonymous - Feb 01, 2023Hindi

Money

How capital gain from mutual funds is treated in new tax regime for an individual with income above and below 7 lakh ?

Ans: In the new tax regime, the capital gains from mutual funds are treated as follows:

For individuals with income below Rs. 7.5 lakhs:

Short-term capital gains (STCG) from mutual funds are taxable at the rate of 15%.
Long-term capital gains (LTCG) from mutual funds are taxable at the rate of 10% on gains exceeding Rs. 1 lakh in a financial year, without the benefit of indexation.
For individuals with income above Rs. 7.5 lakhs:

Short-term capital gains (STCG) from mutual funds are taxable at the individual's slab rate.
Long-term capital gains (LTCG) from mutual funds are taxable at the rate of 10% on gains exceeding Rs. 1 lakh in a financial year, without the benefit of indexation.
It's important to note that investors have the option to choose between the old tax regime and the new tax regime each year, based on which one is more beneficial to them. The tax treatment of capital gains from mutual funds will differ based on the chosen tax regime.

Mihir Tanna |998 Answers |Ask -Follow

Tax Expert - Answered on May 28, 2024

Question by vijay - Feb 28, 2024Hindi

Money

How taxed short term capital gain & long term capital gain from share market & mutual fund?

Ans: Short Term Gain covered in Sec 111A is taxed@15% and Long term covered in Sec 112A is taxed @10% above gain of Rs.1 lac

Mihir Tanna |998 Answers |Ask -Follow

Tax Expert - Answered on Jan 01, 2025

Asked by Anonymous - Dec 31, 2024Hindi

Money

My short term capital gains listed shares and equity mutual funds is Rs 3,00,000 and salary 1,80,000 Total 4,80,000 From 1-4-24 to 31-3-25 How much tax I have to pay I am 52 years Mohan Satpal

Ans: Your income is below 7 lacs and gross tax liability will be 16380. Under new tax regime, you are eligible for rebate upto 25000. However matter is litigative. As per recent judicial decisions, rebate is available even against income taxable as per provisions of 111A.

Accordingly, in my view, tax liability will be Zero

You can calculate tax liability from income tax calculator available at https://eportal.incometax.gov.in/iec/foservices/#/TaxCalc/calculator

Latest Questions

Ramalingam Kalirajan |7838 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Feb 05, 2025

Question by Dhiraj - Feb 05, 2025Hindi

Money

Hello Sir, this is Dhiraj DM, I am 48 year's old married with no kids, we have any flat worth 1. 5 cr given on rent around 50 lakhs of equity 20 lacs mutual funds we want to retire in next 3 years,please guide. We live in a metro no liability, we r into Gifting business now want to retire in next 3 years

Ans: Your retirement is just three years away. You have built a strong foundation with real estate, equity, and mutual funds. Now, the goal is to structure your investments for steady income, security, and long-term sustainability.

1. Assessing Your Current Financial Position
Flat Worth Rs. 1.5 Crore: This generates rental income, but liquidity is limited.
Equity Portfolio of Rs. 50 Lakh: Market-linked investments with potential for high returns but volatile.
Mutual Funds of Rs. 20 Lakh: Offers diversification and moderate risk exposure.
No Liabilities: This is a strong advantage for financial freedom.
Gifting Business: If planning to exit, ensure business-related finances are sorted before retirement.
2. Estimating Post-Retirement Income Needs
Calculate expected monthly expenses, including medical, travel, lifestyle, and emergency costs.
Factor in inflation, as expenses will rise over time.
Consider long-term costs such as medical care and home maintenance.
3. Structuring Retirement Income
Rental Income as a Fixed Source
Your flat generates rental income, which helps with stability.
Consider reinvesting this income for further growth.
Portfolio Rebalancing for Stability
Equity exposure is beneficial but risky close to retirement.
Shift some funds to low-risk instruments for safety.
Keep some allocation to equity to combat inflation.
Maintaining Liquidity for Emergencies
Create an emergency fund of at least 2 years' expenses in liquid assets.
Avoid relying solely on investments that require selling in volatile markets.
4. Health and Insurance Planning
Ensure comprehensive health insurance for both of you, at least Rs. 15-20 lakh coverage.
If you hold any old insurance policies with low returns, consider restructuring them.
Create a separate healthcare fund for long-term medical expenses.
5. Tax Efficiency in Retirement
Structure withdrawals smartly to reduce tax burden on capital gains.
Use tax-free instruments where applicable.
Rental income is taxable, so deduct maintenance expenses to lower tax outgo.
6. Planning Investments for Retirement Income
Avoid complete reliance on fixed-income instruments, as they may not beat inflation.
A mix of mutual funds, debt instruments, and systematic withdrawal plans (SWP) will ensure steady cash flow.
Keep some investments growth-oriented to sustain wealth over decades.
7. Estate and Legacy Planning
Prepare a clear will to ensure smooth asset transfer.
If you plan to donate or support causes, structure funds accordingly.
Finally
Ensure liquidity and stability in your investments.
Reduce risk in equity but keep exposure for growth.
Maintain a dedicated healthcare fund and strong insurance coverage.
Structure investments to minimise taxes and ensure steady income.
Plan legacy and succession to avoid future complications.
Would you like a detailed plan on how to allocate your investments for steady retirement income?

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

https://www.youtube.com/@HolisticInvestment

Pushpa R |49 Answers |Ask -Follow

Yoga, Mindfulness Expert - Answered on Feb 05, 2025

Asked by Anonymous - Feb 04, 2025Hindi

Health

My sister is recently diagnosed with second stage of breast cancer. She is always emotional and moody. Can I introduce her to yoga or meditation? Can yoga help her cope with the fear and uncertainty?

Ans: I'm very sorry to hear about your sister’s diagnosis. This is a challenging time, and emotional support is just as important as medical treatment. Yes, yoga and meditation can help her cope with fear, stress, and uncertainty by bringing mental peace, emotional strength, and relaxation.

How Yoga Can Help:
Reduces Anxiety & Fear: Gentle yoga and deep breathing activate the parasympathetic nervous system, which helps in relaxation and emotional balance.
Improves Sleep: Many cancer patients struggle with sleep. Yoga Nidra and slow breathing exercises can promote restful sleep.
Boosts Positivity: Meditation and mindfulness help shift focus from fear to inner peace.
Strengthens the Body: Light yoga can help reduce fatigue and improve overall well-being during treatment.
Recommended Practices for Your Sister:
Breathing (Pranayama): Anulom Vilom (Alternate Nostril Breathing) and Bhramari (Humming Bee Breath) calm the mind.
Gentle Yoga Poses: Child’s Pose, Butterfly Pose, and Legs-Up-The-Wall Pose promote relaxation.
Meditation & Yoga Nidra: Guided meditation can help ease emotional distress and bring hope.
Encourage her to consult a yoga coach for personalized support. With the right guidance, yoga can become a healing companion in her journey.

R. Pushpa, M.Sc (Yoga)
Online Yoga & Meditation Coach
Radiant YogaVibes
https://www.instagram.com/pushpa_radiantyogavibes/

Pushpa R |49 Answers |Ask -Follow

Yoga, Mindfulness Expert - Answered on Feb 05, 2025

Asked by Anonymous - Feb 04, 2025Hindi

Health

Mam, can yoga help prevent cancer in women? Please advice

Ans: Yoga cannot guarantee the prevention of cancer, but it can play a supportive role in maintaining overall health, reducing risk factors, and improving well-being. Many studies suggest that regular yoga practice helps reduce stress, improve immunity, balance hormones, and promote detoxification—all of which may lower the risk of cancer in women.

How Yoga Can Help:
Reduces Stress: Chronic stress weakens the immune system and increases inflammation, which can contribute to disease. Practicing meditation, breathing exercises, and relaxation techniques keeps the body in balance.
Boosts Immunity: Gentle yoga poses improve blood circulation and support the lymphatic system, which helps remove toxins from the body.
Balances Hormones: Hormonal imbalances may increase the risk of conditions like breast and ovarian cancer. Regular yoga helps maintain a healthy endocrine system.
Supports Detoxification: Twisting poses and deep breathing help the body eliminate waste and toxins.
Recommended Practices:
Pranayama (Breathwork): Anulom Vilom and Bhramari help calm the nervous system.
Yoga Poses: Cobra Pose, Twists, and Forward Bends improve digestion and circulation.
Meditation & Relaxation: Yoga Nidra and mindfulness reduce stress and promote healing.
For personalized guidance, consult a yoga coach who can create a practice suited to your health needs.

R. Pushpa, M.Sc (Yoga)
Online Yoga & Meditation Coach
Radiant YogaVibes
https://www.instagram.com/pushpa_radiantyogavibes/

Dr Nagarajan Jsk |231 Answers |Ask -Follow

NEET, Medical, Pharmacy Careers - Answered on Feb 05, 2025

Asked by Anonymous - Dec 04, 2024Hindi

Career

Hello Sir, my daughter is in class 12 and has taken PCB. She is expecting 80-85 percetage in board exams. She wants to go to USA yo pursue her medical. We are very middle class family. Can you suggest good colleges and the expenses ? And also please tell us if she can get any scholarship for the same

Ans: Hi Sir,

Your query is quite unique. Your daughter wants to pursue medicine in the US specifically, rather than in other countries. One important consideration is whether she plans to return to India after completing her studies, which is likely not the case.

If she chooses to return to India, she will need to obtain eligibility through the NEET exam, which is required for most countries, with some uncertainty regarding the US. If she decides to pursue her medical education in the US, I recommend that she completes the USMLE (United States Medical Licensing Examination). Successfully completing the USMLE will make her eligible to practice medicine in the US.

State universities are the best options and require visiting their websites for scholarship information.

Milind Vadjikar |974 Answers |Ask -Follow

Insurance, Stocks, MF, PF Expert - Answered on Feb 05, 2025

Question by Prashant - Jan 28, 2025Hindi

Money

I require to calculate pension from EPFO. As per EPFO formula "=Average monthly salary of last 60 months x nos of years service/70 ". Max cap on Average salary is Rs 15000. I calculate the average monthly salary as "total of last 60 months salary / 60 "= 20000, which is kept at max. cap and considered as 15000 EPFO. While EPFO office first makes all salaries greater than 15k, to 15k, then calculates the average. Hence I get less than 15000. I did not find any clarification on the EPFO website. Please give me correct guideline as per EPFO

Ans: Hello;

There is pension calculator feature on the EPFO portal.

You may use to ascertain your likely monthly pension.

Best wishes;

Ramalingam Kalirajan |7838 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Feb 05, 2025

Question by H - Feb 01, 2025Hindi

Money

Get me some clearity on HDFC BALANCED ADVANTAGE FUND as from last few days my portfolio is going in negative

Ans: Understanding Balanced Advantage Funds

Balanced Advantage Funds invest in both equity and debt. They adjust their investments based on market conditions. This flexibility helps manage risk and aim for steady returns.

Recent Performance Insights

It's natural to feel concerned when your portfolio shows negative returns. Remember, short-term declines are common in investments. Balanced Advantage Funds aim to reduce risk by adjusting their investments. This strategy helps manage market ups and downs.

Factors Influencing Performance

Several elements can affect your fund's performance:

Market Volatility: Changes in the market can impact returns.

Asset Allocation: The mix of equity and debt plays a role.

Interest Rate Changes: Fluctuations can influence debt investments.

Economic Indicators: Factors like inflation and GDP growth are important.

Evaluating Fund Performance

To assess your fund's performance:

Compare with Benchmarks: See how it measures up against standard indices.

Review Historical Returns: Look at past performance over different periods.

Consider Risk-Adjusted Returns: Evaluate returns in relation to the risk taken.

Staying the Course

It's commendable to stay focused on your long-term goals. Short-term market changes shouldn't deter your investment strategy. Maintaining discipline is key to achieving financial objectives.

Consulting a Certified Financial Planner

For personalized advice, consider consulting a Certified Financial Planner. They can provide guidance tailored to your financial situation.

Final Thoughts

Market fluctuations are a part of investing. Balanced Advantage Funds are designed to manage these ups and downs. Staying informed and patient can help you reach your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

https://www.youtube.com/@HolisticInvestment

Ramalingam Kalirajan |7838 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Feb 05, 2025

Question by Neha - Jan 21, 2025Hindi

Money

Hello, my mother is 62 year old pensioner. She has invested funds in government securities and postal schemes. Despite submitting 15H form and filing ITR (as a senior citizen person), her tax is getting deducted. Can you kindly explain why this is happening?

Ans: There are a few possible reasons why TDS (Tax Deducted at Source) is being deducted from your mother's investments, despite submitting Form 15H and filing ITR.

1. Incorrect or Late Submission of Form 15H
Form 15H must be submitted at the start of the financial year to all institutions where she has investments.
If submitted after TDS is deducted, it won’t apply retrospectively to recover the deducted tax.
Ensure the form is submitted separately to each bank, post office, or financial institution.
2. Exceeding the Basic Exemption Limit
For senior citizens (60+ years), income up to Rs. 3 lakhs is tax-free.
If her total taxable income (pension + interest from investments) exceeds Rs. 3 lakhs, TDS will still apply.
Even if TDS is deducted, she can claim a refund while filing her ITR if her total tax liability is zero.
3. Form 15H Validity Rules
Form 15H is only valid if total taxable income is below the exemption limit.
If her total income is more than Rs. 3 lakhs, banks and post offices will ignore Form 15H and deduct TDS.
4. Different TDS Thresholds for Investments
Banks deduct TDS on FD interest if it exceeds Rs. 50,000 per year for senior citizens.
Post Office schemes (like SCSS) deduct TDS if interest crosses Rs. 50,000 per year.
Government securities may also have TDS rules based on the issuing authority.
5. PAN Not Updated with the Bank/Post Office
If PAN is not linked to the investment accounts, higher TDS at 20% is deducted.
Ensure all investments have PAN updated to avoid excess TDS.
6. Errors in Tax Deduction System
Sometimes, banks deduct TDS even if Form 15H is submitted correctly.
In such cases, she can file an ITR and claim a refund from the Income Tax Department.
What to Do Now?
Check total taxable income to confirm if she qualifies for Form 15H.
Verify all Form 15H submissions with banks and post offices.
Ensure PAN is updated in all financial institutions.
If TDS is wrongly deducted, file an ITR and claim a refund.
Would you like help with checking if she is eligible for a refund?

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

https://www.youtube.com/@HolisticInvestment

Ramalingam Kalirajan |7838 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Feb 05, 2025

Asked by Anonymous - Oct 18, 2024Hindi

Money

Hello, I worked in 2 firms, 1st for 10 months & 2nd for 7 months, I've accumulated nearly 10000 in my pension contribution. Is there a way to withdraw at age of 23?

Ans: Pension Withdrawal at Age 23

Pension funds are meant for long-term savings.
Most schemes do not allow early withdrawal.
Exceptions occur only in severe emergencies.
Check your scheme rules for any special provisions.
Consult with a Certified Financial Planner for advice.
Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

Ramalingam Kalirajan |7838 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Feb 05, 2025

Asked by Anonymous - Jan 24, 2025Hindi

Money

My sister wants give Rs.49lakhs to purchase a land in 2024-25 to construct house later transaction will be through bank only whether gift tax is to be paid? is so who has to pay

Ans: There is no gift tax in India, but the amount received as a gift is taxed under the Income Tax Act, 1961 as "Income from Other Sources" unless exempted.

Tax Implications on Gift from Sister
Gifts from specified relatives (including a sibling) are fully exempt from tax under Section 56(2)(x) of the Income Tax Act.
Since your sister is a specified relative, the Rs. 49 lakhs gift will be tax-free in your hands.
Your sister will also not have to pay any tax on the gifted amount, as India does not have a separate gift tax.
Important Points to Ensure Tax Compliance
The transaction should be done through a bank transfer to maintain a proper record.
A gift deed is recommended (on stamp paper) to legally document the transaction.
There are no tax deductions for the giver, meaning your sister cannot claim this gift as an expense.
Final Answer
No gift tax is applicable since the amount is received from a sister.
You do not have to pay income tax on the received gift.
Your sister will also not have any tax liability on gifting the amount.
Let me know if you need more clarification!

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

www.holisticinvestment.in

https://www.youtube.com/@HolisticInvestment

Ramalingam Kalirajan |7838 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Feb 05, 2025

Asked by Anonymous - Jan 03, 2025Hindi

Money

How much tax I need to pay on LIC Jeevan saral maturity amount.

Ans: LIC payout includes the sum assured and bonus.
Tax rules follow Section 10(10D) of the Income Tax Act.
If the premium is within limits, the payout is tax-free.
Excess premium results in taxable gains added to your income.
Final Insights

Review your policy details carefully.
Seek advice from a Certified Financial Planner.
Consider surrendering poor policies and reinvesting in mutual funds via an MFD.
Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

https://www.youtube.com/@HolisticInvestment

See more questions »

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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