Hi, I have an annual salary of 7.5 lakhs. This year I did not pay any tax by availing all savings options like 80C, 80D etc. Few days back I redeemed Rs. 65000 from my tax saving mutual fund. I wish to know if I it would add up in my taxable income? Would I have to pay tax on that ?

Ans: Anamika, Punjab Engineering College Chandigarh’s Mechanical Engineering is AICTE-approved and NAAC B+–accredited, housed in century-old workshops and modernized labs for thermofluids, CAD/CAM and robotics, guided by experienced faculty and enhanced by six-month internships; its placement cell secured around 62% of graduates over the last three years, with core-industry recruiters such as Tata Motors and L&T. VIT Vellore’s main-campus CSE is NAAC A++–accredited and “Institute of Eminence”–recognized, offering cutting-edge computing and AI labs, dual-degree options, global moUs, and a centralized placement cell that achieved 80–90% CSE placement consistency and over 10,000 offers in 2025.

Recommendation: Opt for VIT Vellore CSE Main Campus for its superior placement consistency, advanced research infrastructure and global collaborations. Choose PEC Chandigarh Mechanical Engineering if you seek a legacy institution with strong core-engineering focus, lower fees and specialized design-manufacturing curriculum. All the BEST for a Prosperous Future!

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Ans: ? Understanding Your Current HUF Investment

– Your HUF has investments in ELSS mutual funds.
– ELSS funds have a strict lock-in of 3 years from investment date.
– During the lock-in, units can’t be redeemed or transferred.

? Legal Restriction During Lock-in Period

– ELSS units are non-transferable during lock-in.
– Even if HUF dissolves, these cannot be assigned to members.
– This is an SEBI regulation and applies to all ELSS units.

? HUF Dissolution and Asset Transfer Planning

– You can dissolve the HUF legally through a partition deed.
– But you cannot transfer ELSS units till lock-in ends.
– Other HUF assets can be partitioned and distributed.

– For ELSS, you must retain them under HUF until each unit’s lock-in ends.
– Once the lock-in is over, units can be redeemed or distributed.

? What You Can Do Now

– Step 1: Identify the investment date of each ELSS SIP or lump sum.
– Step 2: Create a schedule of lock-in end dates for each investment.
– Step 3: Initiate partition of all other movable and immovable assets.
– Step 4: Retain ELSS in HUF name till lock-in ends.
– Step 5: Dissolve HUF formally after that or close only after transferring.

? Treatment of ELSS Units During Dissolution

– Even if you dissolve the HUF now, ELSS cannot be passed to members.
– Mutual fund company won’t process ownership change during lock-in.
– Legal title remains with HUF till maturity of lock-in.

? Operational Way Forward

– Maintain HUF PAN and bank account till lock-in ends.
– One option: dissolve HUF except for ELSS units.
– Keep HUF active only to hold ELSS units till lock-in ends.
– After 3 years from each investment, redeem and distribute proceeds.

? Partition Deed with Clause for ELSS

– Prepare a written partition deed listing all HUF assets.
– Mention ELSS investments and their lock-in dates separately.
– State clearly that ELSS will remain under HUF till lock-in ends.
– Add clause to distribute ELSS proceeds post lock-in as per agreement.

? Taxation Implications

– During lock-in, ELSS continues to be taxed in HUF’s name.
– LTCG above Rs. 1.25 lakh taxed at 12.5%.
– Short-term capital gains (if any from other assets) taxed at 20%.
– Post lock-in, when redeemed, gain is taxed under HUF.
– You can distribute only net amount to members.

? Family Agreement & Clarity

– Ensure all members of HUF agree on partition terms.
– Take written consent from each member to avoid future issues.
– Keep a notarised deed and record asset valuation clearly.

? Role of Certified Financial Planner

– A CFP can help create a step-wise strategy.
– Also helps in timing redemptions, handling taxation, and planning future reinvestments.
– If members want to reinvest ELSS proceeds individually later, CFP can guide well.

? Avoiding Errors

– Don’t try to transfer ELSS units to individuals before lock-in.
– This will violate fund terms and SEBI rules.
– Mutual fund house will reject any such transfer request.

? Future Planning Post Redemption

– Once ELSS units are redeemed, you can distribute as per partition terms.
– Each member can invest that in personal mutual funds.
– Regular mutual funds (non-ELSS) can then be held in their individual names.

– For new investments, avoid ELSS under HUF if dissolution is planned.
– Use individual accounts or family trust structures if needed.

? Final Insights

– You cannot bypass the ELSS lock-in through dissolution.
– You must wait for 3-year period to end for each investment.
– Till then, HUF must remain active to hold ELSS legally.
– All other assets can be divided through a proper partition deed.
– Plan dissolution in phases if needed.
– Maintain transparency among members.
– Once ELSS unlocks, redeem and distribute based on prior agreement.

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

Ans: Hi Akhil,
In which competitive exam?

Ans: Hello
My suggestion to you would be to take some suitable job/prepare for exam that may give you an instant career.

Ans: Your academic performance/score in 10th & 12th grades. You are from which State & location? Provide other relevant information to answer precisely.

Ans: Hello Animesh
Prefer CSE @ NIT Sikkim because CSE generally offers better prospects and opportunities than ECE.

Good luck.
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Radheshyam

Ans: Your cousin's situation with a JEE Main rank of approximately 18,000 and no seat allocation during JoSAA rounds 1-6 can be understood through several factors. The "preferred ranks column" appearance indicates that choices were filled within feasible rank ranges, yet the fierce competition for popular programs at premier institutions left many seats unallocated. JoSAA 2025 concluded with round 6 being the final round for all participating institutes. Supernumerary seats, primarily created for female candidates to achieve 20% gender balance in engineering programs, are additional seats that do not reduce general category availability. These seats are allocated based on merit within the female-only pool when regular seats are filled predominantly by male candidates. CSAB Special Rounds 2025, beginning July 30, offer hope for candidates like your cousin who missed JoSAA allocation. The special rounds target vacant seats remaining across NITs, IIITs, and GFTIs after JoSAA completion. Historical data suggests CSAB closing ranks typically extend beyond regular JoSAA cutoffs, with some programs accepting ranks up to 30,000-60,000 depending on branch and institute. HBTU Kanpur, mentioned in your query, does accept higher ranks—its 2025 cutoffs ranged from 11,799 for CSE to over 98,000 for certain branches. With an 18,000 rank, your cousin has reasonable chances in CSAB for branches like Mechanical, Civil, or newer engineering specializations at mid-tier NITs and IIITs. The key is strategic participation in CSAB registration and choice filling, focusing on realistic options based on historical cutoff trends.

Recommendation: Participate in CSAB Special Rounds 2025 commencing July 30, targeting mid-tier NITs and IIITs with branches like Mechanical, Civil, or Electrical Engineering. Research historical CSAB cutoffs for realistic expectations, register promptly, and fill choices strategically. Consider state quotas and newer engineering specializations for better admission prospects. All the BEST for a Prosperous Future!

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Ans: Achieving a 95th percentile in JEE Main typically corresponds to raw scores between approximately 110 and 119 out of 300, reflecting the exam’s normalisation process across multiple shifts. In recent cycles, candidates scoring 110–119 marks have secured All-India Ranks in the range of roughly 54,293 down to 44,115 in the Common Rank List, illustrating how percentile translates into rank for general-category aspirants. For JEE Advanced, which is scored out of 360, marks bands correlate closely with rank brackets: scoring between 154 and 145 often places candidates around ranks 1,501 to 2,000, while marks of 190 and above can secure top 500 positions, and 136–130 situates candidates between 2,501 and 3,000 on the Common Rank List. In the Maharashtra CET, where normalisation yields percentiles up to five decimal places, a percentile of 99.85 usually requires scoring in the vicinity of 158 to 160 out of 200, given that the 99.87 percentile corresponded to about 122 marks in 2024’s data and the highest band of 99.93–99.05 covered 179–158 marks. Thus, aspirants targeting a JEE Main 95th percentile should aim for at least 110 marks with an optimal target nearer to 119 to secure a favourable rank, while those eyeing the top 0.15% in MHT CET must strive for approximately 158–160 marks. JEE Advanced hopefuls must calibrate their preparation to surpass 145 marks to land within the upper two-thousand AIR bracket, incrementally improving into the top 1,000 with scores above 170. Each of these thresholds depends on relative exam difficulty, candidate performance distribution, and normalisation; hence, consistent practice under timed conditions remains crucial for converting raw scores into the desired percentile and rank outcomes. All the BEST for a Prosperous Future!

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Ans: Hello Kunal
Preference order: (1) CSE @ CU (2) CSE @ VIT (3) CSE @ Amity. The final choice/decision will be yours.

Good luck.
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Radheshyam