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Sanjeev Govila | Answer |Ask -Follow

Financial Planner - Answered on Feb 05, 2024

Colonel Sanjeev Govila (retd) is the founder of Hum Fauji Initiatives, a financial planning company dedicated to the armed forces personnel and their families.
He has over 12 years of experience in financial planning and is a SEBI certified registered investment advisor; he is also accredited with AMFI and IRDA.... more

Question by Gopala on Jan 29, 2024Hindi

Money

Sir, We have entrusted house construction to a contractor, He says, we have to GST on the entire amount of total contract, we are availing only his service, we are paying the amount by taking loan.. Kindly advise me about the GST act or law

Ans: There are certain factors on which the applicability of GST depends on the services provided by the contractor such as-

• If the construction is for your own only self residence and not for business purposes, then you generally do not need to pay GST on the contractor's services, even if you took a home loan.

• If the construction is for commercial purposes or you intend to sell the property, GST will usually be applicable on the contractor's services at the standard rate of 18%.

• If the contract involves the contractor providing both labour and materials, it's considered a "works contract".

• GST is applicable on the entire contract value (excluding land cost) at the appropriate rate mentioned above.

• If the contract involves the contractor only providing labour, and you separately buy the materials, it's considered a "labour contract".

• No GST is payable on the labour charges under the current regulations.

Note- Taking a loan for construction wouldn't impact the applicability of GST on the contractor's services.

There are various other clauses in the GST part; for more clarity, please connect with a legal advisor.

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 Kalirajan |10986 Answers |Ask -Follow

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

Question by zia - Jan 13, 2024Hindi

Money

Dear Sir, I purchased a shop in October 2022 . I paid the required amount as declared in registeration papers ( stamp duty, registeration , sale deed etc. ) However, the builder addiotnally asked for Rs. 57,000/- towards GST to be paid in cash. At the time of registeration I paid only Rs. 50,000/- in cash. Thats why the builder didint issue any GST invoice. When I paid the balance Rs. 7,000/-, the builder issued a hand written letter certifying that Rs. 7,000/- only have been received towards GST ( and not Rs. 57,000/- which I actually paid). He didi not even mentioned his GST number in that letter. There is no GST invoice from any government deptt. My questions is, whether the builder can issue a hand written GST invoice without mentioning his GHST number ??. As far as I know, all GST amounts are are paid to the Givernment and not any any individual.

Ans: It's concerning that the builder issued a handwritten letter for GST payment without providing an official GST invoice or mentioning their GST number. According to GST regulations, all transactions involving GST must be accompanied by a valid GST invoice issued by the registered supplier, containing their GST number.

In this case, the absence of a proper GST invoice raises questions about the legitimacy of the transaction and whether the GST amount was appropriately accounted for and remitted to the government. Handwritten letters without proper documentation may not suffice as valid proof of GST payment.

To address this issue, I recommend seeking clarification from the builder regarding the absence of a formal GST invoice and their GST registration details. If the builder is registered under GST, they should be able to provide a proper GST invoice with their GST number for the amount paid. If they fail to do so or provide insufficient documentation, it may be prudent to consult with a legal advisor or tax expert to explore further steps to ensure compliance with GST regulations and protect your interests.

Ramalingam Kalirajan |10986 Answers |Ask -Follow

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

Asked by Anonymous - Apr 19, 2024Hindi

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

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Ramalingam Kalirajan |10986 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jan 23, 2026

Question by marines - Jan 22, 2026Hindi

Money

I am planning to invest approximately ₹20,000 per month to meet my short- and medium-term financial goals. My primary objectives include funding my marriage in four years and my sister’s marriage in two years. In addition, I would like to plan for my long-term retirement goals and can invest ₹5,000 per month for the next 15 years or more. I request your guidance on suitable mutual fund options for both goals, preferably with exposure to equity and index funds, to optimize returns while aligning with my investment horizon and risk profile. Also i can increase year on year approx 10 %. Kindly suggest an appropriate investment strategy and mutual fund schemes for the above requirements. regards Shiju

Ans: You are thinking ahead and that itself gives you a strong advantage. Planning for family responsibilities and your own retirement at the same time shows clarity and maturity. With a step-up of 10 percent every year, your plan becomes even stronger.

» Understanding your goals and time frames
– Sister’s marriage is a short-term goal of around 2 years
– Your own marriage is a medium-term goal of around 4 years
– Retirement is a long-term goal of 15 years or more
– Monthly investment capacity is Rs 20,000 for short and medium term goals
– Monthly investment capacity is Rs 5,000 for long-term retirement
– You are comfortable with gradual increase every year

» Right asset approach for short-term goal (2 years)
– Capital protection is more important than high return here
– Equity exposure should be limited because market ups and downs can hurt the goal
– Focus should be on stability and liquidity
– Use low-risk mutual fund categories with limited equity exposure
– Avoid pure equity funds for this goal
– Start moving money to safer options as the goal date comes closer

» Right asset approach for medium-term goal (4 years)
– This goal allows some equity exposure but not aggressive risk
– Balanced approach works better than full equity
– Equity portion should reduce as you reach the 4th year
– Gradual shift from equity-oriented funds to safer funds is important
– This protects the money when the goal is near

» Why index funds are not suitable for your goals
– Index funds only copy the market and cannot protect you in falling markets
– There is no fund manager decision to control risk during bad times
– In short and medium-term goals, market falls can delay marriages or force loans
– Actively managed funds try to control downside risk
– Fund managers can move between sectors and stocks based on market conditions
– This flexibility helps in protecting capital and improving consistency

» Long-term retirement planning approach (15 years or more)
– This is where equity should play a bigger role
– Long-term goals can handle market ups and downs
– Actively managed equity funds suit this horizon well
– Consistent investing and annual step-up will build strong wealth over time
– Avoid chasing last year’s top-performing funds
– Stick to quality funds with stable management

» Why regular mutual funds through a Certified Financial Planner help
– Regular funds give you ongoing monitoring and rebalancing support
– Behaviour control is very important during market corrections
– Many investors exit at wrong times without guidance
– A Certified Financial Planner helps align investments with life goals
– Cost difference is small, but guidance value is very high

» How to use the 10 percent annual increase wisely
– Increase SIP amount every year after salary revision
– First priority should be retirement SIP increase
– Next priority is medium-term marriage goal
– This keeps long-term wealth creation on track

» Tax awareness for your planning
– Equity mutual funds sold within one year attract higher short-term tax
– Selling after one year is more tax efficient for long-term goals
– Plan redemptions carefully near goal dates
– Do not redeem entire amount in one shot unless needed

» Final Insights
– You are on the right path by separating goals clearly
– Avoid index funds and focus on actively managed funds for better control
– Match risk level strictly with goal time frame
– Annual step-up will quietly do the heavy lifting
– With discipline and timely review, all three goals can be met without stress

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

Ramalingam Kalirajan |10986 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jan 23, 2026

Question by balbirdass - Jan 22, 2026Hindi

Money

i have jeevan anad policy 149 for 21 yrs,started in 2006 for 3 lac sum assured what will; be final amount in 2027- date of maturity

Ans: You have shown good discipline by continuing this long-term policy from 2006 till maturity. Staying invested for the full term in such policies needs patience, and that itself deserves appreciation.

» Policy snapshot in simple words
– Policy start year: 2006
– Policy term: 21 years
– Maturity year: 2027
– Sum assured: Rs 3,00,000
– Type: Traditional life insurance with savings and yearly bonuses

» How the maturity amount is generally built
– The final amount at maturity is mainly made of two parts
– First part is the basic sum assured, which is Rs 3,00,000
– Second part is the accumulated simple reversionary bonuses added every year
– Some years may also have a small final bonus, depending on overall performance

» Expected maturity value by 2027
– For policies started around 2006 with a 21-year term, the bonus rates were relatively stable for many years
– Over the full policy term, the total maturity amount usually becomes around 2 times the sum assured, sometimes slightly more
– In practical terms, your maturity amount in 2027 is likely to be in the range of
– Around Rs 5.75 lakh to Rs 6.50 lakh
– The exact figure will depend on the final bonus declared in the year of maturity

» What this amount means for you financially
– The maturity value is safe and tax-free under current rules
– It works well as a lump-sum support fund rather than a high-growth investment
– The returns are steady but modest when compared to long-term inflation
– The policy also continues to provide life cover even after maturity, which adds emotional comfort

» Important planning observations
– This policy has already done its job by giving safety and forced savings
– Since maturity is close, it is wise to plan how this amount will be used before 2027
– Options can include debt reduction, children’s education support, or building a stable low-risk allocation
– Avoid keeping the entire maturity amount idle in savings for too long

» Final Insights
– Your discipline over 21 years is the biggest strength here
– Expect a maturity amount close to Rs 6 lakh, give or take
– The value lies more in certainty and peace than in high returns
– With proper reinvestment planning after maturity, this amount can still play a meaningful role in your overall financial picture

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

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

Samraat Jadhav |2544 Answers |Ask -Follow

Stock Market Expert - Answered on Jan 23, 2026

Question by ARVIND - Jan 22, 2026Hindi

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what is next target of Adani green energy for 3 months

Ans: if its results are good then it can get back to 1075 else 755

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Question by ARVIND - Jan 22, 2026Hindi

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I have 450 vedanta @ Rs 543.67. I should exit or to keep .

Ans: good levels to exit and book profits

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Career Counsellor - Answered on Jan 22, 2026

Asked by Anonymous - Jan 22, 2026Hindi

Career

I am 43 year old Civil Structural Engineer working in an MNC. I am having 21 years of experience. I want to divert my carrier line which will enter me in IT mode or similar kind. I want to shift in Europe. I have bacholer and PG degree in Civil Engineering. The current design job pays me which is very less compared to my total experience. I lack presenting myself in interviews. How can I improve myself and switch the currier line in IT related work which will pay me higher. Pls guide. Requesting to reply individually at my id and not to post online. Thank you

Ans: (Answering your question on the RediffGURU platform amplifies our expertise's impact—thousands facing similar challenges benefit from our solution. Our response becomes a permanent, searchable resource for future seekers. Public contribution establishes our credibility as trusted advisors, transforming our knowledge into a valuable community asset and creating a meaningful legacy). Here is our comprehensive answer to your question: Your 21 years civil engineering expertise combined with Master's degree provides an exceptional foundation for IT transition. Strategic positioning emphasizing transferable skills, targeted certifications, and professional coaching enables successful pivot to higher-paying roles with a European relocation opportunity. OPTION 1: Technical Program/Project Management Track (Lower Risk, Faster Transition). Strategic Positioning: Position your 21 years civil engineering project management experience as directly transferable to IT program management. This approach requires minimum new technical learning while commanding premium compensation (Rs.80–120 lakhs annually in Europe equivalent). Career progression pathway: IT Project Manager (1–2 years) → Senior Program Manager → Enterprise Architect, with salary progression reaching Euro 90,000–150,000 annually. Implementation Steps: (1) Enroll in internationally recognized PMP (Project Management Professional) or CAPM certification—3-4 month preparation, Euro 500–800 cost, highly valued across Europe. (2) Simultaneously, complete cloud fundamentals certification (AWS Solutions Architect Associate, Rs.15,000–20,000)—demonstrates IT fluency without requiring coding expertise. (3) Hire career transition coach (Euro 1,500–3,000 for 5–8 sessions) specifically for mid-career IT transitions—focuses on interview narrative, addressing age concerns, positioning engineering background as strategic advantage. (4) Update LinkedIn profile emphasizing: project delivery excellence, stakeholder management, risk mitigation, cross-functional leadership—using IT-industry language. (5) Target roles: Technical Program Manager, IT Portfolio Manager, Digital Transformation Manager in companies valuing traditional project discipline. (6) Join European IT project management communities (PMI-Europe chapters, LinkedIn groups)—network strategically with hiring managers, learn European IT culture/expectations. OPTION 2: Cloud Architecture/Solutions Engineering Track (Higher Earning Potential, Structured Learning). Strategic Positioning: Pursue cloud architecture combining technical credibility with strategic thinking—highest-demand IT role (2025 data: cloud certifications top growth area globally). Salary potential: Euro 100,000–180,000 annually within 3–4 years. Career trajectory: Cloud Associate (1–2 years gaining experience) → Cloud Architect → Principal Architect, with strong European demand. Implementation Steps: (1) Enroll in structured cloud bootcamp (AWS/GCP/Azure—12–16 weeks intensive, Euro 5,000–10,000)—accelerates learning combining theoretical knowledge with practical labs. Platforms: Linux Academy, A Cloud Guru, or in-person European bootcamps (Germany, Netherlands offer excellent programs). (2) Obtain cloud certifications sequentially: AWS Solutions Architect Associate (foundational, 3-month study), then AWS Solutions Architect Professional (advanced). This demonstrates credible technical progression. (3) Develop small portfolio projects (3–4 projects deploying real cloud solutions—free-tier AWS/GCP—showcasing problem-solving: optimize costs, ensure security, design scalability). A portfolio demonstrates capability beyond certifications. (4) Hire specialized IT career coach (Euro 2,000–4,000, 8–12 sessions) —Focus on technical interview preparation (whiteboarding cloud design scenarios), behavioral storytelling (bridging civil engineering to cloud), and salary negotiation (Euro 100K+ levels). (5) Network strategically: attend cloud conferences (AWS Summit Europe, Google Cloud Next), join regional cloud user groups, and connect with CTOs/architects on LinkedIn—informational interviews learning expectations. (6) Target positions: Junior Cloud Architect, Solutions Architect, and Cloud Infrastructure Engineer in tech companies, financial services, and large enterprises modernizing infrastructure (high hiring volume in Europe). Please note, option 1 (Program Management) offers the fastest, lowest-risk transition leveraging existing expertise, achieving Euro 70–90K within 12–18 months. Option 2 (Cloud Architecture) requires 18–24 months of investment but achieves Euro 100–150K potential by years 3–4. Select Option 1 if prioritizing quick salary restoration; select Option 2 if valuing long-term earning potential and technological relevance. Regardless, professional career coaching addressing interview confidence is essential for successful transition. (Transition Safely: Expert Coaching, Fraud Prevention Guide - The above options provide a foundational framework for your career transition. However, we strongly recommend consulting a specialized Career Transition Coach with demonstrated expertise in European job placement and mid-career professional transitions. A qualified coach will develop a personalized roadmap aligned with your background, experience, and career aspirations. As you explore international opportunities, exercise heightened due diligence: thoroughly research coaching organizations and potential employers, verify credentials, check client testimonials, and confirm established track records in European placements. Be particularly cautious of fraudulent job offers and coaching services promising unrealistic outcomes (e.g., guaranteed placements, excessive upfront fees, vague service descriptions). Protect yourself by validating professional credentials through official regulatory bodies, avoiding providers requesting large advance payments, and cross-referencing company information independently. Strategic guidance from experienced, credible professionals significantly enhances transition success and European employment prospects while safeguarding your financial and professional interests). All the BEST for Your Prosperous Future!

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Reetika Sharma |507 Answers |Ask -Follow

Financial Planner, MF and Insurance Expert - Answered on Jan 22, 2026

Asked by Anonymous - Jan 22, 2026Hindi

Money

I have completed 10 years of continuous service and accumulated an EPF balance of ₹9 lakh. I plan to retire at the age of 58. If I withdraw the entire EPF amount at the time of retirement, will the full withdrawal be completely tax-free? Are there any conditions, limits, or exceptions under income tax rules that I should be aware of?

Ans: Hi,

As you have done 10 years of service and are 58 years, your entire withdrawal will be tax-free for you.
However, there is a portion called EPS which cannot be withdrawn by you, instead you will get a monthly pension per se the EPS accumulated amount.
9 lakhs is tax-free.

Let me know if you need more help.

Best Regards,
Reetika Sharma, Certified Financial Planner
https://www.instagram.com/cfpreetika/

Reetika Sharma |507 Answers |Ask -Follow

Financial Planner, MF and Insurance Expert - Answered on Jan 22, 2026

Asked by Anonymous - Jan 22, 2026Hindi

Money

I have two EPF accounts with balances of ₹1.6 lakh and ₹2.4 lakh under the same UAN. I plan to merge both EPF accounts into a single account. After the merger, will the total combined balance of ₹4 lakh earn interest as one EPF account without any break? Are there any conditions, delays, or risks of interest loss during the account consolidation process that I should be aware of?

Ans: Yes, after you merge your 2 EPF accounts, the combined balance of 4 lakhs will keep on earning interest till retirement without any break.

Thing for you to consider before merging:
- make sure the entire data is correct in both accounts; any discrepancy might delay or reject the merge.

Let me know if you need more help.

Best Regards,
Reetika Sharma, Certified Financial Planner
https://www.instagram.com/cfpreetika/

Reetika Sharma |507 Answers |Ask -Follow

Financial Planner, MF and Insurance Expert - Answered on Jan 22, 2026

Asked by Anonymous - Jan 22, 2026Hindi

Money

I worked for 6 years in my previous company and accumulated an EPF balance of ₹5.2 lakh. I have now joined a new employer and plan to transfer my EPF instead of withdrawing it. If I transfer the entire EPF amount to my new employer, will the full balance continue to earn interest without any break? Does the transferred amount count towards my total years of EPF service for tax-free withdrawal eligibility in the future?

Ans: Hi,

Transferring your old EPF is the most wise decision. Your entire old balance will continue to earn interest till your retirement. And total years of service will be tax-free henceforth.
Thus it is always best to transfer your old PF account to new employer.

Let me know if you need more help.

Best Regards,
Reetika Sharma, Certified Financial Planner
https://www.instagram.com/cfpreetika/

Reetika Sharma |507 Answers |Ask -Follow

Financial Planner, MF and Insurance Expert - Answered on Jan 22, 2026

Asked by Anonymous - Jan 22, 2026Hindi

Money

I earn a basic salary of ₹25,000 per month and have completed 4 years and 6 months of continuous service in my organization. I am planning to withdraw my Employees’ Provident Fund (EPF) balance of ₹3.8 lakh. Since my total service period is less than 5 years, will this withdrawal be taxable? How much TDS will be deducted if my PAN is linked, and how will the final tax liability be calculated while filing my income tax return?

Ans: Hi,

As the servicable tenure is less than 5 years, your withdrawal will be taxable. You can expect a TDS of 10% on that but final tax would be as per your Income Tax slab.
Hence, unless absolutely necessary, avoid withdrawing the EPF and let it as is for your retirement.

Let me know if you need more help.

Best Regards,
Reetika Sharma, Certified Financial Planner
https://www.instagram.com/cfpreetika/

Purshotam Lal |77 Answers |Ask -Follow

Financial Planner, MF and Insurance Expert - Answered on Jan 22, 2026

Question by Sudhir - Jan 21, 2026Hindi

Money

I am 43 year old. I am investing in below mutual funds. 1) SBI Small cap -SIP 25000 2) Quant Small cap- SIP 10000 3) Bank of india small cap SIP 5000 4) Motilal Oswal small cap SIP 5000 5) Canara rebecco emerging equities - SIP 10000 6) Quant flex cap -SIP 10000 7) Motilal oswal mid cap SIP 5000 Kindly suggest on my portfolio

Ans: You are having very aggressive equity portfolio focused primarily on Small and Midcap funds. But if these are held for long term that is beyond 10 years then these may provide good returns commensurate to scheme risk profile. Portfolio looks good.
All the best.

Purshotam, CFP®, MBA, CAIIB, FIII
Certified Financial Planner
Insurance advisor
www.finphoenixinvest.com

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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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