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Anil

Anil Rego  |373 Answers  |Ask -

Financial Planner - Answered on Jul 26, 2022

Anil Rego is the founder of Right Horizons, a financial and wealth management firm. He has 20 years of experience in the field of personal finance.
He’s an expert in income tax and wealth management.
He has completed his CFA/MBA from the ICFAI Business School.... more
Samit Question by Samit on Jul 26, 2022Hindi
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I filed and e-verified my IT return (ITR-1) on 18th September 2021 but it still hasn't got processed. Should I wait or raise a grievance? Is it possible that the IT return has got stuck due to a technical glitch in the new portal?

Ans: Usually, the IT department takes 20-45 days to process the ITR which is e- verified.

In your case if it was processed you are supposed to get an intimation from the IT department. Now there can be situations where ITR is not processed due to some irregularities or errors in the income tax returns.

If you have not received any intimation from the IT Department and your ITR remains unprocessed, then you can raise the grievance for ITR not processed. To raise the grievance, you can login to your e-filing portal, go to the 'e-Nivaran' tab and click on 'Submit Grievance' option.

Now you can choose the options from the same and submit it. You will receive an ID for the request submitted and you can use this for future reference.

You can check the grievance status form the portal.

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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Sanjeev

Sanjeev Govila  |458 Answers  |Ask -

Financial Planner - Answered on Sep 20, 2023

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Dear Sir I have filled ITR and there is refund 15003 I filled ITR on 02 July and did not E-verified due to Pan Card Blocked by Govt so after file ITR i sent its signed copy to Bangalore on 3 July that showing verified on 10 Aug and i Have paid 1000 on 12 Aug to link pan card and Aadhar card and got linked then i received mail on 12 Aug evening to E-verify return but there was no option to E-verify return . today is 09-08-2023 but we have not received refund yet Please suggest right process 2-3 days back i have complained in grievance of ITR .Please suggest right process . status on Dashboard showing Return Filed on 2 july and Return verified on 10 July only .....
Ans: ITRs can be filed without having the Aadhar-PAN link completed; however, such ITR filings would render the user ineligible to avail refunds and interest on such tax refunds till the time PAN is linked with Aadhar.
• After e-filing your return, you must verify it. Your return filing process is not complete unless you do so.
• The timeline for e-verification of returns filed after 1st August 2022 is 30 days from the date of submitting the return.
• As per the IT department, if the ITR filed is verified (electronically or by sending ITR-V to ITD) before the time limit of 30 days, then the date on which the return was filed will be considered as the date of furnishing ITR.
• In the offline verification case, the speed post-dispatch date of the duly verified ITR-V will be taken into account to determine the 30-day period starting from the day the income tax return was electronically transmitted.
As per the data provided by you, your return has been verified within the timeline of 30 days. Normally, it takes 20-45 days for the refund to reach you after filing and verifying your ITR but your Aadhar and PAN got linked on 12th August. The delay in refund is due to it.

We suggest you wait for some more time and regularly check the “My Pending Action option” in your income tax account portal.

..Read more

Sanjeev

Sanjeev Govila  |458 Answers  |Ask -

Financial Planner - Answered on Nov 15, 2023

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Am a regular IT filer. Filed on 2-Jun-23 and e-verified on the same day. Checked online - went to the first processing on 1-Sep. Continues to be there. Finalization stage has not been reached yet, to get refund. Several grievances raised in the portal but to no avail. I get only machine driven reply! Who can I escalate to?
Ans: The Income Tax Act provides that no intimation under section 143(1) can be issued after the expiry of 9 months from the end of the financial year in which the return of income is filed. Therefore, the filed ITR has to be processed within nine months from the end of the financial year in which the ITR was submitted. If the ITR is not processed within this time period, the tax department has to flag the submitted ITR for further scrutiny, etc.

There are several reasons why it takes a long time for an ITR to get processed. “The ITR processing time generally depends on several factors, such as the complexity of the ITR , the ITR form selected, amount of claims in the form of deductions / exemptions, whether such deductions / exemptions are already covered in Form 16, etc.

In case a taxpayer’s ITR remains unprocessed even after waiting for a considerable time, he/she may raise a complaint on the “Grievance tab” of the income tax portal. Also, the taxpayer can reach out to the central processing centre (CPC) through their helpline numbers.

After the tax return is processed by IT Department, it usually takes an average of 4-5 weeks for the tax refund to be credited to the bank account of the taxpayer. Also, it is seen that in some cases, the tax refund has been processed within 7-8 days of filing the tax return.

..Read more

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Nitin

Nitin Narkhede  |5 Answers  |Ask -

MF, PF Guru - Answered on Sep 11, 2024

Asked by Anonymous - Sep 10, 2024Hindi
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I have 10 lakh rupees which I want invest in MF. Please suggest some fund for lump sum amount to invest for 1 and half years.
Ans: Dear Friend,
Thank you for your query. 1.5 Years is a very short time for getting high returns. Investing Rs 10 lakhs in mutual funds for a short-term horizon of 1.5 years requires a cautious approach. For such small period, you should look for low to moderate-risk funds that offer stability with reasonable returns, as investing in high-risk equity funds might be too volatile for a short time frame. Since your investment horizon is just 1.5 years, avoid high-risk equity mutual funds as they can be volatile in the short term. Check for exit loads and tax implications before investing. Most short-term capital gains (if you withdraw before 3 years) from debt funds are taxed according to your income tax slab.
You have to evaluate your risk Appetite , Short-Term Debt Funds are invested in government securities, corporate bonds, and other debt instruments with short maturities, offering stability and moderate returns. For a 1.5-year investment, these are ideal as they are less volatile. you can expect 5-7% per annum Returns. You can think of
• ICICI Prudential Short Term Fund
• HDFC Short Term Debt Fund
• Axis Short Term Fund
• ICICI Prudential Corporate Bond Fund
• HDFC Corporate Bond Fund
• Aditya Birla Sun Life Corporate Bond Fund.
Best regards,
Nitin Narkhede
Founder & MD, Prosperity Lifestyle Hub https://Nitinnarkhede.com
Free Webinar https://bit.ly/PLH-Webinar

...Read more

Ramalingam

Ramalingam Kalirajan  |6268 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Sep 11, 2024

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Hello Sir, I am Naveen Raja from Chennai. I am investing from Sep 2021 in ELSS SIP. Now I have been stopped due to monthly expenses. Question 1: I want to start again on a daily sip basis to achieve 5 cr in next 10 years suggest me a fund which will give this target amount over 10 years on an average of 20% interest Y-o-Y compunding to the investment amount? Question 2: Also, which I stopped in ELSS SIP - Axis Long term - Growth should I need to continue for a longer period or should take that money and invest in any different hybrid funds ?
Ans: Naveen, thank you for reaching out. Investing in ELSS funds is a good choice, especially considering tax-saving benefits. Stopping your SIPs due to monthly expenses is understandable, but restarting is crucial to achieving your financial goals.

Let’s address your two concerns one by one.

Question 1: Achieving Rs. 5 Crores in 10 Years
You aim to accumulate Rs. 5 crores in the next 10 years, with an expected 20% annual growth. While this is a high target, it’s not impossible. But I must highlight that 20% returns over 10 years are aggressive, and the market may not guarantee such consistent growth. Equity mutual funds, however, can potentially give you strong returns if you stay disciplined.

Steps to Achieve Rs. 5 Crores in 10 Years
Daily SIP Approach:
Daily SIP is a good way to spread out your investments. It allows for better averaging as the market fluctuates daily.

Focus on Equity Mutual Funds:
For such high returns, equity mutual funds are ideal. These funds have a strong track record of delivering long-term growth. However, keep in mind that they come with market risk.

Avoid Setting Unrealistic Return Expectations:
A 20% return every year is optimistic. A more realistic return from equity funds would be around 12% to 15%. Anything beyond that would require consistent high-performing market conditions.

Recommended Strategy
Diversified Equity Funds:
Instead of chasing returns with a single fund, diversify your investments across various equity funds. This reduces risk and ensures balanced growth.

Mid and Small Cap Funds:
These funds offer higher returns but come with more volatility. You can allocate a portion of your investments to these funds for higher growth potential.

Large Cap Funds:
They offer stability. Having some exposure to large-cap funds can help you maintain balance in your portfolio.

Avoid Index Funds:
Index funds might not meet your target as they only track the market. Actively managed funds can provide better returns through stock selection.

Calculating SIP Contribution
Achieving 5 Crores in 10 Years:
If you want to achieve Rs. 5 crores in 10 years, based on a more realistic 12% to 15% annual return, you would need to invest a significant amount every month. A Certified Financial Planner can help you calculate the exact monthly SIP amount based on your goal and risk tolerance.
Question 2: Should You Continue ELSS SIP or Shift to Hybrid Funds?
Your current ELSS investment in Axis Long Term Equity Fund is a tax-saving fund with a 3-year lock-in period. Since you’ve already completed the minimum holding period, you may wonder if it’s wise to continue or switch to a different type of fund.

Assessing ELSS Funds
Tax Benefit:
ELSS funds provide tax benefits under Section 80C. This is a significant advantage if you still need to save tax. Continuing with your ELSS investment can help you keep your tax-saving advantage.

Equity Exposure:
ELSS funds are equity-oriented, which means they have good long-term growth potential. If your goal is to build wealth over time, equity exposure is necessary.

Disadvantages of Switching to Hybrid Funds
Lower Returns:
Hybrid funds invest in a mix of equity and debt, which may offer lower returns compared to pure equity funds. While they are less volatile, their growth potential may not meet your goal of Rs. 5 crores in 10 years.

Not Ideal for High Growth:
If you want aggressive wealth creation, hybrid funds may not be the best fit. Their balanced approach is better suited for those with low to moderate risk tolerance.

What You Should Do
Continue with ELSS:
Since you’ve already started with Axis Long Term Equity Fund, consider continuing for a longer period. ELSS funds provide both tax benefits and growth. You’ve already endured the initial market volatility, and over time, equity funds tend to deliver better returns.

Avoid Hybrid Funds for Now:
If your goal is aggressive wealth creation, hybrid funds might not align with this. Instead, stick to equity funds with a high growth potential.

Final Insights
Set Realistic Expectations:
While you aim for 20% annual returns, the market is unpredictable. A more realistic expectation of 12% to 15% will help you stay grounded and focused.

Daily SIPs Can Be Helpful:
A daily SIP strategy can help you achieve better averaging. However, for high returns, focus on equity funds with a long-term horizon.

Continue Your ELSS Investments:
Since you’ve already invested in Axis Long Term Equity Fund, consider continuing with it. It offers both tax benefits and long-term growth.

Consult with a Certified Financial Planner:
To determine the exact amount you should invest monthly, it’s essential to work with a professional. They can help you build a diversified portfolio aligned with your goals.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

...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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