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Mihir Tanna |982 Answers |Ask -Follow

Tax Expert - Answered on Jul 21, 2023

Mihir Ashok Tanna, who works with a well-known chartered accountancy firm in Mumbai, has more than 15 years of experience in direct taxation.
He handles various kinds of matters related to direct tax such as PAN/ TAN application; compliance including ITR, TDS return filing; issuance/ filing of statutory forms like Form 15CB, Form 61A, etc; application u/s 10(46); application for condonation of delay; application for lower/ nil TDS certificate; transfer pricing and study report; advisory/ opinion on direct tax matters; handling various income-tax notices; compounding application on show cause for TDS default; verification of books for TDS/ TCS/ equalisation levy compliance; application for pending income-tax demand and refund; charitable trust taxation and compliance; income-tax scrutiny and CIT(A) for all types of taxpayers including individuals, firms, LLPs, corporates, trusts, non-resident individuals and companies.
He regularly represents clients before the income tax authorities including the commissioner of income tax (appeal).... more

Asked by Anonymous - Jul 20, 2023Hindi

Money

I am filing IT returns for the first time. I have the following queries. My income is 10 LPA. How and where to file ITR? Should I file on my own or take help from a CA? Which form to select? I don't have any loans. Can I claim tax on SIP and mutual fund investments? If I make a mistake, do I get to rectify it? Pls help

Ans: First register yourself at incometax.gov.in. After doing login, you will find option "file now". Select assessment year as AY 2023-24, online and select form as per income earned.

In case of investment in tax saver mutual fund, deduction can be taken in Sec 80C with upper limit of Rs.1,50,000.

Revised return can be filed till December.

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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Question by MADANLAL - Aug 29, 2022Hindi

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I am regular Rediff reader. Sir, 1) I am earning through share trading, my income is up to 5 lakh. Please advise which ITR form I have to file. 2) And if my income is with salary and share trading up to 5 lakh, then which ITR form I have to file.

Ans: In both the cases you can use ITR 2 to file your tax returns.

ITR 2 is used to file tax when you have income from salary, income from house property, income from capital gain and loss (in your case shares), foreign income, etc.

Mihir Tanna |982 Answers |Ask -Follow

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Question by Skv - Jul 04, 2023Hindi

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Hello sir, i am giving home to home personal tutions with approximate income upto 1.5 lakhs annually also having some interest income from FD and saving, but overall income is below tax exemption limit.Now I am confused about which ITR form to file . So that I could claim TDS refund if any

Ans: Person giving teaching service is considered as professional and taxable under the head Income from Business and Profession. For Income from Business and Profession, 2 ITRs forms available. ITR 3 and ITR 4 (for presumptive scheme). As income is below exemption limit, it is advisable to file ITR 3.

Vivek Lala |301 Answers |Ask -Follow

Tax, MF Expert - Answered on Jun 24, 2024

Question by Vivek - Jun 22, 2024Hindi

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Ramalingam Kalirajan |7466 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jan 08, 2025

Question by Pari - Jan 07, 2025Hindi

Money

Hello sir, I am a 42 year old, have a dependend wife and 10 yr old daughter (5 STD). I have a monthly income of 2.25 lakh in hand. Monthly expenses 70k. I have no debts and I am staying in my own flat. I invested 1 lakhs in equity stocks, 16 lakhs in MF lumpsum, 13 lakh in FD and 10 lakh in NSC. Till date my PF is 27 lacs. I pay 40,000 SIP monthly starting from 2023, pay PPF 1.5 lacs p.a.from 2022, pay NPS 1.3 lacs p.a from 2022 and pay SSY 1.5 lacs p.a.from 2020 and PPF for wife 1 lacs p.a from 2022 and PPF for daughter 50k p.a.from 2023. Family medical insurance of 10 lacs.. and myself term insurance of 50 lakhs and LIC of 10 lakhs. Also I purchased LIC Child Money back of 10 lacs and SBI smart chap 5 lacs for my daughter education. I want to plan my retirement at the age of 55. How should i plan my retirement 3 cr corpus??

Ans: Your financial situation is stable, with multiple investments and no liabilities.

Income: Rs. 2.25 lakh per month offers strong savings potential after expenses.

Expenses: Rs. 70,000 per month leaves ample room for investments.

Existing Investments: Equity stocks (Rs. 1 lakh), mutual funds (Rs. 16 lakh), FD (Rs. 13 lakh), NSC (Rs. 10 lakh), and PF (Rs. 27 lakh) form a diversified base.

Ongoing Commitments: SIP of Rs. 40,000, PPF contributions, and NPS add regular growth.

Insurance Coverage: Adequate health insurance (Rs. 10 lakh) and term insurance (Rs. 50 lakh).

Defining Your Retirement Goal
You aim for a Rs. 3 crore corpus by age 55. Consider inflation and lifestyle needs.

Inflation Impact: Rs. 3 crore today might not suffice in 13 years due to inflation.

Monthly Expenses: Rs. 70,000 now could double to Rs. 1.4 lakh due to 6% inflation.

Longevity Planning: Plan for a 30-year post-retirement period to ensure financial security.

Evaluating Current Investments
Equity Stocks: Rs. 1 lakh is a small allocation. Consider diversifying into mutual funds.

Mutual Funds: Rs. 16 lakh in lump sum and Rs. 40,000 SIP build growth over time.

Fixed Deposits: Rs. 13 lakh ensures safety but offers low returns.

National Savings Certificate (NSC): Rs. 10 lakh provides stability but lacks flexibility.

Provident Fund: Rs. 27 lakh builds wealth steadily, given your regular contributions.

PPF and NPS: Long-term instruments aligned with retirement goals.

SSY for Daughter: Rs. 1.5 lakh annually ensures her education expenses are planned.

Insurance Policies: LIC and child plans provide minimal returns; consider alternatives.

Key Recommendations for Retirement Planning
Optimising Investments
Increase SIP Amount: Gradually raise your SIP to benefit from compounding and market growth.

Focus on Equity Funds: Actively managed funds can generate higher returns compared to index funds.

Reduce FD Dependence: Move a portion of FDs into balanced mutual funds for better returns.

Exit Traditional Plans: Consider surrendering LIC and SBI child plans to reinvest in high-growth mutual funds.

Build Emergency Fund: Maintain 6–12 months' expenses in liquid funds or savings accounts.

Enhancing Retirement Corpus
Leverage NPS: Increase contributions to benefit from tax savings and market-linked returns.

Continue PPF Contributions: This offers tax benefits and secure, inflation-beating returns.

Diversify Equity Allocation: Explore mid- and small-cap funds for higher growth potential.

Tax Efficiency: Plan withdrawals carefully to minimise capital gains taxes.

Securing Post-Retirement Income
Systematic Withdrawal Plans (SWP): Use SWPs for a steady, tax-efficient post-retirement income.

Debt Funds: Consider debt funds for predictable, stable returns during retirement.

Hybrid Mutual Funds: These balance growth and stability, suitable for retirement years.

Rebalance Regularly: Adjust equity and debt allocations annually as retirement nears.

Planning for Daughter’s Education
SSY Continuation: Ensure contributions continue till maturity for her education needs.

Mutual Funds for Education: Invest in diversified mutual funds for additional education corpus.

Avoid Traditional Plans: LIC and child policies may underperform compared to mutual funds.

Protecting Against Risks
Health Insurance: Increase family health coverage to at least Rs. 20 lakh to cover rising medical costs.

Term Insurance: Ensure term insurance coverage matches your family’s financial needs.

Inflation-Proofing: Allocate part of the retirement corpus to equity for inflation-adjusted growth.

Emergency Fund: Keep funds easily accessible for unexpected expenses.

Final Insights
Your financial foundation is strong, and your retirement goal is achievable with better planning. Focus on optimising investments, ensuring inflation-adjusted returns, and securing your family’s future. Regular reviews with a certified financial planner will ensure alignment with your goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Ramalingam Kalirajan |7466 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jan 08, 2025

Asked by Anonymous - Jan 07, 2025Hindi

Money

Good Afternoon. Family of 2, Age 57 and 56 Years staying in City, Own House, No Loan, No other specific liabilities. Our current value of MF is around 7.5 - 8 Crs (Small, Mid and Multi Assets) and say Rs. 3.5 Cr in FD and property. Need around Rs. 70-75 K per month now. Is this good enough to retire with same life style ? Thanks.

Ans: A corpus of Rs. 11–11.5 crore, including mutual funds and fixed deposits, is substantial. Evaluating its sufficiency for retirement requires considering inflation, life expectancy, and investment returns.

Monthly Requirement: Rs. 70,000–75,000 per month for household expenses equates to Rs. 9–9.5 lakh annually.

Inflation Adjustment: Considering inflation of 6–7%, expenses will double in 12 years.

Life Expectancy: Assume a planning horizon of 30–35 years to cover longevity risks.

Investment Allocation and Cash Flow
Fixed Deposits: Rs. 3.5 crore in FDs ensures safety and liquidity but offers low returns.

Mutual Funds: Rs. 7.5–8 crore in small, mid, and multi-asset funds offers growth potential.

Property: Owning a house eliminates rent expenses, reducing cash outflows.

Emergency Reserve: Maintain six months' expenses in liquid funds or savings accounts.

Inflation-Proofing Your Lifestyle
Dynamic Withdrawals: Increase withdrawals yearly in line with inflation to maintain your lifestyle.

Equity Allocation: Retain a portion of your portfolio in equity for long-term growth.

Debt Allocation: Use debt investments for stable returns and capital protection.

Hybrid Funds: Consider hybrid mutual funds to balance risk and reward.

Generating Regular Income
Systematic Withdrawal Plan (SWP): Use SWPs in mutual funds for consistent, tax-efficient cash flow.

Debt Fund Withdrawals: Use debt mutual funds for short-term needs due to lower tax rates.

Staggered Fixed Deposits: Ladder FDs to balance liquidity and optimise returns.

Tax Optimisation Strategies
Capital Gains Taxation: Plan withdrawals to minimise taxes on mutual fund gains.

Debt Fund Taxation: Withdraw debt mutual funds cautiously to stay in a lower tax bracket.

Senior Citizen Benefits: Use senior citizen savings schemes for additional tax savings.

Interest Income: Monitor interest from FDs to avoid higher tax liabilities.

Safeguarding Against Risks
Healthcare Expenses: Ensure health insurance of at least Rs. 20–25 lakh per person.

Market Volatility: Avoid excessive allocation to small- and mid-cap funds in retirement.

Longevity Risk: Plan for a 35-year horizon to ensure corpus longevity.

Emergency Fund: Keep a separate fund to avoid withdrawing investments during downturns.

Evaluating Lifestyle Needs
Travel and Leisure: Allocate a portion for discretionary expenses like travel or hobbies.

Medical Emergencies: Account for increasing healthcare costs with a health corpus.

Gifting and Support: Set aside funds for family support or charity, if required.

Rebalancing Your Portfolio
Review Annually: Rebalance your portfolio to align with changing needs and market conditions.

Reduce Equity Gradually: Decrease equity exposure as you age to reduce risk.

Increase Debt Allocation: Shift towards safer assets for stable cash flow.

Diversify Investments: Spread investments across asset classes to mitigate risks.

Final Insights
Your corpus appears sufficient for retirement, given your modest monthly requirements. Proper planning, inflation adjustment, and portfolio rebalancing are crucial to ensure lifelong financial stability. Regular consultations with a certified financial planner will help optimise your investments and address unforeseen challenges.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Ramalingam Kalirajan |7466 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Jan 08, 2025

Question by Vignesh - Jan 07, 2025Hindi

Money

Hi Sir, I have a doubt on the following Index funds. "UTI Nifty 50 Index Fund Direct-Growth" & "ICICI Prudential Nifty 50 Index Direct Plan-Growth". These 2 are just a sample of similar other funds. Both of these funds are 12 years old both of them are index funds but how and why their growth has a big gap. the current NAV of UTI is around 160 but the current nav of ICICI fund is 240. Please explain. And I'm planning start invest initially on "Navi Nifty Next 50 Index Fund - Direct Plan" just because it is an Index fund, with lowest expense ration of 0.06% and it has 2000+Crores of AUM I chose this. please suggest

Ans: The NAV (Net Asset Value) difference between index funds arises due to:

Launch Timing: Funds launched at different times may have different starting NAVs.

Expense Ratio: A higher expense ratio reduces returns over time, affecting NAV growth.

Tracking Error: The fund’s ability to mimic the index may vary, creating NAV differences.

Dividend Payouts: Funds paying dividends see a reduction in NAV, impacting growth comparison.

Challenges of Index Funds
No Outperformance: Index funds replicate the index and do not aim to outperform it.

Market-Linked Risk: These funds decline in line with the index during market corrections.

Limited Scope for Customisation: Index funds follow a set strategy with no room for adjustments.

Lower Returns in Emerging Markets: Actively managed funds may perform better in dynamic markets like India.

Benefits of Actively Managed Funds
Potential for Higher Returns: Skilled fund managers can outperform the index.

Risk Management: Actively managed funds can adjust strategies during volatile periods.

Flexibility: Fund managers can identify opportunities and avoid underperforming sectors.

Value Addition: Active funds add value through research and selection of quality stocks.

Disadvantages of Direct Plans
Lack of Guidance: Investing directly means no access to expert advice or strategy.

Time-Consuming: Self-managing your portfolio requires significant research and monitoring.

Missed Opportunities: Lack of guidance may result in suboptimal fund selection.

Behavioural Biases: Emotional decisions may negatively impact returns without a financial planner.

Benefits of Regular Plans through a Certified Financial Planner
Personalised Advice: A financial planner customises recommendations based on your goals.

Portfolio Review: Regular plans come with portfolio reviews and rebalancing support.

Expertise and Insights: A certified financial planner has access to market insights and research.

Tax Optimisation: Proper planning ensures tax-efficient investments and withdrawals.

Evaluating Your Choice of Index Fund
While choosing index funds with low expense ratios and high AUM is logical:

Focus on Goals: Ensure the fund aligns with your long-term objectives.

Consider Tracking Error: A fund with a low tracking error is more efficient.

Reassess for Active Alternatives: Actively managed funds could provide better returns in certain categories.

Liquidity of AUM: High AUM ensures better liquidity but does not guarantee superior returns.

Final Insights
Choosing index funds or direct plans should involve understanding their limitations. Actively managed funds and regular plans with certified financial planners often provide better outcomes. Ensure every investment decision aligns with your financial goals and risk tolerance.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Shalini Singh |142 Answers |Ask -Follow

Dating Coach - Answered on Jan 08, 2025

Asked by Anonymous - Jan 05, 2025

Relationship

I had a relationship of 3 years. It was going good , we have a battle for not talking as I as busy in my hectic schedule of job. but then also she had done the effort to not to give up in relationship. But at the mid of job only suddenly I get to know she had a relationship earlier also of 3 yrs after knowing this it was completely a disaster for me and she had a physical relationship with him. Which is like shivering for me that day and upto the week even I am not able to focus on the things as I loved her too. As I love her I have scolded her so much to not to tell before.Now I am at a stage where I had some memories I was being a good connection either it is of intimacy emotions . But the things she has gone is killing me though I love her it is having a different feeling What to do now.

Ans: if her cheating on you is bothering you so much - let it go - it is not just about you loving them, they need to feel the same for you - agree or disagree.

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Asked by Anonymous - Jan 07, 2025Hindi

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I am 69 years old, can i get a dating partner ?

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IIT-JEE, GATE Expert - Answered on Jan 07, 2025

Asked by Anonymous - Jan 07, 2025Hindi

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I’m currently working full-time while preparing for GATE 2025 to explore better opportunities in PSUs. With my tight schedule, I’m worried about missing important updates related to the admit card release. Could you please share where I should regularly check for updates and what to do if I face issues downloading it?

Ans: Be in touch with other examinees. Inform exam controller in case of my issues.

Anu Krishna |1431 Answers |Ask -Follow

Relationships Expert, Mind Coach - Answered on Jan 07, 2025

Asked by Anonymous - Jan 06, 2025Hindi

Relationship

Why do hotels in India disallow unmarried couples? A few months ago, I was travelling with my girlfriend (who was my colleague then, we weren't dating then) on a work trip and suddenly, we received a knock on the door at night asking us to vacate the room in Delhi. It was 2 am and we were sleeping on different beds. There was a partition in the room, yet we were asked to pack and leave because some guest had complained. In the middle of the night no one was willing to offer us a room. It was an odd hour so at 4.30 am, I finally told the manager to let my GF hire a room as we had nowhere to go. I waited in the reception area. Isn't it unsafe to take the booking and then ask us to vacate later? Why is India so rude to unmarried couples? A boy and a girl could also be friends sharing a room to save money!

Ans: Dear Anonymous,
Each hotel use discretion to allow or disallow an unmarried couple from staying in their premises. There could be various reasons which may include activities which are outside of the law. Now, to what has happened to you is very inconsiderate. My question to you is: while booking, did you look at the hotel policies? If it says: unmarried couples allowed, then whatever has happened can be challenged and you can possibly demand a refund for unfair treatment. If it disallows unmarried couples and they have accommodated you, even then they are in the wrong for going against their own policies and then inconveniencing you.
So, clarity on this will give you an idea as to what exactly happened.
I don't know if India is being rude to unmarried couples as each person will view it through their lens and come to a conclusion as to whether it's right or wrong. Always check the hotel policies before booking.

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

Anu Krishna |1431 Answers |Ask -Follow

Relationships Expert, Mind Coach - Answered on Jan 07, 2025

Question by Sandhya - Jan 06, 2025Hindi

Relationship

How i forget husband had a afair and baby before marriage.After 25 yrs of marriage i came to know that he had a affair and father of a baby boy.

Ans: Dear Sandhya,
This is shocking for you, I am sure...well to live under the same roof with someone who has broken your trust is not going to be easy.
I guess this matter will need a lot of talk, debates to reach some sort of conclusion...what you want from this marriage, where is his mind regarding your marriage...all these questions need answers...the only question that he will be unable to answer is: why did you do this? why did you cheat? He's kept this away for 25 years...there clearly has been an intention to cheat and be unapologetic about it, isn't it? Still, it's about time that you actually not think of confronting him as it will lead nowhere but to clarify what is this marriage is all about. It will help you take decisions...

All the best!
Anu Krishna
Mind Coach|NLP Trainer|Author
Drop in: www.unfear.io
Reach me: Facebook: anukrish07/ AND LinkedIn: anukrishna-joyofserving/

Prof Suvasish Mukhopadhyay |278 Answers |Ask -Follow

Career Counsellor - Answered on Jan 07, 2025

Asked by Anonymous - Jan 07, 2025Hindi

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Hi, I’m a final-year engineering student, and GATE 2025 is a crucial milestone for me to secure admission into a good postgraduate program. I’ve been anxiously waiting for my admit card, but I’m not sure where to download it from or what specific details I need to double-check on it. Can you please guide me on the essential things to verify on my admit card once it’s available?

Ans: Please go to the site of the IIT who is conducting GATE-2025. Please go through the instructions and download it. No panic. Just follow me. Just follow the steps given below.
Steps to download GATE 2025 admit card when released
Go to the official website of IIT GATE at gate2025.iitr.ac.in.
Click on the GATE admit card 2025 link displayed on the home page.
Enter the requested login details.
Click on submit.
Check and download the admit card.
This GATE 2025 is being conducted by IIT-Roorkee.
Best of luck. Professor........................:)

Radheshyam Zanwar |1133 Answers |Ask -Follow

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Jan 07, 2025

Asked by Anonymous - Jan 07, 2025Hindi

Career

This is my first time appearing for GATE, and I’m already feeling a bit overwhelmed with all the preparation. Now that the admit card release is approaching, I’m worried about missing any important details. Could you please explain the step-by-step process to download the admit card and what documents I should carry on the exam day?

Ans: Hello dear.
What is a surprise that you are appearing in the GATE examination 1st time? Everybody goes through this situation. You are on the turn of completing your B.E./B.Tech. and at this point, the anxiety developed not showing good symptoms. Be cool and relax. Since 3-4 years you are well acquainted with the engineering examination pattern. The difference between regular and GATE is that, for GATE, you have to prepare F.E. to B.E. syllabus and that is the only issue. A candidate who remained sincere from 1st year will not have any type of anxiety with GATE. Try to cover the syllabus in depth as early as possible. Now, related to your admit card, visit the GATE website where you will receive an announcement via SMS/email to download the admit card. Follow the steps mentioned in the email and download it. On the respective website, everything is mentioned clearly about the documents to be carried on the examination day. Keep a close eye on the GATE examination. Best of luck for your upcoming examinations in the future.

If satisfied, please like and follow me.
If dissatisfied with the reply, please ask again without hesitation.
Thanks.

Radheshyam

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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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