PF Consultancy Inquiry: Can Milind Ji Help Me?

Ans: Dear Anonymous,
If you do not have an open marriage, then what you are doing is certainly wrong. When has cheating ever been right? Especially when you did not mention anything wrong with your husband. I am not judging you; but I would suggest that if you want to keep this up, you either come clean to your husband or let him go. This isn't fair. You living your life to the fullest should not harm or hurt others.
Hope this helps.

Ans: Dear Anonymous,
If he is worth fighting for, then fight. And your parents pressuring him to convert is unacceptable. You have to make them understand that. Children do not need a certain religion; children need a set of happy parents.

I understand that you fear losing your parents, but it doesn't have to be that way. You have time. Slowly try to convince them and make them understand that forced conversions are unethical and there are laws that make it illegal too.
Best Wishes.

Ans: Tejaswini, The JoSAA counseling process begins once you log in to the JoSAA portal, which opens only after the JEE Advanced results are declared. Regarding eligibility criteria, it depends on: ?? Your percentile in JEE Main (for NITs, IIITs, and GFTIs).
?? Your rank in JEE Advanced (for IIT admissions). Please go through the Opening & Closing Ranks Data of JoSAA 2024 Counselling to get an Idea. For a detailed step-by-step explanation of the JoSAA counseling process, you may check out my YouTube video, where I have covered everything from start to finish. If time permits, give it a watch! All the Best for your Prosperous Future.

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Ans: 01. Your loans, either Gold Loan or Personal Loan, shall have no impact on your income tax liability.
02. When you sell your property, you would be liable to pay LTCG (if you sell property after February-2025).
03. You should calculate LTCG without Indexation & pay 12.50%. This LTCG & tax liability can further be reduced by around Rs.3,00,000.00, since you have got no other income.
Most welcome for any further clarifications. Thanks.

Ans: 01. In your case, LTCG shall be Rs.12,10,000.00 (without Indexation) & Rs.11,96,850.00 (with Indexation).
02. You may go for Capital Gain bonds for Rs.12,00,000.00 to save your LTCG tax.
03. Please note that if your income from other sources is less than Rs.3,00,000.00, then your LTCG can be adjusted to some extent (to the extent of shortfall of your income from Rs.3,00,000.00).
Most welcome for any further clarifications. Thanks.

Ans: Selling a property attracts capital gains tax. Since your flat is a long-term capital asset (held for more than 2 years), the Long-Term Capital Gains (LTCG) tax rate is 20% with indexation.

LTCG Calculation = Sale Price - Indexed Cost of Acquisition
Tax Payable = 20% on the LTCG amount
However, you can avoid paying tax by reinvesting the capital gains under certain sections of the Income Tax Act.

Ways to Save Capital Gains Tax
1. Reinvest in Another Residential Property (Section 54)
If you buy another residential property within 2 years or construct within 3 years, you get an exemption on the LTCG amount.
The new property must be in India and should be held for at least 3 years.
If you sell it before 3 years, the exemption is reversed.
? Best for: Those who want to own another property.

2. Invest in Capital Gains Bonds (Section 54EC)
You can invest up to Rs 50 lakhs in NHAI or REC capital gains bonds within 6 months of sale.
The lock-in period is 5 years.
Interest is taxable but the capital gains are exempt.
? Best for: Those who want a risk-free investment with tax savings.

3. Deposit in Capital Gains Account Scheme (CGAS)
If you haven’t decided where to invest, deposit the LTCG in a Capital Gains Account Scheme (CGAS) before the IT return filing deadline.
This gives you time to buy property or construct a house.
The funds must be used within 3 years, or they become taxable.
? Best for: Those who need time before investing in real estate.

Other Investment Options (But No Tax Exemption)
If you don’t reinvest in property or bonds, the LTCG amount will be taxed at 20%. You can still invest the remaining amount in:

Mutual Funds – Equity funds for long-term growth
Fixed Deposits – Safe returns but fully taxable
Stock Market – High risk, high return potential
These options do not offer tax exemption but help grow wealth.

Final Insights
If you want tax-free gains, reinvest in property or capital gains bonds.
If you don’t want to lock funds, pay LTCG tax and invest in other assets.
Use the Capital Gains Account Scheme if you need time to decide.
Plan based on your financial goals and liquidity needs.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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

Ans: You are investing early, which is a great decision. Your goal of retiring at 50 is ambitious. A strong investment strategy will help achieve it.

Current Investment Overview
SIP Contribution – Rs 50,000 per month
Fund Allocation
Small Cap – Rs 20,000
Mid Cap – Rs 20,000
Flexi Cap – Rs 10,000
Investment Duration – 1 year completed
Key Observations
1. High Risk Allocation – Need for Balance
Your portfolio is heavily tilted toward small and mid caps.
These funds offer high returns but come with volatility.
A more balanced allocation will reduce risk.
2. Absence of Large Cap Exposure
Large caps provide stability in market downturns.
A portion of the portfolio should be in large-cap funds.
This will reduce portfolio fluctuations over time.
3. Flexi Cap Fund – Good Choice for Diversification
This fund type adjusts between market caps.
It provides flexibility based on market conditions.
Retain this fund for better risk management.
Recommended Adjustments
1. Optimizing Fund Distribution
Reduce small-cap allocation from Rs 20,000 to Rs 15,000.
Reduce mid-cap allocation from Rs 20,000 to Rs 15,000.
Add a large-cap fund with Rs 10,000 allocation.
Increase flexi-cap allocation from Rs 10,000 to Rs 15,000.
2. Adding Debt for Stability
As you get closer to retirement, reduce equity exposure.
Start a small allocation in debt funds after 40.
This will ensure capital protection.
3. Tax Planning Considerations
Capital gains tax will apply when you redeem funds.
LTCG above Rs 1.25 lakh is taxed at 12.5%.
STCG is taxed at 20%.
Plan withdrawals in a tax-efficient manner.
Final Insights
Continue SIPs with a more balanced allocation.
Add large-cap funds for stability.
Include debt funds closer to retirement.
Plan tax-efficient withdrawals in the future.
This strategy will ensure a strong retirement corpus.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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

Ans: You have a strong income and investments. But high loans are affecting savings. You need a structured plan to reduce debt and secure retirement.

Current Financial Overview
Income

Rs 4.5 lakh per month after taxes
Investments & Savings

Rs 35 lakh in bank and equity
Rs 80,000 SIP per month (3 years)
Assets

Apartment worth Rs 4 crore
Loans

Home loan: Rs 1 crore remaining
Personal loan: Rs 40 lakh (4 years left)
Expenses

No room for additional savings after all expenses
Key Financial Concerns
1. Home Loan & Personal Loan – Priority on Repayment
Loan EMIs are affecting savings.
Reduce home loan tenure by increasing EMI, if possible.
Try to prepay the personal loan first. It has a higher interest rate.
Avoid taking more loans until these are cleared.
2. Retirement Planning – Building a Strong Corpus
Your current savings are low for retirement. You need a better plan.

Increase SIPs when personal loan is cleared.
Allocate funds across equity and debt for long-term growth.
Consider PPF, EPF, and debt funds for stability.
Gradually move funds to safer investments as retirement nears.
3. Son’s Higher Education – Plan Early
Your son will enter college in two years. You need a dedicated fund.

Start a separate SIP to cover education costs.
Use debt funds for short-term needs.
Avoid withdrawing from retirement savings for education.
4. Insurance – Protect Your Finances
Ensure you have term insurance of at least Rs 1.5 crore.
Maintain health insurance for family with a high cover.
Avoid traditional insurance plans with low returns.
Final Insights
Focus on repaying personal loan first.
Prepay the home loan gradually for financial freedom.
Increase SIPs once debt reduces.
Start a dedicated education fund for your son.
Build a diversified retirement corpus with equity and debt.
A disciplined approach will secure your future.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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

Ans: You have a well-structured portfolio with SIPs, equity investments, FDs, and real estate. Your focus on retirement at 59-60 and securing your daughter’s future is crucial. Let’s assess your financial standing and guide you towards a more structured approach.

Current Financial Overview
Investments

SIP: Rs 40,000 per month
Equity: Rs 1.5 lakh lump sum investment
Total Portfolio: Rs 19 lakh
Real Estate

One flat is debt-free
Second flat has a Rs 21 lakh home loan till 2032
Fixed Deposits

Rs 35 lakh in FD
Provident Fund & PPF

PF Balance: Rs 22 lakh
PPF: Rs 6 lakh
Insurance & Tax Savings

Mediclaim: Rs 50 lakh per year
Life Insurance: Rs 50 lakh term plan
Monthly insurance premium under 80C: Rs 25,000
Future Real Estate Plan

Planning to invest Rs 25 lakh in an open plot in Nagpur
Parental Property

Rs 35 lakh property expected to be transferred in 10 years
Key Financial Considerations
1. Should You Invest Rs 25 Lakh in an Open Plot?
Real estate is not liquid, making it difficult to use in emergencies.
Selling at the right price may take years.
Property maintenance and legal issues can add costs.
Instead, consider investing in equity or mutual funds for higher flexibility.
It’s better to keep Rs 25 lakh diversified in liquid investments rather than real estate.

2. Retirement Planning – Securing Post-Retirement Expenses
Your current monthly expense is Rs 40,000. This will rise due to inflation. You need a solid retirement corpus.

Continue SIPs and Increase Contribution Yearly

Rs 40,000 SIPs are good, but increase them by 10% yearly.
This ensures long-term wealth creation.
Allocate FD Funds Wisely

FD returns are low and taxable.
Shift a portion to equity and hybrid funds for better growth.
Utilise PF and PPF Efficiently

PF will grow by retirement but won’t be enough alone.
Continue PPF for stable, tax-free returns.
Debt Fund Investments for Stability

Gradually move funds to debt funds five years before retirement.
This protects against market volatility.
Health Insurance is Well-Planned

Rs 50 lakh mediclaim is a strong financial shield.
Ensure coverage continues post-retirement.
3. Planning for Your Daughter’s Future
Your daughter is just four years old. You need a structured education and marriage fund.

Start a Separate SIP for Her Education

Allocate at least Rs 15,000 per month in equity funds.
Increase by 10% annually to cover rising education costs.
Use Debt Funds for Short-Term Needs

For school fees or immediate expenses, use debt funds.
These are safer than FDs and provide better returns.
Avoid Child ULIPs or Traditional Insurance Plans

These give low returns with high charges.
Instead, use mutual funds for higher growth.
Consider a Sukanya Samriddhi Account

This provides tax-free returns and stability for long-term goals.
Invest a small portion to diversify savings.
Final Insights
Avoid investing Rs 25 lakh in an open plot.
Increase SIPs yearly and allocate part of FD funds to mutual funds.
Start a dedicated education fund for your daughter.
Focus on equity growth while gradually securing assets in debt before retirement.
With structured planning, you can achieve financial security for yourself and your daughter.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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