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Mihir

Mihir Tanna  |1030 Answers  |Ask -

Tax Expert - Answered on Apr 26, 2024

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
Damayanti Question by Damayanti on Mar 27, 2024Hindi
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Sir i am housewife. I have no earning. Got 4 lakh long term capital gain from mutual fund. Shall i pay tax and file incometax

Ans: Yes

Person having income above 3 lacs (for new tax regime) is required to file ITR. However, you will be eligible for tax rebate upto 25000 and not likely to pay any tax on gain.
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

Ramalingam Kalirajan  |8077 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Apr 18, 2024

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Sir I am housewife. I have no earning. Got 3 lakh rupees from mutual fund repurchase as long term capital gain. Shall I pay tax and file income tax.
Ans: As a housewife with no other income, your tax liability on long-term capital gains (LTCG) from mutual funds needs to be considered.

Long-Term Capital Gain Tax on Mutual Funds:
Long-term capital gains from equity mutual funds are taxable at 10% if the LTCG exceeds Rs. 1 lakh in a financial year, without the benefit of indexation.

Do you need to pay tax?

LTCG Calculation: If your LTCG from mutual funds is more than Rs. 1 lakh in the financial year, you will need to pay tax on the amount exceeding Rs. 1 lakh at 10%.
Exemption Limit: If your total income, including LTCG, is below the taxable limit (basic exemption limit), you may not be required to pay tax.
Tax Filing: Even if you're not liable to pay tax due to income being below the exemption limit, you should still consider filing an income tax return to report the LTCG. Filing an income tax return will also serve as proof of your income source.
Steps to Follow:

Calculate LTCG: Calculate your LTCG from mutual fund repurchase.
Check Exemption Limit: Determine if your total income, including LTCG, is below the taxable limit for the financial year.
Tax Payment: If your LTCG exceeds Rs. 1 lakh and you have a tax liability, pay the tax before filing the income tax return.
File Income Tax Return: Even if not liable to pay tax, file an income tax return to report LTCG and claim exemption, if applicable.
Keep Records: Maintain records of mutual fund statements and LTCG calculations for future reference.
Conclusion:
Given the above, it's advisable to calculate your LTCG, assess tax liability, and file an income tax return accordingly. If unsure about the calculations or tax implications, consider consulting a tax advisor or chartered accountant for guidance.

..Read more

Ramalingam

Ramalingam Kalirajan  |8077 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Feb 07, 2025

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Mutual fund pe lagnewala wala long term capital gain tax kaise bachaye manlo maine Mutual fund kisi bhi sceme me invest kiya 1 lakh 20 sal ke bad muje mila 10 ka proft mila but muje sava 1.25 ki chhut mili but 8.75 lakh upar jo 12.5% long term capital gain tax kaise bachaye
Ans: Mutual fund investments are subject to taxation. Long-term capital gains (LTCG) on equity mutual funds above Rs. 1.25 lakh are taxed at 12.5%.

You invested Rs. 1 lakh. After 20 years, the value became Rs. 10 lakh. Your profit is Rs. 9 lakh.

The exemption limit is Rs. 1.25 lakh. You need to pay LTCG tax on Rs. 7.75 lakh.

Ways to Reduce LTCG Tax on Mutual Funds
1. Use Tax-Free Withdrawal Every Year
LTCG tax applies only if gains cross Rs. 1.25 lakh in a financial year.

You can withdraw gains up to Rs. 1.25 lakh tax-free every year.

If planned well, you can avoid LTCG tax completely.

Start partial withdrawals after a few years instead of waiting for 20 years.

2. Use Systematic Withdrawal Plan (SWP)
SWP allows you to withdraw a fixed amount regularly.

This spreads LTCG across multiple years.

You can keep withdrawals under Rs. 1.25 lakh per year.

This helps avoid or reduce LTCG tax.

3. Redeem in Family Members' Names
If your spouse or family members are in a lower tax bracket, use their accounts.

Gift them mutual fund units and redeem in their name.

Ensure that each family member stays within the Rs. 1.25 lakh exemption limit.

This can help divide and reduce tax liability.

4. Plan Redemptions in Phases
Selling everything at once leads to higher tax.

Instead, sell in small parts over multiple financial years.

This ensures that you stay within the exemption limit each year.

Strategic planning can significantly reduce your tax burden.

5. Use Capital Gains Against Exempt Income
If you have losses from stocks or mutual funds, use them to offset LTCG.

Short-term capital losses can be adjusted against LTCG.

This will reduce taxable capital gains and lower tax.

Finally
You cannot avoid LTCG tax completely. But proper planning helps reduce the tax burden.

Spreading withdrawals, using family member accounts, and optimising fund selection can help.

A Certified Financial Planner can guide you in structuring withdrawals for tax efficiency.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner

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

..Read more

Latest Questions
Nayagam P

Nayagam P P  |4272 Answers  |Ask -

Career Counsellor - Answered on Mar 06, 2025

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Career
My son secure 97.03 percentile in jee main session 1 in general category can he get CSE in any NIT
Ans: Shashi Sir,

How to Predict Your Chances of Admission into NIT or IIIT or GFTI After JEE Main Results – A Step-by-Step Guide

Once the January JEE Main session results are declared, many students and JEE applicants start asking common questions about eligibility for specific institutes (NITs, IIITs, GFTIs, etc.) based on their percentile, category, preferred branch, and home state.

Providing precise admission chances for each student can be challenging. Some reputed educational websites offer ‘College Predictor’ tools where you can check possible college options based on your percentile, category, and preferences. However, for a more accurate understanding, here’s a simple yet effective 9-step method using JoSAA’s past-year opening and closing ranks. This approach gives you a fair estimate (though not 100% exact) of your admission chances based on the previous year’s data.

Step-by-Step Guide to Check Your Admission Chances Using JoSAA Data
Step 1: Collect Your Key Details
Before starting, note down the following details:

Your JEE Main percentile
Your category (General-Open, SC, ST, OBC-NCL, EWS, PwD categories)
Preferred institute types (NIT, IIIT, GFTI)
Preferred locations (or if you're open to any location in India)
List of at least 3 preferred academic programs (branches) as backups (instead of relying on just one option)
Step 2: Access JoSAA’s Official Opening & Closing Ranks
Go to Google and type: JoSAA Opening & Closing Ranks 2024
Click on the first search result (official JoSAA website).
You will land directly on JoSAA’s portal, where you can enter your details to check past-year cutoffs.
Step 3: Select the Round Number
JoSAA conducts five rounds of counseling.
For a safer estimate, choose Round 4, as most admissions are settled by this round.
Step 4: Choose the Institute Type
Select NIT, IIIT, or GFTI, depending on your preference.
If you are open to all types of institutes, check them one by one instead of selecting all at once.
Step 5: Select the Institute Name (Based on Location)
It is recommended to check institutes one by one, based on your preferred locations.
Avoid selecting ‘ALL’ at once, as it may create confusion.
Step 6: Select Your Preferred Academic Program (Branch)
Enter the branches you are interested in, one at a time, in your preferred order.
Step 7: Submit and Analyze Results
After selecting the relevant details, click the ‘SUBMIT’ button.
The system will display Opening & Closing Ranks of the selected institute and branch for different categories.
Step 8: Note Down the Opening & Closing Ranks
Maintain a notebook or diary to record the Opening & Closing Ranks for each institute and branch you are interested in.
This will serve as a quick reference during JoSAA counseling.
Step 9: Adjust Your Expectations on a Safer Side
Since Opening & Closing Ranks fluctuate slightly each year, always adjust the numbers for safety.
Example Calculation:
If the Opening & Closing Ranks for NIT Delhi | Mechanical Engineering | OPEN Category show 8622 & 26186 (for Home State), consider adjusting them to 8300 & 23000 (on a safer side).
If the Female Category rank is 34334 & 36212, adjust it to 31000 & 33000.
Follow this approach for Other State candidates and different categories.
Pro Tip: Adjust your expected rank slightly lower than the previous year's cutoffs for realistic expectations during JoSAA counseling.

Can This Method Be Used for JEE April & JEE Advanced?
Yes! You can repeat the same steps after your April JEE Main results to refine your admission possibilities.
You can also follow a similar process for JEE Advanced cutoffs when applying for IITs.

Want to Learn More About JoSAA Counseling?
If you want detailed insights on JoSAA counseling, engineering entrance exams, and preparation strategies, check out EduJob360’s 180+ YouTube videos on this topic!

Hope this guide helps! All the best for your Son's admissions!

Follow RediffGURUS to Know more on 'Careers | Health | Money | Relationships'.

...Read more

Nayagam P

Nayagam P P  |4272 Answers  |Ask -

Career Counsellor - Answered on Mar 06, 2025

Asked by Anonymous - Mar 05, 2025Hindi
Listen
Career
My son has got 99.6 percentile in JEE mains 2025 jan . What should be the possible options and priority of sequence ?
Ans: How to Predict Your Chances of Admission into NIT or IIIT or GFTI After JEE Main Results – A Step-by-Step Guide

Once the January JEE Main session results are declared, many students and JEE applicants start asking common questions about eligibility for specific institutes (NITs, IIITs, GFTIs, etc.) based on their percentile, category, preferred branch, and home state.

Providing precise admission chances for each student can be challenging. Some reputed educational websites offer ‘College Predictor’ tools where you can check possible college options based on your percentile, category, and preferences. However, for a more accurate understanding, here’s a simple yet effective 9-step method using JoSAA’s past-year opening and closing ranks. This approach gives you a fair estimate (though not 100% exact) of your admission chances based on the previous year’s data.

Step-by-Step Guide to Check Your Admission Chances Using JoSAA Data
Step 1: Collect Your Key Details
Before starting, note down the following details:

Your JEE Main percentile
Your category (General-Open, SC, ST, OBC-NCL, EWS, PwD categories)
Preferred institute types (NIT, IIIT, GFTI)
Preferred locations (or if you're open to any location in India)
List of at least 3 preferred academic programs (branches) as backups (instead of relying on just one option)
Step 2: Access JoSAA’s Official Opening & Closing Ranks
Go to Google and type: JoSAA Opening & Closing Ranks 2024
Click on the first search result (official JoSAA website).
You will land directly on JoSAA’s portal, where you can enter your details to check past-year cutoffs.
Step 3: Select the Round Number
JoSAA conducts five rounds of counseling.
For a safer estimate, choose Round 4, as most admissions are settled by this round.
Step 4: Choose the Institute Type
Select NIT, IIIT, or GFTI, depending on your preference.
If you are open to all types of institutes, check them one by one instead of selecting all at once.
Step 5: Select the Institute Name (Based on Location)
It is recommended to check institutes one by one, based on your preferred locations.
Avoid selecting ‘ALL’ at once, as it may create confusion.
Step 6: Select Your Preferred Academic Program (Branch)
Enter the branches you are interested in, one at a time, in your preferred order.
Step 7: Submit and Analyze Results
After selecting the relevant details, click the ‘SUBMIT’ button.
The system will display Opening & Closing Ranks of the selected institute and branch for different categories.
Step 8: Note Down the Opening & Closing Ranks
Maintain a notebook or diary to record the Opening & Closing Ranks for each institute and branch you are interested in.
This will serve as a quick reference during JoSAA counseling.
Step 9: Adjust Your Expectations on a Safer Side
Since Opening & Closing Ranks fluctuate slightly each year, always adjust the numbers for safety.
Example Calculation:
If the Opening & Closing Ranks for NIT Delhi | Mechanical Engineering | OPEN Category show 8622 & 26186 (for Home State), consider adjusting them to 8300 & 23000 (on a safer side).
If the Female Category rank is 34334 & 36212, adjust it to 31000 & 33000.
Follow this approach for Other State candidates and different categories.
Pro Tip: Adjust your expected rank slightly lower than the previous year's cutoffs for realistic expectations during JoSAA counseling.

Can This Method Be Used for JEE April & JEE Advanced?
Yes! You can repeat the same steps after your April JEE Main results to refine your admission possibilities.
You can also follow a similar process for JEE Advanced cutoffs when applying for IITs.

Want to Learn More About JoSAA Counseling?
If you want detailed insights on JoSAA counseling, engineering entrance exams, and preparation strategies, check out EduJob360’s 180+ YouTube videos on this topic!

Hope this guide helps! All the best for your son's admissions!

Follow RediffGURUS to Know more on 'Careers | Health | Money | Relationships'.

...Read more

Dr Dipankar

Dr Dipankar Dutta  |912 Answers  |Ask -

Tech Careers and Skill Development Expert - Answered on Mar 05, 2025

Dr Dipankar

Dr Dipankar Dutta  |912 Answers  |Ask -

Tech Careers and Skill Development Expert - Answered on Mar 05, 2025

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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