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Mihir

Mihir Tanna  |964 Answers  |Ask -

Tax Expert - Answered on Mar 02, 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 - Feb 27, 2023Hindi
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my income is 66 lacs, which tax regime is suitable

Ans: Person having taxable income around 60 lacs and take deduction less than 4.25 lacs from housing loan/80C/80D, can opt for new tax regime as new slab rate is likely to be beneficial as per budget proposed for FY 2023-24

In future, you can calculate the tax from following link :

https://incometaxindia.gov.in/Pages/tools/115bac-tax-calculator-finance-bill-2023.aspx
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  |7097 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Aug 12, 2024

Asked by Anonymous - Aug 05, 2024Hindi
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Hello Sir I am 44 years old & my monthly salary is 1.22 Lacs.. Which tax regime should I choose considering there is no Home, education or Battery car loan for me.. I invest under Sec 80cc appriox. 1.5 Lacs a year
Ans: At 44 years old, you have a monthly salary of Rs 1.22 lakhs, and you’re making sound financial choices. You invest Rs 1.5 lakhs annually under Section 80C, which is a good start for your tax planning. You have no home loan, education loan, or battery car loan, which simplifies your tax planning decisions.

Choosing the right tax regime depends on your financial situation, goals, and the deductions you can claim. Both the old and new tax regimes have their advantages, and it's crucial to assess them based on your specific scenario.

Overview of the Old Tax Regime
The old tax regime allows you to claim various deductions under sections like 80C, 80D, 80G, and others. Since you are already investing Rs 1.5 lakhs under Section 80C, you’re making use of this regime's benefits. The old regime is beneficial for individuals who can claim substantial deductions. Here’s why it might work for you:

Deductions Under Section 80C: This section covers investments like PPF, EPF, life insurance premiums, and certain mutual funds. Your Rs 1.5 lakh investment here reduces your taxable income directly.

Health Insurance Deduction Under Section 80D: If you have health insurance, you can claim a deduction on the premium paid, up to Rs 25,000 for yourself and an additional Rs 25,000 for parents.

Standard Deduction: A standard deduction of Rs 50,000 is available under the old regime, further reducing your taxable income.

The old regime is ideal if you can maximize your deductions. Since you already have Rs 1.5 lakhs invested under Section 80C, you are on the right track. However, let’s explore the new tax regime to understand if it might suit you better.

Overview of the New Tax Regime
The new tax regime offers lower tax rates but doesn’t allow most deductions, including the Section 80C investment. The rates are structured to provide immediate tax relief without the need for extensive tax planning. Here’s how it could work for you:

No Need for Deductions: The new regime simplifies tax filing as it doesn’t require you to claim deductions. This can be beneficial if you prefer a straightforward approach without the need to track various investments and expenses.

Lower Tax Rates: The tax slabs under the new regime are broader and come with reduced rates. For someone earning Rs 1.22 lakhs per month, you might find yourself in a lower tax bracket, paying less tax overall if you don’t have substantial deductions to claim.

Flexibility in Spending: The new regime doesn’t tie you down to specific investments to save tax. This gives you the flexibility to spend or invest your money according to your financial goals rather than for tax-saving purposes.

Comparing the Two Regimes
Choosing between the old and new regimes involves comparing your taxable income under both. Here’s a general assessment based on your situation:

Old Regime: Your Rs 1.5 lakh investment under Section 80C reduces your taxable income significantly. If you have other deductions, like health insurance under Section 80D or donations under Section 80G, the old regime might be more beneficial. You also benefit from the standard deduction of Rs 50,000.

New Regime: If you prefer not to claim deductions or don’t have significant ones beyond Section 80C, the new regime might be simpler and potentially more tax-efficient. The lower tax rates could outweigh the lack of deductions.

Strategic Considerations
Here are some key points to consider when choosing your tax regime:

Evaluate Future Investments: If you plan to increase your investments under Section 80C or explore other deductions, the old regime may continue to benefit you.

Simplify Your Tax Filing: If you find tax planning cumbersome and prefer a simpler approach, the new regime offers that ease. However, you might pay slightly more in taxes if you forgo your deductions.

Long-Term Planning: Consider your long-term financial goals. If you plan to invest more for retirement or your children’s education, sticking with the old regime and maximizing your deductions might be the better choice.

Review Annually: Tax laws and your financial situation can change. It’s wise to review your choice annually and switch if necessary.

Final Insights
Your choice of tax regime should align with your financial strategy. The old tax regime is advantageous if you can utilize deductions effectively, particularly the Rs 1.5 lakh you’re already investing under Section 80C. This approach rewards disciplined saving and investment, which supports long-term wealth creation.

The new regime, while simpler, may not be as tax-efficient if you can claim substantial deductions under the old regime. However, it offers flexibility, allowing you to allocate funds without the pressure of tax-saving investments.

Given your current scenario, the old regime might be more beneficial if you can continue to optimize deductions. If simplicity is more important and you prefer not to focus on tax-saving investments, the new regime could be considered.

In either case, regularly reviewing your financial situation and tax strategy will help ensure you’re making the most of your income while planning for a secure future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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Radheshyam

Radheshyam Zanwar  |1054 Answers  |Ask -

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Nov 21, 2024

Asked by Anonymous - Nov 21, 2024Hindi
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Hello, I am 3 yr neet dropper.in 2025 it will be my third attempt... I'm trying my best to crack neet ...i don't know what will happen will i score good marks or not ... please help me in suggesting good career options if not crack neet .....there are many options through neet marks also like bhms , veterinary...etc. i will also give entrance exam also like cuet ,gbpuat ,....but i want that what to choose which course will be best for me ...i want to make my life good and happy... having a good degree, good job ,...
Ans: Hello.
Have you analyzed your failure in 2 successive attempts in the NEET examination? If yes, then the question is what you have done for improvement and not then again the question arises why not? Here, I would like to suggest you focus now only on the NEET examination which is your 3rd attempt. Don't think about any other options right now till May 2025. After the NEET exam is over, you have ample time to explore the options available. Depending on your score in NEET 2025, we will guide you at that time. But yet, if you are confused, then looking towards your question and anxiety, you need personal counseling where you can express yourself face-to-face. Only after the NEET exam is over, you contact a counsellor for one-to-one counseling. Till then, keep mum and focus only on NEET. Take this exam as your mission and project. Work on this project, apply forces from all sides, success is there which is waiting for you eagerly.
Best of luck for your bright future.

Some tips: (1) Analyse separately Phy, Che, Bio (2) Prepare a list of hard topics (3) First focus more on the topics which are easy for you and then try to excel in hard topics (4) Appear more and more online/offline examinations (4) Prepare your short-cut file for all subjects (5) Prepare a file for each subject having only synopsis of all chapters (6) Try to solve the problems at the lightening speed and observe the period on regular basis (7) Create your time table to revise the topics on regular basis (8) Do not hesitate to ask your difficulties to your teachers, if you have joined to offline classes (9) Keep the habit of marking the answers which you know 100%. Don't guess the answers and mark them, as there is -ve marking scheme. (10) Be calm, quite, and smiling all the time to release the tension and always have a healthy chat with your friends.

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

Pradeep Pramanik  |186 Answers  |Ask -

Career And Placement Consultant - Answered on Nov 21, 2024

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I am looking for a job, I had uploaded my resume in job site. A consultant called me & introduced himself telling he know some of the openings. He had a detailed discussion about my job & my skills. He told need to register to his consultancy for scheduling interview. I registered with him & he got me a interview. Interview was done by the company through skype. I could not see the company persons. They told only they can see me. Interview went on well & regarding salary I told my expectation but they told it is not possible & they told their proposal. Finally I agreed to them. They gave me code & told to visit the company for next round. Consultant called me after first round & told recruiter is very happy with the interview. Regarding salary he told why I agreed for the proposal,he will discuss again & asked to pay charges for some of his services which he will refund the day I visit to the company & take the orders. I paid him. He told there is a increase in salary he has discussed with recruiter & again asked for the money I did only partial payment & further will not pay anything. Second round also happened through skype instead of in person. Interview went on well & salary offered was good comparing to before & there was a big jump. Recruiter told they have planned to give additional responsibilities so they have increased. Finally they gave me a date to visit company. I asked when will I get the order, he replied he will send to consultant as I was taken by them. Till now i did not get the orders, consultant is keep on postponing. Now he told visit to company date is also postponed, he will update in next week & not to worry as job is confirmed. Now not understanding what to do, am I been cheated or wait.
Ans: Dear Mr. Keshava ,

There are many unscruplous job agents who are fake and claim themselves to be a Placement consultant. In short You have been cheated . Before paying any fee for registration , you must ensure that the agency is genuine . If not don't even upload your resume . You may write to company , lodge a complaint against the agency. If the amount is very high , pl. take the help of police . .

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Ramalingam

Ramalingam Kalirajan  |7097 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Nov 21, 2024

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I hv started sip in 2008 and still continued , now the monthly sip is 55k and total value is 1.85cr. Need to accumulate 7cr with in next 4 yrs pls guide how can i achieve. - Deepak J. Hajari
Ans: Deepak, your long-term SIP discipline is impressive. Accumulating Rs. 7 crore in 4 years is ambitious. Achieving this goal requires a strategic approach, as time is limited. Let's create an actionable plan for your success.

Current Financial Snapshot
Ongoing SIPs: Rs. 55,000 monthly.
Current Portfolio Value: Rs. 1.85 crore.
Target Corpus: Rs. 7 crore within 4 years.
Your consistent investing habits have built a solid foundation. However, to achieve your target, adjustments are needed.

Key Challenges
Short Time Frame: Four years is a limited period for aggressive wealth accumulation.
Significant Gap: A gap of Rs. 5.15 crore remains to meet the Rs. 7 crore goal.
Market Volatility: Equity investments might face short-term volatility.
Recommendations to Bridge the Gap
1. Increase Your SIP Contributions
Raise your SIP amount to Rs. 1.25 lakh per month.
This increase ensures faster wealth creation through compounding.
Prioritise high-growth funds in equity-oriented categories.
2. Invest Lump Sum Amounts
Consider deploying a lump sum if you have idle savings or low-yield investments.
Invest in aggressive equity mutual funds for higher potential returns.
Break down the lump sum into tranches for better market timing.
3. Diversify into High-Growth Mutual Funds
Focus on small-cap and mid-cap mutual funds for higher growth potential.
Maintain a balance with some large-cap exposure for stability.
Ensure the portfolio aligns with your high-return requirements.
4. Avoid Overexposure to Debt or Low-Yield Instruments
Limit debt investments during this aggressive growth phase.
Avoid instruments like FDs or debt mutual funds with lower returns.
Rely on equity for the next four years to maximise growth.
5. Rebalance Your Portfolio Regularly
Conduct a portfolio review every 6 months.
Reallocate funds based on underperforming or outperforming sectors.
Keep your portfolio aligned with market trends and your goals.
6. Capitalize on Bonus or Windfall Gains
Direct any bonuses, salary hikes, or windfall gains towards your target.
Avoid unnecessary expenses during this focused phase.
Tax Efficiency Matters
Equity Mutual Funds Taxation: Gains above Rs. 1.25 lakh are taxed at 12.5%.
Debt Mutual Funds Taxation: Taxed as per your income slab.
Plan redemptions strategically to minimise tax liabilities.
Leverage Market Opportunities
Benefit from Market Corrections: Use corrections as opportunities to invest lump sums.
Stay Invested for Compounding: Avoid early redemptions to let compounding work fully.
Role of Regular Monitoring
Track Performance: Ensure funds are performing as per expectations.
Switch Funds if Needed: Shift from underperforming funds to high-growth options.
Final Insights
Deepak, achieving Rs. 7 crore in 4 years requires aggressive yet calculated strategies. Increase your SIPs, deploy lump sums, and focus on high-growth funds. Regular monitoring and disciplined investing are key to your success. Stay patient and consistent.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...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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