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Mihir

Mihir Tanna  |878 Answers  |Ask -

Tax Expert - Answered on Aug 28, 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
madhu Question by madhu on Aug 28, 2023Hindi
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My mother is housewife. I have HRA component of 60K, If I pay rent of 60K to my mother, i.e. 7.2L per year, and I have to deduct TDS of 36K . Which PAN no. I have to use to deduct tds and pay the tax. Also can my mother get the tax refund, by filing ITR, as she does not have any other income?

Ans: Individual paying rent of more than 50k p.m. is required to deduct TDS using own PAN in Form 26QC in Sec 194 IB.

Recipient of Income (owner of property) should offer rent income to tax after deducting 30% of Income as a standard deduction. Taxable income is likely to be Rs.5,04,000. For FY 23-24, if taxable income is upto 7 lacs, tax liability under new tax regime will be zero.
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  |4824 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 16, 2024

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Hello Sir, I am 34 years old and with 10 years in mind for investment to reach 10CR, I have planned to invest 2 lakh monthly in SIP with stepping up by 10 % every year. I have already invested 15 lakhs in Mutual fund th. SIP, 15 lakhs in shares and 20 lakhs in PPF. and .Shall I increase the already invest amount in MF or shall take 1-2 more MFs scheme like Multi-Cap/Large Cap/another Flexi Cap OR any hybrid MF schemes Would taking 1-2 more MF scheme will overdiversify the portfolio? Can you please suggest some pointers on this.
Ans: Current Investment Analysis
You have invested Rs. 15 lakhs in SIPs, Rs. 15 lakhs in shares, and Rs. 20 lakhs in PPF. Your plan to invest Rs. 2 lakhs monthly with a 10% yearly step-up is commendable.

Assessing Diversification
Adding 1-2 more mutual funds could be beneficial. However, ensure they align with your financial goals and risk tolerance.

Multi-Cap Funds
Multi-cap funds offer exposure across market capitalizations. They balance risk and reward effectively.

Large-Cap Funds
Large-cap funds invest in established companies. They provide stability and steady returns.

Flexi-Cap Funds
Flexi-cap funds have flexibility to invest in any market cap. They adapt to market conditions, optimizing returns.

Avoiding Over-Diversification
Too many funds can dilute returns. Stick to a manageable number, focusing on quality and performance.

Investment Strategy
Step-Up SIP
Continue with your step-up SIP strategy. It will enhance your investment corpus significantly over 10 years.

Hybrid Funds
Consider hybrid funds for balanced risk. They invest in both equity and debt, providing stability and growth.

Final Insights
Evaluate your current funds. Add 1-2 more aligned with your goals. Avoid over-diversification by focusing on quality. Your step-up SIP strategy is excellent for reaching your Rs. 10 crore goal.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |4824 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 16, 2024

Asked by Anonymous - Jun 29, 2024Hindi
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Hi, I am a 35 year old female working in an IT company in India with monthly salary of Rs. 70k. I am unmarried with no kids. I have about 30 lakhs in PPF, 10 lakhs in FD/Savings along with own car. I want to take a decent flat in an urban City within a year for which I have to take home loan of 50-60 lakhs and also plan for my retirement in the next 20 years. I have never invested in MF/SIPs earlier but want to start now. Please help me with plans to achieve the above goals and to create a portfolio of min. 5 crores by my retirement. Also, pl. Suggest some SIPs for starters which are medium in risk and returns along with any other investment options.
Ans: You have a stable job with a monthly salary of Rs. 70k. Your savings include Rs. 30 lakhs in PPF and Rs. 10 lakhs in FD/Savings. You plan to buy a flat with a home loan and want to start investing in mutual funds.

Home Loan Planning

Taking a home loan of Rs. 50-60 lakhs is a big step. Ensure your EMI is manageable. Aim for an EMI that is less than 40% of your monthly income.

Starting with SIPs

SIPs are a great way to begin investing. They offer flexibility and are suitable for beginners.

Selecting SIPs for Starters

Diversified Equity Funds: These funds invest in a mix of large, mid, and small-cap stocks. They offer balanced growth and moderate risk.

Balanced Funds: These funds invest in both equity and debt. They provide stability and steady returns.

Flexi Cap Funds: These funds can invest across various market capitalizations. They adapt to market conditions and offer good growth potential.

Benefits of Actively Managed Funds

Actively managed funds are handled by expert fund managers. They aim to outperform the market. This is a better choice than index funds, which simply track market performance.

Disadvantages of Direct Funds

Direct funds require self-management. They lack professional guidance. Investing through a Certified Financial Planner (CFP) ensures better choices and portfolio management.

Retirement Planning

To achieve a retirement corpus of Rs. 5 crores in 20 years, invest regularly in SIPs. Increase your SIP amount by 10% every year. Also, diversify your investments to balance growth and risk.

Additional Investment Options

Debt Funds: These provide stability and regular income. They are less volatile than equity funds.

ELSS Funds: These offer tax benefits under Section 80C. They have a lock-in period of 3 years.

Final Insights

Investing in SIPs is a smart move. Start with diversified equity and balanced funds. Consult a Certified Financial Planner to tailor your investments to your goals. Regularly review and adjust your portfolio.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |4824 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 16, 2024

Asked by Anonymous - Jul 03, 2024Hindi
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Sir.. I am NRE I want to start SWP plan after 5 years 2030 with 1 cr. If I invest this 5 years stocks or SIP after 5 years that money I have to again invest in SWP in this case I have to pay the Capital gain tax before transfer the money from SIP orstocks. My plan I will start 10 L with SWP plan and every year's I can put 20 L in SWP and after 5 years I can start the with drawal 0.5 %.SWP plan I donot have clear idea. Need expert advaise SWP can I start now and increase my investment in same plan yearly?
Ans: An SWP allows you to withdraw a fixed amount regularly from your investment. This provides a steady income flow while keeping your remaining investment growing.

Investing for 5 Years
You can invest in a mix of equity and debt mutual funds. This balance will provide growth and stability.

Equity Mutual Funds
Invest in large-cap, mid-cap, and small-cap funds. They offer growth potential over five years.

Debt Mutual Funds
These funds are less volatile and provide stability. Consider investing part of your funds here.

Capital Gains Tax
When you sell stocks or mutual funds, you must pay capital gains tax. This applies before you transfer funds to an SWP.

Long-Term Capital Gains (LTCG)
For equity, gains over Rs. 1 lakh are taxed at 10% if held for more than a year. For debt, the tax is 20% with indexation if held for more than three years.

Short-Term Capital Gains (STCG)
For equity, gains are taxed at 15% if held for less than a year. For debt, gains are added to your income and taxed as per your slab.

Starting SWP with Rs. 1 Crore
After five years, you can move Rs. 1 crore into an SWP. Start withdrawing 0.5% monthly.

Example
If you start with Rs. 10 lakhs, withdraw Rs. 50,000 per month. Increase your investment yearly by adding Rs. 20 lakhs.

Increasing Investments Annually
Yes, you can increase your SWP investment yearly. This can help grow your corpus and increase your withdrawal amount over time.

Final Insights
Invest in a balanced mix of equity and debt mutual funds. Understand the capital gains tax implications. Start SWP with Rs. 1 crore and withdraw 0.5% monthly. Increase your investment yearly for a growing income.

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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