Home > Money > Question

Sign In | Create an account

Language:

Now in हिन्दी too

Need Expert Advice?Our Gurus Can Help

Tejas Chokshi | Answer |Ask -Follow

Tax Expert - Answered on Sep 11, 2023

CA Tejas Chokshi has over 20 years of experience in financial planning, income tax planning, strategic and risk advisory, banking and financial products and accounting and auditing.
He is an information system auditor, a forensic auditor and concurrent bank auditor.
Chokshi, who has a master’s degree in management, audit and accounting from Gujarat University, has completed his CA from the Institute of Chartered Accountants of India.... more

Question by Ramakrishnan on Sep 05, 2023Hindi

Money

Sir, I am nearing the age of 60, I have sold my 20 year old flat now and investing in a new flat but with my son's name this year itself. Will it attract any income tax issues, since investment is in son's name? Please advise?

Ans: Dear Sir, at the time of sale of your old flat, it is required for you to work out the capital gain tax implications. Since, you are investing another property ( presuming residential), you are eligible for deduction had this be in your name. But, since you plan to buy the new flat in your son's name, it would better for you to first buy the property in your name , which will help you to nullify your capital gain tax implications if any and then, you can gift the flat to your son. There would be stamp duty implication at the time of gift deed registrations, but that is still better, instead of directly buying the flat in your son's name directly, which may have higher capital gain tax implications.

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.

MoneyReply

You may like to see similar questions and answers below

Mihir Tanna |975 Answers |Ask -Follow

Tax Expert - Answered on Apr 10, 2023

Asked by Anonymous - Apr 03, 2023Hindi

Money

I and my wife co own a flat from 1994 in Mumbai. Now we want to sell it and reinvest in a residential house . Do we have to pay income tax on the amount we receive and how much will it be

Ans: Section 54 provides that in case person transfer house property and invest gain amount in acquiring new property, capital gain will be exempt.

Person must buy the residential house property 1 year before or 2 years from date of such transfer of property or construct the house property within 3 years from date of transfer of property.

Mahesh Padmanabhan | Answer |Ask -Follow

Tax Expert - Answered on May 03, 2023

Question by Alok - May 01, 2023Hindi

Money

I had sold 3 BHK flat in Sept,2015 and invested the sale proceeds in purchasing a flat in March,2016. this year in March,2023 I sold an ancestral flat purchased by my father in August,2007 and acquired by me through family arrangement and purchased a plot out of entire sale proceeds with intention to construct a house thereon. Pl let me know " will I have to pay tax on capital gain amount".

Ans: Hi Alok
Buying a plot is not considered as reinvestment and eligibility is on buying or constructing a residential house.

In this case if you construct a house on the plot then you could map the capital gains from the sale of the ancestral house against the cost of construction of the house on the plot.

Also, as you have sold the house in March 2023, you would need to open a Capital Gain Accounts Scheme (CGAS) account with any nationalized bank on or before the due date for filing your tax return. The deposit of the capital gain amount in the CGAS account would be treated as reinvestment for the moment.

You need to note that this CGAS account amount has to be utilized for construction within 3 years from the date of sale of the ancestral house.

In case you are not depositing the amount in CGAS account or reinvesting in any eligible assets before filing tax return (of course before due date) then you would need to pay tax on the capital gain portion

Sanjeev Govila | Answer |Ask -Follow

Financial Planner - Answered on Oct 12, 2023

Question by BIMAL - Sep 18, 2023Hindi

Money

i am a salaried person of 64 year old My father rented a small house in a chawl at malad west 1958 there are tenents ,he has expired in 2020 ,the above house is on a plot whos owner is pvt.ltd company. There is also story building on the same plot little bit away, it is 38 year old building & talk of redevopment is going on .what do i do about the same if from income tax point of view

Ans: Tax implications - Before the chawl goes into redevelopment:-

Rental income: If you receive rental income from the house until the redevelopment, this income will be taxed in your hands and you need to show it in your ITR and pay tax on it.

Tax implications - Once the chawl goes into redevelopment:-

Capital gains: The transfer of the old house for redevelopment will be treated as a sale, and any long-term capital gains arising from the transaction will be taxable at 20% after considering indexation. However, you may be able to claim an exemption under Section 54 of the Income Tax Act, 1961, if you purchase a new residential property within 1 year before or 2 years after the sale of the old house.

Rental income: If you rent out the new flat, you will need to declare the rental income in your tax return.

It is important to note that the above is just a general overview of the income tax implications of the redevelopment of property. It is advisable to consult a qualified tax professional to get specific advice based on your individual circumstances.

Disclaimer: The information provided in this response is for general information purposes only and should not be construed as tax advice. You should consult with a qualified chartered accountant to get specific advice on your income tax situation.

T S Khurana |255 Answers |Ask -Follow

Tax Expert - Answered on Sep 28, 2024

Question by Uday - Sep 25, 2024Hindi

Money

Hi Hi am 68 years old retired government employee in 2002 I had purchase a flat at 3.5 lack. Recently on May 2024 I have sell that flt on 21.50 .all the money I have given to my son who had purchased a new flat.can I pay capital gain tax.if yes then how much.

Ans: 01. Since you have sold the flat in May-2024, applicable LTCG tax would be @20%, with indexation.
02. You are liable to declare LTCG in your ITR & pay tax accordingly.
03. Exact tax amount payable by you can't be calculated in absence of detailed info about your Income from all sources & Tax Savings etc.
04. you can gift your son this sale amount, who may utilize the same in a way he likes.
05. If your want to save your LTCG, you should have purchased the new flat, may be in the name of your son. In this way you would have been entitled to exemption u/s 54. There are some tribunal decisions, which have confirmed that property purchased in the name of Spouse, son or daughter (Lineal blood relations), is eligible for exemption u/s 54.
Most welcome for any further clarifications. Thanks.

Latest Questions

Ramalingam Kalirajan |7281 Answers |Ask -Follow

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

Question by Lakshmi - Nov 29, 2024Hindi

Money

I am 49 years old working in private sector. Currently, drawing Rs. 1.50 lakhs per month, my investment details. - Lumpsum investment – canara robeco midcap regular – Rs.2 lakhs, union multicap fund –Rs.1 lakh, mahindra Manulife small cap rs.2 lakh; canara robeco multi cap Rs.2.20 lakhs; mahindra Manulife business cycle fund – Rs. 50,000; white oak capital large & mid cap fund – Rs. 100,000; ICICI prudential energy opportunities fund – rs. 100,000 - SIP – HDFC Defence fund – Rs. 10,000; mahindra manulife manufacturing fund – Rs.10000; white oak special opportunities fund 10,000 - FD with HDFC bank – rs. 12,00,000 - LIC – Rs. 10 lakhs My future expenditure, daughters marriage in 3 to 4 years and to purchase house in chennai and to save money for retirement. Please give me advice on how to invest so that I can meet my future demands and have a self-sufficient retirement.

Ans: Assessment of Current Investments
Mutual Funds

Your portfolio has a good mix of midcap, multicap, small-cap, and sectoral funds.
Diversification across different fund categories is appreciable.
However, the allocation to thematic and sectoral funds like defence, manufacturing, and energy is high.
Sectoral funds can be volatile and risky, especially for near-term goals.
Fixed Deposit (FD)

Rs. 12 lakh in FD provides stability and liquidity.
FDs are suitable for short-term needs but offer limited growth potential.
LIC Policy

The LIC policy provides Rs. 10 lakh, likely covering insurance and investment.
Such policies usually yield lower returns than mutual funds.
Future Financial Goals
Daughter’s Marriage (3–4 years)

Allocate funds with a low-risk profile for this goal.
Avoid high exposure to equity for this purpose.
House Purchase in Chennai

Save in instruments that offer both safety and moderate returns.
Flexibility and liquidity are important for this goal.
Retirement Corpus

Focus on long-term equity investments for growth.
Diversify to balance returns and risk.
Proposed Investment Strategy
Short-Term Goals (Daughter’s Marriage and House Purchase)
Utilise Fixed Deposits Wisely

Allocate a portion of your FD for your daughter’s marriage.
Retain some FD for emergency purposes only.
Invest in Debt Mutual Funds

Choose high-quality short-duration or dynamic bond funds.
Debt funds can provide better post-tax returns than FDs.
Keep the money safe and accessible for short-term use.
Avoid Sectoral and Thematic Funds

Shift sectoral fund investments to safer debt-oriented funds.
Sectoral funds are not suitable for short-term goals.
Medium- to Long-Term Goal (Retirement Planning)
Increase SIP in Diversified Equity Funds

Diversify into flexicap, multicap, or large-cap funds.
These funds balance risk and growth for long-term wealth creation.
Reduce Thematic Fund Allocation

Limit exposure to thematic funds to less than 10% of the portfolio.
Reallocate to well-diversified equity funds.
Invest in Hybrid Funds

Include balanced advantage or hybrid equity funds.
These funds reduce volatility while offering equity-like returns.
Consider Equity-Linked Savings Scheme (ELSS)

Invest in ELSS for tax-saving benefits under Section 80C.
ELSS funds also offer long-term growth.
General Recommendations
Review Insurance Policy

Assess if the LIC policy offers adequate life coverage.
If it is a traditional endowment or ULIP, consider surrendering.
Reallocate proceeds to mutual funds for better returns.
Maintain Emergency Fund

Keep 6–12 months’ expenses in a savings account or liquid funds.
This ensures you have liquidity for unforeseen expenses.
Monitor and Rebalance Portfolio

Review your portfolio quarterly or semi-annually.
Rebalance to maintain alignment with your goals.
Focus on Tax Efficiency

Use tax-efficient instruments like ELSS, debt funds, and retirement-focused funds.
Plan withdrawals strategically to reduce tax impact on capital gains.
Retirement Planning Recommendations
Systematic Withdrawal Plan (SWP)

In the future, use SWP from mutual funds for retirement income.
It provides tax efficiency compared to traditional annuities.
Healthcare Planning

Ensure your health insurance coverage is adequate for post-retirement needs.
Increase coverage if necessary to avoid financial strain later.
Invest in Equity for Growth

Continue investing in equities for long-term wealth appreciation.
Equity helps combat inflation effectively over the years.
Final Insights
Your investment portfolio is commendable and diversified. However, some adjustments can improve alignment with your goals. Reduce sectoral exposure and shift towards safer instruments for short-term needs. For retirement, continue SIPs in diversified equity and hybrid funds. Regular monitoring and rebalancing will keep your financial plan on track. With these changes, you can achieve your goals while ensuring a comfortable and self-sufficient retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Ramalingam Kalirajan |7281 Answers |Ask -Follow

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

Asked by Anonymous - Dec 12, 2024Hindi

Money

Can I utilise my money received by cancelling aggreement of one flat to repay the loan amount for the flat where I am residing?

Ans: Yes, you can use the money received from cancelling the agreement of one flat to repay the loan for the flat where you are residing. This can be a financially prudent decision, especially if the loan carries a high-interest rate. Here’s a detailed analysis to help you decide:

Benefits of Using the Money to Repay Your Loan
Interest Savings

Paying off your home loan early can save significant interest.
The earlier you repay, the more you save on interest due to the reducing balance method.
Debt-Free Living

Being debt-free reduces financial stress.
You free up cash flow that can be allocated to other financial goals.
Guaranteed Returns

Loan repayment offers guaranteed returns equivalent to the interest rate on your loan.
This is often better than the post-tax returns from other investments.
Enhanced Creditworthiness

Paying off a loan improves your credit score.
This is beneficial if you plan to borrow in the future for any purpose.
Factors to Consider Before Repaying the Loan
Prepayment Penalty

Check if your lender imposes a penalty for early repayment.
Most lenders, however, do not charge penalties on floating-rate loans.
Emergency Fund

Ensure you have an adequate emergency fund before using the money to repay the loan.
Ideally, keep 6-12 months of expenses in a savings account or liquid funds.
Opportunity Cost

Compare the potential returns from investing the money against the savings from loan repayment.
If your loan interest rate is lower than potential investment returns, consider investing instead.
Tax Benefits

Home loan interest payments qualify for tax benefits under Section 24(b) of the Income Tax Act.
Principal repayments are eligible under Section 80C.
If you repay the loan, you forgo these benefits, so weigh the impact on your tax planning.
Alternative Approaches
Partial Repayment

Consider making a partial repayment instead of fully paying off the loan.
This reduces the principal while keeping some funds liquid for other opportunities.
Invest for Higher Returns

If your loan interest rate is low, explore investing in mutual funds or other instruments.
Over time, these investments could potentially offer better post-tax returns.
Settle High-Cost Loans First

If you have any other high-interest loans, prioritise repaying those.
Examples include personal loans or credit card debts.
Final Insights
Repaying your home loan with the money from the cancelled flat agreement is a sound decision if your goal is to reduce debt and save on interest. However, consider your overall financial situation, including tax benefits, liquidity needs, and potential investment opportunities. A balanced approach—partly repaying the loan and investing the remaining amount—could offer the best of both worlds. Consulting a Certified Financial Planner can help you tailor the decision to your specific goals and circumstances.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

Rajesh Kumar Singh |15 Answers |Ask -Follow

IIT-JEE, GATE Expert - Answered on Dec 18, 2024

Question by Touqeer - Dec 06, 2024Hindi

Career

I am a cse btech 3rd year student from tier 3 college and my cgpa is very low , currently in 6th sem, I am very depressed about what should I do know whether I should be considering on skills but there is 0 onn campus placement no company visits there .2nd option is that I will study for Gate exam for mtech but the problem is that I have low cgpa can I get admission then if I clear the gate

Ans: GATE score will help you for M
Tech. Best wishes

Rajesh Kumar Singh |15 Answers |Ask -Follow

IIT-JEE, GATE Expert - Answered on Dec 18, 2024

Question by alok - Nov 26, 2024Hindi

Career

Hi, I'm 60 year old and living in Noida. I'm single and my experience is of 40+ in power generation. Can i get any job

Ans: Pls try to join As adviser

Rajesh Kumar Singh |15 Answers |Ask -Follow

IIT-JEE, GATE Expert - Answered on Dec 18, 2024

Asked by Anonymous - Nov 15, 2024Hindi

Career

How i get govt. Job

Ans: Govt job is always thru advertisement and Test.
Follow Newspapers for better understanding

Harsh Bharwani |64 Answers |Ask -Follow

Entrepreneurship Expert - Answered on Dec 18, 2024

Question by Pradeep - Jun 16, 2024Hindi

Career

I'm a Chartered accountant .. recently qualified .I'm interested in start up company with intention of book keeping services .software .pls give me some piece of idea regarding how to begin my book keeping services software ..

Ans: Starting a bookkeeping service powered by your own software is a great way to leverage your skills as a recently qualified chartered accountant. With the growing demand for streamlined accounting solutions, your idea has a lot of potentials. Here's how you can get started effectively:

Understand the market and identify your niche:- You have to start by researching the market to identify the specific needs of small & medium-sized businesses. Because many businesses are struggling with manual accounting or find existing software too complex or expensive. Focus on building a solution that is simple, affordable and addresses their pain points, such as automating invoices, tracking expenses and generating tax reports.

Develop or customize software:- Decide whether to build your software from scratch with the help of a development team or customize an existing platform like QuickBooks or Zoho Books to create a unique product. But make sure your software includes essential features like cloud access, real-time financial tracking, automated reminders, payroll management, and integration with banking systems. Prioritize an intuitive interface so that even non-accountants can use it easily.

Provide flexible and scalable solutions:- Start structuring your services with flexible pricing models, such as tiered subscription plans based on business size and its features. With Offers add-ons such as tax filing assistance, compliance consulting, or financial planning to differentiate yourself from other competitors. A free trial or discounted onboarding package can attract new customers and build trust to convert the audience into customers.

Build a strong brand and online presence:- Start your service as a reliable, tech-enabled bookkeeping solution by emphasizing your credentials as a chartered accountant. You Have to create a professional website with client testimonials, feature highlights and demo videos of your software. Use social media and content marketing to showcase the benefits of your services, such as cost savings, error reduction compliance accuracy and many more. Networking with local businesses and participating in professional forums can also help increase your visibility in the market.

Stay up to date and constantly improve:- Accounting laws and technology are evolving quickly, so keep your software updated with new versions to meet regulatory requirements after getting client feedback. Introduce AI-powered features like predictive analytics or fraud detection to stay ahead of competitors. Engage with your clients regularly to understand their challenges and improve your offerings.

By combining your expertise in accounting with cutting-edge technology, you can create a reliable and scalable bookkeeping solution that not only supports businesses but also establishes you as a leader in this field. Start small, focus on client needs, and let your service grow along with your reputation.

Dr Rajiv Kovil |8 Answers |Ask -Follow

Diabetologist - Answered on Dec 18, 2024

Asked by Anonymous - Dec 08, 2024Hindi

Health

My hba1c is 6.4 and fasting blood sugar is 101 and post meal it's 102 ..my doctor suggested me to take medicine but I'm not taking it and trying to change my lifestyle and diet also.will it work for me or I ll have to take diabetes medicine.doctor said that's if you don't take it your internal organs ll be effected.I have thyroid problem..plj suggest something

Ans: Whats your age
Body weight
Do u have any other complications.
You can try an intensive lifestyle change for 6 months and try to lose 10% weight

Radheshyam Zanwar |1104 Answers |Ask -Follow

MHT-CET, IIT-JEE, NEET-UG Expert - Answered on Dec 18, 2024

Asked by Anonymous - Dec 04, 2024Hindi

Career

Can My Son take up his career as Commercial Pilot after his +2 CBSC having M,P,C & Bio Subjects? What would be his future? Is it advisable to take immediately after +2 ? Pls let know. Thanks.

Ans: Hello Dear.
Your son can be admitted to the commercial pilot course after his 12th (i.e. +2 grade) with MPCB subjects. He must follow the course's guidelines and percentile requirements. It would be suggested that one should take the admission immediately after the 12th. The future of the commercial pilot is very bright provided one should have a keen interest in it. Many students initially choose this profession, but later they get disappointed. Before choosing such courses, one should take immense care. The lifestyle of a commercial pilot is different than that of a normal person. It would be better to check the physical fitness, mental fitness, and other parameters of your son before choosing this career.
Best of luck to your son for the upcoming examination and his bright future.

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

Radheshyam

Prof Suvasish Mukhopadhyay |254 Answers |Ask -Follow

Career Counsellor - Answered on Dec 18, 2024

Asked by Anonymous - Nov 15, 2024Hindi

Career

Hi iam 33 year old want to start career in data analysis

Ans: Yes, you can. But before that learn about it from net and YOU TUBE and practise it for three months. Then go for a good certificate course which is having collaboration with a reputed IIT. Best of luck. Just follow me. May God Bless You. Professor......................................:)

Prof Suvasish Mukhopadhyay |254 Answers |Ask -Follow

Career Counsellor - Answered on Dec 18, 2024

Question by Prashasthi - Nov 27, 2024Hindi

Career

I am 22 yrs old, preparing for UPSC, gave one attempt didn't clear it. I am not feeling well mentally and would require professional help but my parents are not willing to pay for it. What career options do I have? Can I prepare for UPSC while being financially independent? I am a BSc.B.Ed Mathematics Graduate. And I also don't know how to convince my parents.

Ans: It will be difficult to convince your parents. It's good you lost only one year, there are many candidates who have lost 4-5 years for repeated attemmpt of UPSC. UPSC is a big trap and hardly very few percentage clears it. First engage yourself, then try. Since you are B.Sc, B.Ed try for teaching job in schools, if you don't get start online and off line tuitions. Once you start earning you will feel happy and your minds will be fresh. Then you try for UPSC parallely. At least even if you fail you will have teaching experience. Start preparing for UPSC once you start earning. Best of luck. Just follow me. May God Bless You. Professor......................................:)

See more questions »

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.

Video Reply
Audio Reply

WhatsApp
Facebook
Twitter
Copy link

Delete

Close

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus

Sign up

email

uname

mobile no

Country Code

Mobile number

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

LOGIN

x