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Mihir

Mihir Tanna  |883 Answers  |Ask -

Tax Expert - Answered on Jul 25, 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
Krishnan Question by Krishnan on Jul 25, 2023Hindi
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I am an NRI. My income in India is interest from Savings bank account and FD which less than taxable limit ( @ Rs.30,000 ). Which ITR form I Should file for getting refund of TDS?

Ans: In case of NR having income from other sources, ITR 2 is applicable.
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 Kalirajan  |5183 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 24, 2024

Asked by Anonymous - Jul 07, 2024Hindi
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Dear sir, My husband retaired from tyre factory He earned 1 Lack permonthly. We spend money for children education and we bought one house. Now my husband pension just 4000 and my salary 50k only. My two son are studying. How i will manage current economic situation. After retairement at the age what job he can do? Please give suggestion.
Ans: Current Financial Situation Analysis
Let's assess your current financial situation and explore potential solutions to manage it better.

Income Sources:

Your husband's pension: Rs 4,000
Your salary: Rs 50,000
Major Expenses:

Children's education
Household expenses
Housing costs
It seems that your combined income is Rs 54,000 per month. However, managing with this amount, given your expenses, is challenging.

Immediate Financial Management Steps
Budgeting:

Create a detailed budget. Include all expenses: education, groceries, utilities, and housing.
Track spending and identify areas to cut costs.
Emergency Fund:

Maintain an emergency fund. It should cover at least 3-6 months of expenses.
If you don’t have one, start building it slowly by saving a small amount each month.
Debt Management:

Prioritize paying off high-interest debts first.
Avoid taking on new debt if possible.
Increasing Income
Part-Time Jobs:

Your husband can explore part-time or freelance work. Options include consulting, tutoring, or clerical work.
Websites like Freelancer, Upwork, or local classifieds can offer opportunities.
Skill Development:

Invest in courses or training programs to enhance skills.
This can open up new job opportunities with better pay.
Utilize Assets:

If you have assets like property or gold, consider renting out space or selling non-essential items.
Education Planning
Scholarships and Grants:

Look for scholarships and grants for your children’s education. Many organizations offer financial aid based on merit or need.
Research online or consult school advisors for available options.
Education Loans:

Consider taking education loans if necessary. Choose options with favorable interest rates and repayment terms.
Investment Strategy
Mutual Funds:

Invest in mutual funds through a Certified Financial Planner. They provide professional management and diversify risk.
Opt for regular funds rather than direct funds. Regular funds offer professional advice and support from a CFP.
Avoid Real Estate Investment:

Given your current financial situation, avoid investing in real estate. It requires significant capital and is not liquid.
Actively Managed Funds:

Prefer actively managed funds over index funds. Actively managed funds have the potential for higher returns as they are professionally managed to outperform the market.
Long-Term Planning
Retirement Planning:

Ensure you are saving for retirement. Invest in options like PPF or NPS.
Consult a Certified Financial Planner to create a retirement plan tailored to your needs.
Insurance:

Ensure you have adequate life and health insurance coverage.
It protects against unforeseen circumstances and reduces financial burden during emergencies.
Final Insights
Managing your current economic situation requires careful planning and disciplined financial management.

Focus on budgeting, increasing income, and making informed investment choices. Seek scholarships for education and invest in mutual funds with professional guidance.

Your husband can explore part-time job opportunities to supplement the household income.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

...Read more

Ramalingam

Ramalingam Kalirajan  |5183 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 24, 2024

Asked by Anonymous - Jul 04, 2024Hindi
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Dear sir, I am a railway employee, I am covered under NPS Scheme, can I also open a vpf and PPF account simultaneously with my nps savings?
Ans: Assessing the Possibility of Multiple Savings Schemes
You are covered under the NPS Scheme. It's great to see you considering other savings options. Yes, you can open both a VPF and a PPF account simultaneously with your NPS savings.

Benefits of Opening a VPF Account
The Voluntary Provident Fund (VPF) is a good option. It offers the same interest rate as the EPF. Contributions are voluntary, and you can choose how much to invest.

Tax Benefits: Contributions to VPF are eligible for tax deduction under Section 80C.

Risk-Free Returns: The returns are guaranteed and risk-free.

Long-Term Savings: Helps in building a substantial corpus over time.

Benefits of Opening a PPF Account
The Public Provident Fund (PPF) is another excellent option. It is backed by the government, ensuring safety and stable returns.

Tax Benefits: Contributions to PPF are eligible for tax deduction under Section 80C.

Tax-Free Interest: The interest earned is tax-free.

Long-Term Investment: It has a lock-in period of 15 years, encouraging long-term savings.

Combining NPS with VPF and PPF
Combining NPS, VPF, and PPF can provide a balanced portfolio. Each scheme has its unique benefits. Together, they can help you achieve financial stability and security.

Diversification: Spreading your investments across these schemes reduces risk.

Tax Efficiency: Maximizes your tax benefits under different sections of the Income Tax Act.

Stable Returns: Ensures a mix of market-linked and fixed returns.

Professional Insight on Investment Strategy
It is prudent to diversify your investments. Each of these schemes offers different benefits and serves different financial goals.

Risk Management: NPS provides market-linked returns which can be volatile. VPF and PPF provide stability.

Flexibility: NPS allows partial withdrawals for specific needs. PPF has a lock-in but can be partially withdrawn after 7 years. VPF can be withdrawn under certain conditions.

Retirement Planning: These schemes together can create a substantial retirement corpus.

Additional Considerations
While these schemes offer many benefits, consider your financial goals. Assess your risk appetite and investment horizon.

Regular Monitoring: Keep track of your investments. Adjust them based on your financial goals and market conditions.

Consult a CFP: For a personalized plan, consult a Certified Financial Planner. They can help tailor an investment strategy to meet your specific needs.

Final Insights
Balancing NPS, VPF, and PPF can be a smart move. It provides a diversified portfolio with tax benefits, stability, and growth potential. Regularly review and adjust your investments to ensure they align with your financial goals.

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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