Home > Money > Question
Need Expert Advice?Our Gurus Can Help
Mihir

Mihir Tanna  |961 Answers  |Ask -

Tax Expert - Answered on Nov 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
MOHAN Question by MOHAN on Nov 18, 2023Hindi
Listen
Money

I am retired and have some investments in mutual fund. If I redeem funds for Rs 3 lacs, how much tax i have to pay and what is the basis of calculation. Thanks

Ans: Tax on redemption of mutual fund depends on holding period and type of scheme. Equity and debt scheme have different tax rate.

Short term gain from equity based schemes will be taxed @15%
Long term gain from equity based schemes will be taxed @10% above 1 lakh
Short term gain from debt based schemes will be taxed slab rate
Long term gain from debt based schemes will be taxed @20%
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.
Money

You may like to see similar questions and answers below

Ramalingam

Ramalingam Kalirajan  |6995 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 01, 2024

Asked by Anonymous - Apr 11, 2024Hindi
Listen
Money
Am a senior citizen and pensioner. For FY 2023-24, i have to, may be, pay LTCG from equity mutual fund sale. 2.76 lacs received as sale proceeds. Statement provided by fund house shows '0' tax with indexation and 1.30 lacs without indexation. Out of the sale proceeds i have reinvested 1.00 lacs in ELSS fund. What will be my tax amount and which I. T. Return form should be used. Thanks n Regards
Ans: Based on the information you've provided, it's likely you won't have any LTCG tax liability for FY 2023-24. Here's why:

Sale proceeds: Rs. 2.76 lakhs
Reinvestment in ELSS: Rs. 1.00 lakh
ELSS (Equity Linked Savings Scheme) investment qualifies for deduction under Section 80C of the Income Tax Act. Up to Rs. 1.5 lakh invested in ELSS can be deducted from your taxable income.

Taxable LTCG (if any): Sale proceeds (Rs. 2.76 lakh) - Reinvestment (Rs. 1.00 lakh) = Rs. 1.76 lakh (assuming no indexation benefit for simplicity).
However, since your ELSS investment is Rs. 1.00 lakh, which is more than the potential taxable LTCG of Rs. 1.76 lakh, your entire LTCG might be exempt under Section 80C.

Tax implication: With full exemption under Section 80C, you likely won't have any LTCG tax to pay for FY 2023-24.

IT Return Form:

Considering the potential for minimal or no taxable income, ITR Form 1 (Sahaj) might be suitable for you. However, it's always best to consult a tax professional for confirmation based on your complete financial picture.

Disclaimer: This is a simplified analysis based on the information provided. Consulting a registered tax advisor is recommended for personalized advice considering your specific tax situation and any other income sources you might have.

..Read more

Ramalingam

Ramalingam Kalirajan  |6995 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 27, 2024

Asked by Anonymous - Jun 28, 2024Hindi
Listen
Money
Hi Do i have to pay any taxes during the redemption of mutual fund i have a corpus of 12 lakhs N wat inestment plan i should hv for my 17 yr old daughter n 8 yr old son with monthly investment of 20k
Ans: When you redeem mutual funds, you may need to pay taxes. This depends on the type of mutual fund and the holding period.

Equity Funds: Gains from equity mutual funds held for over a year are long-term capital gains (LTCG). LTCG over Rs 1 lakh are taxed at 10%.

Debt Funds: Gains from debt funds held for over three years are long-term capital gains. These are taxed at 20% after indexation. Gains from debt funds held for less than three years are short-term capital gains (STCG). STCG are added to your income and taxed as per your income tax slab.

Hybrid Funds: Taxation depends on the equity and debt components. For hybrid funds with over 65% equity, taxation is like equity funds. Otherwise, it is like debt funds.

Ensure to consult a tax professional for detailed guidance on your specific case.

Investment Plan for Your Children

Investing for your children's future is crucial. Here’s a structured plan for your 17-year-old daughter and 8-year-old son.

Assessing Goals and Time Horizons

Daughter: She will need funds soon for higher education or other expenses. Your investment horizon is short-term (1-3 years).

Son: You have a longer horizon (10+ years) for his higher education and other goals.

Short-Term Investment Strategy for Your Daughter

Since you need funds soon, opt for safer investments.

Debt Mutual Funds: Suitable for short-term goals. They offer better returns than savings accounts and fixed deposits.

Liquid Funds: They are low-risk and provide reasonable returns. Suitable for funds needed in a year or less.

Ultra-Short Duration Funds: These are slightly higher risk but can offer better returns than liquid funds.

Long-Term Investment Strategy for Your Son

You have time to take advantage of the power of compounding.

Equity Mutual Funds: These are ideal for long-term goals. They offer higher returns but come with market risks.

Diversified Equity Funds: They spread the risk across various sectors. Good for building wealth over the long term.

Systematic Investment Plan (SIP): Invest regularly in equity funds. This mitigates market volatility and averages out the cost of investment.

Balancing Your Investments

Regular Monitoring: Review your investments regularly. Adjust them based on market conditions and goal progress.

Diversification: Spread your investments across different asset classes. This reduces risk and optimizes returns.

The Benefits of Actively Managed Funds

Actively managed funds offer several advantages over index funds.

Potential for Higher Returns: Skilled fund managers aim to outperform the market.

Flexibility: Managers can make timely decisions based on market conditions.

Risk Management: Active funds can avoid poor-performing stocks or sectors.

Disadvantages of Direct Funds

Investing in direct funds has some drawbacks.

Lack of Guidance: You may miss out on professional advice.

Time-Consuming: Managing investments yourself requires time and effort.

Potential for Mistakes: Without expert guidance, there's a risk of making uninformed decisions.

Using Regular Funds with a Certified Financial Planner

Professional Advice: A Certified Financial Planner (CFP) can provide tailored advice.

Better Planning: CFPs help in aligning investments with your financial goals.

Peace of Mind: You get professional support, reducing stress and ensuring better financial health.

Final Insights

Investing for your children's future requires careful planning. Use debt funds for short-term needs and equity funds for long-term goals. Regular monitoring and professional advice will help you achieve your financial goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Prof Suvasish

Prof Suvasish Mukhopadhyay  |19 Answers  |Ask -

Career Counsellor - Answered on Nov 08, 2024

Prof Suvasish

Prof Suvasish Mukhopadhyay  |19 Answers  |Ask -

Career Counsellor - Answered on Nov 08, 2024

Listen
Career
I am engineer with 16 years of IT experience and now a break of 11 yrs. But in 11 yrs I had been taking Quantitative aptitude lectures as a visiting faculty in various engineering and MBA colleges and also done Mutual fund certification. I haven't been siting but doing many things professionally in last 11 yrs(In my subject of interest as Maths, Teaching, Finance, Accounting, Wealth Management). I was thinking of doing ESG certification. What kind of role I would get if i am CFA ESG certified.I am looking for Professionally and intellectually engaging role where I can contribute to Society. Not a very NGO type( I have tried working with few NGO's)
Ans: I won't recommend you to go for ESG certification unless you are having a background of Env. Engg and Environmental Impact Assessment. The certificate course of ESG is costly also. I would request you to open your own academy ( if off line not possible then online) and go for only one subject. Let me know your age.Focus only on one subject. You have explored many areas and now you are perplexed. Here the questions are assigned to me through rediffmail. So second time whether your question will come to me or not is not known to anyone of us. Due to the policy I can’t share my email ID and Phone Number. But I would request you to follow me in LINKEDIN and send request so that I can accept you, then through LINKEDIN I can counsel you in the future multiple times. Through LINKEDIN I will be readily and easily accessible. I have counselled and changed thousands of lives. As long as I am there I won’t allow you to be defeated. Mind that always I am there with you like an invisible shadow to show you the right career path.

...Read more

Ravi

Ravi Mittal  |403 Answers  |Ask -

Dating, Relationships Expert - Answered on Nov 08, 2024

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.

Close  

You haven't logged in yet. To ask a question, Please Log in below
Login

A verification OTP will be sent to this
Mobile Number / Email

Enter OTP
A 6 digit code has been sent to

Resend OTP in120seconds

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

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

Already have an account?

Enter OTP
A 6 digit code has been sent to Mobile

Resend OTP in120seconds

x