I am retired person and working as retainer in a reputed company with more than 5000000 fee and also having capital gain. Which ITR I have to fill .

Ans: Hi Chittanand

I am assuming that the tax saving investments are fully available for deduction.

With that assumption, your tax saving by opting for the new tax regime would be about Rs. 23,000

Ans: There are special bank FDs for 5 years which are called as tax saving FDs. They have same characteristics as any other 5 year FDs but are locked in for 5 years. Tax Saver Funds are the ELSS (Equity Linked Saving Funds) Mutual Funds which invest 100% in equity, are locked in for 3 years and will give market linked returns, which in general have been higher than bank FDs. ELSS are also tax efficient. You need to decide how much volatility are you prepared to take and then invest accordingly.

Ans: Resident person having Income from Salary, Capital Gain and Other sources is required to file Income tax return in ITR 2.

Ans: You're welcome! If you have any more questions or need further assistance, feel free to ask. Best wishes on your financial journey!

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: Current Financial Overview
You are 40 years old.

You have mutual funds worth Rs. 1 crore.

You have equity worth Rs. 60 lakhs.

You have fixed deposits worth Rs. 35 lakhs.

Your PF is Rs. 18.5 lakhs.

Your PPF is Rs. 1 lakh.

Your monthly income is Rs. 1 lakh.

You need Rs. 5 crores by age 50.

Appreciating Your Progress
You have a solid financial base.

Your investments are well-diversified.

You have shown discipline in saving and investing.

Setting the Right Strategy
Mutual Funds
Mutual funds are a great choice.

They provide diversification.

Actively managed funds can outperform.

Continue with your current investments.

Consider increasing your SIPs.

This will accelerate your growth.

Equity Investments
Equity offers high returns.

It also carries higher risk.

Review your equity portfolio.

Ensure it aligns with your goals.

Consider consulting a Certified Financial Planner.

They can help optimize your equity investments.

Fixed Deposits
Fixed deposits are safe.

But they offer lower returns.

Consider moving some funds to mutual funds.

This can give you better growth.

Provident Fund (PF)
PF is a stable investment.

It offers good returns and tax benefits.

Continue contributing to your PF.

It will help secure your retirement.

Public Provident Fund (PPF)
PPF is also a safe investment.

But your current balance is low.

Consider increasing your contributions.

PPF offers tax-free returns.

Goal-Based Investing
Identify your specific goals.

Break them into short, medium, and long-term.

Align your investments with these goals.

Regular Review and Rebalancing
Review your portfolio regularly.

Ensure it aligns with your goals.

Rebalance if necessary.

This helps maintain your investment strategy.

Tax Planning
Use tax-saving instruments.

They reduce your taxable income.

Consider ELSS funds.

They offer tax benefits and good returns.

Emergency Fund
Maintain an emergency fund.

It should cover 6 months of expenses.

Keep it in a liquid account.

Health and Life Insurance
Ensure you have adequate health insurance.

Cover at least Rs. 10 lakhs.

Consider term life insurance.

Cover at least 10 times your annual income.

This means Rs. 1.2 crores.

Consulting a Certified Financial Planner
Consult a Certified Financial Planner.

They provide expert advice.

They help in making informed decisions.

They ensure your investments are on track.

Final Insights
You have a strong financial foundation.

Focus on increasing your investments.

Review and rebalance your portfolio regularly.

Ensure adequate insurance coverage.

Seek advice from a Certified Financial Planner.

This will help you achieve your Rs. 5 crore goal by age 50.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in