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Mihir Tanna  |851 Answers  |Ask -

Tax Expert - Answered on Dec 06, 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
George Question by George on Aug 23, 2023Hindi

Am salaried earning around 50k per month, apart from this am getting a remuneration of Rs. 6000/- per month under section 194J, the company says its mandatory to deduct tax of 10%. Is there any form which can be submitted, so that 10% is not deducted on monthly remuneration. Am not attracting any tax as have home loan, tution fees , investments, medical insurance and NPS.

Ans: You can file application online at Traces portal in Form 13 for obtaining NIL TDS certificate from TDS officer.
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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Mihir Tanna  |851 Answers  |Ask -

Tax Expert - Answered on Mar 13, 2023

Asked by Anonymous - Mar 06, 2023Hindi
Dear Mihir, My income is 13.66 lac per annum. My company has been deducting TDS to an extent of 2 lac . I fail to understand the reason. My house rent & electricity bill is getting paid by the company. House rent is shown as rent allowance in the pay slip & electricity bill is paid upon furnishing the bill every month. They say that these are perquisites and are taxable. I have not been told before about the same. Please guide me. This is what they are showing...Please help me in saving this tax...I am clue less about this. Please find your Tax Calculation Sheet below.  Income Tax Computations With Rent/Without Perquisites With out Rent/With Perquisites Gross Salary (includes Employer contribution to NPS **) 1415198 1320496 Exemptions U/s 10   House Rent Allowance 101999 0 Gross Salary after Section 10 Exemptions 1313199 1320496 Deduction U/s 16 Standard Deduction (Sec 16 ia) 50000 50000 Professional Tax (Sec 16 iii) 2400 2400 Gross Total Income 1260799 1268096 Deductions under chapter VI-A     Investments  ( Sec 80C) 150000 150000     Contribution to NPS (Sec 80CCD (1b) 10000 10000     Medical Insurance Premium (Sec 80D) 15000 15000     Total 175000 175000 Net taxable income 1085800 1093100 Tax on Total Income ( as per applicable slabs)     Income Liable to Tax at Normal Rate 138240 140429     Short Term Capital Gains (Charged @ 15%) 0 0     Long Term Capital Gains (Charged  @ 20%) 0 0     Long Term Capital Gains (Charged @ 10%) 0 0     Winnings from Lottery (Charged @ 30%) 0 0 Total Tax Due 138240 140429 Surcharge on Tax 0 0 Education Cess @4% 5530 5617 Total Tax Due 143770 146046 Less Tax Deducted Till Date- Employer 51000 51000          Other TDS deduction    0 0 Balance Tax to be deducted 92770 95046 Remaining months in the Year 2 2 Tax Per Month 46385 47523 Old Regime Old Regime
Ans: If rent and electricity is paid by the company, it is considered as perquisites. To save tax, you can invest additional 40k in NPS, you can pay additional mediclaim premium.

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Ramalingam Kalirajan  |3899 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 03, 2024

if my basic salary is less than Rs. 15,000.00/ month then is it right to deduct the employer contribution Rs. 1,800.00/-
Ans: Understanding Employer Contribution to Provident Fund for Basic Salary Below Rs 15,000
When your basic salary is less than Rs 15,000 per month, there are specific guidelines for employer contributions to the Provident Fund (PF). Let’s delve into the details to understand whether it is correct to deduct Rs 1,800 as the employer’s contribution.

Basics of Provident Fund Contributions
The Provident Fund is a social security scheme for employees. It ensures savings for retirement. Both the employee and employer contribute to the PF. The contributions are usually a percentage of the employee's basic salary plus dearness allowance (DA).

Contribution Rates
Typically, the employee contributes 12% of the basic salary plus DA to the PF. The employer also contributes 12%, but this is split into two parts: 8.33% goes to the Employee Pension Scheme (EPS) and the remaining 3.67% goes to the Employee Provident Fund (EPF).

Specific Case: Basic Salary Below Rs 15,000
If your basic salary is below Rs 15,000, the employer’s contribution to the PF follows a specific structure:

Employee Contribution: 12% of basic salary + DA
Employer Contribution: 12% of basic salary + DA, split between EPF and EPS
Maximum Limit on Employer’s EPS Contribution
For EPS, the employer’s contribution is capped. The maximum salary considered for EPS contribution is Rs 15,000. Thus, 8.33% of Rs 15,000 (which is Rs 1,250) is contributed to EPS. Any amount above this goes to the EPF.

Calculation Example
Let’s assume your basic salary is Rs 12,000 per month.

Employee Contribution: 12% of Rs 12,000 = Rs 1,440
Employer Contribution:
EPS: 8.33% of Rs 12,000 = Rs 999.60 (capped at Rs 1,250 if basic salary is Rs 15,000)
EPF: 3.67% of Rs 12,000 = Rs 440.40
Scenario: Rs 1,800 Employer Contribution
If the employer is contributing Rs 1,800 when your basic salary is less than Rs 15,000, it’s essential to check the distribution between EPS and EPF. It could mean higher contributions towards EPF, which is allowed.

Is Rs 1,800 Deduction Correct?
The correctness depends on how the Rs 1,800 is split:

EPS Contribution: Should be a maximum of 8.33% of Rs 15,000 or Rs 1,250.
EPF Contribution: The remaining amount after deducting the EPS portion from the total 12% of basic salary.
Empathising with Your Concern
Understanding these deductions can be confusing. It’s important to ensure clarity on how your contributions are calculated. Checking your pay slip and the contribution details can help.

Importance of Accurate Deductions
Accurate PF contributions ensure sufficient retirement savings. It also ensures compliance with legal requirements. Any discrepancies can affect your savings and benefits.

Reviewing Your Payslip
Check Basic Salary: Ensure the basic salary mentioned is accurate.
Review Deductions: Verify the PF deductions.
Seek Clarification: If there are discrepancies, discuss with your HR department.
Benefits of PF Contributions
Tax Savings: Both employee and employer contributions qualify for tax benefits.
Retirement Savings: Ensures a corpus for post-retirement life.
Pension: Part of the contribution goes towards pension, providing regular income after retirement.
Analytical Perspective
From an analytical perspective, understanding the PF structure helps in financial planning. Knowing the exact deductions and contributions clarifies your take-home salary and retirement benefits.

Assessment of Employer Contributions
Regularly assessing employer contributions ensures that they align with statutory requirements. This assessment also helps in identifying any errors early, ensuring corrective measures.

Consulting a Certified Financial Planner
A Certified Financial Planner (CFP) can provide detailed insights into your PF contributions. They can also help you understand the impact on your overall financial planning and retirement savings.

To conclude, if your basic salary is less than Rs 15,000, the employer's contribution should align with the statutory guidelines. Rs 1,800 as an employer contribution can be correct, depending on the split between EPS and EPF. Regular review and consultation with a CFP can ensure accurate contributions and optimal retirement savings.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,


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Nayagam P P  |596 Answers  |Ask -

Career Counsellor - Answered on Jun 21, 2024


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Dating, Relationships Expert - Answered on Jun 21, 2024

Asked by Anonymous - Jun 14, 2024Hindi
I am 29 year old bengali female married to a Bihar guy. We know each other since college and we have been married for 3 years. Things began to turn bitter after few months of our marriage. My husband is a govt. Employee has seen extreme poverty in his childhood. I belong to upper middle class family. Both of our parents were against our marriage. Now his family especially mother pressurise him for money that is beyond our reach. She thinks I stop him to give money. She constantly abuses my husband. He has two elder brother who are good for nothing,both are married have kids and even they expect financial help from us. I am very tensed we can't even think of spending a penny for our personal enjoyment. My husband understands all these but everytime falls into prey of my MIL'S emotional drama. She fakes illness or fights for money. I can't even share this with my family.
Ans: Dear Anonymous,

I am very sorry to hear that you are in such a situation. It is indeed a very complex situation. Financial troubles can disrupt marital bliss. But it has to be addressed, even if it leads to conflicts. Speak to your husband about your concerns. Politely tell him that his family's demands and his response to them are causing a financial crisis in your home. Sit together and discuss how much financial support can you provide to his family and what's beyond reasonable. Have a monthly budget and since his family will continue asking for money, keep some money (what you have decided together) for the same. Keep an emergency fund and most importantly, have a decent amount of savings.

After all these discussions, if things still don't change, consider going for marriage counseling. You gave up an affluent life to be with him; he can surely give up certain things that are clearly unreasonable. A third neutral party can point this out without you having to say it.

You can also suggest your husband push his family members to get better jobs so that they can provide for themselves. Besides everything, don't forget to take care of yourself. Be in touch with your family and share your worries with someone close to you. And maintain regular check-ins with your husband. It can't be easy on him either.

Best Wishes.

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Nayagam P

Nayagam P P  |596 Answers  |Ask -

Career Counsellor - Answered on Jun 21, 2024

Asked by Anonymous - Jun 21, 2024Hindi
Which institution is best to subscribe for online prepation of JEE. Candidate here has also joined a offline/regular classes in a small town. Please suggest.
Ans: ALLEN Online Test Series. User-friendly / Instant Result with Answers and Time Taken for Each Question.

Some IMPORTANT Preparation Strategies for JEE Preparation: (Wherever the Subject 'You' is used here, it refers for your Candidate). (1) Whenever you study at home, study for 45-minutes. Then take a break of 10-minutes when you can move away from your study table, walk, have some water & relax. If you continue studying beyond 45-minutes, your concentration power will go down, resulting to low output. Most students commit this mistake. (2) On daily basis (morning or evening whichever will be convenient to you), do yoga or meditation or physical exercises or play any games / sports for at least 30-45 minutes. This will further reduce your stress / distractions. (3) Study tough topics / tough subjects (applicable to you) early morning with your fresh mind. (4) Eat a lot of green vegetables / fruits which you can afford for & avoid soft drinks (5) Every day nigh, before going to bed, revise whatever you have studied during the day. (6) Also, revise every week whatever you have covered till date (here your short-notes which you should prepare will be helpful). (7) Keep practizing questions on topics which you have covered either offline or online (8) Give utmost importance to wrongly answered / difficult / complicated / tough questions and have a separate note-book specially for this for each subject (PCM) (8) You might be aware that JEE rank is allotted on the basis of highest score in Maths, followed by Physics & Chemistry. Practice more and more in Maths, till you reach Speed & Accuracy (9) By the end of 11th / 12th standard (December-January), attempt fully syllabus online test series, evaluate and analyze your performance such as, (a) which topic / unit / concept you are weak which needs your revision and improvement as this will disturb you when you appear in actual JEE exam (b) abnormal time taken to attempt any question which you can come to know from Online Test Series which you should reduce (c) which questions you skipped and why? (10) Make 100% utilization of 'Doubt Clearing Sessions' of Offline Class you have joined. All the BEST.

To know more on ‘ Careers | Education | Jobs’, please ask / FOLLOW me in RediffGURU here.

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Ramalingam Kalirajan  |3899 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 21, 2024

I am 37 years old , and having 2.10 lacs salary in hand, I have SIP of Rs. 20k, apart from SIP I have invested in stock current market value is 10L, I have three flats which is cost approx 2.5 cr, i have a home loan as well of 35 lacs. Kindly guide me how I can achieve the milestone of 10 crore corpus in next 15 years.
Ans: Achieving a significant corpus like Rs. 10 crores in 15 years requires careful planning, disciplined investing, and leveraging various assets and investment avenues. Let's explore a comprehensive strategy to reach this financial milestone.

Current Financial Snapshot
Income and Investments
At 37 years old, with a salary of Rs. 2.10 lakhs per month, you have a solid foundation. Here's a snapshot of your current investments:

SIP Investment: Rs. 20,000 per month
Stock Investments: Current market value of Rs. 10 lakhs
Real Estate Holdings: Three flats valued at approximately Rs. 2.5 crores
Liabilities: Home loan of Rs. 35 lakhs
Strategic Roadmap to Achieve Rs. 10 Crore Corpus
1. Optimize Investment Portfolio
Review Existing Investments
Evaluate the performance and alignment of your current investments with long-term goals:

Stocks: Assess the potential for growth and consider diversification if necessary.
Real Estate: While real estate is valuable, ensure it aligns with your liquidity needs and financial goals. Consider rental income potential versus capital appreciation.
SIPs: Continue disciplined investing. Evaluate if the current SIP amount needs to be increased to meet the Rs. 10 crore target.
2. Increase Savings and Investments
Maximizing Monthly Contributions
Increase SIP Amount: Depending on your surplus income, consider increasing the SIP amount gradually. This accelerates wealth accumulation.
Bonus and Windfalls: Direct any windfall gains towards investments rather than discretionary spending.
3. Diversification and Risk Management
Balancing Risk and Return
Asset Allocation: Diversify across asset classes such as equity, debt, and possibly alternative investments like gold or international funds.
Risk Management: Regularly review and rebalance the portfolio to mitigate risks associated with market volatility.
4. Debt Management
Addressing Home Loan
Early Repayment: Explore options to accelerate home loan repayment to reduce interest burden and improve cash flow for investments.
Debt Consolidation: Consolidate high-interest debts if applicable to streamline finances and improve liquidity for investments.
5. Investment Avenues
Exploring Options Beyond SIPs
Equity Mutual Funds: Actively managed funds can potentially outperform passive funds like index funds due to strategic decisions by fund managers.
Debt Instruments: Consider debt funds for stability and regular income, balancing the portfolio against equity market fluctuations.
Systematic Transfer Plans (STP): Utilize STPs to stagger lump sum investments into equity funds, reducing timing risks.
6. Professional Guidance and Monitoring
Leveraging Certified Financial Planner (CFP)
Holistic Financial Planning: Engage with a CFP to develop a customized financial plan considering income, investments, goals, and risk appetite.
Periodic Reviews: Regularly review investment performance and adjust strategies based on changing life circumstances and market conditions.
Addressing Existing Policies and Investments
7. Insurance and Investment Policies
Surrender and Reinvest
LIC, ULIPs, Investment cum Insurance Policies: Evaluate existing policies for surrender value and consider reinvesting in more lucrative investment avenues like mutual funds for better returns.
Legal and Recovery Aspects
8. Recovering Debt
Legal Recourse
Documentation: Gather all evidence and communication related to the debt owed by your friend.
Legal Consultation: Seek legal advice to explore options like sending legal notices, mediation, or filing a suit in a court of law if necessary.
Financial Impact: While pursuing legal action, continue focusing on building your financial assets through disciplined investments.
Final Insights
Achieving a corpus of Rs. 10 crores in 15 years demands a balanced approach involving disciplined savings, strategic investments, and proactive debt management. Leveraging existing assets like stocks and real estate alongside increasing SIPs and exploring diverse investment avenues is key. Engaging with a Certified Financial Planner ensures a structured approach, optimizing your path towards financial independence and security.

Best Regards,

K. Ramalingam, MBA, CFP

Chief Financial Planner


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Dr Hemalata

Dr Hemalata Arora  |194 Answers  |Ask -

General Physician - Answered on Jun 21, 2024

I am 77 years old. I was taking medicine for high BP from the age of 50 years.I was very active doing yoga regularly in the morning and doing walk in the evening. I do not smoke and do not drink as well. I am a person with height weight normal as per the standard chart. I was very active doing my job and never use to get tired. I worked for six years in Central Govt, thirty years in PSU and seventeen years in Private Organisations. I used to believe that " a Person should never retire from work". I stopped going to work from March 2020 after the Covid 19 spread in India. During a routine check up, my doctor mentioned on my prescription as "Stable Angina". I asked about it but he replied, it is nothing, do not worry. I was not having any pain etc. But this remark of Stable Angina. was written on my prescription on every visit. In June 2022, I got a CT Angiography done just to know the deposits in my arteries. It was found to be more in all the five arteries. But I had no symptoms of any pain or breathlessness while moving or working.In August 2022, I got some problem in my left eye, went to eye specialist, he observed a little deposit in eye nerve. He tried to break it but could not. I went for Angiography. All the arteries were found with deposits but still I had no pain etc. I was operated for Heart By pass Surgery on 22.9.22 and released from Hospital on 1.10.22. I was put on High Protein Diet. During Jan 23 to July 23, my Blood Urea Nitrogen & Urea got up the required level.High Protein Diet was stopped and advised take more Fruits. BUN & Urea came normal. More fruits were being taken. It caused potassium level to go up. Then in fruits also restriction imposed on banana, coconut water & citrus fruits. Now I am on restricted diet. BUN & Urea are normal but potassium remains fluctuating. Now I am alright but feel very weak. I do little walk but get tired soon. I am not able to do yoga due to low energy. Vitamin supplements are being taken but not getting strength. Even feels stability problem. While standing feels giddiness and feels that i may fall. I am also feeling severe pain in my arms muscles. Now I am taking medicines for BP, Cholesterol, Blood Thinner, Enlarged Prostrate Gland, Vitamin supplement. I always think why I am feeling so many problems after Heart Bye Pass Surgery. Please advise.
Ans: I feel you need your medications adjusted. They're probably making you feel like this.

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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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