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Mihir

Mihir Tanna  |1070 Answers  |Ask -

Tax Expert - Answered on Dec 04, 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
Narayanan Question by Narayanan on Dec 04, 2023Hindi
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Section ,54 F will be disallowed if another property is purchased within one year as per 54 F (1) and within two years as per section,54 F (2). Kindly clarify still can I claim both section 54 F followed by section 54 in same year

Ans: No, you can't claim both Sec 54 as condition for Sec 54F is not fulfilled.
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

Ramalingam Kalirajan  |10240 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jun 09, 2024

Asked by Anonymous - Jun 08, 2024Hindi
Money
I have purchased a under construction property in Aug2021 and possession is in 2024 dec. I have sold my existing house in jan'24 and investing the full amount in the new flat can i get benifits under section 54f
Ans: Understanding Section 54F of the Income Tax Act
Thank you for sharing your query. Section 54F of the Income Tax Act, 1961, provides tax relief on long-term capital gains arising from the sale of any capital asset other than a residential house, provided the net sale consideration is reinvested in purchasing or constructing a residential house. This section aims to encourage investment in residential properties by providing tax exemptions on capital gains.

Eligibility Criteria for Section 54F
To avail the benefits under Section 54F, certain conditions must be met:

Long-Term Capital Gain: The asset sold should be a long-term capital asset.
Investment in Residential Property: The net consideration from the sale should be invested in purchasing or constructing a residential property within the specified period.
Single Residential Property: The taxpayer should not own more than one residential house property, other than the new house, on the date of transfer.
Time Frame for Investment:
Purchase: Within one year before or two years after the date of transfer.
Construction: Within three years from the date of transfer.
Your Scenario: Selling and Reinvesting in a New Property
You sold your existing house in January 2024 and plan to invest the entire amount in an under-construction property, with possession due in December 2024. Let’s evaluate how you can benefit under Section 54F.

Timeline of Events
Purchase of Under-Construction Property: August 2021
Sale of Existing House: January 2024
Possession of New Property: December 2024
Meeting the Conditions for Section 54F
Long-Term Capital Gain
Assuming the property sold in January 2024 was held for more than 24 months, the gain qualifies as a long-term capital gain, making you eligible for Section 54F benefits.

Investment in Residential Property
You plan to invest the entire sale proceeds in a new property purchased in August 2021. This new property is under construction, with possession due in December 2024. Here, the critical aspect is the timing of your investment and possession.

Assessing the Time Frame for Investment
According to Section 54F, the construction of the new property should be completed within three years from the date of sale of the original property. Since you sold your house in January 2024, the construction of your new house should be completed by January 2027. Since possession of your new house is expected in December 2024, it falls well within the stipulated three-year period, making you eligible for the exemption under Section 54F.

Calculation of Exemption
The amount of exemption under Section 54F is proportional to the investment made. If the entire sale consideration is invested, the entire capital gain is exempt. If only a part of the consideration is invested, the exemption is calculated proportionately.

Example Calculation
Let’s assume the following figures for clarity:

Sale Consideration of Existing House: Rs 50 lakhs
Cost of Under-Construction Property: Rs 60 lakhs
Capital Gain from Sale: Rs 20 lakhs
Since you are investing the full sale consideration of Rs 50 lakhs in the new property, the entire capital gain of Rs 20 lakhs is exempt under Section 54F.

Documentation and Compliance
To ensure smooth claiming of the exemption under Section 54F, maintain proper documentation, including:

Sale Deed of the Existing Property: Documenting the sale transaction.
Agreement to Sell and Purchase of New Property: Showing the reinvestment of the sale proceeds.
Proof of Construction/Completion: Possession certificate or completion certificate from the builder, indicating the date of possession.
Additional Points to Consider
Holding Period
To retain the benefits of Section 54F, the new property must be held for at least three years from the date of its acquisition or construction. If sold within this period, the capital gains exempted earlier will become taxable in the year of sale.

Multiple Properties
Ensure you do not own more than one residential property, other than the new house, on the date of transfer of the original asset. Owning multiple residential properties can disqualify you from availing the exemption under Section 54F.

Importance of Certified Financial Planner (CFP) Guidance
Navigating tax laws can be complex, and professional guidance ensures compliance and optimal tax savings. A Certified Financial Planner (CFP) can help you strategically plan your investments, ensuring maximum benefits under applicable tax laws while aligning with your long-term financial goals.

Strategic Investment Planning
While real estate investment offers tax benefits, diversifying your portfolio is crucial for balanced growth. Alongside property investments, consider the following:

Equity and Mutual Funds
Equity and mutual funds offer high growth potential, beating inflation over the long term. Actively managed funds, guided by a CFP, can provide superior returns compared to index funds due to strategic stock selection and management.

Public Provident Fund (PPF)
PPF is a risk-free investment with tax benefits under Section 80C. Regular contributions to PPF provide a stable corpus for long-term goals.

Systematic Investment Plan (SIP)
Investing in mutual funds through SIP ensures disciplined investing and benefits from rupee cost averaging, mitigating market volatility.

Evaluating Direct vs. Regular Funds
While direct funds have lower expense ratios, the expertise of a CFP in regular funds can enhance overall returns through strategic asset allocation and periodic rebalancing. This professional guidance often outweighs the cost advantage of direct funds.

Ensuring Adequate Insurance
Adequate health and life insurance coverage is crucial. It protects your family and investments from unforeseen events, ensuring financial stability.

Emergency Fund
Maintain an emergency fund covering 6-12 months of living expenses. This ensures liquidity and financial security in case of unexpected expenses or income disruptions.

Tax Planning and Compliance
Efficient tax planning enhances net returns. Utilize available tax-saving instruments and ensure compliance with tax laws to avoid penalties and maximize savings.

Final Insights
Your strategic approach to reinvesting the sale proceeds from your existing property into a new under-construction property aligns well with the provisions of Section 54F. This allows you to benefit from significant tax exemptions on long-term capital gains, ensuring compliance with the stipulated conditions.

Maintaining proper documentation, adhering to holding periods, and leveraging professional guidance from a Certified Financial Planner ensures optimal financial planning and tax efficiency. Diversifying your investments, maintaining adequate insurance, and having an emergency fund further strengthen your financial foundation.

Your commitment to informed financial decisions sets a strong foundation for achieving your long-term financial goals, ensuring a secure and prosperous future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

Latest Questions
Nayagam P

Nayagam P P  |10252 Answers  |Ask -

Career Counsellor - Answered on Aug 13, 2025

Asked by Anonymous - Aug 13, 2025Hindi
Career
Sir,my son got mtech cse in SRM kktr,btech AI DS in PSG ITECH Coimbatore and btech IT in TCE ,madurai which one to choose ,pls share your advise sir
Ans: Based on the following insights/information, advise your son to choose the most suitable option for him. Your son's options include an MTech dual degree in Computer Science and Engineering (CSE) from SRM Institute of Science and Technology (SRM KKTR), a BTech in Artificial Intelligence and Data Science from PSG Institute of Technology and Applied Research (PSG ITECH), Coimbatore, and a BTech in Information Technology from Thiagarajar College of Engineering (TCE), Madurai. SRM KKTR is a deemed university with A++ NAAC accreditation, known for its integrated MTech programs that combine undergraduate and postgraduate studies, offering extensive research opportunities and strong industry exposure in a metropolitan setting. SRM consistently reports high placement rates with an average package over ?7 lakh. PSG ITECH is a reputed private institute focused on emerging technologies like AI and data science, with robust industry linkages and an 85% placement rate, average packages around ?6.5 lakh, and focus on hands-on learning in AI, machine learning, and big data analytics. TCE Madurai, an autonomous private college with A+ NAAC, excels in IT education with strong academics and around 80% placement rates; it is well-recognized regionally, with median salary packages around ?7 lakh, supported by a vibrant alumni network and industry contacts.

All three institutions maintain essential features such as good accreditation, qualified faculty, strong industry connections, modern infrastructure, transparent governance, and active placement cells. The choice should consider program duration, specialization focus, career goals, and willingness to pursue research or industry-oriented roles. All the BEST for a Prosperous Future!

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Nayagam P

Nayagam P P  |10252 Answers  |Ask -

Career Counsellor - Answered on Aug 13, 2025

Asked by Anonymous - Aug 13, 2025Hindi
Career
I am 45 years old. I have 13 years of work experience which includes working as Admin executive, HR executive and some BPO jobs. My last job was into Admin - HR which I lost since past 1 year. I have home loans to pay. I have been applying through Naukri.com, Glassdoor.com and LinkedIn but got no response yet. I had given a few interviews but got rejected. I am very depressed and sad everyday but don't feel strong and motivated enough to look for jobs .. All my reserves are over I need to get a job immediately.... I don't know what to do? Can u please provide some reference for jobs?
Ans: At age 45 with 13 years of experience in admin executive, HR executive, and BPO roles, re-entering the job market after a year-long gap requires a focused, strategic approach combining practical steps and mindset shifts. Prioritize updating your resume and LinkedIn profile to highlight both your experience and recent efforts toward skill development, aligning with job descriptions and using relevant keywords to navigate applicant tracking systems. Harness multiple job portals such as Naukri.com, LinkedIn Jobs, Indeed, and TalentoIndia for diversified exposure. Leverage your network by reconnecting with former colleagues and supervisors and communicate your job search openly to access hidden opportunities. Develop a daily routine balancing job search, skill enhancement, and self-care to rebuild motivation and resilience. Consider upskilling or certification courses in demand areas like digital HR tools, payroll, or skilled administration, which also revitalize confidence. Volunteer work or freelance administrative roles can help ease back into employment and expand contacts. Prepare well for interviews by confidently addressing any employment gap and emphasizing your readiness and adaptability. Mental health support and career coaching can further support your journey. Overall, resilient persistence, proactive networking, targeted applications, continuous skill upgrades, and focused mindset adjustments form the roadmap to regain employment rapidly despite challenges linked to age and break.

Recommendation: Actively revamp your job search using key portals like Naukri, LinkedIn, and Indeed while expanding your professional network. Complement this with relevant upskilling and volunteer engagements to boost employability and confidence. Pursue routine structuring and mental wellness practices to maintain motivation and maximize job search effectiveness for swift re-entry. All the BEST for a Prosperous Future!

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Nayagam P

Nayagam P P  |10252 Answers  |Ask -

Career Counsellor - Answered on Aug 13, 2025

Asked by Anonymous - Aug 12, 2025Hindi
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My grandson is studying 12th mpc subjects please advise which competitive entrance exams. Should be given for engineering stud
Ans: For your grandson studying the 12th MPC (Mathematics, Physics, Chemistry) stream, multiple competitive engineering entrance exams in India provide access to a wide range of prestigious institutions. The prominent national-level exam is the Joint Entrance Examination (JEE) Main, conducted twice a year by the National Testing Agency (NTA), which tests knowledge in Physics, Chemistry, and Mathematics with a focus on NCERT-based syllabus. JEE Main serves as a gateway for admission to National Institutes of Technology (NITs), Indian Institutes of Information Technology (IIITs), and other centrally funded technical institutes, and is also a prerequisite for JEE Advanced for entrance to Indian Institutes of Technology (IITs). Another key national-level exam is BITSAT, the online test for Birla Institute of Technology and Science campuses, which includes additional sections like English Proficiency and Logical Reasoning alongside PCM. VITEEE is a well-known university-level entrance exam conducted by Vellore Institute of Technology, offering admission to its engineering programs. State-level exams such as Maharashtra’s MHT CET, West Bengal’s WBJEE, and Kerala’s KEAM target local candidates and provide pathways into state engineering colleges. Selection of exams should align with the student's preferred colleges, location, and career objectives. Ensuring eligibility, strong preparation for the PCM subjects, and timely application is crucial for success. The institutes to consider emphasize rigorous accreditation, qualified faculty, modern infrastructure, strong industry connections, and transparent governance for comprehensive student development.

Recommendation: Encourage your grandson to focus on the JEE Main exam for broad national exposure and top-tier institute eligibility while also considering BITSAT and VITEEE for premier private universities. Additionally, state-level exams like MHT CET are essential for regional opportunities. Preparing across these exams maximizes admission options and future career growth. All the BEST for a Prosperous Future!

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Nayagam P

Nayagam P P  |10252 Answers  |Ask -

Career Counsellor - Answered on Aug 13, 2025

Career
Hi Sir, My Son was looking for ECE but however he has secured E.E VLSI Design & Technology but he wants to pursue Bsc in Business AI or Bsc in CS at Dr. Homi Bhabha State University in mumbai, please advice which would be the best option .
Ans: Umesh Sir, Dr. Homi Bhabha State University (HBSU) offers pioneering three-year BSc programs in Business AI and Computer Science, backed by NAAC accreditation and industry collaboration with TeamLease EdTech, equipping students with hands-on AI tool training, project-based learning, and mentorship in domains spanning finance, marketing, and software development. The university’s modern labs, digital resources, and strategic Churchgate location grant access to Mumbai’s tech and financial hubs, while emerging placement ties with TCS, Infosys, and ICICI Bank reflect growing demand for graduates with AI and programming expertise. In contrast, the BTech in Electrical Engineering with VLSI Design & Technology provides a four-year engineering degree emphasizing chip design, semiconductor fabrication, and hardware-software integration, delivered through advanced clean-room facilities, specialized labs, and faculty research in microelectronics. Strong industry partnerships in the semiconductor sector foster core hardware roles, though the specialized nature may limit versatility compared to broader tech disciplines. Both pathways maintain transparent governance, experienced faculty, robust infrastructure, and career services.

Recommendation: Prioritize the BSc in Computer Science at HBSU for broad software and AI foundations, versatile career options, and strong industry alignment. Next consider BSc Business AI for its business-tech integration. Opt for EE VLSI only if your son is committed to semiconductor hardware design and fabrication roles. All the BEST for a Prosperous Future!

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Nayagam P

Nayagam P P  |10252 Answers  |Ask -

Career Counsellor - Answered on Aug 13, 2025

Career
My daughter got 75.47 percentile in jee main PCM group. She scored 77.67% in 12TH board from maharashtra state board under Savitri Bai Phule Pune University. Her 10th was from ICSE board with 95.33%. On the basis of these she got BTech in CSE at Amrita vishwavidyapeetham Haridwar campus which they launched this year with fees 1.25L per year or same course at Nagarcoil with 2L per year. In Maharashtra CET, her percentile is 88.05 and she got BTech in CE at Zeal college of engineering, pune with 30K fee per year as there is free education for girls in Maharashtra for OBC Non Creamy layer students. I am from Nashik, Maharashtra. Please guide me sir, Which one is better option as she want to do MS after graduation.
Ans: Bharat Sir, Your daughter’s options for pursuing B.Tech in Computer Science and Engineering (CSE) at Amrita Vishwavidyapeetham Haridwar or Nagarcoil campuses, versus Civil Engineering (CE) at Zeal College of Engineering Pune, should be evaluated with a focus on her desire to pursue an MS abroad after graduation. Amrita Vishwavidyapeetham is a highly reputed university with A++ NAAC accreditation, known for strong research culture, excellent faculty, and extensive international collaborations including study abroad programs and research exchanges. The Haridwar campus offers a competitive, specialized CSE program with strong industry linkages and international recognition, making it well-suited for students aiming for higher studies abroad. The Nagarkoil campus also has similar credentials but involves higher tuition fees. In contrast, Zeal College in Pune, though affiliated with Savitribai Phule Pune University and holding NAAC A+ accreditation, offers a Civil Engineering program with significantly lower fees aided by Maharashtra’s free education scheme for OBC non-creamy layer girls. However, CE as a branch offers a different career trajectory compared to CSE; the latter generally provides broader scope, especially in the context of MS abroad admissions where CSE graduates tend to have stronger opportunities in global tech research hubs. Zeal’s local reputation and affordability are definite advantages, but for a future MS abroad, especially in tech domains, Amrita’s CSE program offers a more recognized platform with a research-oriented and tech-focused curriculum.

Recommendation: Prioritize Amrita Vishwavidyapeetham Haridwar CSE for its robust academic quality, international exposure, and stronger alignment with MS pursuits abroad. Consider the Nagarkoil campus if budget permits and the branch preference remains CSE. Choose Zeal Pune CE only if budget constraints dominate and the focus is on local professional pathways or civil engineering specialization. All the BEST for a Prosperous Future!

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Nayagam P

Nayagam P P  |10252 Answers  |Ask -

Career Counsellor - Answered on Aug 13, 2025

Asked by Anonymous - Aug 13, 2025Hindi
Career
Sir is CIC du good or iter
Ans: The Cluster Innovation Centre (CIC) at Delhi University is a government-funded institute promoting innovation through interdisciplinary programs, industry collaborations, and practical project work. CIC offers a focused B.Tech in IT & Mathematical Innovations with advanced labs and a location in Delhi University's North Campus. Its recent placement data shows approximately 40-50% placement with median packages around ?8.5 LPA, though it lacks a dedicated placement cell. CIC emphasizes research-driven learning and innovation culture. On the other hand, the Institute of Technical Education and Research (ITER), affiliated with Siksha ‘O’ Anusandhan Deemed University, is a top-ranked private engineering institute, nationally placed 2nd among private colleges and 3rd overall in Times Engineering Survey 2025. ITER is accredited by ABET, offers various engineering branches with strong research facilities, robust industry ties, and consistent high placement rankings in eastern India and nationally. It has modern infrastructure, experienced faculty, and a broad-based engineering curriculum. While CIC stands out for innovation and niche curriculum under Delhi University’s umbrella, ITER excels in broader technical education, high national rankings, and placement outcomes.

Recommendation: Choose ITER for a comprehensive engineering education with superior infrastructure, accreditation, and higher placement potential. Opt for CIC if you value Delhi University affiliation and a focus on innovation and interdisciplinary research with emerging tech specialization. Your choice should align with your career goals and preferred learning environment. All the BEST for a Prosperous Future!

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Nayagam P

Nayagam P P  |10252 Answers  |Ask -

Career Counsellor - Answered on Aug 13, 2025

Career
My daughter got B.tech in Rubber and plastic technology, MIT Chennai. Now she received an email from SSN college for counseling to join Biomedical engineering which is under management quota.. what to decide whether to continue with MIT or SSN? Please suggest...
Ans: Malathi Madam, Your daughter’s current B.Tech in Rubber and Plastic Technology at Madras Institute of Technology (MIT) Chennai offers a specialized and unique curriculum that combines polymer science, rubber processing, and plastics technology, supported by experienced faculty, advanced labs, and strong industry connections with companies like Bridgestone and CEAT. MIT is esteemed as a government-affiliated institute under Anna University with solid accreditation and a robust placement record in this niche sector, with about 80% placement and internships, and average packages in relevant industries. Conversely, SSN College of Engineering’s Biomedical Engineering program, offered under management quota, is part of a reputed private institution with NAAC A++ accreditation, strong industry ties, vibrant research culture, and higher mainstream tech placement visibility. SSN’s Biomedical department reports decent placement support with recruiters from healthcare and technology domains, though admissions via management quota may have higher fees and different governance compared to MIT. Both institutions maintain transparent governance, modern infrastructure, and active student support systems. Your daughter’s choice hinges on whether she prefers continuing in the specialized Rubber and Plastics sector at a premier government-backed institute or pivoting to a broader, rapidly growing biomedical field with SSN’s private institute benefits. Just my suggestion: Prefer SSN-Biomedical Engineering, which is more suitable for a girl student (provided you are able to afford its Management Quota Fee) compared to Rubber-Plastic Technology. All the BEST for a Prosperous Future!

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