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Anil Rego |388 Answers |Ask -Follow

Financial Planner - Answered on Feb 10, 2023

Anil Rego is the founder of Right Horizons, a financial and wealth management firm. He has 20 years of experience in the field of personal finance.
He’s an expert in income tax and wealth management.
He has completed his CFA/MBA from the ICFAI Business School.... more

Question by Rajesh on Feb 03, 2023Hindi

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For Super senior citizen, what is impact in the new regime?

Ans: The budget has no separate slabs for senior or super senior citizens. Hence, you would need to check the old regime tax slabs (for senior citizens) along with any deductions that you would be availing, with the new tax regime (same for all citizens) and choose what is best for you.

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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Mahesh Padmanabhan |124 Answers |Ask -Follow

Tax Expert - Answered on Feb 06, 2023

Question by Subramani - Feb 02, 2023Hindi

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Sir, What is the tax slab for senior citizens and a super senior citizen under the old regime vis a vis the new regime of tax?

Ans: Old Tax Regime - For Senior Citizen

Income Tax Slab Income Tax Rates

Upto Rs. 300,000 Nil
Rs. 300,001 - Rs. 500,000 5% above Rs. 300,000
Rs. 500,001 - Rs. 10,00,000 Rs. 10,000 + 20% above Rs. 500,000
Above Rs. 10,00,000 Rs. 110,000 + 30% above Rs. 10,00,000

Old Tax Regime - Super Senior Citizen

Income Tax Slab Income Tax Rates

Upto Rs. 500,000 Nil
Rs. 500,001 - Rs. 10,00,000 20% above Rs. 500,000
Above Rs. 10,00,000 Rs. 100,000 + 30% above Rs. 10,00,000

New Tax Regime - Senior Citizen & Super Senior Citizen

Income Tax Slab Income Tax Rates

Up to Rs. 3,00,000 Nil
Rs. 3,00,001 - Rs. 6,00,000 5% above Rs. 3,00,000
Rs. 6,00,001 - Rs. 9,00,000 Rs. 15,000 + 10% above Rs. 6,00,000
Rs. 9,00,001 - Rs. 12,00,000 Rs. 45,000 + 15% above Rs. 9,00,000
Rs. 12,00,001 - Rs. 15,00,000 Rs. 90,000 + 20% above Rs. 12,00,000
Above Rs. 15,00,000 Rs. 1,50,000 + 30% above Rs. 15,00,000

Vivek Shah |60 Answers |Ask -Follow

Financial Planner - Answered on Feb 06, 2023

Question by K - Feb 06, 2023Hindi

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How new tax regime annouced in budget will benefit sr. Citizen?

Ans: Union Budget 2023 has hiked the maximum permissible investment in the senior citizens savings scheme. It is one of the most reputed investment scheme for elderly people. The monthly income scheme by post office has been more attractive now after Budget 2023.

Under the Senior Citizen Savings Scheme (SCSS), the maximum limit ranges from Rs.30 lakh to Rs.15 lakh. The scheme provides 8% interest per annum which will be paid on a quarterly basis.

Under Post Office Monthly Income Scheme (POMIS), the investment limit has been increased by Rs.9 lakh. Earlier, it was Rs.4.5 lakh. In case of joint accounts, the investment limit has been increased to Rs.15 lakh from Rs.9 lakh. The investors can earn interest of 7.1% per annum.

The revised new tax regime has introduced a standard deduction of Rs 50,000 for pensioners as well including family pensioners. Thus, a senior citizen pensioner may benefit under the revised new tax regime if they are unable to claim maximum deductions and exemptions for income tax outgo to remain the same in both tax regimes.

Senior citizen having gross income of Rs 7.5 lakh will have no tax liability in both the tax regime. This will happen if he/she is able to claim the maximum deductions and exemptions (including a standard deduction of Rs 50,000) of Rs 2.5 lakh in the old tax regime. By claiming deductions, the net taxable income will come down to Rs 5 lakh. This will make him/her eligible for a rebate of Rs 12,500 under section 87A in the old tax regime.

On the other hand, if the same pensioner opts for a new tax regime, then he/she can claim the standard deduction of Rs 50,000. This will bring down the net taxable income to Rs 7 lakh. This will make him/her eligible for a rebate under section 87A in the revised new tax regime.

If the pensioner has a gross income of Rs 10 lakh and is able to claim deductions exceeding Rs 3 lakh (such as section 80C, 80D, 80TTB etc., and a standard deduction of Rs 50,000), then the old income tax regime maybe beneficial for them.

In case of gross income of Rs 15 lakh, a pensioner is required to claim deductions of more than Rs 3,50,000 for continuing with the old tax regime in FY 2023-24.

So one can take either old or new tax regime depending on the above factors. I hope this was useful to you.

Mihir Tanna |1042 Answers |Ask -Follow

Tax Expert - Answered on Feb 07, 2025

Question by Amarendra - Feb 02, 2025Hindi

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Tell us about the total advantages for senior citizens in this budget in both old & new it regime. What changes done in old it regime ?

Ans: No change is old regime and only 1 benefit given to senior citizen i.e. TDS applicability on interest income is increased from 50k to 1 lac

Latest Questions

Ramalingam Kalirajan |8182 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Apr 03, 2025

Question by Kamlesh - Apr 03, 2025Hindi

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Dear Sir, I am 47 years old IT professional. My current salary is 1.5 lakhs per month. I have a daughter who just completed her 10th board exam. My corpus is around 1.6Cr FD&PPF; 30 lakhs in MF & stocks; 50 lakhs in EPF. I have no debt and living in my own house. Please suggest if I can plan for retirement

Ans: Your financial position is strong, and planning for retirement at 47 is a smart decision. Below is a detailed 360-degree approach to assess whether you can retire comfortably and how to ensure financial security.

Understanding Your Current Financial Position
Income: Rs 1.5 lakh per month.

Corpus:

Rs 1.6 crore in Fixed Deposits (FD) and Public Provident Fund (PPF).

Rs 30 lakh in mutual funds and stocks.

Rs 50 lakh in Employees' Provident Fund (EPF).

Liabilities: No debts.

Assets: Own house, ensuring no rent or EMI burden.

Family Responsibility:

Daughter has just completed the 10th board exam.

Higher education expenses need to be planned.

Key Considerations Before Retirement
Expected Retirement Age

If you plan to retire early (before 55), corpus sustainability needs careful assessment.

If you work till 60, it will provide a larger financial cushion.

Post-Retirement Expenses

Living expenses, healthcare, travel, and lifestyle costs must be considered.

Inflation will increase future expenses.

Daughter’s Education

Higher education costs are significant.

Corpus should cover both education and retirement without compromise.

Medical Expenses

Health costs increase with age.

A high health insurance cover is essential.

Wealth Growth vs. Safety

A mix of equity and debt investments ensures growth while preserving capital.

Excessive reliance on FDs and PPF may limit long-term wealth accumulation.

Assessing If You Can Retire Comfortably
Current Corpus Size

Rs 2.4 crore (excluding house) is a strong starting point.

But, inflation will reduce its real value over time.

Expected Corpus Growth

Investments in mutual funds and stocks should continue to grow.

PPF and EPF offer stable but lower returns.

Withdrawals Post-Retirement

Sustainable withdrawals should not deplete the corpus too soon.

A balanced investment strategy is required.

Gaps in Planning

Heavy reliance on FDs and PPF may not be ideal.

More equity exposure can ensure inflation-beating returns.

Steps to Strengthen Your Retirement Plan
1. Optimising Investment Strategy
Continue investing in mutual funds with a mix of large-cap, mid-cap, and flexi-cap funds.

Reduce dependence on FDs for long-term needs.

Equity mutual funds help counter inflation and grow wealth.

Avoid index funds as they provide average returns without active management.

Regular funds through a Certified Financial Planner (CFP) offer expert monitoring.

Diversify investments between equity, debt, and fixed-income products.

2. Planning for Daughter’s Education
Higher education costs can be Rs 30-50 lakh in the next 5-7 years.

Separate this goal from your retirement plan.

Increase equity investment to build an education corpus.

Avoid withdrawing from retirement savings for education.

3. Building a Healthcare Safety Net
Health insurance should cover at least Rs 30-50 lakh.

Consider super top-up plans for additional coverage.

Maintain an emergency medical fund to cover non-insured expenses.

Review insurance policies periodically.

4. Creating a Sustainable Withdrawal Plan
Avoid withdrawing a large portion of the corpus in early retirement years.

Keep at least 5 years of expenses in liquid assets.

Equity exposure should reduce gradually as retirement progresses.

Use dividends and interest income before selling assets.

Final Insights
Retirement is possible, but adjustments are needed for long-term security.

Continue investing aggressively for the next few years.

Ensure daughter's education is planned separately.

Review investments and insurance regularly.

Keep flexibility in withdrawal strategy post-retirement.

A structured plan will ensure a financially secure and comfortable retirement.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

Ramalingam Kalirajan |8182 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Apr 03, 2025

Asked by Anonymous - Apr 03, 2025Hindi

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My employer offers a salary sacrifice scheme for pension contributions, but I don't fully understand how it works. What are the potential advantages and disadvantages of joining such a scheme, and how does it affect my take-home pay and long-term financial planning?

Ans: A salary sacrifice scheme for pension contributions allows you to give up a portion of your salary in exchange for increased employer contributions to your pension. It has tax and National Insurance (NI) advantages but also some potential drawbacks.

How Salary Sacrifice for Pension Works
You agree to reduce your gross salary by a chosen amount.

Your employer contributes this amount directly to your pension.

Since your taxable salary is lower, you pay less income tax and NI.

Your employer also saves on NI and may pass on some or all of this saving to your pension.

Advantages
1. Tax and NI Savings
You don’t pay income tax or NI on the sacrificed amount.

Your employer saves on NI (currently 13.8%) and may increase your pension with these savings.

2. Higher Pension Contributions
Since more money goes into your pension, your retirement corpus grows faster.

Compounding over time enhances long-term wealth.

3. Increased Take-Home Pay
Although you sacrifice part of your salary, the NI savings may offset some of the reduction.

Depending on employer policies, your net pay may not drop significantly.

4. Potential Employer Matching
Some employers pass their NI savings into your pension, increasing your total contributions.

Disadvantages
1. Reduced Gross Salary
A lower salary means reduced future pay rises if they are percentage-based.

Life cover, sick pay, and redundancy pay linked to salary may be affected.

2. Lower Borrowing Capacity
Mortgage applications consider salary; a lower reported income might reduce borrowing potential.

3. Impact on State Benefits
If salary drops below certain thresholds, statutory benefits like maternity pay and state pension could be affected.

4. Restricted Access to Pension
The extra pension savings cannot be accessed before retirement (except under specific conditions).

Effect on Take-Home Pay
Your net pay will be slightly lower, but less than the actual amount sacrificed.

The tax and NI savings cushion the impact.

If your employer adds their NI savings, your total retirement savings increase.

Effect on Long-Term Financial Planning
Your pension fund grows faster, improving retirement security.

Short-term disposable income is slightly reduced, so budget planning is important.

Consider how the reduced salary affects other financial goals like buying a house or saving for education.

Should You Opt for It?
If employer NI savings are passed to your pension, it’s highly beneficial.

If you are close to lower tax bands or state benefit thresholds, assess the impact.

If you plan to apply for a mortgage, check how it affects your eligibility.

A Certified Financial Planner (CFP) can help assess your personal situation before making a decision.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

Ramalingam Kalirajan |8182 Answers |Ask -Follow

Mutual Funds, Financial Planning Expert - Answered on Apr 03, 2025

Asked by Anonymous - Apr 03, 2025Hindi

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Hi Sir , Greetings of the day!! hope you are doing well !! I want to do a savings of 50 lacs in as much less time span as possible because I want to buy a property in Gurgaon. My monthly salary is 1 lac 11k and I am currently investing 10k in mutual fund monthly and 50k in nps yearly. Can you please guide me how can I save 50 lacs and in how much time ?

Ans: Your goal of saving Rs 50 lakh for a property in Gurgaon is ambitious but achievable with the right strategy. Below is a structured approach to help you reach your target in the shortest possible time.

Understanding Your Current Financial Position
Your monthly salary is Rs 1.11 lakh.

You invest Rs 10,000 per month in mutual funds.

Your annual NPS contribution is Rs 50,000.

You haven't mentioned any liabilities or existing savings. If you have any ongoing EMIs or debts, they should be factored in.

Key Considerations for Achieving Rs 50 Lakh Target
The speed of reaching Rs 50 lakh depends on savings rate and returns.

High savings rate is the most reliable way to accumulate wealth.

Investment returns are uncertain and depend on market conditions.

A balanced approach is necessary to ensure stability and growth.

Increasing Your Savings Rate
Currently, you are investing Rs 10,000 per month.

If you can increase it to Rs 50,000 per month, you will reach Rs 50 lakh faster.

Cutting discretionary expenses will free up more money for investments.

Consider reducing unnecessary spending on dining out, luxury items, and vacations.

Redirect bonuses, incentives, or salary hikes towards savings.

Choosing the Right Investment Instruments
Mutual Funds for Growth
Actively managed equity mutual funds can generate better returns than fixed deposits.

A mix of large-cap, mid-cap, and small-cap funds can balance risk and reward.

Mid-cap and small-cap funds have higher growth potential but also higher volatility.

Avoid index funds as they provide average returns and lack active risk management.

Debt Investments for Stability
Fixed deposits, debt mutual funds, and PPF provide stability.

These should be used for short-term parking rather than long-term growth.

Debt mutual funds are taxed based on your income tax slab.

Avoid locking too much money in low-return instruments.

Balancing Risk and Return
Investing entirely in equity mutual funds can generate high returns but comes with volatility.

A mix of 80% equity and 20% debt can provide stability.

As your target nears, shift more funds towards safer instruments.

Avoid speculation and high-risk investments like cryptocurrency.

Role of NPS in Your Goal
NPS is good for retirement but not ideal for short-term goals.

Partial withdrawal is allowed only under specific conditions.

Do not rely on NPS for your property purchase.

Managing Tax Efficiency
Equity mutual fund LTCG above Rs 1.25 lakh is taxed at 12.5%.

Short-term capital gains (STCG) are taxed at 20%.

Debt mutual fund gains are taxed as per your income slab.

Investing in tax-efficient instruments will maximize returns.

Estimating the Timeframe
If you invest Rs 50,000 per month, you can accumulate Rs 50 lakh in about 7-8 years with moderate returns.

If you invest Rs 75,000 per month, you can reach Rs 50 lakh in about 5 years.

The faster you increase your savings, the sooner you will achieve your goal.

Final Insights
Increase your monthly investment to at least Rs 50,000.

Focus on actively managed equity mutual funds.

Keep a small portion in debt for stability.

Avoid unnecessary expenses and invest salary increments.

Do not depend on NPS for this goal.

Monitor and adjust your portfolio as needed.

Stay disciplined and patient to achieve your target.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

Dr Dipankar Dutta |1090 Answers |Ask -Follow

Tech Careers and Skill Development Expert - Answered on Apr 03, 2025

Asked by Anonymous - Apr 03, 2025Hindi

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B.TECH IN ECE IS A GOOD CHOICE IN THE UPCOMING YEARS... ! PLEASE TELL ...

Ans: Yes. You have to develop your skill by doing various online cources.

Dr Dipankar Dutta |1090 Answers |Ask -Follow

Tech Careers and Skill Development Expert - Answered on Apr 03, 2025

Question by Aarav - Apr 03, 2025Hindi

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Hello, I secured 93.15 percentile in JEE Mains 2025 (Session 1) and belong to the OBC-NCL category. Based on my percentile, could you please suggest which NITs, IIITs, or GFTIs I have a good chance of getting into?

Ans: NITs (Possible in Later Rounds / Lower NITs)
NIT Mizoram – Mechanical, Civil, Chemical

NIT Arunachal Pradesh – Mechanical, Civil, ECE

NIT Nagaland – Mechanical, Civil, EEE

NIT Agartala – Production Engineering, Civil, Chemical

IIITs (Decent Chance)
IIIT Kalyani – IT

IIIT Bhagalpur – ECE, Mechatronics

IIIT Una – ECE, IT

IIIT Ranchi – ECE

IIIT Bhopal – ECE

GFTIs (Better Chances)
Assam University – CSE, ECE

Punjab Engineering College (PEC), Chandigarh – Production Engineering

See previous years' cut off

Dr Dipankar Dutta |1090 Answers |Ask -Follow

Tech Careers and Skill Development Expert - Answered on Apr 03, 2025

Question by Renuka - Apr 01, 2025Hindi

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Good evening sir, I am a neet dropper, I had wasted lots of time in social media, family issues and health issues, for the whole year i give my 70-80c/o percent and just one -2 month before exam i got panic and stop studying, after 1 month, i have to appear for neet, i want to do mbbs should i took another drop?? I started my preparation after completing 12th , its my 3rd drop, i had quitted lots of distraction and improve but the chance to get selected in this attempt is very less, what should i do?? Please help

Ans: Throughout your mobile and laptop if you want to do become anything in your life

Dr Dipankar Dutta |1090 Answers |Ask -Follow

Tech Careers and Skill Development Expert - Answered on Apr 03, 2025

Question by Tanya - Apr 01, 2025Hindi

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i scored 94.16 perecntile in jee mains general category female quota home state uttar pradesh can i get seat in NIT?

Ans: Core branches like Mechanical, Civil, Chemical, and Biotechnology in newer or lower-ranked NITs (e.g., NIT Agartala, NIT Mizoram, NIT Arunachal Pradesh, etc.) may be possible.

ECE or Electrical in some mid-tier NITs may be available in later rounds (Home State Quota can help).

CSE in NITs is difficult at this rank, but IIITs, GFTIs, or state-level colleges might have seats.

Dr Dipankar Dutta |1090 Answers |Ask -Follow

Tech Careers and Skill Development Expert - Answered on Apr 03, 2025

Asked by Anonymous - Apr 01, 2025Hindi

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What is my approximate obc category rank if my crl is about 34000 in jee mains 2025

Ans: 10,600−11,500

Dr Dipankar Dutta |1090 Answers |Ask -Follow

Tech Careers and Skill Development Expert - Answered on Apr 03, 2025

Asked by Anonymous - Mar 19, 2025Hindi

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Sir, my son obtained 62.67 Marks and 629 Score in GATE 2025 for ME Branch. He is belonged to SC Category. Can he get any PSUs recruitment?

Ans: Securing a position in Public Sector Undertakings (PSUs) through GATE is highly competitive, with each PSU setting its own cutoff scores that vary annually based on factors such as the number of applicants, vacancy availability, and exam difficulty. So, nothing can be told at this moment. See previous years' cut off.

Dr Dipankar Dutta |1090 Answers |Ask -Follow

Tech Careers and Skill Development Expert - Answered on Apr 03, 2025

Question by Deepika - Mar 20, 2025Hindi

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Sir meri beti 2026 may 12kay exam degi.uskay bad vo IIT ki preparation kare gi to kay 2026us ka gap mana jaye ga or kay vo sirf 2time hi attempt de sakte hai.

Ans: According to JEE rules:

JEE Mains Attempt Limit – There is no specific attempt limit, but a student can appear for JEE Mains in the year of Class 12 and the next two years (total 3 years).

JEE Advanced Attempt Limit – A student can attempt JEE Advanced only twice in consecutive years (in the year of Class 12 and the following year).

See more questions »

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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