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Mihir Tanna  |792 Answers  |Ask -

Tax Expert - Answered on Dec 07, 2023

Mihir Tanna has more than 10 years of experience in direct taxation, including filing income tax returns.
He regularly represents clients before the income tax authorities including the commissioner of income tax (appeal).... more
Janaki Question by Janaki on Jul 02, 2023Translate

Tax on joint TD holding at post office

Ans: For jointly held TD, interest certificate is also in join name and accordingly, it should be offered to tax in the proportion of amount contributed in investment
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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Anil Rego  |330 Answers  |Ask -

Financial Planner - Answered on Jan 10, 2022

It is always a pleasure to read your articles and answers. For the first time I have had a query of my own. My dad and his son-in-law (my brother-in-law) are buying a property worth Rs 3 crores in Gurugram. The actual payments have been done equally by both of them. We were advised by our broker that if my mother's name is included in the sale deed, the stamp duty amount will come down to 5% for  1/3rd of the property value (Rs 1 crore) and 7% on the balance 2/3rd (Rs 2 crores). Otherwise, it will be 7% on the entire Rs 3 crores. Under the circumstances, should my mother too contribute her part of the 1% of the TDS amount that is to be deducted and the 26QB form details subsequently reflected in the sale deed? If the answer to the above is yes then I have a follow-up the query, with your permission. For saving on capital gains for my dad, he has to show an investment of Rs 1.2 crores as his share of investment. Therefore the CA is insisting that out of the Rs 3 lakhs TDS to be deducted, it should be in the ratio of Rs 1.2 lakhs, Rs 30,000 and Rs 1.5 lakhs between my dad, mom and brother-in-law respectively, basically to reflect the overall shareholding of the property. Now the question is: a. Is this correct because another CA said it doesn't matter as she has not financially contributed and is a spouse. As per him, the TDS can just be split 50-50 between my dad and BIL. b. If it is not so, that is they pay TDS as per their share 1.2:0.3:1.5, how will that impact the stamp duty, which was the reason why we were getting my mother's name in the first place. Will it be at 5% on one-third and 7% on the balance, basis it's a lady and two gentlemen, or will that benefit of 5% be restricted to her share of Rs 30 lakhs out of Rs 3 crores which is 5% benefit on 10%?
Ans: To answer the first part of your question, your mother can contribute or your sister can make a gift to your mother and her contribution could be through the same.

It is a good idea to have her portion bequeathed to you in a will, if there are any other successors apart from the two of you so that it does not create an issue for you in the future.

As for your follow-up questions:

a. Your dad needs to make the investment of Rs 1.2 crores to save his capital gains on reinvestment.

As for the balance amount, you can decide the split.

If you are only showing Rs 0.3 crores in your mom's name, you will save registration cost only on this amount.

This is something that you need to keep in mind. 

b. You need to pay TDS in the same ratio as your holding.

Your dilemma of having a lower tax saving in your mother's name is what I have also pointed out in point a, above.

One has the option of your brother-in-law gifting Rs 0.7 cr to your mother through your sister (his wife) for her to contribute Rs 1 crore.

Subsequently, after some time, your mother could gift her share to your father and sister and she can take an exit.

However, I am not sure it is worth taking the effort of doing all of this to save Rs 2 lakh on a property worth Rs 3 crores.

There would be some cost of gifting and registration of the gift which will further reduce the benefit.

You need to take a decision of how you would like to go about it.

I would expect that your father would anyway be saving more than 2% in his capital gains tax arising out of his earlier property sale by reinvesting the proceeds into the current property under consideration. 

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Moneywize   |58 Answers  |Ask -

Financial Planner - Answered on Feb 24, 2024

Asked by Anonymous - Feb 23, 2024Translate
What are balanced advantage funds and would you recommend how I should go about investing in such funds?
Ans: Balanced Advantage Funds are a type of mutual fund that dynamically manages the allocation between equity and debt instruments based on market conditions. These funds aim to provide investors with a balance between growth (through equity exposure) and stability (through debt exposure). The allocation between equity and debt is adjusted by fund managers based on various factors such as market valuations, interest rates, and economic indicators.

Here's a breakdown of the key features and considerations for investing in Balanced Advantage Funds:

1. Dynamic Asset Allocation: These funds have the flexibility to shift allocation between equity and debt depending on market conditions. When equity markets are expensive or overvalued, the fund manager may reduce equity exposure and increase allocation to debt instruments, and vice versa.

2. Risk Management: Balanced Advantage Funds tend to offer lower volatility compared to pure equity funds due to their ability to switch between asset classes based on market conditions. This can potentially reduce downside risk during market downturns.

3. Goal-based Investing: They can be suitable for investors with medium to long-term investment horizons who seek a balance between capital appreciation and capital preservation. These funds are often used for goals like retirement planning or wealth creation with a moderate risk profile.

4. Professional Management: Investors benefit from the expertise of professional fund managers who actively manage the asset allocation and investment decisions based on thorough research and analysis.

5. Tax Implications: From a taxation perspective, gains from equity investments held for more than one year are taxed at a lower rate (long-term capital gains tax), whereas gains from debt investments held for more than three years are taxed as per the investor's income tax slab. Balanced Advantage Funds may offer tax efficiency due to their equity exposure.

6. Expense Ratio: Investors should consider the expense ratio of the fund, which represents the annual fees charged by the fund house for managing the fund. Lower expense ratios can enhance returns over the long term.

As for whether you should invest in Balanced Advantage Funds, it depends on your investment objectives, risk tolerance, and financial goals.

If you're seeking a balanced approach with the potential for higher returns than pure debt funds but with lower volatility compared to pure equity funds, then these funds could be suitable for you. However, it's essential to consult with a financial advisor who can assess your individual circumstances and recommend the most appropriate investment strategy.

If you decide to invest in Balanced Advantage Funds, you can do so through various platforms such as mutual fund distributors, online investment platforms, or directly through the fund house's website. Here's a general guide on how to invest:

1. Research: Understand the different Balanced Advantage Funds available in the market, their investment objectives, performance track record, and expense ratios.

2. Select a Fund: Choose a fund that aligns with your investment goals, risk tolerance, and time horizon.

3. KYC Compliance: Complete the Know Your Customer (KYC) process as required by regulatory guidelines. This typically involves providing identity and address proof documents.

4. Investment Process: Decide on the mode of investment, whether lump sum or systematic investment plan (SIP), based on your convenience and investment strategy.

5. Online Platform or Distributor: If investing through an online platform, create an account and follow the instructions to invest in your chosen Balanced Advantage Fund. If using a mutual fund distributor, approach them with your investment decision, and they will assist you with the investment process.

6. Monitor and Review: Keep track of your investments periodically and review your portfolio to ensure it remains aligned with your financial goals.

Remember that all investments carry some level of risk, including the potential loss of capital. Diversification and a long-term investment approach are generally recommended to mitigate risk and achieve your financial objectives.

Anu Krishna  |725 Answers  |Ask -

Relationships Expert, Mind Coach - Answered on Feb 24, 2024

Asked by Anonymous - Feb 21, 2024Translate
Good Morning, We are married for almost 27 years and at various stages of my wife like, beginning days when Girls had dream of her happy married life beginning, honeymoon, pregnancy, fostering the child, mid-age crisis and now Menopause I have been very unfair & sometime very cruel to my wife. I am tryint to please her in my possible ways but whenever I am planning something exciting & pleasurable for her it turn out to be flop show & nightmare. I want her to be happy but don't know why it gets spoiled due to one or other reason. Despite of all this she is always giving me chance and prepare herself for new beginning. But now I fear & feel gradually I will become a big liability on her, health wise as I am diabetic and even after taking high dose of medicines it doesn't get controlled. I am worried that though the beginning was not good our end should be Peaceful & graceful. Need your guidance
Ans: Dear Anonymous,
No point revisiting what has already happened. It seems like your wife wants a new beginning; then why not actually plan on how you want your life together to be from now on? What are the things that you have missed out on earlier, bring it all back and slowly start experiencing what life could be living in that harmony...
As for diabetes, getting the right medicine and taking it in the right dosage is important to see a change. Also, exercise, attempt to keep stress levels low and eat right...these help in keeping your blood sugar levels low...
Don't talk about the END when there is a NEW beginning in sight...

All the best!
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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