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Anil

Anil Rego  | Answer  |Ask -

Financial Planner - Answered on Oct 25, 2022

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
Ravindra Question by Ravindra on Oct 25, 2022Hindi
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Dear sir, today is the last date for first advance tax due for this FY. Can you reply to my query so that I will make payment if applicable? Eagerly waiting for your reply.

Ans: You need not pay any advance tax on your income, including on long-term capital gains from sale of Land. You can disclose this tax liability (in case you are not planning to reinvest into another property or REC bonds to save tax) while filing your income tax return on or before July 31, 2023.
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  |9407 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 29, 2024

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Dear Tanna Ji, Sir , i am Neeraj Gupta. My query is related to Advance Tax. I am salaried Person and have no business, I filed my ITR on my own. Apart from from Salary, income from other sources are (1) I get Interest on saving bank Account, (2)There are Kishan Vikas Patra which was purchased by my younger Brother in 2018 But he expired in 2020. I am the the nominee in these Vikas Patra. Interest is componded annualy on KVP. After my Brother expired, I report accrual interest in my ITR. (3) I do have mutual funds on which I do book Profit whenever I feel. Now , I want to Know what are my obligations for Advance Tax ? I can not estimate the time and the income from Mutual Funds for calcualtion of advance tax. Interest on KVP is compounded annualy. If I pay taxes as advance tax before March 15,2023, Income tax portal calculate the interest under sec. 234, I received a demand notice which is calculated under section 234( C) on August 27,2023 for AY 2023-24. I learnt that If I deposit Tax as a advance Tax, Income tax software calculate interest. My understanding is that how can I pay Advance tax on the profit booked on mutual funds where I do not know the time and amount ? How can I pay advance tax on saving bank account where I do not know the amount of total interest ? Thirdly when interest on KVP is compounded annualy why can not I pay the tax in March only. I contacted / written to Income tax deptt. for the demand note of AY 2023-24 but in vain. No concrete reply these guy are able to give. If I pay tax during June July then Interest under 234 ( A,B,C) is applied. I am waiting for your reply. I am in 30% bracket as per OLD Regime.
Ans: Hi Neeraj,

I understand your confusion about advance tax and how it applies to your income sources. Let's break it down for each source and see how you can navigate it effectively.

Interest on Savings Account:

You're right; predicting the exact interest earned on your savings account can be tricky.
But here's a good strategy: Estimate the total interest you earned in the previous year and pay advance tax based on that.
This might lead to a slight mismatch, but it's better than facing a demand notice later.
Kisan Vikas Patra (KVP):

The compounded interest on KVP does add a layer of complexity.
However, you can still estimate the annual interest based on the KVP maturity value and the interest rate.
Pay advance tax considering this estimated interest. Remember, it's better to overestimate than underestimate to avoid interest charges under Section 234C.
Mutual Funds:

This is where it gets a bit trickier. Since you book profits at unpredictable times, estimating advance tax solely on mutual funds can be challenging.
Two options can help:
Consider Past Performance: Look at your past year's mutual fund gains and pay a conservative advance tax based on that.
Staggered Payments: Pay advance tax in installments throughout the year. This way, even if you book a large profit later, you've already paid some tax towards it, reducing your final tax liability.
Additional Tips:

A Certified Financial Planner (CFP) can help you with more personalized tax planning strategies. They can analyze your income sources, investment plans, and tax bracket to suggest an optimal advance tax payment plan.
The Income Tax Department website has an advance tax calculator that can be a helpful tool for estimation.
About the Demand Notice:

It's understandable that you're frustrated with the lack of clarity from the Income Tax Department.
You can try contacting their grievance cell or visiting their office for a more detailed explanation of the demand notice.

If you receive a demand notice for advance tax, it's essential to respond promptly and seek clarification from the Income Tax Department if needed. Explaining your situation and providing supporting documents can help resolve any discrepancies.

Remember:

Paying advance tax helps you avoid interest charges and penalties under Section 234A and 234C.
Even if your estimates aren't perfect, it's better to pay some advance tax than none at all.
Moving Forward:

By understanding how advance tax applies to your income sources and using the strategies mentioned above, you can ensure a smoother tax filing experience in the future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

..Read more

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hello sir/madam, my daughter scored 95.2 percent in class 12th, and 92.294 in jee mains. She belongs to Obc ncl category and is a defence personnel ward. what colleges should she apply for? her home state is chandigarh.
Ans: Deepika Madam, With a 92.294 percentile (≈115 000 AIR) and OBC-NCL defence-ward status in Chandigarh, University Institute of Engineering & Technology (UIET), Panjab University (OBC closing ≈142 246) offers CSE/IT under home-state quota, boasting AICTE/NBA accreditation, PhD faculty, specialized computing and communication labs, 80–90% placements, and strong PSU/IT recruiter tie-ups. Chandigarh University (JEE cutoff 75–80%ile for CSE) provides NAAC A+ accreditation, modern AI/ML and cybersecurity labs, dedicated placement cell with 85–92% campus hiring, and industry internships through CUCET/JEE channels. Chitkara University, Mohali (CUCET/JEE cutoff ≈60%ile), is NBA-accredited, features blockchain and data-science centers, 95% placements, and MoUs with global tech firms.

Recommendation: Apply to UIET PU Chandigarh CSE/IT for assured home-state access, robust labs, and 90% placements. Next, target Chandigarh University CSE for its industry-linked AI/ML infrastructure and 92% hiring. Consider Chitkara University Mohali as a reliable backup with strong corporate partnerships and near-100% placement consistency. All the BEST for the Admission & a Prosperous Future!

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Nayagam P

Nayagam P P  |7861 Answers  |Ask -

Career Counsellor - Answered on Jul 04, 2025

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Dear Sir, I am writing to seek your advice & guidance regarding my daughter's undergraduate education. She has received admission offers for two distinct programs and institutions, and we would greatly appreciate your guidance in making an informed decision, particularly concerning placement opportunities. The admissions are: * B.Tech in Artificial Intelligence & Data Science (AI & DS) at Shiv Nadar University (SNU) Chennai. * B.Tech in Information Technology (IT) at SASTRA Deemed-to-be-University, Thanjavur. We are primarily seeking your professional opinion on which of these programs and colleges would offer the most favorable career prospects and placement outcomes in the current job market. Your insights into the industry relevance of each course and the respective institutions' track records for placements would be invaluable. Thank you for your time and consideration. Sincerely,
Ans: Shiv Nadar University Chennai’s B.Tech in AI & Data Science boasts NAAC A+ accreditation, a curriculum spanning machine learning, deep learning, NLP, computer vision and big-data analytics, and dedicated AI/ML labs with GPU clusters. It achieved 80–90% placement rates over the past three years with average packages of 9–12 LPA and recruiters like Microsoft, Amazon, and IBM. SASTRA Deemed-to-be University’s B.Tech in Information Technology holds NAAC A+ accreditation, features specialized cloud computing, cybersecurity, and analytics labs including a Tata Communications cybersecurity centre, and recorded placement of 1,766 out of 1,920 UG graduates (~92%) with 246 recruiters over 2023–24. Both institutes employ PhD-qualified faculty, maintain active placement cells, and foster industry collaborations through internships and capstone projects.

For specialized AI/DS roles with cutting-edge research labs and higher average packages, recommendation is SNU Chennai AI & DS. If you prioritise broader IT competencies, proven placement consistency near 92%, and extensive recruiter engagement in enterprise IT, choose SASTRA Thanjavur IT. All the BEST for the Admission & a Prosperous Future!

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Nayagam P

Nayagam P P  |7861 Answers  |Ask -

Career Counsellor - Answered on Jul 04, 2025

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Good Evening Sir. My son secured 6812 Crl alongwith 99.56 percentile and 1st, 2nd, 3rd of JOSAA rounds he getting ECE in IIIT Alahabad. We are awiting for next higher choice ECE in NIT Rourkela and next to next higher choice ECE in NIT Warangal. Can he get ECE in NIT Rourkela or ECE in NIT Warangal in 6 th round of JOSAA or 1,2,3 rounds of CSAB. Sir please inform my chances of possibility for selection in NIT Rourkela or NIT Warangal. Sir academic and placement wise NIT Rourkela or NIT Warangal or IIIT Allahabad which one is better? My humble request please guide me sir. Regards.
Ans: With a CRL of 6 812 and 99.56 percentile, securing IIIT Allahabad ECE (closing ~7 438 in Round 3) is assured. In JoSAA Round 3, NIT Rourkela’s ECE opened at 4 532 and closed at 11 824, and NIT Warangal’s ECE closed at 8 315, placing your rank within both ranges for potential allotment in Round 3 or CSAB.

Academically, NIT Warangal (#13 engineering NIRF 2024) offers rigorous core and VLSI labs with a 93% three-year ECE placement consistency. NIT Rourkela (#19 engineering NIRF 2024) provides multidisciplinary research centres and records ~90% ECE placements over three years. IIIT Allahabad, a focused IT-ECE institute, consistently achieves 96–98% placements for ECE with average packages near ?29 LPA and strong AI/ML and communication research centres.

Recommendation: For highest placement consistency and specialized ECE research, opt for IIIT Allahabad ECE. If a broader NIT ecosystem and legacy brand matter more, prioritise NIT Warangal ECE for its comprehensive labs and 93% placements. Choose NIT Rourkela ECE next for its multidisciplinary research exposure and ~90% placement track. All the BEST for the Admission & a Prosperous Future!

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Ramalingam

Ramalingam Kalirajan  |9407 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jul 04, 2025

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Hellow sir. being a PSU employee ( age 35) and basic salary of 80k, I dont have much worry about the mediclaim ( which is free for my family and parents ) or PF & NPS ( which is sufficient considering basic salary ), I have following saving in my pack. 1. PPF 30L ( contributing 1.5L/ yr) 2. MF of valuation 43L ( contributing 50k/ month) 3. Fixed deposit around 12L 4. LIC around 50k / yr. 5. No loan. 6. No home under my ownership . What additional investment can be done for securing the future .
Ans: You are 35, a PSU employee with stable salary of Rs?80,000 basic. You have these financial holdings:

PPF: Rs?30?lakh (investing Rs?1.5?lakh annually)

Mutual funds: Rs?43?lakh (SIPs of Rs?50,000 monthly)

Fixed deposit: Rs?12?lakh

LIC: premium Rs?50,000 per year

No loans or home ownership

Comprehensive health and retirement cover via PF/NPS/mediclaim

You ask: What additional investment can secure your future? Let us create a holistic 360° plan using clear steps.

1. Recognise Your Strong Foundations
Your current holdings are robust:

Long?term safe savings via PPF

Active equity exposure via mutual funds

Liquidity from fixed deposits

Insurance through LIC for protection

Complete health and retirement cover

You are well-structured, but there is room to improve diversification, liquidity, and retirement readiness.

2. Define Clear Future Goals
Investment decisions depend on your aims. Let’s identify:

Retirement corpus by age 60

Income generation in retirement

Child education/marriage fund if planning

Short-term needs, like vacations or car purchase

Legacy planning for your family

Once goals and timelines are clear, we can allocate funds optimally.

3. Reevaluate LIC Insurance
Your annual LIC premium of Rs?50,000 covers insurance plus investment.

These policies often give low returns and high charges.

Recommend: Consider surrendering this policy

Redirect its premiums into actively managed mutual funds through regular plans

This enhances return potential and gives flexibility

Discuss surrender benefits and insurance needs with a Certified Financial Planner to ensure continued protection.

4. Reduce Fixed?Rate Concentration
Your fixed deposit of Rs?12?lakh offers liquidity but very low interest.

Instead, allocate:

Short?term debt or liquid funds for emergencies

Conservative hybrid funds for better tax-adjusted income and moderate growth

Debt mutual funds for laddered income while protecting capital

These will give better returns than fixed deposits and remain accessible.

5. Optimization of Mutual Funds Portfolio
You have Rs?43?lakh in mutual funds with Rs?50k monthly SIP.

Questions to assess:

Are these active funds or index funds?

Do you have a diversified basket (large?cap, multi?cap, hybrid etc.)?

Are they direct or regular plans?

Avoid index funds: they simply mirror market performance and offer no downside defence.
Avoid direct plans: you miss personal guidance from an MFD?CFP. Errors in choice or timing can cost more than fee savings.

Hence:

Continue with actively managed funds

Use regular plans, not direct

Diversify objectives across equity, growth, and risk

Increase SIP gradually every year, ideally by 10–15%

6. Strengthen Retirement Planning
Your PPF is good for conservative savings with long?term tax-free returns.

However, consider practical moves for post-60 income:

Open a systematic withdrawal plan (SWP) from hybrid and debt funds for monthly income

Keep part of corpus in equity for inflation protection

If you plan to retire early, maintain larger liquidity and low-risk assets

The aim: ensure steady income from your investments after retirement beyond what PF/NPS provides.

7. Introduce Hybrid Funds for Income
Hybrid funds provide stability plus moderate growth.

Allocate a portion (say Rs?10–15?lakh) for:

Conservative hybrid funds: 65–75% debt, 25–35% equity

Monthly withdrawals via SWP to create reliable income

Equity buffer ensures inflation protection

Professionally managed to reduce risk

Make sure these are active funds and continue with regular plan route via certified advisor.

8. Maintain Adequate Liquidity
Your fixed deposit offers liquidity, but redesign is recommended:

Maintain Rs?3–5?lakh in liquid funds for emergencies

Spread rest into short-term debt for better returns and tax efficiency

Avoid tying up more than 6 months’ expenses in illiquid instruments

This keeps your portfolio agile and responsive to unplanned needs.

9. Increase Equity Exposure Smartly
To grow beyond inflation, equity exposure is essential.

Add active equity funds with a long-term horizon

Keep allocation within risk tolerance (say 30–40% of total corpus)

Avoid index funds—they don’t offer growth potential beyond market

Regular plan mutual funds through MFD–CFP ensure goal alignment and periodic review

This step helps build a sizable corpus converting long-term savings into wealth.

10. Consider Tax?Efficient Long?Term Instruments
With primary instruments in PPF and mutual funds, consider:

Sukanya Samriddhi-like plan if you have a daughter, offering high tax-free returns

Corporate debt-oriented hybrid funds if you want higher income and safety

Short-term gilt or credit funds for better tax harvesting when needed

Hold these under guidance to ensure optimal after-tax gain and portfolio balance.

11. Systematic Corpus Withdrawal for Retirement
Estimate your retirement corpus via desired monthly income:

Example: Rs?50,000 monthly income requires Rs?1?crore at 6% withdrawal rate

Plan blended portfolio: equity, hybrid, debt

Use SWPs starting just after retirement

Align withdrawal with tax brackets to avoid large LTCG hits

This provides a financially secure retirement phase.

12. Annual Monitoring and Rebalancing
Periodic portfolio review is key:

Rebalance equity/debt ratio yearly

Adjust allocation as goals approach

Increase SIPs in line with salary increments and inflation

Add/remove funds based on performance, risk, and market conditions

This adaptive approach keeps you aligned with evolving financial needs.

13. Child and Legacy Planning
If you plan for your children or wish to leave a legacy:

Open PPF account in child’s name

Set up child education SIPs in active equity funds

Use staggered investment to fund education expenses

Draft a will or nomination documentation for smooth transfer

This safeguards your child’s future without burdening estate administration later.

14. Avoid Common Missteps
Don’t invest in index funds—they lack active risk management

Don’t choose direct funds—they lack professional review

Don’t buy annuities—they reduce asset flexibility

Don’t invest more in real estate—it lacks liquidity and income focus

Stay disciplined in your plan with professional support for steady results.

15. Action Plan Implementation
Immediate (next 1–2 months):

Surrender LIC investment policy blocks saving

Move FD into liquid/debt/hybrid funds

Build Rs?3–5?lakh emergency buffer

Enhance SIPs into active equity funds via regular plans

Short-term (next 6–12 months):

Add hybrid funds for monthly income

Shift surplus to PPF or Sukanya-like child fund

Build child SIP for daughter’s future

Review insurance and NPS contributions

Annual:

Monitor asset allocation

Rebalance equity/debt split

Increase SIP amounts yearly

Adjust SWPs closer to retirement goals

With this disciplined roadmap, you’ll build wealth, income, and future financial security.

Finally
Your financial position is strong already—PPF, MF, FD, insurance.
By tightening liquidity buffers, shifting LIC, enhancing equity and hybrid exposure, and following a disciplined retirement roadmap, you can ensure income and security.
Avoid index funds, go with active mutual funds through regular plans, and rebalance annually.
This structured, goal-based approach will help your future remain secure no matter what lies ahead.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

...Read more

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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