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Mahesh Padmanabhan |120 Answers |Ask -Follow

Tax Expert - Answered on May 03, 2023

Mahesh Padmanabhan has specialised in payroll, personal and corporate taxation for more than two and a half decades, enabling him to provide practical, realistic and correct advice to his clients.
He is a member of The Institute of Chartered Accountants of India and has a degree in cost accounting from the Institute of Cost Accountants of India.
He is also a qualified information systems auditor. ... more

Question by Rajesh on Apr 01, 2023Hindi

Money

Sir, What are the exemptions/ deductions allowed to salaried class under new tax regime for FY 2023-24.

Ans: Hi Rajesh
Standard Deduction of Rs. 50,000 under the head salary, section 80CCD(2) for Employer’s Contribution to Employee NPS Accounts. Also, if you have a home loan on a house that has been rented, then the interest on the home loan is available as deduction

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 |819 Answers |Ask -Follow

Tax Expert - Answered on Feb 15, 2023

Question by Ashwini - Feb 02, 2023Hindi

I have 2 queries. 1) What amount is exempted under standard deduction in the proposed new tax regime - is it 50,000 or 52500? There is a confusion 2) Is profession tax amounting to Rs. 2500 exempt in the new tax regime - both current and proposed? Please guide

Ans: Standard deduction will be Rs 50,000 for person earning income from salary as per Budget proposal of FY 23 24.

Professional tax deduction will not be available under new tax regime

Mihir Tanna |819 Answers |Ask -Follow

Tax Expert - Answered on Feb 27, 2023

Question by Tanmoy - Feb 03, 2023Hindi

Money

Is standard deduction introduced under new tax regime applicable to salaried and pensioners irrespective of their income or only if income is greater than 15.5 lacs? Tanmoy Bhattacharyya

Ans: Standard deduction is available person having income from salary (including pension) irrespective of quantum of salary

Sanjeev Govila |458 Answers |Ask -Follow

Financial Planner - Answered on Feb 08, 2023

Question by Naresh - Feb 05, 2023Hindi

Money

Sir can u list the income exemptions which are eligible under revised New tax regime

Ans: The answer to your query is as below. I have simply copied it from another website, for your information.

With the revised new tax regime, several exemptions and deductions have been removed as below:-

1. Leave Travel Allowance
2. House rent allowance depending upon salary structure and rent paid
3. Professional tax paid by a maximum of Rs. 2,500/-
4. Deductions available under Section 80TTA and 80TTB that is interest from Savings Account/Deposits
5. Tax deduction on entertainment allowance and deduction on professional tax for government employees
6. The interest amount payable on home loan for a self-occupied or any vacant property u/s 24 maximum deductions of Rs 2 lakhs
7. Deduction of Rs 15,000 allowed from family pension under clause (ii) (a) Section 57
8. Special Allowances that are provided under Section 10(14) except:
9. Transport allowance granted to a disabled employee
10. Conveyance allowance
11. Any allowances granted for meeting the cost of travel on tour or transfer of an employee
12. Daily allowance
13. Perquisites
14. Business owners and professionals will lose the exemption to Special Economic Zones under Section 10AA.
15. Deductions under Section 32AD, 33AB, 33ABA, 35(1)(ii),35(1)(ii( (a), 35(1)(iii), 35(2AA), 35AD and 35CCC of the Income Tax Act.
16. Options of additional depreciation under Section 32(ii) (a) of the Income Tax Act
17. The option to carry forward or unabsorbed depreciation of earlier years
18. Tax-saving investment deductions under Income Tax Act , Chapter VI-A 80C, 80D, 80E, 80CCC, 80CCD, 80D, 80DD, 80DDB, 80EE, 80EEA, 80EEB, 80G, 80GG, 80GGA, 80GGC, 80IA, 80-IAB, 80-IAC, 80-IB, 80-IBA, etc. These tax-saving investment options include ELSS, NPS, PPF tax relief on mediclaim insurance premium, FDR, dependents who are differently-abled, expenses for specified medical treatments, interest on education loan and many more.

Exemptions that remain prevalent in the new revised system, that you can claim:

1. Standard deduction for salaried and pension class of Rs 50,000.
2. Interest received on Post Office Savings Account under Section 10(15)(i) the maximum amount of Rs. 3,500.
3. Gratuity received from employer up to a maximum amount of Rs. 20 Lacs.
4. Amount received from Life Insurance Policy on maturity under Section 10(10D).
5. Employer contribution in NPS or EPF up to 12% of salary and interest on EPF up to 9.5% p.a.
6. Income from Life Insurance.
7. Income from agricultural farming.
8. Standard reduction on rent.
9. Retrenchment compensation.
10. Leave encashment on retirement.
11. VRS proceeds up to Rs 5 lacs.
12. Retirement cum death benefit.
13. Money received as a scholarship for education.
14. Interest and maturity amount of PPF or Sukanya Smriddhi Yojna.
15. Commutation of Pension.
16. The new tax regime offers you to claim deductions u/s 80CCD(2) (employers contribution in notified pension scheme) and 80JJAA (for new employment).

Vivek Lala |225 Answers |Ask -Follow

Tax, MF Expert - Answered on Mar 11, 2023

Question by paner - Feb 28, 2023Hindi

Money

what are the exemptions allowed as per new tax regime

Ans: You can claim tax exemption for:

Transport allowances in case of a specially-abled person.
Conveyance allowance received to meet the conveyance expenditure incurred as part of the employment.
Any compensation received to meet the cost of travel on tour or transfer.
Daily allowance received to meet the ordinary regular charges or expenditure you incur on account of absence from his regular place of duty.
Perquisites for official purposes.
Exemption on voluntary retirement 10(10C), gratuity u/s 10(10) and Leave encashment u/s 10(10AA).
Interest on Home Loan on let-out property (Section 24)
Gifts up to Rs 5,000
Deduction for employer’s contribution to NPS account (Section 80CCD(2)).
Deduction for additional employee cost (Section 80JJA).
Budget 2023 introduced a standard deduction of Rs 50,000 under New Tax Regime applicable from FY 2023-24.
Budget 2023 also introduced deduction under Section 57(iia) being expenses towards income from family pension.
Budget 2023 further introduced deduction of amount paid or deposited in the Agniveer Corpus Fund under Section 80CCH(2).

Mihir Tanna |819 Answers |Ask -Follow

Tax Expert - Answered on Oct 31, 2023

Question by YOGESH - Aug 11, 2023Hindi

Money

what are the deduction as per new tax regime and old regime for the fy 2023-24?

Ans: If you opt for new tax regime you can claim deduction/exemption like standard deduction, Perquisites for official purposes, Interest on Home Loan u/s 24b on let-out property, Employer’s contribution to NPS, Deduction on Family Pension Income, Exemption on Leave encashment u/s 10(10AA), Exemption on gratuity u/s 10(10), Conveyance Allowance.

In new tax regime following exemption/deduction specifically not allowed
- HRA Exemption
- Leave Travel Allowance (LTA)
- Interest on Home Loan u/s 24b on self-occupied or vacant property
- Deduction u/s 80C (EPF|LIC|ELSS|PPF|FD|Children’s tuition fee etc)
- Employee’s (own) contribution to NPS
- Medical insurance premium – 80D

Latest Questions

Ramalingam Kalirajan |1310 Answers |Ask -Follow

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

Question by Saddam - Jan 25, 2024Hindi

Money

100 crores , 10 years mai kaise kamaye.

Ans: Earning 100 crores in 10 years is an ambitious goal that would require careful planning, strategic investments, and potentially taking on significant risk. Here are some avenues you could consider:

Entrepreneurship: Starting and scaling a successful business can generate substantial wealth over time. Identify a lucrative market opportunity, develop a robust business plan, and execute it with determination and perseverance.
Stock Market: Investing in high-growth stocks or equity mutual funds with a long-term horizon can potentially yield significant returns. However, this approach comes with risks and requires thorough research and diversification.
Real Estate: Investing in real estate properties in rapidly growing markets or commercial ventures can offer substantial returns over a decade. However, this avenue requires substantial initial capital and entails risks associated with market fluctuations.
Alternative Investments: Explore opportunities in alternative asset classes such as private equity, venture capital, or cryptocurrency. These investments often carry higher risk but can yield substantial returns if successful.
Diversification: Consider diversifying your investments across multiple asset classes to spread risk and maximize potential returns.
Achieving such a lofty financial goal necessitates careful consideration of risk, market conditions, and personal circumstances. Consulting with financial experts or Certified Financial Planners can provide valuable insights and guidance tailored to your specific situation and goals.

Ramalingam Kalirajan |1310 Answers |Ask -Follow

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

Asked by Anonymous - Jan 25, 2024Hindi

Money

We oftenly go to invest in a mutual funds for higher return than conventional path. If higher return is our goal then why do most of the experts ask for time horizon to be invested?

Ans: Indeed, aiming for higher returns is a common aspiration when investing in mutual funds. However, the emphasis on time horizon by experts is not about stifling your pursuit of higher returns but rather about optimizing your investment strategy for success.

Consider this: Mutual funds typically invest in a diversified portfolio of assets such as stocks, bonds, or a combination of both. These assets can be subject to market fluctuations and volatility in the short term. By having a longer investment horizon, you allow your investments the opportunity to weather these ups and downs and potentially deliver higher returns over time.

Moreover, the time horizon aligns with your financial goals and risk tolerance. Short-term fluctuations may not be conducive to achieving your objectives if you need the funds in the near future. By defining a clear time horizon, you can tailor your investment strategy to match your goals and risk profile effectively.

In essence, while aiming for higher returns is essential, having a disciplined approach and a realistic time horizon can enhance the probability of success and help you stay on course towards achieving your financial aspirations.

Ramalingam Kalirajan |1310 Answers |Ask -Follow

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

Question by K - Jan 25, 2024Hindi

Money

I am 68year old Pensioner. Last month I sold my house property and earned around Rs50lacs. I w am planning to gift the entire amount to my son in order to get tax exemption. My son is planning to utilise the amount to repay part of his housing loan from HDFC, probably during September 2025 . Now (1)Does he has to pay IT for this amount as he will be spending only in laterhalf of 2025? (2) Instead, if I invest this amount in LTCG or NHAI funds, do I have to pay any tax for this total amount this year?

Ans: Your decision to gift the proceeds from selling your house to your son reflects a heartfelt gesture of support and love. As you navigate the tax implications, it's essential to consider the timing and nature of the transaction.

Regarding your first question, your son won't be liable to pay income tax on the gifted amount until he utilizes it, typically in September 2025. This postpones the tax liability until the funds are actually put to use.

Exploring alternative options, such as investing in Long Term Capital Gains (LTCG) or NHAI funds, could potentially offer tax benefits. However, it's crucial to assess the tax implications and investment suitability carefully. While these avenues may provide tax advantages, it's essential to evaluate their risk-return profile and alignment with your financial goals.

Consulting a Certified Financial Planner can provide clarity on the tax implications and help you make informed decisions aligned with your financial objectives. Remember, every financial choice carries its own set of considerations, and seeking professional guidance can illuminate the path towards wise financial stewardship.

Ramalingam Kalirajan |1310 Answers |Ask -Follow

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

Asked by Anonymous - Jan 25, 2024Hindi

Money

Dear, Myself ANANTHA KRISHNAN. Ive been regularly investing in SIP since 2014. How can I find out what is the current value of this(these) SIPs?

Ans: It's great to hear about your disciplined approach to investing through SIPs. To find out the current value of your SIP investments, you have a few options:

Fund House Website: Most mutual fund houses provide online portals where investors can log in and view their investment details, including current portfolio value. You can register on the website of the mutual fund houses where you have invested and access your account to check the current value of your SIPs.
CAMS/Karvy Website: CAMS (Computer Age Management Services) and Karvy are registrar and transfer agents for mutual funds in India. They offer online portals where investors can track their mutual fund investments across different fund houses. You can register on the CAMS or Karvy website and access your consolidated portfolio to check the current value of your SIPs.
Mutual Fund Apps: Many mutual fund houses have their mobile apps, which allow investors to track their investments on the go. You can download the mobile app of the mutual fund houses where you have invested and log in to check the current value of your SIPs.
Financial Advisor: If you have a financial advisor or a Certified Financial Planner, you can reach out to them for assistance. They can help you track the performance of your SIP investments and provide insights on your current portfolio value.
By leveraging these resources, you can easily find out the current value of your SIP investments and track their performance over time. It's essential to review your investments periodically to ensure they remain aligned with your financial goals and risk tolerance.

Ramalingam Kalirajan |1310 Answers |Ask -Follow

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

Asked by Anonymous - Jan 19, 2024Hindi

Money

I am planning to invest 50k/ month as Sip, for 20+ year investing horizon, Can u please suggest me funds in mf.. Goal: wealth creation

Ans: For long-term wealth creation through SIPs, it's essential to select mutual funds with a proven track record of delivering consistent returns and managing risk effectively. Here are some categories of mutual funds that you may consider:

Large Cap Equity Funds: These funds invest in large, well-established companies with stable growth prospects. They offer relatively lower risk and can provide steady returns over the long term.
Multi Cap Equity Funds: These funds have the flexibility to invest across companies of various market capitalizations, providing diversification and potential for higher returns.
Mid Cap and Small Cap Equity Funds: These funds focus on mid-sized and small-sized companies with high growth potential. While they carry higher risk, they also offer the possibility of generating substantial returns over the long term.
Equity Index Funds: These funds aim to replicate the performance of a specific stock market index, such as the Nifty 50 or Sensex. They offer low expense ratios and can be suitable for investors seeking market returns with minimal active management.
When selecting specific mutual funds within these categories, consider factors such as the fund's historical performance, expense ratio, fund manager's track record, and investment philosophy.

It's essential to diversify your SIP investments across multiple funds to spread risk and maximize potential returns. Additionally, regularly review your portfolio and make adjustments as needed to ensure it remains aligned with your financial goals and risk tolerance.

Before making any investment decisions, I recommend consulting with a Certified Financial Planner who can provide personalized advice tailored to your unique financial situation and goals.

Ramalingam Kalirajan |1310 Answers |Ask -Follow

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

Question by zia - Jan 13, 2024Hindi

Money

Dear Sir, I purchased a shop in October 2022 . I paid the required amount as declared in registeration papers ( stamp duty, registeration , sale deed etc. ) However, the builder addiotnally asked for Rs. 57,000/- towards GST to be paid in cash. At the time of registeration I paid only Rs. 50,000/- in cash. Thats why the builder didint issue any GST invoice. When I paid the balance Rs. 7,000/-, the builder issued a hand written letter certifying that Rs. 7,000/- only have been received towards GST ( and not Rs. 57,000/- which I actually paid). He didi not even mentioned his GST number in that letter. There is no GST invoice from any government deptt. My questions is, whether the builder can issue a hand written GST invoice without mentioning his GHST number ??. As far as I know, all GST amounts are are paid to the Givernment and not any any individual.

Ans: It's concerning that the builder issued a handwritten letter for GST payment without providing an official GST invoice or mentioning their GST number. According to GST regulations, all transactions involving GST must be accompanied by a valid GST invoice issued by the registered supplier, containing their GST number.

In this case, the absence of a proper GST invoice raises questions about the legitimacy of the transaction and whether the GST amount was appropriately accounted for and remitted to the government. Handwritten letters without proper documentation may not suffice as valid proof of GST payment.

To address this issue, I recommend seeking clarification from the builder regarding the absence of a formal GST invoice and their GST registration details. If the builder is registered under GST, they should be able to provide a proper GST invoice with their GST number for the amount paid. If they fail to do so or provide insufficient documentation, it may be prudent to consult with a legal advisor or tax expert to explore further steps to ensure compliance with GST regulations and protect your interests.

Ramalingam Kalirajan |1310 Answers |Ask -Follow

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

Asked by Anonymous - Jan 10, 2024Hindi

Money

Hi Sir, I am planning to buy crypto tokens in FY 2023-24. As per the tax law, I have to pay 1% TDS which will be debited by the crypto exchange. when I sell my crypto tokens in any of the subsequent financial years, I will have to pay 30% tax on the profit (plus surcharge). I wanted to know how will this 1 % surcharge be adjusted when I sell my cryptos in coming years? Or will I have to pay 1% this financial year and additional 30% taxes (plus surcharge) when I sell my cryptos. Kindly clarify the matter. I look forward to your response.

Ans: Your inquiry reflects a responsible approach to understanding the tax implications of investing in cryptocurrencies. The 1% TDS (Tax Deducted at Source) levied by the crypto exchange is an advance tax payment, akin to a prepayment of your tax liability on the profit from cryptocurrency transactions.

When you sell your crypto tokens in subsequent financial years, the 1% TDS already deducted will be adjusted against your final tax liability. Therefore, you won't have to pay the 1% TDS again when you sell your cryptos.

However, it's important to note that the profit from cryptocurrency transactions will be subject to a 30% tax (plus surcharge) when you sell them in the future. This tax will be calculated on the gains made from your crypto investments, after deducting any allowable expenses or losses.

To ensure compliance with tax regulations and maximize your tax efficiency, consider consulting with a tax advisor or a Certified Financial Planner. They can provide personalized guidance based on your financial circumstances and help you navigate the complexities of cryptocurrency taxation.

Ramalingam Kalirajan |1310 Answers |Ask -Follow

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

Asked by Anonymous - Mar 24, 2024Hindi

Money

I am 37 years old and i have started sip in 2 funds for retirement corpus. They are ICICI prudential value discovery fund and HDFC flexi cap fund. Am I on the right track? Are these funds good for creating a substantial corpus?

Ans: At 37, you're demonstrating admirable foresight by initiating SIPs for your retirement corpus. Both ICICI Prudential Value Discovery Fund and HDFC Flexi Cap Fund are reputable choices known for their potential to generate substantial returns over the long term. However, the suitability of these funds depends on various factors, including your risk tolerance, investment horizon, and financial goals.

Have you considered the diversification benefits of investing in different asset classes through these funds? It's wise to ensure that your investment portfolio is well-balanced to mitigate risks and optimize returns.

While these funds have a strong track record, it's essential to regularly review their performance and reassess their alignment with your objectives. Consulting a Certified Financial Planner can provide valuable insights and help fine-tune your investment strategy for optimal results.

Remember, the journey towards building a retirement corpus requires patience, discipline, and periodic adjustments. Stay committed to your goals, keep a watchful eye on market dynamics, and trust in the power of compounding to realize your financial aspirations.

Ramalingam Kalirajan |1310 Answers |Ask -Follow

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

Question by BIMAL - Mar 23, 2024Hindi

Money

Dear Sir, I need to pay house loan EMI Rs 35k monthly. How much amount is required to deposit Lumpsum in Mutual Funds so the EMI can be paid through SWP. Suggest high return MF

Ans: Your determination to find a solution speaks volumes about your commitment to financial responsibility. Considering your situation, utilizing a Systematic Withdrawal Plan (SWP) from mutual funds to pay your house loan EMI is a thoughtful approach. It reflects your desire to leverage your investments effectively to meet your obligations.

As you ponder this decision, remember that every financial choice carries its own set of considerations and implications. Are you prepared to embrace the potential rewards and challenges that come with investing in mutual funds for this purpose? It's a path that requires both prudence and courage.

Consulting a Certified Financial Planner can offer invaluable guidance in navigating these waters. Their expertise can help you chart a course that aligns with your aspirations and risk tolerance. Remember, your journey towards financial security is not just about numbers—it's about empowering yourself to live a life of abundance and freedom. Trust in your instincts, seek wise counsel, and let your financial decisions reflect the values that matter most to you.

Ramalingam Kalirajan |1310 Answers |Ask -Follow

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

Asked by Anonymous - Mar 19, 2024Hindi

Money

hello sir, i have taken gold loan at 8.8% pa and using the gold amount for lending at 18% pa. i want an advice on if i should purchase new gold at the price of Rs 66000 per 10gms n again take a loan at 8.8%, where 24 carat gold value calculated is 85% by bank that is Rs56100 or i should lend the same amount of Rs 66000 at 18%

Ans: It seems you're considering two options to potentially maximize returns on your investment. Let's break it down.

Firstly, purchasing new gold at Rs 66,000 per 10 grams and then taking a loan against it at 8.8% interest sounds like a feasible option. However, it's crucial to assess whether the potential returns from lending the borrowed amount at 18% would outweigh the interest cost of the gold loan.

On the other hand, lending the same amount of Rs 66,000 at 18% directly also presents an opportunity for higher returns, albeit without the initial cost and interest of the gold loan.

Ultimately, your decision should hinge on factors such as your risk tolerance, liquidity needs, and investment horizon. Additionally, considering the volatility in gold prices, it's essential to evaluate the long-term sustainability of your chosen strategy.

Before proceeding, I would recommend consulting with a Certified Financial Planner to weigh the pros and cons of each option against your financial goals and circumstances. Their expertise can provide valuable insights to guide you towards the most suitable decision.

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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