Home > Money > Question
Need Expert Advice?Our Gurus Can Help

Sister in America is Green Card Holder, How Much Can She Gift Me Tax-Free?

Mihir

Mihir Tanna  |983 Answers  |Ask -

Tax Expert - Answered on Dec 10, 2024

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
Asked by Anonymous - Dec 09, 2024Hindi
Listen
Money

What is the maximum amt my sister leaving in america n is green card holder can gift me without any tax liability for both of us. Can gift deed stamp be signed post dated when ever she comes to India next year

Ans: There is no limits for giving gifts to relatives. Further, it is advisable to execute gift deed before giving gift.
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.
Money

You may like to see similar questions and answers below

Latest Questions
Ramalingam

Ramalingam Kalirajan  |7503 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 13, 2025

Asked by Anonymous - Jan 11, 2025Hindi
Listen
Money
Iam Kunal Ahuja 44 years old. I have 2 crores in Mutual funds, shares and pension schemes. I have a plot worth 1 crore in another city. I own my own apartment where i live in Bengaluru. Iam currently working and earn about 2 lakhs per month. I put 1 lakh every month on mutual funds and rest for my living expenses. I intend to retire at age of 50. What should i do to secure my retirement?
Ans: Evaluating Your Current Financial Position
You have Rs. 2 crore in mutual funds, shares, and pension schemes. This is a solid base.

You own a plot worth Rs. 1 crore, which adds to your asset portfolio.

Your Bengaluru apartment provides security and eliminates rental expenses.

You are earning Rs. 2 lakh monthly and saving Rs. 1 lakh in mutual funds.

Your plan to retire at 50 requires careful financial planning to ensure stability.

Setting Clear Retirement Goals
Assess your post-retirement monthly expenses, including lifestyle, healthcare, and leisure activities.

Account for inflation to calculate future expenses accurately.

Include provisions for emergencies and health-related expenses.

Plan for a retirement corpus that can sustain you for at least 30 years.

Maximising Current Savings
Continue your monthly mutual fund investments of Rs. 1 lakh.

Focus on equity mutual funds for long-term growth until retirement.

Diversify your portfolio with balanced funds to reduce risk closer to retirement.

Avoid direct mutual funds. Invest through a Certified Financial Planner for expert guidance.

Actively managed funds offer better returns compared to index funds in Indian markets.

Liquidity and Emergency Planning
Keep an emergency fund equal to 12 months’ expenses in liquid funds.

Allocate a portion of your portfolio to debt funds for stability and liquidity.

Avoid relying on illiquid assets like real estate for emergency needs.

Optimising Real Estate Holdings
Evaluate the necessity of holding the plot worth Rs. 1 crore in another city.

Consider selling the plot to reinvest in liquid financial assets for retirement.

Liquid assets provide better flexibility compared to real estate.

Creating a Health and Insurance Buffer
Ensure you have adequate health insurance coverage for yourself and your family.

Increase coverage to Rs. 50 lakh if it is currently lower.

Maintain a term insurance policy to protect your family until financial independence.

Planning for Post-Retirement Income
Build a retirement corpus that generates sufficient monthly income.

Use a mix of equity and debt investments to maintain growth and stability.

Reinvest dividends and returns during the accumulation phase for compounding.

Avoid annuities for retirement income. Focus on systematic withdrawal plans.

Tax-Efficient Investments
Monitor tax implications of your mutual funds and shares.

Long-term capital gains (LTCG) above Rs. 1.25 lakh are taxed at 12.5%.

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

For debt funds, gains are taxed as per your income tax slab.

Securing Long-Term Goals
Account for increasing healthcare costs as you age.

Consider a vacation fund to enjoy leisure post-retirement.

Set a separate fund for large future expenses like children’s education or marriage.

Final Insights
You have a strong financial foundation for early retirement.

Focus on reducing dependency on illiquid assets like real estate.

Continue investing aggressively in mutual funds until retirement.

Build a balanced portfolio to generate consistent income post-retirement.

Plan for emergencies, healthcare, and leisure expenses systematically.

Seek professional advice to optimise investments and achieve financial freedom.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...Read more

Ramalingam

Ramalingam Kalirajan  |7503 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 13, 2025

Asked by Anonymous - Jan 11, 2025Hindi
Listen
Money
Am 45 and has below corpus 1 cr ppf 2 cr fd 1 cr capital gain bond with redemption in 3 yrs 60 lakh senior citizen scheme for both parents 30 lakh rbi bonds 40 lakh equity which is now reduced to 30 lakh in recent down 20 lakh in hand 7 lakh in pension scheme self own house - no loan Own additional plot with present market value of 3 cr expense present house improvement - 30L (immediate) 2 kids higher education - 2 cr expected marriage - 3 cr (in next 8 to 10 yr) - both boys extrapolating inflation Existing monthly expense - 2 lakh existing monthly income from business - 2 lakh own house car loan with emi of 10K coming to end in 2027 no other loan or debt What if i retire now, will i be able to sustain in future and family
Ans: You have built a strong financial foundation, which includes:

Rs 1 crore in PPF: Offers stability but limited liquidity.

Rs 2 crore in FDs: Provides security and predictable returns.

Rs 1 crore in capital gain bonds: Redeemable in 3 years, offering safety until then.

Rs 60 lakh in Senior Citizen Savings Scheme (SCSS): Ensures steady income for your parents.

Rs 30 lakh in RBI bonds: Good for long-term stability.

Rs 30 lakh in equity: Reduced from Rs 40 lakh due to market corrections.

Rs 20 lakh in cash: Useful for immediate needs.

Rs 7 lakh in a pension scheme: A minor but helpful component for retirement.

Self-owned house and additional plot: Total real estate value of Rs 3.3 crore.

No major liabilities: Only a car loan EMI of Rs 10,000 until 2027.

Immediate Considerations
1. Emergency Funds

Set aside 12–24 months' expenses (Rs 24–48 lakh).
Use liquid mutual funds or savings accounts for this.
2. House Improvement Needs

Allocate Rs 30 lakh from your FDs or cash reserves.
Prioritise immediate renovation without disrupting other investments.
3. Children’s Higher Education

Estimated cost is Rs 2 crore over the next 5–10 years.
Invest systematically in balanced or hybrid mutual funds for this.
Equity exposure is essential for growth to beat inflation.
4. Children’s Marriage

Estimated cost is Rs 3 crore over 8–10 years.
Use a combination of balanced and debt-oriented funds.
Retirement Readiness
1. Current Monthly Expenses

You need Rs 2 lakh per month for expenses.
Existing business income matches this need, but retirement changes dynamics.
2. Retirement Corpus Requirements

Your portfolio must support monthly expenses and inflation.
A mix of equity and debt investments can generate stable income.
Equity provides growth, while debt ensures stability.
3. Diversification

Balance equity and debt based on risk tolerance and goals.
Avoid concentrating too much in low-growth instruments like FDs.
Detailed Investment Strategy
1. Equity for Long-Term Growth

Retain or add actively managed equity mutual funds.
Avoid index funds, as they lack active management during market volatility.
Diversify into large-cap, multi-cap, and mid-cap funds.
2. Debt for Stability and Income

Invest in debt mutual funds, offering tax efficiency and stability.
New tax rules require planning for LTCG and STCG taxes.
3. RBI Bonds and SCSS

Continue holding these for predictable returns.
They support low-risk, regular income needs.
4. Capital Gain Bonds

Redeem after 3 years and reallocate based on goals.
Consider hybrid funds or balanced products for better growth.
Holistic Family Planning
1. Parents’ Security

SCSS ensures financial independence for your parents.
Monitor and renew this as required for consistent income.
2. Children's Future

Start separate portfolios for each child’s education and marriage.
Avoid direct funds; invest through a Certified Financial Planner.
This ensures tailored advice and better fund selection.
3. Insurance Needs

Ensure adequate health and term insurance for the family.
Protect against unforeseen medical or financial risks.
Tax-Efficient Planning
1. Equity Mutual Funds

LTCG over Rs 1.25 lakh is taxed at 12.5%.
STCG is taxed at 20%.
Plan withdrawals smartly to optimise tax liability.
2. Debt Investments

Both LTCG and STCG are taxed based on your income slab.
Consult a Certified Financial Planner to manage tax-efficient withdrawals.
Final Insights
You can retire comfortably if you plan systematically.

Focus on balancing your portfolio with growth and stability.

Prepare separate funds for your children’s education and marriage.

Ensure you have a robust emergency fund and insurance coverage.

A Certified Financial Planner can help you align investments with goals.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...Read more

Ramalingam

Ramalingam Kalirajan  |7503 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 13, 2025

Asked by Anonymous - Jan 12, 2025Hindi
Listen
Money
Based on my parents advice, I have consistently putting money on real estate. I have also taken loans and invested them in properties. Now i have two flats in Bangalore 60L and 80L with 35L and 39L loan over it, both occupied by me, one for family and for home office. I have two houses in home town Tiruvannamalai 1 Crore and 80L with 49L loan and 30L. I also get rentals of about 60k per month from both properties. Besides, I have commercial land 2 Crore, Farm land (2 acres) 90L and another residential plot for 30L. I have taken 50L personal loan. I wish to retire from corporate in 4 years. My current salary is 3.3L per month. EMI is 2.7L per month. Pls advice me. My monthly expense is less than a lakh rupees. I have two kids one is in college and one is 8th standard. I have to park about 3L per year for their college (addition to college expenses) and school fees for next 8 years. After retirement, me and my wife want to go for annual vacations (4 to 5L per year). Pls advice
Ans: Your portfolio has high real estate exposure. Loans create financial pressure with high EMIs. Current EMIs of Rs. 2.7 lakh against your income of Rs. 3.3 lakh reduce savings potential. Rental income of Rs. 60,000 offsets part of this.

Challenges in Your Financial Plan
Heavy dependence on real estate limits liquidity.
High EMIs consume a large portion of your income.
Personal loan of Rs. 50 lakh increases financial strain.
Children's education and vacation expenses need dedicated funding.
Optimising Real Estate Holdings
Consider partial liquidation of properties. Selling one property can reduce debt. This increases your monthly cash flow.

Focus on keeping assets generating rental income. Evaluate properties with poor returns or high maintenance costs.

Avoid new real estate purchases. Current exposure is already high.

Managing Existing Loans
Prioritise high-interest loans for prepayment. The personal loan should be your first target.

Consider selling underperforming assets to repay loans. For example, if the commercial land is not yielding income, evaluate its sale.

Aim to reduce EMI below Rs. 1.5 lakh per month within two years.

Diversification with Mutual Funds
Start investing monthly in mutual funds for retirement and education goals. Choose actively managed funds for long-term growth.

Invest through a Certified Financial Planner to benefit from professional expertise. Avoid direct mutual funds.

Set a monthly SIP amount to build a liquid corpus. This can act as a buffer post-retirement.

Children's Education Planning
Allocate Rs. 3 lakh annually for education separately. Use fixed deposits or short-term debt funds for secure returns.

Ensure you factor in inflation for future education costs.

Planning for Annual Vacations
Start a dedicated vacation fund now. Invest Rs. 20,000 monthly in balanced funds. This corpus can grow over the next four years.

Post-retirement, withdraw annually from this fund for vacations.

Retirement Readiness
Plan to clear all loans before retirement. High EMIs can stress your retirement years.

Build a retirement corpus to generate Rs. 1.5 lakh per month post-retirement. Include liquid investments for flexibility.

Invest surplus income into mutual funds now to grow your retirement corpus.

Health Insurance and Emergency Fund
Check health insurance coverage for your family. Increase it to Rs. 50 lakh if required.

Maintain an emergency fund covering 12 months' expenses. Use this for any unforeseen circumstances.

Final Insights
Your financial position is strong but needs balance. Reduce dependency on real estate. Focus on liquid investments for flexibility.

Debt management is critical before retiring. Use property liquidation to reduce liabilities.

Invest smartly in mutual funds for education, vacations, and retirement. Diversification will strengthen your portfolio.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...Read more

Ramalingam

Ramalingam Kalirajan  |7503 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on Jan 13, 2025

Asked by Anonymous - Jan 12, 2025Hindi
Listen
Money
I am 53 years and want to retire immediately . My anmual expenses will be 25 lac approximately. I have 3 cr PF , 1.5 cr FD, 1 core in stocks and mf and own flat,which might need 25 lac for rennovation. How should I invest this money to get desired amount
Ans: Your existing portfolio includes:

Rs 3 crore in Provident Fund (PF)
Rs 1.5 crore in Fixed Deposit (FD)
Rs 1 crore in stocks and mutual funds
An owned flat requiring Rs 25 lakh renovation
Your annual expenses are Rs 25 lakh, indicating a need for reliable income post-retirement.

To meet your goals, a well-balanced, diversified approach is essential.

Immediate Considerations
1. Reserve Emergency Funds

Set aside 12–24 months' expenses as an emergency fund.
Use savings or liquid mutual funds for this purpose.
Ensure these funds are accessible and secure.
2. Allocate Renovation Funds

Reserve Rs 25 lakh for your flat renovation.
Prefer using existing FDs for this short-term need.
3. Address Insurance Needs

Ensure you have adequate health insurance.
Secure coverage that protects against rising medical costs.
Structured Investment Strategy
1. Generate Regular Income

Use your PF and FD funds to create steady income.
Invest in a mix of conservative debt mutual funds and monthly income plans.
These options provide predictable returns.
2. Balance Risk with Growth

Allocate part of your stocks and mutual funds to equity funds.
Actively managed funds can outperform index funds over time.
Keep a diversified portfolio with large-cap, mid-cap, and multi-cap funds.
3. Tax-Efficient Withdrawals

Minimize taxes on withdrawals.
Equity funds' long-term gains over Rs 1.25 lakh are taxed at 12.5%.
Debt funds are taxed based on your income slab.
4. Rebalance Annually

Review your portfolio each year.
Adjust based on market changes and personal needs.
Benefits of Investing Through a Certified Financial Planner
1. Tailored Financial Plan

Certified planners create customized strategies.
They align your investments with your risk appetite and goals.
2. Better Fund Selection

Avoid direct funds due to limited advisory support.
Regular funds through a planner provide expert guidance.
3. Holistic Approach

A planner ensures your retirement, tax, and estate planning are integrated.
Suggested Portfolio Allocation
1. Debt Investments (50%)

Utilize debt mutual funds and fixed deposits.
Provide stability and regular income.
2. Equity Investments (30%)

Invest in diversified, actively managed mutual funds.
Retain a portion of your existing stocks for growth.
3. Alternative Investments (20%)

Consider hybrid funds or other income-generating investments.
These offer moderate growth with lower volatility.
Other Key Actions
1. Track Expenses

Monitor your annual expenses carefully.
Adjust spending patterns as needed.
2. Estate Planning

Update your will and nominate beneficiaries.
Ensure smooth transfer of assets to your family.
3. Stay Updated

Keep track of tax regulations affecting your investments.
Consult your Certified Financial Planner for any changes.
Final Insights
Your portfolio is well-positioned for retirement, but strategic allocation is key.

A certified planner can guide you in maximizing returns while preserving capital.

Invest with a mix of debt and equity for steady income and growth.

Review your portfolio regularly to align it with changing needs.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...Read more

Dr Deepa

Dr Deepa Suvarna  |139 Answers  |Ask -

Paediatrician - Answered on Jan 12, 2025

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.

Close  

You haven't logged in yet. To ask a question, Please Log in below
Login

A verification OTP will be sent to this
Mobile Number / Email

Enter OTP
A 6 digit code has been sent to

Resend OTP in120seconds

Dear User, You have not registered yet. Please register by filling the fields below to get expert answers from our Gurus
Sign up

By signing up, you agree to our
Terms & Conditions and Privacy Policy

Already have an account?

Enter OTP
A 6 digit code has been sent to Mobile

Resend OTP in120seconds

x