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

Vivek Lala  | Answer  |Ask -

Tax, MF Expert - Answered on Mar 11, 2023

Vivek Lala has been working as a tax planner since 2018. His expertise lies in making personalised tax budgets and tax forecasts for individuals. As a tax advisor, he takes pride in simplifying tax complications for his clients using simple, easy-to-understand language.
Lala cleared his chartered accountancy exam in 2018 and completed his articleship with Chaturvedi and Shah. ... more
paner Question by paner on Feb 28, 2023Hindi
Listen
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).
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

Sanjeev

Sanjeev Govila  |458 Answers  |Ask -

Financial Planner - Answered on Feb 08, 2023

Listen
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).

..Read more

Latest Questions
Nayagam P

Nayagam P P  |5507 Answers  |Ask -

Career Counsellor - Answered on May 30, 2025

Career
I'm getting CSE Core at JSS University , CSE with Cyber Security at JIIT , CSE core in VIT Bhopal in category 2, and CSE Core in ABESIT. Which one should i choose?
Ans: VIT Bhopal’s Computer Science and Engineering (CSE) program offers a centralized placement system shared with VIT Vellore, attracting top recruiters like Microsoft, Amazon, TCS, and Infosys. While placements vary, 70–90% of CSE students secure roles, with internships at firms like Google, Adobe, and JP Morgan integrated into the curriculum. The campus features modern infrastructure, including advanced labs (IoT, AI/ML, Gaming Studio), Wi-Fi-enabled hostels, and a 600-seat auditorium, though sports facilities remain under development. Faculty members hold doctorate qualifications and emphasize industry-aligned learning, though some students report inconsistent academic support. The remote location (Bhopal-Indore highway) limits urban amenities but provides a serene, security-focused environment. Campus life includes tech clubs, hackathons, and festivals, though social activities are less vibrant compared to older VIT campuses. While CSE specializations (AI/ML, Cybersecurity) are well-structured, competition for core roles is intense, requiring students to maintain strong academic performance. Prospective students should weigh the centralized placement opportunities against the evolving campus infrastructure and location constraints. Prioritize JSS Mysore for balanced academics and placements, followed by JIIT Noida for specialization options. VIT Bhopal is ideal for brand-driven opportunities, while ABESIT serves as a pragmatic backup. All the BEST for your Admission & Prosperous Future!

Follow RediffGURURS to Know More on 'Careers | Money | Health | Relationships'.

...Read more

Ramalingam

Ramalingam Kalirajan  |8608 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 30, 2025

Money
sir, am 26 year old and have some SIPs for Rs 1000 each. 1. QUANT SMALL CAP FUND DIRECT 2. NIPPON INDIA LARGE CAP DIRECT 3. MIRAE ASSEST ELSS TAX SAVER 4. UTI NIFTY 50 5. PARAG PARIKH FLEXI CAP 6. TATA MIDCAP GROWTH DIRECT 7. TATA SMALL CAP DIRECT my question is, these are good SIPs for next 10-15 years ? second is i want to invest 10000 more per month, please let me know which SIPs will be good for next 15 years. Thanks
Ans: At age 26, it is appreciable that you have started investing early.

It shows responsibility towards your future financial goals.

Your current SIPs are diversified across multiple categories.

But some of these SIPs may not be aligned well for long-term consistency.

Let us now review each one professionally.

1. Quant Small Cap Fund - Direct

Small caps can be volatile.

This fund is aggressive and high-risk.

Direct plans have no guidance or monitoring.

This may affect long-term performance.

Switching to a regular plan with a Certified Financial Planner is better.

This will ensure proper guidance and rebalancing.

2. Nippon India Large Cap - Direct

Large caps offer stability in a portfolio.

However, this fund’s long-term consistency is not very strong.

Also, direct plans lack expert monitoring.

A regular plan through a CFP ensures better handholding.

Tracking and performance review becomes easier.

3. Mirae Asset ELSS Tax Saver

This fund is decent for tax saving.

It is diversified and has shown fair returns.

However, regular review is still needed.

A regular plan helps with documentation and timely alerts.

Switching to regular mode can be beneficial in the long run.

4. UTI Nifty 50 - Direct

This is an index fund.

Index funds only mirror the market.

They do not aim to beat the market.

They lack human intelligence and flexibility.

They don’t perform well during corrections or sideways markets.

Actively managed funds have higher potential.

They can outperform in changing market situations.

Consider replacing this with a well-managed large cap fund.

In regular plan through CFP, you get guided fund selection.

5. Parag Parikh Flexi Cap

Flexi cap funds provide flexibility across market segments.

This fund has been popular recently.

But it has higher exposure to international stocks.

This brings currency risk and regulatory risks.

Also, it may overlap with other holdings.

You should regularly monitor for overlap and concentration.

Again, direct mode has no professional review.

6. Tata Midcap Growth - Direct

Midcaps are good for long-term.

But they need close tracking due to higher volatility.

A regular plan with expert guidance is ideal.

Direct mode will not help during market correction periods.

Switching to regular mode will ensure ongoing support.

7. Tata Small Cap - Direct

Small caps are risky in short to medium term.

This should not be your core holding.

Should be allocated only with close guidance.

Again, direct plans can go off-track without support.

If unmanaged, can bring portfolio imbalance.

Assessment of Direct Funds: Key Concerns

Direct funds may look cheaper in expense.

But they lack professional support and review.

There is no monitoring of changes in fund quality.

You may miss timely exits and rebalancing.

A Certified Financial Planner guides with logic and analysis.

They also help align your funds with your goals.

Regular plans have MFD support and rebalancing discipline.

They protect from behavioural mistakes during market volatility.

Overall, regular funds with expert guidance bring higher net value.

What Can Be Done with Your Existing SIPs?

You can consider the following changes:

Discontinue index fund (UTI Nifty 50) SIP.

   

Reduce exposure to direct small and midcap funds.

   

Switch from direct plans to regular plans via a Certified Financial Planner.

   

Ensure SIPs are part of a professionally constructed portfolio.

   

Ensure proper asset allocation, fund category balancing and tax efficiency.

   

New SIP of Rs 10,000 per Month – Suggestions

For your new Rs 10,000 monthly SIP, here is a 360-degree plan:

Allocate across diversified categories.

   

Ensure each fund has low overlap and different market focus.

   

Invest in 3 to 4 funds max.

   

All in regular mode with CFP-led support.

   

Avoid index funds, as they only match market returns.

   

Go for actively managed funds with proven history.

   

Include large-cap, mid-cap and flexi-cap mix.

   

Monitor quarterly with your Certified Financial Planner.

   

Additional Guidance for 15-Year Wealth Building

At 26, your time horizon is excellent.

But long-term wealth creation needs more than just SIPs.

It needs strategy and discipline.

Below are key steps for a full-circle approach:

Set clear financial goals: Home, car, retirement, child education etc.

   

Link SIPs to each goal separately.

   

Keep emergency fund in place (6 months expenses).

   

Get sufficient life and health insurance (pure protection plans).

   

Avoid investment-cum-insurance products.

   

They give low returns and poor insurance.

   

Do not mix insurance with investment.

   

Track your SIP performance annually.

   

Rebalance if some funds underperform.

   

Maintain asset allocation: Equity, Debt and Liquid.

   

Avoid emotional reactions during market dips.

   

Stay invested with guidance from your CFP.

   

Be aware of taxation rules on equity and debt funds.

   

LTCG on equity above Rs 1.25 lakh is taxed at 12.5%.

   

STCG on equity is taxed at 20%.

   

Debt fund gains are taxed as per income slab.

   

Regular plan MFD and CFP helps with all tax planning.

   

What Not to Do in the Next 15 Years

Don’t invest in index funds.

   

They lack active strategy.

   

Don’t choose funds by past returns only.

   

Don’t use direct funds without financial expertise.

   

Don’t invest in real estate for returns.

   

Don’t invest in annuity products for retirement.

   

Don’t mix investment and insurance.

   

Don’t make decisions based on short-term news or noise.

   

Don’t stop SIPs during market corrections.

   

Role of a Certified Financial Planner

A Certified Financial Planner helps you:

Set goals based on life stages.

   

Create custom SIP and lump sum plans.

   

Select the best active funds for your goals.

   

Rebalance annually to stay on track.

   

Plan taxes as per latest rules.

   

Protect wealth with right insurances.

   

Build retirement with strategic planning.

   

Create a total financial blueprint for life.

   

Keep emotions out of financial decisions.

   

Final Insights

You have taken a great step by starting early.

But choosing the right funds is key.

More important is monitoring them regularly.

Direct plans lack this important support.

Switching to regular plans under CFP brings value.

Also, add Rs 10,000 new SIP with proper strategy.

Don’t follow trends.

Stay committed and review annually.

Avoid overlapping funds and unnecessary risks.

Have a complete financial roadmap in place.

You are building your future.

Make each rupee work with expert guidance.

This 360-degree approach will lead to better outcomes.

You will be financially secure and confident.

Take the next steps with clarity and care.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...Read more

Ramalingam

Ramalingam Kalirajan  |8608 Answers  |Ask -

Mutual Funds, Financial Planning Expert - Answered on May 30, 2025

Asked by Anonymous - May 30, 2025
Money
Dear Sir I had ancestral property at native place which fetch 14K Rent monthly...Property is 40Years old.. Will it be good If I sell that property for 70Lakh and keep that money in Balanced fund or in NPS account
Ans: You are thinking wisely about your assets.

Let’s look at this from a 360-degree perspective.

Rental Income vs Sale Value

The property gives you Rs. 14,000 monthly rent.

That is Rs. 1.68 lakhs per year.

Over 10 years, you may earn Rs. 16 to 18 lakhs from rent.

Maintenance cost, property tax, and repairs will reduce this further.

Also, a 40-year-old property needs more upkeep.

Its resale value may not grow much more from here.

Selling now for Rs. 70 lakhs gives you full value in hand.

You can use that money in better investment options.

Emotional Value vs Financial Value

Being ancestral property, emotions may be attached.

But emotional value won’t solve financial needs.

If the property is not well located or not appreciating well, selling is practical.

You can honour the legacy in other ways.

Should You Invest in NPS?

NPS is a retirement tool with lock-in till age 60.

You can’t withdraw freely.

It is good for building a pension corpus.

But not suitable if you want liquidity or flexibility.

Once you invest, you cannot move the funds easily.

Also, returns are not consistent. Depends on market and fund manager.

Use NPS only for a part of your funds if your retirement goal is clear.

Should You Put in Balanced Funds?

Balanced funds (also called hybrid funds) invest in both equity and debt.

They are good for moderate risk and stable returns.

Suitable for long-term goals like retirement, child's education, or financial freedom.

They give better return than traditional options.

But don’t invest in direct plans.

Direct funds don’t guide during volatility.

Regular plans through MFD with CFP support are better.

You get timely advice and fund switching support.

Active fund managers make strategy changes.

Index funds or passive options don’t do that.

Actively managed balanced funds are better for Indian investors.

What You Should Do Now

Sell the property if there’s no growth and rising maintenance.

Use part of the Rs. 70 lakhs to reduce any high-interest debt.

Keep 6 to 12 months of expenses as emergency fund in liquid mutual fund.

Invest the rest through SIP and STP in regular hybrid funds.

Plan your financial goals with a Certified Financial Planner.

For retirement, use mutual funds along with PPF and EPF.

Use NPS for small part only, due to lack of liquidity.

Tax Impact You Should Know

On sale, capital gains tax will apply.

Since it's ancestral property, indexed cost and holding period matter.

Tax can be planned using capital gain bonds or reinvestment.

Don’t keep all money in savings account. Plan it step-by-step.

A Suggested Allocation Strategy (Not Specific Schemes)

Rs. 10 to 15 lakhs – emergency and contingency in liquid or short-term fund.

Rs. 40 to 45 lakhs – invest gradually in hybrid and multicap mutual funds.

Rs. 10 lakhs – use for NPS only if you have no urgent needs till age 60.

Avoid direct funds, index funds, or annuity options.

Use regular funds via MFD under CFP guidance.

Final Insights

Selling old property and investing is a progressive step.

You are unlocking stuck value into a growing asset.

Old assets slow down your money’s growth.

Balanced mutual funds help you grow with moderate risk.

NPS gives tax benefit but lacks flexibility.

Don’t invest entire money in NPS. Use mix of better tools.

Avoid emotional attachment if the property is non-performing.

Turn this decision into a lifetime opportunity.

Your wealth deserves active planning, not passive holding.

Take support from a Certified Financial Planner to execute wisely.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

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

...Read more

Dr Upneet

Dr Upneet Kaur  |40 Answers  |Ask -

Marriage counsellor - Answered on May 30, 2025

Nayagam P

Nayagam P P  |5507 Answers  |Ask -

Career Counsellor - Answered on May 30, 2025

Career
I have 142 marks in MET and 76% in boards. Is it possible for me to get in CSE ( or any specialization like AI/ML or financial technology ) at the main campus? If not should I go for Bengluru campus?
Ans: Sneh, With 142 MET marks (expected rank ~2,001–4,500) and 76% in boards, admission to CSE, AI/ML, or Financial Technology at MIT Manipal (main campus) is unlikely, as the 2024 closing ranks for these branches were CSE: 1,633, AI/ML: 2,255, and Financial Tech: 3,189. However, MIT Bengaluru offers viable alternatives, with 2024 cutoffs of CSE: 5,687, AI/ML: 7,244, and Financial Tech: 9,116, all within your rank range. While the main campus remains competitive, Bengaluru provides comparable academic rigor and industry exposure, albeit with marginally lower placement averages. During MET counselling, prioritize CSE at Bengaluru or specialized branches like AI/ML/Financial Tech as achievable options. If preferring Manipal, explore non-CSE branches (e.g., IT, Electronics) with lower cutoffs (~4,500–5,148) or monitor spot rounds for potential vacancies. Your board percentage meets the eligibility criteria (50% PCM), so strategically rank preferences during counselling to optimize admission prospects. Bengaluru serves as a strong backup with aligned opportunities, ensuring a balance between campus reputation and program accessibility.

All the BEST for your Admission & Prosperous Future!

Follow RediffGURURS to Know More on 'Careers | Money | Health | Relationships'.

...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.

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