Chat Transcript
15 Dec - 11:00 hrs
Suresh Sadagopan | Certified Financial Planner, Ladder7 Financial Advisories
Investments & Taxes
Chat Transcript
| moderator: Dear Moneycontrol user, welcome to the chat session with Suresh Sadagopan, Certified Financial Planner, Ladder7 Financial Advisories who will answer your queries relating investments & taxes. So fire away your questions! |
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| Suresh Sadagopan: Good Morning. There are three which are tax free when you receive the proceeds. PPF is tax free. Apart from that , Equity & Equity oriented Mutual Funds after one year of investment attract longterm capital gains tax, which is nil. |
| j_khera: Good Morning Sir, I have a capital of Rs. 10 Lakhs and planning to do an FD of same with Monthly interest credit scheme, which i plan to divert towards starting SIP in Equity MF. Would the decision be wise to achieve long term wealth? |
| Suresh Sadagopan: Instaed of doing this you could invest your money in liquid fund or ultra shortterm fund and initiate a Systematic transfer into designated equity funds. I`m suggesting this as you ultimately want to invest in Equity funds. This will create longterm wealth |
| deeput: I have 2 properties. One is on rent and am staying in the second which also has a housing loan going on. Can i declare the old house as self occupied and claim deduction for entire EMI interest for new house |
| Suresh Sadagopan: Yes. You can declare the old house as self occupied and can claim entire interest for the new house. |
| rajeevkr_raj: I got a check for 36000/- on 28 March 11 but TDS certificate show in April what to do in return? |
| Suresh Sadagopan: You would have to go by what the TDS certificate shows as the payment could have been made in advance, but TDS certificate will have to pertain to the financial year applicable. |
| rajeevkr_raj: Is it good to invent in L & T Infrastructer bond or better bond which will come in few month? |
| Suresh Sadagopan: It is very difficult to say whether better ones will come in future. The interest rate cycle is at it`s peak. Even if a new bond with better interest rates do come in, it may not be significantly higher. Hence, it is advised that you could look at this current bond itself to invest for tax savingsunder Sec 80CCF. |
| shivpankaj1979: i can invest 2-3 k every month for the period of 10 yrs. IN Which mutul fund should i invest. |
| Suresh Sadagopan: The choice of funds is actually contingent on your tenure of investment ( which you have mentioned as 10 years ), the number of years where you will be working, for which goals you are investing, your risk appetite etc. In your case, since you want to invest for a fairly long period, you could choose a large cap and a midcap fund. You could invest say 50% in a large cap fund. Some suggestions for this are Franklin Bluechip Fund, ICICI Focused Bluechip Fund, HDFc Top 200 fund etc. Good midcap funds can also be considered for 50% of your SIPinvestment. The candidates which you could consider are HDFC Midcap opportunities fund, DSP Small and midcap fund, IDFC Premier Equity fund etc. The above mentioned schemes are only some of them and you could look at the entire universe of funds and choose from them. |
| imtiyaz1980: what are the benefits of tax filing? |
| Suresh Sadagopan: Today, Tax returns are sought by many entities. For example, when you go for a home loand or even for an insurance policy, they request for one`s IT return. Hence, it is always good to file returns. Also, if there is any TDS or any tax refund claims, they can be done only if you have filed tax returns |
| agarwalam: What is the process to get HRA tax free and what is the limit. |
| Suresh Sadagopan: From a tax perspective, there is a one in three formula Find the minimum of the following three options: 1. Actual house rent allowance received from your employer 2. Actual house rent paid by you minus 10% of your basic salary 3. 50% of your basic salary if you live in a metro or 40% of your basic salary if you live in a non-metro Based on this the lowest is the amount that is eligible for tax deductions. |
| uday-1975: I have 10 lacs to invest for a period of 2-3 months. I plan to invest in HDFC cash management fund (dividend reinvest option) would this be taxed at 14% (DDT) |
| Suresh Sadagopan: HDFc Cash Management is a good fund to park money for the short-term. Dividend ption is obviously better as the Dividend distribution Tax is only 13.52%. As opposed to that Short term capital gains is at one`s applicable tax rate. Dividend option will be better, unluss you happen to be in the 10% slab or are not paying taxes. |
| sharma_ajay84: Can i invest in PPF and still not claim any deduction under 80 C as the same will be refelcting contribution to EPF. Is it possible? |
| Suresh Sadagopan: You can make any investment in any instrument, including PPF. Whether you want to claim deduction under Sec 80C or not, entirely depends on you. |
| jaystocks: If tax is not filed for FY10-11, can file returns now? |
| Suresh Sadagopan: You can file tax returns now. If you are a salaried person and TDS has been deducted, there is no problem. In case you have income from business or other sources and have not filed returns / have not paid taxes, then some penalties will apply. It is a good idea to consult with a CA on this so that he could go through your specific situation and advice. |
| anil48: My age is 45 year. ihave invested rs5000.00 PM. in which MF i invested for long term Thanks |
| Suresh Sadagopan: If you are asking me in which MF one can invest Rs.5,000/-pm for the longterm, I would suggest large cap oriented funds. Some of the schemes where we suggest you could look at are Franklin Bluechip Fund, Fidelity Equity Fund, ICICI Focused Bluechip Fund, HDFC Equity fund etc. |
| kapoor4341: PPF limit is now increased to 1,00000. Is it applicable from this FY? |
| Suresh Sadagopan: It is applicable from 1st December 2011 |
| rajeevkr_raj: I have income in two way Salary as well as profession TDS diducted from both source how can i get refund |
| Suresh Sadagopan: In case of salary TDs is deducted by the employer and paid to Income tax authorities. In case of your profession, there could be TDS from various parties, which will have to give you form 16A. You will have to now checkout what is the total income received and the tax paid and the balance to be paid becomes known and would need to be paid. If applicable ( above Rs.10000/- tax ) , advance tax will also have to be paid. After you file the IT returns, if there are any amounts due to you, it will come as a refund from tha tax authorities in due course. |
| bhatia_no1: sir,i am nri living Dubai, i am buying a flat on my mother name she is in India,so any how we are coming in any tax criteria |
| Suresh Sadagopan: If you are transferring the amounts earned in Dubai and are buying a flat in India on your mother`s name, there is no tax payable. It is only at the time of sale, that tax might become applicable as per the existing tax laws. |
| rahul6262: how do we come to know the tax we are paying is not been corrupted... |
| Suresh Sadagopan: As long as you are paying taxes under your PAN no and are mentioning the correct ward and office, you will get credit for whatever you have paid. Please take care to do this correctly. |
| girish_hodlur: Hi Suresh, I am planning to buy Jeevan Saral policy with an intention for my son |
| Suresh Sadagopan: Many people buy children`s policy for their children`s education or future. If the basic idea is to invest for their future, you could also invest in other investment options and not necessarily in insurance plans. You could take sufficient term insurance for yourself to protect the goal, in case you pass away. Otherwise, it is suggested that you could look at various options like PPF, FDs, Mutual Funds, Equity etc. as part of your kitty for your son. |
| anupdeshmukh727: Which is best ELSS fund now!! |
| Suresh Sadagopan: There are many ELSS funds available with every mutual fund. It is wise to choose the ones which have a longterm performance history and then invest. You could consider Franklin Tax shield, HDFC Tax saver, Fidelity tax advantage fund etc. These are only some of them and you could go through the entire list of available ELSS funds and decide. |
| girish_hodlur: Pls suggest some good pension plans optionsto generate a corpus of 1 crore in 15 years time. Are ULIP plans better than the ones offered by LIC |
| Suresh Sadagopan: Currently NPS could be a good option. But, in NPS, the equity fund will allow only upto 50% in equity assets. If one wants to be more aggressive on one`s investment, it would not be possible under NPS. NPS scores in terms of the very low charges for fund management. However, it is not necessary that you need to go to a pension plan only for securing your retirement planning. You could look at PPF, Mutual funds, Equity, FDS, bonds etc. |
Section 80D
Payment of medical insurance premium. Deduction is available upto Rs.15,000/ for self/ family and also upto Rs. 15,000/- for insurance in respect of parent/ parents of the assessee.
