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guest: Is investing in gold idea or one should buy ETF funds available in market.
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Buy ETF as costs are negligible. In physical gold 25-30% of what you pay goes for making/ wastage charges
guest: hello Madam, Can u guide me as i am new to mutual fund & want to start investment fro future planning i am 22 years old individual.Please assist me to start planning of my money wisely.
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Firstly, pls plan to invest based on financial goals. So the first question is how long can you hold the investment. Only if you can hold for 7+ years should you consider equity MF. Next based the risk profile, choose between large cap & midcap. Here are some funds: ICICI Prudential nifty 50 index fund Parag Parikh flexicap fund Mirae Midcap Fund Edelweiss Smallcap fund
guest: Is investing in Postoffice or mutual fund is good idea for senior citizen who have income as pension of Rs.60k from this i want to invest 20k in market, so please suggest good scheme.
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You can invest in equities provided you can hold the investment for atleast 7 years and Rs 40K is enough to meet your other expenses. Here are some funds: ICICI Prudential nifty 50 index fund Parag Parikh flexicap fund Mirae Midcap Fund Edelweiss Smallcap fund
guest: Hello Ma`am,Please suggest good equity scheme to invest around 5 lakhs for next 15 years.
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Here are some funds: ICICI Prudential nifty 50 index fund Parag Parikh flexicap fund Mirae Midcap Fund Edelweiss Smallcap fund
guest: Hello Madam, I am IT professional who earns around 5 lakhs on monthly basis, from that i pay 1 lakhs as my HL EMI & 50K as my PL EMI, also have LIC premiums of around 40k & on monthly basis i trade in stock for around 25k, would liek to start SIP of Rs.10k so request you to please share the good schemes & how cna i split this amount that also.TIA
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Here are some funds: ICICI Prudential nifty 50 index fund Parag Parikh flexicap fund Mirae Midcap Fund Edelweiss Smallcap fund Choose as per where you can take risk - if you want lesser risk - nifty 50 & flexicap fund, if you can take more risk - midcap/smallcap Also you have very high amount going for EMI- would suggest to use the stocks money to close the PL
guest: I have invested in ICICI Prudential Large Cap Fund in SIP mode of Rs.5k is it good fund to keep investing for longterm.
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yes
guest: My father passed away during the current year. We are six siblings. What will be the tax liability in our hands for the share in PPF amount, ? will the PPF account earn interest further if we don’t claim that amount ?
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Under Section 56(2)(x) any amount received under a will or as inheritance under the personal law applicable is fully exempt in the hands of the recipient without any limit. So share in the PPF account of your father is fully exempt in the hands of all the siblings. On the death of the subscriber, the balance in PPF a/c. does not cease to earn interest. The interest accrues in the account till the end of the month preceding the month in which payment of the deposits is made to the nominee / legal heirs.
guest: I am retired employee having interest income of 5 lakhs. I have received shares worth Rs. 25 lakh as ancestral assets from my HUF demat account consisting of me and my wife. Every year I have been selling shares from HUF worth Rs. 2 to 2. 5 lakhs which is below the taxable limit. The sale proceeds of the HUF are being transferred to our joint account for our recurring expenses. Am I doing right? Does this attract any tax implications? Is any precaution required from tax point of view? It is necessary to file HUF ITR?
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First of all, there is no concept of ancestral assets now after enactment of Hindu Succession Act, 1956.The shares received from your HUF belong to you. So, I feel that the ancestral assets credited by you in your HUF demat account is not correct legally. Moreover, as you have stated that only you and your wife are member of the HUF, an HUF cannot come into existence without there being more than one coparcener and wife is not treated as coparcener unless there is already asset belonging in the name of the HUF before your marriage. So, in my opinion your HUF is not legal and can be questioned by the income tax department. Even presuming that your HUF is legally constituted and the shares credited in the HUF are legally done the action of crediting the sale proceeds of the shares to your joint account amounts to partial partition which is not recognized by the income tax department. So any income received in respect of the money credited in your joint account or on investment of such funds shall continue to be taxable in the hands of your HUF. So in case the income of the HUF together with the income which is required to be clubbed as stated above exceeds the threshold of 2.50 lakhs you are required to file ITR of your HUF.
guest: My father expired in 2020 and his HUF still exists. We two brothers have decided to dissolve my father’s HUF. Have my two sisters to be given an equal portion of the amount from HUF.
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Yes, your sisters are entitled to get an equal share in assets the HUF of your father. After the amendment of Hindu Succession Act 1956 in 2005 daughter whether married or unmarried are treated on par with a son and are coparcener of the HUF. If your sisters wish they can agree for a lesser share or may even agree to forgo their share in the assets of your father`s HUF.
guest: My father and mother are retired Govt. Employees. We have a few pieces of land on which we maintain apple orchards. One piece of land is solely owned in my father’s name whereas the other piece of land is ancestral land which came to my father after partition between brothers. I look after the apple orchards and deposit the money after selling the apples in my bank account. The question is does the second land become the capital of the HUF?
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Both the asset belongs to your father as the concept of ancestral property no longer exists after introduction of Hindu Succession Act. The money should have been deposited in your father`s bank account and included in his ITR accordingly.
guest: My father died 10 years ago. He was holding some shares which I transferred to my demat account after my father`s death. My mother died 3 years ago. We are 3 brothers and 3 sisters of which I am eldest and married, others are unmarried. Can I create my HUF and transfer shares received from my father as I have filed my return and these shares valuing RS.18 lakhs are not shown in my IT return as it is our ancestral property? If the answer is yes then if A.O. claim that these shares are not your ancestral property as it was in your a/c and you have transferred your own property to HUF. Does it attract clubbing provision if I transfer my father`s share to my HUF ?
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I presume your father died without leaving a valid will. So the shares owned by your father had passed on to all the legal heirs as per provisions of Hindu Succession Act and have become their individual asset at the time of death of your father. In this case all his assets were equally inherited by all the seven legal heirs including your mother. The assets of your mother including the the shares inherited by her would also get inherited by the six siblings in equal parts in case she did not leave any valid Will in respect of her assets. So the share inherited by you are your personal property and can not be treated as HUF asset. If you transfer the shares to your HUF, the same will attract clubbing provisions. All the legal heirs should have shown the respective income in their ITR after death of your father as the shares got inherited immediately after death. The concept of ancestral property no longer exists after introduction of Hindu Succession Act 1956.
guest: My mother has just passed away. We found some gold ornaments in her locker. She was a non-tax payer. Now what if I sell the gold and deposit the cash in my account will I face any problem?
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The answer to your question will depend on evaluation of various factors. For example, what is the total value of the gold jewelry found in your mother’s locker? Any inheritance received by her? Whether your father was a tax payer and what income he had declared in his ITR? What was her age at the time of her death? Though she was not a tax payer, did she have any income? Etc. You will not face any problem if the value of gold jewelry found in her locker was reasonable. What is reasonable will depend on the consideration of all the above factors together. So if the gold jewelry was genuinely found in her locker and it can reasonably be proved that she might have accumulate/acquired so much of gold jewelry during her life time I do not think you should face any problem. However, if you are not able to convince the assessing officer about possibility of your mother having accumulated that much gold jewelry during her life time, you are likely to face tax at 60% plus surcharge and interest and may also face penalty proceeding. So if you are planning to convert your black money into white using this mechanism, I would sincerely urge you to refrain from doing this
guest: My father had a Saving Bank Account with me as second holder. He passed away on 23 Apr 25. Since I was joint holder, on the closure of my father`s bank account, the balance amount got transferred to me. Please tell me what will be my tax liability for such an amount and where I need to show the said amount in my ITR FY 25-26.
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Section 56(2) of the Income Tax provides for taxation of gifts received during the year in case aggregate value of all the gifts, whether in cash or in kind during a year, exceed fifty thousand rupees. However, anything received either under a Will or as legal heirs under the personal law is outside the scope of Section 56(2) and thus there is no tax liability for those who receive such inheritance. Since there is no inheritance tax here in India also, so the money received by you on death of your father is fully tax free in your hands without any limit. Please note that the other legal heirs may ask you to give them their share in the money received by you in case there are other legal heirs entitled to inherit from you father in case he died without leaving a valid Will. However, in case your father had bequeathed this amount to you under a valid Will, you are not accountable to other heirs. Since the money received by you as legal heir is not an income, you are not required to disclose the same in the ITR to be filed by you. However if you wish you can disclosed this under the schedule EI of exempt income.
guest: I am in 30% bracket. I am Rs. 30 lakh as my share of the sale of ancestral property. I plan to invest it to buy a flat of 30L within 1-2 months of receiving this amount, what will be my tax liability on this 30 lakhs amount?
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As per the provisions of Section 54 any long term capital gains arising on sale of a house property shall be exempt if the capital gains so made are invested for purchase of a house within a period of two years from the date of sale of the original house property. For the purpose of calculating the holding period the period for which the property was held by the previous owner shall also be taken into account in case the property is acquired by gift inheritance or will. Since you have earned capital gains on sale of an ancestral house property this would have been held by in total you and your ancestor for a period of 24 months or more, this shall be treated as long term. As you are planning to purchase a house property within 1-2 month, by investing the whole of sale consideration, you will not have any tax liability on the transaction of sale of ancestral house property. If you wish to construct a house yourself of go for an under construction house, the construction has to get completed within three years from the date of sale of the asset.
guest: I have received an inheritance of Rs. 15 lacs from my father during the current financial year. is to be added to my taxable income.? If not, do I still have to show the same in the IT return and if so in which section do I make the entry.
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The inheritance received by you is not an income at all so you do not have to include the same in your return of income. This is duly covered by Section 56 (2) (x) of the Income Tax Act. If you wish you can show the same as exempt under Section 56(2) (x).
guest: I have sold residential property inherited by me. Now, can I buy a house in the name of my 15 year old son’s and my 14 year old daughter’s name to get capital gains tax exemption under Section 54?
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As per the provisions of Section 54 you can get the benefit of long term capital gains exemption only if you reinvest the capital gains for the purpose of purchase or construction of another residential house in your name. So in case you buy the house property in your children’s name, prima facie you will not be able to get the exemption under Section 54. However, a few of the income tax tribunals have granted the exemption even in case the investment is made in dependents name but this involves litigation which is not advisable. However, you can add their names as joint owners to ensure smooth succession of the property as long as full investment is made by you. The amount of exemption will depend on the extent to which you have invested the plain long term capital gains in the new residential property.
guest: I am a Canadian PP holder and PIO. My father passed away 3 years ago and I inherited immovable property in greater Noida ( the property is/will be divided in 3 equal parts, since I have a brother and sister who are equal shareholders in this inherited property. Both of them are Indian citizen’s and PP holder. What is the tax implications and the best method of wealth management for this situation?
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Since there is no inheritance tax in India there are no tax implications on inheriting the property. You will have to pay long term capital gains tax as and when you sell your property. The rate is 12.50% on the profits. You can save tax if you reinvest the gains in specified bonds or another residential property within prescribed period.
guest: My father died intestate i.e., without leaving a WILL for the self-acquired Property leaving behind four legal heirs i e., my old mother, two sons(including myself) and a married daughter as legal heirs. 2. The daughter being greedy has threatened the mother for 1/3 share in the property while ignoring her (mothers) share. Since the said daughter is well off having her own big bunglow and presumed to have already inherited 1/4 share in the said property; our mother wants to give away her 1/4th share in the property by a Will to her two sons equally. Is it possible as the property is still in the name of our father ? 3. What will be the status of my mothers Will in case of her unfortunate demise ?
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All the 4 legal heirs will get 1/4 share in the self acquired property of your father on his death. So your sister is entitled to only 1/4th share in the property. As far as 1/4th share of your mother is concerned, she is free to deal with it the way she wants. She can gif the same to anyone while she is alive or she may write a Will in respect of all her assets including 1/4 share inherited by her giving to anyone excluding your sister. You sister does not have any right beyond 1/4 share to which she is entitled as inheritance.
