Investment, Financial Planning, Mutual Fund & Income Tax Queries

What is the tax on redemption of capital protection fund and the Cost Inflation Index

My investment in a Capital Protection fund just matured after completing 3+ years and I am trying to determine the income tax liability for long term capital gains. From reading your past blogs, I understand that long term capital gains are taxed @20% with indexation. So, please advise how I can obtain the cost inflation index for the year of purchase (2013) and year of maturity (2016)?

Aug 4, 2016 by Harish Sadasivan, Bangalore | Taxation

You are right. The long term capital gains tax on debt funds (if units are held for more than three years) is applicable @20% with indexation + 15% surcharge + 3% Cess = Total 23.69%... Read More

How my HDFC Life Click To Protect policy got rejected

I brought an HDFC click to protect insurance in month of April which got rejected due to my ITR (it had all the income from other sources). Now, I have filed ITR for assessment year 2016-17 and I have shown a salary income of 105000 and business income of 2,50,000 and 3,50,000 from other sources. Now on the basis of new ITR, am I eligible for HDFC Click to protect term insurance? Please help?

Aug 4, 2016 by Shubham, Delhi | Life Insurance

Term life insurance plan is meant to protect your family from income loss in the event of an untimely death. Income proof is necessary to get a term policy. Salaried individuals are required to furnish their... Read More

Which mutual fund to invest in if someone is starting for the first time

If some ones age is 44. Want to do SIP with 5000 pm for minimum 3 years with maximum returns investing first time in MF. Please let me know which company and with which fund is suitable?

Aug 4, 2016 by Pooja Choithramani, Ulhasnagar | Mutual Fund

If your investment horizon is only three years then doing SIPs in equity mutual funds may be a little risky and in that case you should invest either in debt funds or hybrid debt oriented funds (also known as MIPs)... Read More

Will gift tax apply if I transfer fifty thousand to my in laws account

I want to give fifty thousand in in-law's account who does not file return, whether it has any tax implications on both of us?

Aug 3, 2016 by Basudev, Barbil | Taxation

There is no tax to be paid (either by you or your in-laws) in case the gift amount is upto Rs. 50,000 in a year... Read More

Can you please review my SIP funds

You are doing a fantastic job. Can you please review my SIP funds? I started all these around 2 years ago and planning to continue for next 15 years. 1. Birla SL frontline equity / 5000 RS, 2. ICICI pru value discovery / 5000 RS, 3. HDFC midcap opportunities / 2500 RS, 4. HDFC balanced fund / 2500 RS, 5. Axis longterm equity / 5000 RS?

Aug 3, 2016 by Udayakumar, Bangalore | Mutual Fund

It is very heartening to note that you want to continue your SIPs for next 15 years. Your fund selection is very good and it is well spread across large cap, mid cap, diversified and balanced fund category... Read More

I have around 1 crore to invest and need a plan to invest in the market through SIP mode

I am a 45 year old retired from my job. I have around 1 crore to invest and need a plan to invest in the market through SIP mode. I do have other income source to cover my monthly needs. I am looking for long term growth via stock market. Please let me know your thoughts and any recommendations?

Aug 3, 2016 by Abraham John, Kochi | Mutual Fund

Thanks for writing to us. When you say, investment in the market, do you mean direct equity investments or mutual funds? If you want to invest in stock markets directly then please note that we do not give... Read More

How can I generate maximum income with my savings of 20 Lakhs and build wealth for future needs

I am 45 years old with family member of three, my daughters age is 4 years. I got Rs. 20 lac with no other income. Please suggest how I can generate maximum income with this money as well as I can build my wealth for future needs. I will be very helpful for your reply?

Aug 3, 2016 by Tanmoy Chatterjee, Kolkata | Mutual Fund

To answer your query well we need to know certain things – 1) your risk profile, meaning how much risk you can take to get maximum return from your savings of Rs. 20 Lakhs 2) what is your return expectation... Read More

Should I remain invested in the SIP corpus which I have accumulated in 2 years

I opened SIP for 2 years, now 2 years are completed so shall I withdraw money? or is there any benefits to keep money in SIP without investing further?

Aug 3, 2016 by Deag, Bangalore | Mutual Fund

Yes absolutely! You should not redeem the accumulated corpus in the SIPs and keep that remain invested for the long term. Mutual Fund invested are for long term and you should use this corpus for meeting one... Read More

Kindly provide the address of a website which gives authentic information on mutual fund dividends

I have found the site, "Moneycontrol", either skipping dividends declared altogether Or giving non declared dividends, raising one's hopes unnecessarily. Do kindly provide the address of a site which not only gives one authentic but also up to date information on all recently declared dividends for any mutual fund?

Aug 3, 2016 by Devinder Singh Dhaliwal, Patiala | Mutual Fund

We would not like to comment on the Moneycontrol website or the way they are showing or not showing the dividends. Our website www.advisorkhoj.com provides the complete details of dividends declared... Read More

How much I should invest each month to build retirement portfolio based on my current monthly expenditure

I am of 30 year and currently a central government employee. I am having child of 3 months. I am under NPS with current value of Rs 5.00 lakhs. My monthly contribution include government towards NPS is Rs. 7550/- which is expected to increase Rs. 9000/- after pay commission. Monthly earning after all deduction:- Rs 42000/- (expected after pay commission- 49000/-), Monthly expenditure is Rs. 27000/- (including rented house @ Rs 8000/-), Invested in Axis Long term equity direct growth (SIP= 2000 from Dec-15), Retirement age 60 years, Life expectancy 80 years. After retirement to live in self occupied house. Please advise:- 1. How much I should invest each month to build retirement portfolio based on my current expenditure. Also suggest name of mutual fund along with investment break up? 2. How much and which MF combination I should invest each month to build child education portfolio for Engineering after 17 year?

Aug 3, 2016 by Mukesh Kumar, New Delhi | Financial Planning

The answer to your query is that you should get your financial planning done by some financial planner at Delhi as he or she will be able to take complete information from you, understand your risk profile... Read More