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Which is the best place to invest money for women to get maximum benefit?

My Mom who is 51 years is a housewife. She saves INR 500 a month and wants to make the best use of it. Where can she invest this money to get the maximum benefit? she wants this money at 60.

Asked by : Sudhakar - Shimoga | 46 Views

It’s very necessary for a housewife to be financially savvy and at least have a bank account. Whatever money she saves from the monthly budget, she can deposit in this bank account. Your Mom is saving INR 500 a month and having her own bank account might persuade her to save more. She might get some money as gifts from relatives which she deposits in this bank account. Your mother can then inves [...] View More

Can a nominee claim money from the life insurer?

I am 39 years, married and residing in Bengaluru. My husband 42 years passed away last week in a tragic car accident. I know that he had taken a term life insurance plan with a sum assured of INR 50 Lakhs with me as the nominee. I don't want my relatives to come to know of this money. I need this money badly. How can I claim this money from the life insurer?

Asked by : Sumathi - Bengaluru | 33 Views

Your husband is the life assured under the life insurance policy. As he has passed away, you must send the claim intimation to the life insurer as soon as possible[NB1].As you are the nominee, you can send the claim intimation. The claim intimation must contain date, place, and cause of death. See if you can contact the life insurance agent your husband used to deal with. It's his duty to help you [...] View More

Can you buy health insurance plan to increase health coverage for your family?

I am 50 years married and reside with spouse and kids in Tumkur. I work in a private Company and am covered under a corporate health plan. I also have a family floater health insurance plan taken to cover my family. I want to buy a top-up health insurance plan to increase health cover for my family. I want to know if I should buy the top-up for the corporate health plan or my family floater health insurance plan. Please advise.

Asked by : Eshwar - Tumkur | 27 Views

A corporate health planis taken up by the management of the Company to cover employees of an organization and is customized depending on the benefits the management wants to give its employees. The cover given by your employer might not meet your family's health needs.It is always advisable to have your own family floater health insurance plan. You have your own family floater plan which is a very [...] View More

Is this a good idea to avail a personal loan and pay back the credit card dues?

I am 30 years married with a daughter and living in Mysuru. I have availed a family floater health plan with sum assured of INR 4 Lakhs. I am the proposer (primary) person insured under this plan? I want to know if the proposer dies will this family floater health plan be terminated?

Asked by : Bhuvan Gowda - Mysuru | 23 Views

A family floater is a health insurance plan where all members of a family are covered under one policy. You (proposer) pay the premium of the plan. You can cover self + spouse + 2 children + parents, under this plan. If you and any member of your family are over 45, all members covered have to compulsorily undergo medical tests before the policy is issued. If the proposer dies the policy is not t [...] View More

Is this a good idea to take a loan against FD?

3. I am 37 years and reside in Hubli. I earn INR 50,000 a month. I have savings of INR 12 Lakhs in FD’s. Because of a family medical emergency I need a loan of INR 14 Lakhs. I have decided to take a personal loan. My friend has advised against it and asked me to take a loan against FD. Is this a good idea? I badly need the money.

Asked by : Naveen - Hubli | 33 Views

This is a very good idea. You can get a loan against FD up to maximum of 90% of its value. You get this loan as overdraft against the FD. You get this loan at much lower interest than a personal loan which charges a very high interest as there is no collateral/guarantee. Loan against FD charges interest,which is around 2-2.5% higher than interest paid by the bank on the FD. The tenure of the loan [...] View More

Will a Life insurance plans issued in India, have Worldwide coverage?

I am 34 years and reside in Bengaluru. I have availed a term life insurance plan with a sum assured of INR 1 Crore. I regularly travel out of India on work. Sometimes I am out of India even for 2 months. A relative told me that if I die abroad, the life insurer will not pay my wife claims. Is this true? If my wife’s claim is not going to be settled, then why am I paying the premium?

Asked by : Arjun - Bengaluru | 28 Views

Life insurance plans issued in India, have Worldwide coverage. If you (policyholder) die abroad, your nominee (wife) gets the death benefit. The death benefit is payable only in India and in Indian rupees. Your wife will have to submit documents like claim form, death certificate and certificates from authorities, with the insurer in India. You have a facility in the policy service form where you [...] View More

Is it necessary to have an occupancy certificate to live in an apartment?

I am 47 years and reside in Mysuru. I booked an apartment in a project in Mysuru and my apartment was constructed in 3 years. The builder has not given me the occupancy certificate. He keeps delaying

Asked by : Vijay - Mysuru | 39 Views

Occupancy Certificate (OC) is issued by Municipal Authorities under respective state laws and it states that the building is safe to occupy. You cannot legally move into your apartment unless you get the OCas the Corporation/ Municipality can ask you to vacate the apartment. The OC certifies that your building has been constructed according to proper standards and as per local laws. The OC is issu [...] View More

Will I be taxed on profit from a sold property?

I am 42 years and reside in Hubli. I had bought an apartment in Bengaluru for INR 25 Lakhs in May 2010. I recently sold this apartment for INR 55 Lakhs in September 2016. My friend has told me that I should pay tax on the profits I have made. Is this true? Is there any way I can avoid paying this tax?

Asked by : Srinivas - Hubli | 32 Views

You have sold the property after 3 years of purchase and hence your profit is called long term capital gain. You have to pay tax on long term capital gains at 20% + cess, after adjusting the profits to indexation benefit. With indexation benefits your acquisition price would be adjusted for the inflation and you pay less capital gains tax. Long Term Capital Gains = Sale Price – Indexed Cost [...] View More

Will I be taxed on profit from shares?

I am 30 years, single and reside in Bengaluru. I invested INR 1 Lakh in different stocks to make a quick profit. I made a profit of INR 45,000 through intraday trading. My friend has told me that I have to pay tax on this profit. Is this true? Can I escape paying this tax?

Asked by : Sushmitha - Bengaluru | 69 Views

Any person, engaged in intraday trading is automatically treated as someone who is engaged in a business and his income shall be assessed as Income earned from Business and tax rate shall be same as any other business activity. Intra-day trading transactions are treated as speculative transactions and the net income earned, after deducting eligible expenses incurred to earn the profit, is taxed as [...] View More

Is life insurance docket very important?

4. I am 37 years and reside in Shivamogga. I had availed anendowment life insurance plan with a sum assured of INR 15 Lakhs. Recently when I searched for the life insurance docket, I could not find it. I believe it’s lost or misplaced. Is this document important? What should I do?

Asked by : Sudhakar - Shivamogga | 51 Views

You get the life insurance docket as a physical copy or a soft copy. Some life insurers only give you physical copies and not soft copies.The docket consists of policy document, claims form, policy wording and risk, details of your first premium payment, proposal form and medical report. If you want to take a loan against the life insurance plan, you need this docket. Iyou/your wife/nomineehas [...] View More

Is this a wise move to stay in a rented flat till retirement, or go for a loan to buy a flat?

I am 40 years and work in Bengaluru. I am actually from Jaipur Rajasthan, but now I work in Bengaluru. I have rented a 2 BHK house and pay a rent of Rs 12,000 a month. I feel this is better than taking a home loan and buying a house of Rs 50 Lakhs. I intend to settle down in my native place. Do you think it is wise to stay in a rented flat till I retire, or go for a loan to buy a flat? Please advise

Asked by : Jayaram Shetty - Bengaluru | 35 Views

Rental yields of most properties including those in Bengaluru are in the range of 4-5% a year. But, the banks charge a much higher interest on home loans (say 9-10% a year). Even with tax benefits, renting a house is a better option. Buy a house/property only if you are confident of good returns (capital appreciation) in a few years. If the value of the property you plan to buy does not double eve [...] View More

Is this a good idea to sell the stocks to start a business?

I am 45 years old and reside in Bengaluru. I have invested a lot of money in stocks for the last 10 years and my portfolio is INR 25 Lakhs. I now want to start a business with my wife as a partner. We have no dependents. I need INR 10 Lakhs for this business. Should I sell my stocks and start the business or avail a personal loan? I badly want to start this business. Please advice?

Asked by : Anil Gowda - Bengaluru | 23 Views

There is no need for you to sell your stocks to collect money for the business. You can get 50% of the value of the stocks as a loan against stocks from a bank or an NBFC. Banks have a list of stocks (approved stocks), against which they are willing to lend. Banks open a current account in your name with an overdraft facility. You can withdraw money from this account, whenever you want and re [...] View More

Is there any place where you can complain against any mutual fund house?

I am 26 years and reside in Mysuru.  I had invested my money in an equity mutual fund scheme of a reputed mutual fund house.  I had sold units of this mutual fund scheme but the mutual fund house delayed payment of my redemption amount. I applied to the mutual fund house to pay me interest on delayed payment of redemption amounts. They have not responded to my complaints. Is there any place where I can complain against this mutual fund house? I badly need this money. Please help?

Asked by : Akilesh - Mysuru | 33 Views

Equity mutual funds usually pay out the redemption amounts within 3 business/working days. If you have not received your money within 10 working days, then the mutual fund has to pay interest at the rate of 15% per year, for every day the payout is delayed. If the mutual fund house is not looking into your complaints, approach the online grievance system, SCORES (Sebi Complaints Redress System [...] View More

Is this a wise move to invest in direct mutual funds?

I am 29 years married and residing in Hubli. I want to invest in equity mutual funds, but I am new to investing. I have decided to opt for direct plan of mutual funds rather than the regular plan, as I heard they are cheaper because there are no broker commissions. Is this a wise move? Is my money safe?

Asked by : Yellappa - Hubli | 45 Views

Direct plans of mutual funds have a lower expense ratio compared to the regular plan.This is because you invest directly with the mutual fund house and don’t require the services of a mutual fund distributor, saving on commissions paid to him. This saving helps you get good returns over the long term. But, you are a new investor and you may need a financial adviser to help you make the right inv [...] View More

Can You Avail Another Term Life Insurance Plan?

I am 35 years, married and reside with my husband and daughter in Mysuru. I work for an MNC and I and my husband are repaying a home loan of INR 30 Lakhs. My husband has a term life insurance plan with sum assured of INR 50 Lakhs. Recently a friend suggested that I too avail term life insurance. Is this a good idea since my husband already has availed term life insurance. Please suggest?

Asked by : Sumanth Kumar - Mysuru | 37 Views

If you are contributing to the finances of the family, you must avail term life insurance. In India its common for the man to avail term life insurance, while the wife even if she is working does not take life insurance. If you are inadequately insured, an unexpected demise can destroy your family’s financial goals, as your husband’s income might not be sufficient to manage expenses and the h [...] View More

Is it necessary to file ITR if the total income exceeds the basic threshold limit?

I am 27 years and reside in Mangaluru. I have changed 2 jobs in a single financial year. My total taxable income individually in each of the organizations did not cross the basic taxable exemption limit. My combined income in these 2 jobs is INR 4 Lakhs. So I did not file my ITR. My friend told me that I must file ITR otherwise I can get a tax notice. I am worried. Should I file ITR?

Asked by : Yatish Gowda - Mangaluru | 40 Views

If your total income exceeds the basic threshold limit, then you must pay tax as per the income tax slab you fall under. Your total income is the income from all sources including your salary.As your combined income from both organizations is INR 4 Lakhs which has exceeded the basic threshold of INR 2.5 Lakhs, you must file ITR for the relevant financial year. You get a tax deduction under Section [...] View More

What can be done if we lost money while trading in stocks?

I am 32 years and reside in Mysuru. I just started trading in stocks 3 months ago. Unfortunately, I lost 2 Lakhs while trading in stocks. I have the attitude of never giving up. I then borrowed another lakh from my relatives and lost this money trading in stocks. Now I cannot face my relatives and have stopped attending all family functions. What should I do?

Asked by : Naveen Gowda - Mysuru | 34 Views

Understand the difference between traders and investors. Traders are in the stock market for short term gains. Traders can invest for the short term if they are disciplined, hard working and have working knowledge of the stock market. You are an investor not a trader. You need to invest for the long term. Unfortunately, you have behaved like a trader and so have lost money in stocks. First sto [...] View More

Is it a good idea to take a loan against FD?

I am 37 years and reside in Hubli. I earn INR 50,000 a month. I have savings of INR 12 Lakhs in FD’s. Because of a family medical emergency I need a loan of INR 14 Lakhs. I have decided to take a personal loan. My friend has advised against it and asked me to take a loan against FD. Is this a good idea? I badly need the money.

Asked by : Chandru - Hubli | 35 Views

This is a very good idea. You can get a loan against FD up to maximum of 90% of its value. You get this loan as overdraft against the FD. You get this loan at much lower interest than a personal loan which charges a very high interest as there is no collateral/guarantee. Loan against FD charges interest, which is around 2-2.5% higher than interest paid by the bank on the FD. The tenure of the loan [...] View More

What can be done for the poor condition of the purchased apartment?

I am 40 years and reside in Bengaluru. I had booked an apartment from a builder about 3 years back and got possession of my apartment 6 months ago. Now to my shock I am found the quality of electric wiring very poor. Plaster on the walls are falling and the ceiling is leaking. I tried calling the builder, but he does not respond to my calls. This is my hard earned money. What should I do?

Asked by : Venkatesh - Bengaluru | 35 Views

There are several complaints against builders, the most common being deficiency in service, ceiling leakage, no proper drainage system, low quality of electric wiring. These are unfair practices committed by builders against their customers. You can file a complaint before the consumer forum for deficient service rendered by the builder. The builder would have to repair/correct these defects at hi [...] View More

Is it compulsory to disclose all the information about health condition to an insurer?

I am 31 years and reside in Mysuru. I have taken a health insurance plan 3 years ago after medical tests and regularly pay premiums. When my health plan was issued, I was a teetotaler. Now I smoke and drink regularly. My friend has told me that if I am hospitalized, the insurer won’t settle the claim. I have not saved much money for hospitalization and am worried. Should I tell the insurer my new habits? 

Asked by : Sanketh- Mysuru | 34 Views

It is compulsory for you to disclose all information about your health at the proposal stage when the policy is being issued and you have done so. Medical tests were conducted and your obligations are fulfilled. If you are hospitalized the insurer must settle your claims as per the insurance scheme. If your health insurance plan has guaranteed renewal for life, the insurer cannot refuse to renew [...] View More

Can you invest in a fund house which offers SIP- cum- Insurance product?

I am 28 years and reside in Bengaluru. I am new to equity and want to invest in equity mutual funds through SIP. My friend has advised me to invest in a fund house which provides SIP-cum-insurance products. What are these products? Should I invest only in a fund house which offers this product?

Asked by : Udith - Bengaluru | 37 Views

A few fund houses are known to offer systematic investment plans (SIP’s), which offer the benefit of insurance protection. You get insurance under SIP-cum-insurance plans which is 100 times your monthly SIP. The maximum amount of insurance cover you get is INR 20 Lakhs. You get less cover during the initial years of the SIPs. You don’t have to pay any additional amount for this insurance. You [...] View More

Is it a good idea to increase the coverage on availed family floater health insurance plan?

I am 60 years and reside with my wife (54) years in Mysuru. I had availed a family floater health insurance plan for both of us two years ago. We have not made any claim on this policy. My friend has advised me to increase coverage to INR 10 Lakhs. Is this a good idea? If my son pays the premium can he get any tax benefits?

Asked by : Vijay - Mysuru | 76 Views

As you grow older, revise the sum assured of your health insurance plan, upwards. Medical treatment can be very costly in elderly years. You can simply seek an enhancement in the sum assured with your existing insurer under your current health insurance plan. If you and spouse are in good health, you can go for a top-up health insurance plan which has a very affordable premium, instead of availing [...] View More

Will you get tax benefits by taking a loan from a relative for the purchase or construction of a property?

I am 42 years and residing with wife and kids in Shivvamogga. I used to stay on my father's property, but now I plan to buy my own house. I will take a loan from a relative and buy this home. I have an important question. Will I get tax benefits on this loan as I have not taken it from a bank or NBFC?

Asked by : Karunakar - Shivvamogga | 36 Views

You get tax benefits if you take a loan from relatives and friends and the purpose of the loan is the purchase or construction of a property. You have to convince the tax assessing officer that the purpose of the loan is the construction or purchase of a house/property and if you are constructing your house, the construction has been completed within 5 years and other conditions have been met. You [...] View More

Can you claim for hospitalization expenses from both husband and wife group health insurance plans?

I am 38 years and reside with wife and daughter in Mangaluru. I work for a reputed Company and am covered under my Companies group health plan with a sum assured of INR 1 Lakh. My wife is also working and I am covered under her employer's group insurance plan for a sum assured of INR 1 Lakh. I met with an accident and have to make a claim for hospitalization of INR 1.6 Lakhs. Can I claim these expenses from both the group health insurance plans (mine + spouse company health plans)?

Asked by : Shankar - Mangaluru | 43 Views

You can get hospitalization expenses reimbursed under both group health insurance plans (yours + spouse). You must first make a claim under your employer's group health insurance plan. You make a claim of INR 1 Lakh under your employer's group health plan and the remaining amount of INR 60,000 under your wife's employer group health plan. If you have the cashless facility, just show the health[NB [...] View More

Can you return the money back insurance plan within the free look period?

I am 32 years, married and reside with wife and son in Mysuru. I want to take a life insurance plan to protect my wife and children if something happens to me. I was convinced by a life insurance agent to take a money back life insurance plan as he promised guaranteed investment benefits. A friend later told me that these plans give very low returns and I regret my decisions. I want to return the money back insurance plan within the free look period. How can I do this?

Asked by : Prajwal - Mysuru | 36 Views

Life insurers give you a time period of 15 days from the date you receive the policy documents called the free look period, within which you can reconsider the decision to buy the life insurance plan. You must write an application form giving the reasons for returning the money back policy. This can be any reason[NB1] . You must send this application within the free look period. The life insurer c [...] View More

Are there any problems with joint holding in mutual funds?

I am married and reside in Bengaluru. I want to invest in equity mutual funds with my mother under both our names so that either of us can manage this account. I have a couple of queries. Can I manage this account just like a joint bank account? Are there any problems with joint holding in mutual funds?

Asked by : Anand Kumar - Bengaluru | 36 Views

You can invest in mutual funds jointly with your mother, under both your names called joint holding in mutual funds. A joint holding can have a maximum of three account holders. You and your mother, both need to be KYC Complaint. While choosing the joint holding, you are given 2 options: “Joint Holding” or “Either or Survivor” You need to be very careful while selecting these options. [...] View More

Are there any problems if you take a pre-approved home loan?

I am 47 years married. I will soon book an apartment with a reputed builder and have arranged the down payment. I want to avail a home loan for the rest of the amount. My friend has advised me to take a pre-approved home loan to avoid problems if my home loan gets rejected. Should I avail a pre-approved home loan? Are there any problems if I take a pre-approved home loan?

Asked by : Swamy - Bengaluru | 43 Views

Pre-approved home loan is a written guarantee by the bank that you have secured the home loan. Loan officers of the bank will check your salary/income details, credit history and all other checks just as in a home loan, except property title check as you have not finalized the property. The bank sanctions the amount depending on your eligibility. The pre-approved home loan has a validity of around [...] View More

Can you avail another term life insurance plan?

I am 45 years, married and reside with wife and son in Bengaluru.  I have availed a term life insurance plan to provide for my family in case I am not around. I was very confident in this plan, till a cousin advised me to avail another term life insurance plan for safety. He said there were cases where the life insurer does not settle the claim.  I am worried that my life insurer will not settle the claim? Should I avail another term life insurance plan?

Asked by : Tejas - Bengaluru | 50 Views

It is a very popular practice to buy a single term life insurance plan with a large cover, to provide protection for wife and kids. It is believed that if you declare all information about your health correctly and get medical tests done, the life insurer cannot reject your family’s claim. But, claims do get rejected even if the probability is small. You definitely want your nominees to get the [...] View More

Can I discontinue the endowment life insurance plans and take up the term life plan?

I am 36 years, married and residing in Bengaluru. I had availed an endowment life insurance plan 3 years ago paying a premium of INR 30,000 a year. I also availed another endowment life insurance plan 2 years ago, after being persuaded by a life insurance agent. Both these plans have a term of 15 years. Now, a friend has told me the benefits of a term life insurance plan. I want to avail a term life insurance plan, but cannot afford paying premiums of all 3 life insurance plans. Should I discontinue the endowment life insurance plans and take up the term life plan? Will I lose the premiums I have paid. Kindly advise.

Asked by : Vignesh - Bengaluru | 41 Views

With a term life insurance plan, you pay a premium for a fixed time period. If something untoward happens to you within the term of the plan, your nominees get money called the death benefit. Your nominee gets nothing if you survive the term of the plan. If you discontinue the endowment life insurance plans, the insurer charges a very high surrender penalty. You could pay the surrender penalty [...] View More

Is it possible to redeem equity diversified mutual funds immediately?

I am 45 years married with 2 daughters and reside in Belagavi. My eldest daughter is 16 years and plans to do engineering in Computers in a reputed college in Bengaluru whose course fees + hostel are around 4 Lakhs. I had invested INR 2 Lakhs in a good equity diversified fund a few years ago which is now INR 3 Lakhs. Should I withdraw my money at once or wait for a few months. My daughter will seek admission in a year, Please advise?

Asked by : Akshay - Belagavi | 64 Views

You can withdraw your money from the equity diversified mutual fund using SWP (Systematic Withdrawal Plan). This is a method of redeeming money from your mutual fund investment. You can setup an SWP to withdraw INR 30,000 every month on[NB1] a particular given date. In the last month you can set it up so that all the remaining money can be withdrawn. The benefits of using SWP to withdraw your m [...] View More

Is it possible to escape paying capital gain tax profit from agricultural land?

I am 31 years and reside with wife and kids in Shivvamogga. My father owns agricultural land (rural area in Shivvamogga). My father plans to sell 2 acres of agricultural land which he had bought in 1975 for INR 2000. He will get INR 40 Lakhs for this land. Is it possible for my father to escape paying capital gains tax on his profit?

Asked by : Kiran - Shivvamogga | 51 Views

Make a note of this, Rural agricultural land in India is excluded from the purview of the term "capital asset". You have to first find out if this land is rural agricultural land or urban agricultural land. The land is rural agricultural land if it satisfies these conditions: 1. Agricultural land which is situated in an area within the jurisdiction of a municipality and which has a popula [...] View More

Will a bank give a home loan to a person if his father is the owner of the land?

I am 29 years married and reside with wife and son in Bengaluru. My father for whom I am a single child owns some land on the outskirts of Bengaluru. I want to build a house on this land which is in my father's name. I want to know if the bank will give me a home loan in my name or do I have to change the ownership of this land. A colleague has told me no bank will give me a home loan to build my house as I am not the owner. Is this true?

Asked by : Poornesh - Bengaluru | 59 Views

You can take a home loan from the bank, but the land owner (father) will have to be a co-borrower of the loan. Your father will have to give a NOC for building the house on this land. Your father cannot sell , gift , transfer or create third party rights on the house without bank consent. It is advisable to get the property transferred in your name either by your father executing a registered gif [...] View More

Is this possible to store life insurance policy documents in both physical and electronic form?

I am 38 years, married and residing in Chikmagalur. I have availed a term life insurance plan and an endowment life insurance plan and pay the premiums regularly. I have stored the life insurance policy documents in my home cupboard. I am worried that if these documents are lost or destroyed, my nominee's claims may not be settled. As I am forgetful by nature, I want to store my life insurance policy documents in both physical and electronic form. Is this possible?

Asked by : Sukumar - Chikmagalur | 50 Views

You can either store the life insurance policies in physical form or electronic/demat form, but not both. You can opt to keep some policies in demat form, while some in hard copy/physical format. If you have an e-insurance account, your insurance plan will be dematerialized (converted to electronic format) and stored in your account, just like shares in a demat account. The insurer issues and main [...] View More

Is it possible to sell the ELSS units and withdraw money after paying penalty?

I am 27 years and reside in Mangaluru. I have been investing in a very good ELSS scheme through SIP to save tax. I had invested INR 15,000 a month in 12 installments ending 15th July 2016. I need money badly and want to withdraw my money from this scheme. I know about the 3-year lock-in, but is it possible to sell the units and withdraw my money after paying some kind of penalty? Can I sell the units and transfer money to my bank account?

Asked by : Rudresh - Mangaluru | 66 Views

ELSS are equity schemes that invest most of their corpus in stocks. You can get a tax deduction up to INR 1.5 Lakhs a year under Section 80C if you invest in ELSS, a type of mutual fund. SIPs allow you to invest at different levels of the stock market. The stock markets will invariably be at different levels on the date of your monthly SIP, allowing you to average out your investment in the EL [...] View More

Will anyone have to pay tax on the long-term capital gains of apartment?

I am 51 years and reside in Shivamogga. I sold my apartment in September 2014 after holding it for more than 3 years after possession. I then booked an under construction flat to save on long term capital gains tax. If the builder does not offer me possession of the new flat within 3 years which will be complete in FY 2017-18, would I have to pay tax on the long term capital gains I saved 3 years ago?

Asked by : Shridhar Murthy - Shivamogga | 68 Views

If you sell a property after two years, the profit is treated as long-term capital gains and taxed at 20% after indexation. You can get the exemption from long-term capital gains under Section 54 if you purchase/construct a new house/apartment. The tax exemption is only up to the extent of your LTCG: The time limit for purchase of a new flat is two years and the time limit for construction of [...] View More

Can we invest money through SIP in the name of 14 year old child?

I am 41 years and reside in Hassan. I want to invest upto INR 1 Lakh through equity mutual funds in the name of my 14 year old son. I will invest through SIP. My friend tells me this is not possible. Is this true?

Asked by : Vikas - Hassan | 65 Views

Yes, you can make an investment in any mutual fund scheme of a mutual fund house in the name of a minor child. Your son is the first and sole holder in the folio. Joint holders are not allowed in the folio. You can be the guardian of the folio. You will have to submit the proof of age and date of birth of your son, which is the birth certificate or a copy of the passport. You will have to show pro [...] View More

Is it possible to claim tax benefit for both home loan and HRA?

I am 29 years, work in Mysuru and stay in a rented apartment. I have availed a home loan and bought my own apartment in Belagavi where my parents stay.I work for a reputed Company and get HRA as part of my salary package. Is it possible to claim tax benefit for both home loan and HRA?

Asked by : Rajendra - Mysuru | 58 Views

HRA and home loans are part of two different income tax sections. You can very well claim HRA exemption under Section 10(13A) as you are staying in a rented apartment and deduction on interest on home loan as you own a house in a city other than your current residing city and presently you are in a rented accommodation.You get tax benefits on Home loan (EMI) principal under Section 80C up to INR 1 [...] View More

Can you get a health insurance plan to cover diabetes?

I am 27 years and reside in Bidar with my 53 year old mother. My mother was recently diagnosed with diabetes. My mother does not have any health insurance. I have heard that diabetes has high medical costs and can blow away my finances. Can my mother get a health insurance plan to cover diabetes?

Asked by : Prasad - Bidar | 52 Views

Diabetes is considered a pre-existing condition and is covered only after a waiting period which can be around 4 years. There are health insurance plans which cover diabetes after 1-2 years, but charge hefty premiums. Many insurers offer plans which you can enter even at the age of 65-75 years. They are renewable for lifetime. If your mother is not suffering from any diseases normally associat [...] View More

Is this a good idea to avail a personal loan and pay off the credit card dues?

I am 41 years, married and residing in Dharwad. I couple of years ago I availed a credit card from a bank as I was in financial difficulty and now have an outstanding balance of INR 1.5 Lakhsto repay. I regularly pay the minimum due each month. A friend has suggested I avail a personal loan and pay off the credit card dues. Is this a good idea? Will my credit score be affected?

Asked by : Ganesh - Dharwad | 68 Views

Minimum Amount Due (MAD) is the minimum amount you pay to the bank by the due date to keep your account regular and avoid payment of any late payment fees on the credit card. MAD is typically 5% of the balance outstanding on the statement date. If you keep paying MAD, you have to bear a high interest cost and you cannot enjoy interest free credit period. This is just a short term measure: As y [...] View More

What happens if an endowment plan is surrendered?

I am 37 years, married and residing in Bengaluru. I had availed an endowment life insurance plan with a sum assured of INR 10 Lakhs for a term period of 20 years. I pay an annual premium of INR 50,000. Recently, I fell in bad times and I want to surrender this plan as I can no longer afford the premiums. I have been paying premiums for the last 5 years. Should I surrender the endowment plan? What will I get if I surrender it?

Asked by : Sushanth - Bengaluru | 59 Views

If you have paid the premium for at least 3 years or more, you can surrender the endowment plan if the premium paying term is 10 years or more. The premium paying term of your plan is more than 10 years and you get a guaranteed surrender value as you have paid premiums for at least 3 years. The guaranteed surrender value of the endowment plan would be 50% of the total premiums paid, if surrendered [...] View More

Do we have to pay tax on inherited property under a WILL?

I am 51 years married and residing in Hubli. My father recently passed away leaving me a property worth INR 1 Crore in his WILL. I have rented out this property. I have 2 questions. Do I have to pay tax on my inherited property? Will I have to pay tax on the rental income?

Asked by : Sathvik - Hubli | 56 Views

You have inherited this property under a WILL. Your inherited property will not be taxed. Any income arising at a later point in time from the property (i.e., rental or deemed rental or capital gains from sale of the property) shall be taxed in your hands. if your total income exceeds INR 50 lakhs during the relevant financial year (FY), you would be required to disclose the cost of each of the h [...] View More

Are tax benefits on the home loans is available if a single EMI is missed?

I am 38 years and reside in Belagavi. I had availed a home loan of INR 50 Lakhs about 3 years ago and have been regular in repayment. In the last financial year, I missed an EMI payment because of financial difficulties. My friend has told me I won't get tax benefits on the home loans even if I miss a single EMI. Is this true? Please advice

Asked by : Mallappa - Belagavi | 54 Views

You get a tax deduction on the EMI (Interest) on your home loan, up to INR 2 Lakhs a year, under Section 24. Section 24 of the I-T act mentions the word interest payment "payable" on housing loan. This means that even if you have missed the EMI payment in a year, you can still claim the tax deduction on it, provided there is an interest liability. Keep this in mind if you have missed an EMI p [...] View More

Is it possible to sell equity mutual funds to finance the business?

I am 47 years married and residing in Mysuru. I have been a steady investor in equity mutual funds for the last 8 years and my equity mutual fund portfolio is INR 15 Lakhs. I plan to start a business and need about INR 10 Lakhs. Should I sell my equity mutual funds and finance the business? Kindly advice?

Asked by : Karthik - Mysuru | 58 Views

If you need money for business, liquidating your mutual fund investment is not the only option. You can approach a bank or non-banking financial company (NBFC) and request for a loan or overdraft against your mutual fund investments. The interest rate is much lower than a business loan. For equity-based mutual funds, you can get as much as 50% lending on the Net Asset Value (NAV) of your funds. S [...] View More

Is it necessary to inform the insurer about the pre-existing disease?

I am 26 years and living in Davangere. My father (56 years)and mother (54 years) are covered under a family floater health insurance plan. They have been paying the premium regularly for the last 8 years. I have my own health insurance plan. Recently, my father has been diagnosed with hypertension and my mother with type 2 diabetes. Should my parents declare these diseases to the insurer? Please advice.

Asked by : Shashank- Davangere | 79 Views

If your parents are renewing the existing health insurance plan without increasing the insurance cover, they do not need to declare their medical status, as these diseases are not pre-existing. If your parents want to increase the sum assured, they must declare these diseases in the insurance proposal form. The insurer will assess your parents’ medical condition and make a decision. 1. The i [...] View More

Is joint term life insurance good for Husband and Wife?

I am 32 years married and residing in Gulbarga with a 2 year old son. I and my wife want to avail a term life insurance plan. I want to avail individual term life insurance plans for both of us, but my wife wants to avail joint term life insurance. I am confused. Is joint term life insurance good for us? Please advice?

Asked by : Mallesh - Gulbarga | 85 Views

A joint term life insurance plan allows you and wife to buy a single term life insurance plan to cover both of you. Some joint life term policies pay out on first claim basis, i.e. the sum assured is paid on the death of whomever of the two policy holders dies first and the policy ends thereafter. However, in case of certain other joint life policies, there is a payment on the death of each of the [...] View More

Is it a good idea to invest in a children's gift fund?

I am 33 years married and residing in Mysuru. I have a 3 years old daughter. I have been investing in equity mutual funds for the last 2 years. Recently, I came across children's gift funds. I was wondering if I could invest in a children's gift fund for my daughter. Is it a good idea?

Asked by : Ravindra - Mysuru | 69 Views

Children’s Gift funds are dedicated mutual fund schemes which are positioned as Child plans to meet children’s future financial needs like education, marriage expenses and so on. These are hybrid funds which invest in both debt and equity. These funds can further be classified as ‘Hybrid – Equity Oriented’ (equity exposure 65% or more) or ‘Hybrid-Debt Oriented’ (average debt exposure [...] View More

Is it necessary to pay advance tax even if TDS has been deducted?

I am 32 years married and residing in Bengaluru with wife and a son. I recently got a promotion and my salary is now INR 9 Lakhs a year. My Company deducts TDS on my salary. I don't have any other taxable income. A relative has informed me that I must pay advance tax even if TDS has been deducted. Is this true?

Asked by : Anand - Bengaluru | 81 Views

As the name suggests, advance tax refers to paying a part of your taxes before the end of the financial year. It should be paid in the year in which the income is received. You are required to pay advance tax in four specified instalments (i.e., by 15 June, 15 September, 15 December and 15 March). You have to pay advance tax if the total tax liability on your estimated income is likely to be I [...] View More

What will happen if I don't pay my car loan temporarily?

I am 35 years married and residing in Davangere. I had availed a car loan and bought a car of INR 8 Lakhs a couple of years ago. Recently, there has been a large number of layoffs in my Company and I am worried about my job.I may not be able to repay car loan EMI's for a while if I lose my job. What will happen if I don’t pay my car loan temporarily? Can I do something about it?

Asked by : Vijay - Davangere | 61 Views

These are really tough times and mostly a temporary setback.If you are unable to keep up your car loan commitment, the first thing you need to do is to talk to the bank and request it to permit you to hold off EMI payments until you get a job. If the bank does not agree, you could think of liquidating some of your existing investments/assets to repay the loan. A credit counseling centre offers [...] View More

What happens if a person passes away within a year of availing a term life insurance plan?

I am 38 years married and residing with wife and 2 sons in Davangere. I had availed a term life insurance plan 3 years ago to safeguard my family in case something happens to me. Recently a colleague told me she faced a lot of problems with the claim settlement. Her husband had passed away within a year of availing a term life insurance plan. I am worried that my wife could face a problem with the claim settlement?

Asked by : Sukumar - Davangere | 76 Views

Claim settlement varies depending on the insurer. You must select an insurer that has settled at least 90%-95% of their death claims. Also check the number of grievances raised against the insurer. If there are a lot of grievances against the insurer, its best not to opt for a term insurance plan with them. Since it is natural for grievances to increase with the book size of the insurer, also chec [...] View More

Is it possible to get regular income for the retired by investing in monthly income plans?

I am 56 years, married and residing in Belagavi. I am nearing retirement and want to receive a monthly fixed income from a mutual fund investment. I want to invest in monthly income plans and opt for monthly dividend options. Will I get regular income? Please advise

Asked by : Chandrashekar - Belagavi | 83 Views

An MIP is a debt oriented mutual fund which gives you income, in the form of dividends. They generally have 75-80% of money in debt and rest in equity and cash. MIP’s with dividend option provides you an income in the form of dividends. There is an option to receive this income monthly, quarterly, half-yearly and yearly. So you have to choose the option at the time of buying the MIP. Divide [...] View More

Will I be taxed on Intraday profits?

I am 30 years, single and reside in Bengaluru. I invested INR 1 Lakh in different stocks to make a quick profit. I made a profit of INR 45,000 through intraday trading. My friend has told me that I have to pay tax on this profit. Is this true? Can I escape paying this tax?

Asked by : Dharshan - Bengaluru | 74 Views

Any person, engaged in intraday trading is automatically treated as someone who is engaged in a business and his income shall be assessed as Income earned from Business and tax rate shall be same as any other business activity. Intra-day trading transactions are treated as speculative transactions and the net income earned, after deducting eligible expenses incurred to earn the profit, is taxed as [...] View More

Do I need to inform the insurer on an existing medical condition?

I am 35 years, married and residing in Davanagere with wife and 5year old son. I had availed a family floater health insurance plan 3 years ago. Recently I got diabetes but I take medicines to keep my diabetes and blood pressure normal. Should I inform this as a disease? What will happen if I don't disclose this condition?

Asked by : Dhruva - Davanagere | 69 Views

Health insurance plans cover pre-existing ailments but after a period of 36-48 months. Some plans cover pre-existing ailments even before 36 months. This coverage of pre-existing diseases is conditional upon the buyer honestly making all medical disclosures at the time of buying the policy. This means that in case a person actually suffers from a disease at the time of buying the policy but i [...] View More

Is an accidental insurance plan cheaper than term life insurance plan?

I am 24 years, single and residing in Mysuru.I have just started working and plan to avail a term life insurance plan, but am not sure I require it as I am single. My friend has told me a term life insurance plan is useless for me and I must avail an accidental insurance plan which is much cheaper. I am confused. Please advice?

Asked by : Vishwanath - Mysuru | 68 Views

Life Insurance is meant to protect your family against uncertainties. At a young age, the likelihood of death due to a natural causes seems extremely low. However, it is not improbable. These days even young people do encounter critical illnesses such as heart diseases or stroke.If your parents are dependent on your income thenterm insurance can protect the future of your parents in uncertain circ [...] View More

Is nominee for equity mutual funds and WILL should be same

I am 45 years married with a daughter and reside in Raichur. I have invested INR 2 Lakhs in an equity mutual fund scheme. I also have invested INR 1.5 Lakhs in stocks. I have assigned my brother as the nominee for my mutual funds and stocks. I have made my WILL and named my daughter as the inheritor of my mutual funds and shares. Is it necessary for me to change the nominee as I have named my daughter as the inheritor of my shares/equity mutual funds?

Asked by : Anand - Raichur | 84 Views

According to law, a nominee is a trustee not the owner of the assets. In other words, he is only a caretaker of your assets. The nominee will only hold your money/asset as a trustee and will be legally bound to transfer it to the legal heirs. In the case of an unfortunate occurrence, the nominees will be able to get the units transferred to their name relatively easily, compared to a case wher [...] View More

Is there a possibility of getting a top-up loan?

I am 42 years married and reside in Bidar. I have taken a loan of Rs 20 lakh against my property worth about Rs 70 lakh and am paying an EMI of Rs 24,000. I have a delayed track record of payment. I am looking at taking a top-up loan of Rs 10 lakhs as I need funds to scale up my business. Is there a possibility of getting this loan?

Asked by : Sumanth - Bidar | 62 Views

Banks/NBFC's consider your income, repayment behavior across the loans and valuation of the asset pledged you have already availedfor deciding your creditworthiness.All past loan repaymentsare recorded in your credit report. If you pay your EMIs on time your credit history will be good and you get a good credit score. Likewise, your credit history is adversely impacted by any delays or defaults on [...] View More

Are there any possibilities of getting tax benefits even though you have not availed an education loan?

I am 51 years married and reside with 2 sons in Dharwad. I had availed a loan against my property for a financial emergency. I also used part of the loan to pay the engineering fees of my son. I have heard that there are tax benefits on an education loan. Can I get the tax benefit even though I have not availed an education loan?

Asked by : Omkara - Dharwad | 62 Views

You get a tax benefit under Section 80E if you avail a loan for the higher education of self, spouse or children. Deduction can be claimed by an individual only if the loan has been taken in his/her name. The deduction allowed is the total interest part of the EMI paid during the financial year. There is no limit on the maximum amount that is allowed as deduction. No Tax benefit is allowed for the [...] View More

Is there any health insurance plan which specifically covers disability due to medical negligence of the doctor?

I am 38 years married and reside in Mysuru. A friend of mine recently lost his eyesight due to medical negligence of the doctor.I have availed a health insurance plan and have 2 doubts: Is there any health insurance plan which specifically covers disability due to medical negligence of the doctor? Are the premiums for this kind of a policy expensive?

Asked by : Anil - Dharwad | 51 Views

Most health insurance policies cover treatment costs for disabilities that may be because of third party negligence. You don't need to look at any specific health cover which covers disability due to medical negligence of the doctor. If a person loses his eyesight due to medical negligence of the doctor, the health insurance plan takes care of the hospitalization expenses. You must also consider a [...] View More

Will traditional child life insurance plan take care of children's education expenses?

I am 47 years old married with a son and residing in Hassan .My son is 15 years old and has just completed his SSLC. A friend has recommended that I avail a traditional child life insurance plan for him to take care of his expenses. Will this plan pay money needed for my son's college education? Please advise.

Asked by : Shivprasad - Hassan | 78 Views

A child life insurance plan is an investment plan that pays a benefit that is linked to milestones in your child’s life. Its purpose is to build/accumulate a corpus for a child's future needs. Marriage and a college education are the main reasons to invest in a child life insurance plan. These plans generally have an inbuilt waiver of premium rider that keeps the insurance active for the child e [...] View More

Can anyone avail a Business loan from a Bank to raise working capital?

I am 41 years married with a son and reside in Bengaluru. I started a hardware distribution business in 2013 with a capital of INR 20 Lakhs and even offer my products on a popular ecommerce marketplace. I put my own money in this business.My business has a turnover of INR 1 cr. Now I require a business loan of INR 2 Crores to fund my working capital needs. Should I avail this loan from a bank or are there better alternatives? Please advise

Asked by : Adithya - Bengaluru | 65 Views

To raise working capital in India, you can approach a bank. Banks generally ask for Audited financials of last 3 years, Bank statements of previous 6 months, VAT / sales tax returns, Identity proof and address proof documents. If you are not comfortable availing a business loan from the bank, you can avail this loan from an NBFC. 1. NBFC's have quick registration and you don't need to stand i [...] View More

Will you lose 80C tax benefits on selling apartment within 5 years of availing home loan?

I am 45 years married with a son and residing in Bidar. I had availed a home loan of INR 35 Lakhs 4 years ago from a reputed bank to buy a house in my hometown where I reside. I enjoyed tax benefits on this home loan. I now plan to sell this apartment and invest the money in a business as I have no further need of it and pay back the home loan. A friend has told me I will lose the tax benefit I previously enjoyed. Is this true?

Asked by : Murli - Bidar | 82 Views

Your Home Loan EMI consists of Principal and Interest component. The principal component is allowed as a deduction under Section 80C, up to INR 1.5 Lakhs a year. However, if you sell your residential house/apartment within five years, you may have to forgo your tax benefits. The entire amount of deduction claimed under Section 80C in prior years on the amount of the principal repayment will be add [...] View More

Can I convert reimbursable health insurance plans into cashless?

I am 61 years married with 2daughters and residing in Raichur. I have 2 health insurance plans which are not cashless. I want to convert these plans into cashless health insurance plans. Is there any way I can do so. Please advise?

Asked by : Krishnakanth - Raichur | 67 Views

You can port your health insurance plan at the time of renewal. You may port your policies into any health insurance policies that offers cashless facility at a wide network of hospitals. You need to keep in mind that cashless hospitalization is just a facility, not a benefit. 1. You should also pay attention to the list of hospitals on the prospective insurer's network and also find out whet [...] View More

Do critical illness rider have a waiting period?

I am 45 years old married with a son and residing in Bellary. I have availed a life insurance plan with a critical illness rider. I availed this life insurance rider so that if I suffer from a critical illness, I will get money for the treatment of the disease. My friend tells me a critical illness rider has a waiting period and if I do not survive this I will not get the amount. Is this true?

Asked by : Ashok - Bellary | 95 Views

A critical illness rider provides a lump sum in case you get afflicted by one of the specified diseases like cancer, heart attack, kidney failure or a stroke. Your claim becomes payable when the illness has been diagnosed. Claims are only paid if the insured survive a waiting period. The waiting period is between 30 days and 180 days. There are a few critical illness riders available which do [...] View More

Are there any penalties for temporarily stopping SIPs?

I am 35 years married and reside in Raichur. Recently I have been facing financial problems and have been withdrawing all the money from my savings bank account. I have SIPs in 2 different equity mutual fund schemes that go out from this savings bank account every month. I may not be able to service those SIPs for a few months. My friend has told me there could be penalties for temporarily stopping SIPs? Please advise.

Asked by : Rajath - Raichur | 72 Views

SIP investments are commitments that an investor makes to his/her own self and future financial well-being. They are not obligations made to the mutual fund companies. If you decide to temporarily suspend your SIP investments, there will be no penalties imposed on you. However, your bank may charge a penalty if a debit request from the asset management company (AMC) cannot be honored due to lack o [...] View More

Where to complain for not getting Form16?

I am 31 years married with a son and residing in Bengaluru. My husband worked for a Company in the last financial year as an employee which he has since quit. The Company deducted tax and it is reflecting in Form 26AS. The Company has not given my husband Form 16. If my husband files ITR based on the tax deducted by the company and the income received, will it be acceptable? Where should I complain for not getting Form16?

Asked by : Sudha - Bengaluru | 69 Views

An employer is obliged to make the payment of tax deducted from the salary of an employee and he is obliged to file a TDS statement in Form 24Q giving the complete details of the employee including PAN of the employee. Once the TDS statement is processed and accepted by the TDS department, the amount of TDS is reflected in the Form 26AS of the employee. 1. In your husband's case, the employer [...] View More

Are there any health insurance policies available specifically for those who consume alcohol?

I am 25 years old and am planning to buy health insurance. However, I consume alcohol occasionally. I am willing to disclose it in the proposal form. In the policy clause of most insurance plans I found an exclusion section which says, “The company shall not be liable to make any payments under this policy in respect of any expenses what so ever incurred by the insured person in connection with or in respect of use of intoxicating drugs/alcohol.” I want to know if: 1. Does it mean that I will not be covered for all illness/ailments which can be traced to alcohol consumption? 2. Are there any health insurance policies available specifically for those who consume alcohol?

Asked by : Suhas - Shivamogga | 67 Views

You should disclose your alcohol consumption if the proposal form asks for it. Most insurers will accept applications from people who drink in moderation without any premium increases. The exclusion you refer to typically excludes cases that are caused due to abuse of alcohol or drugs. You need to be careful of the interpretation of this clause: 1. There have been a few cases where insurers h [...] View More

What to do if the home loan is not sanctioned?

I am 36 years married and residing with a 4 year old daughter in Tumkur. I had applied for a home loan from a reputed private bank near my home to book an under construction apartment. I provided all the required documents to this bank personally and through my builder. Later, when I joined a new company , the bank demanded that I re-submit all the documents. I provided all the documents. But even now my loan has not been sanctioned. What can I do?

Asked by : Ravikumar - Tumkur | 66 Views

You need to write to the bank's nodal officer about this issue. Normally, a housing loan application is processed within five to 15 days and if the bank wants additional information or clarifications, the same has to be sought within a reasonable period. 1. The bank is supposed to inform the client if the proposal is accepted or rejected. In case of the latter, the bank has to communicate the [...] View More

What happens if a redemption is rejected due to signature mismatch?

I am 60 years married with 2 children and reside in Raichur. I had invested INR 5 Lakhs in a reputed equity diversified mutual fund about 5 years ago. This amount is today worth INR 7 Lakhs. I needed this money badly and applied for redemption. The mutual fund house refused my redemption request saying there was a signature mismatch. With advancing age handwriting changes. Please could you suggest me a way to redeem my money. Kindly advise?

Asked by : Nagesh - Raichur | 146 Views

When a redemption is rejected due to signature mismatch, you would need to go to your bank (preferably the bank that holds the account attached to the mutual fund folio), and get the signature attested by the bank manager. The bank manager would attest to your identity and require you to sign the request in his/her presence. Then, he/she would certify the signature stating that it is indeed your s [...] View More

Can anyone purchase another critical illness rider to get the benefit beyond 61 years?

I am 31 years old married with a son and residing in Bidar. I have availed a term life insurance with a critical illness rider for 30 years, which means I will get cover till the age of 61. Should I be looking to purchase another critical illness in some years to get the benefit beyond 61 years or should I be dependent on my savings to cover for major illnesses post 61?

Asked by : Shridhar - Bidar | 89 Views

A critical illness cover is very important especially for those in higher age groups. In your case, critical illness cover beyond the age of 61 would be vital to ensure you are adequately covered. A critical illness policy can be bought as a stand-alone policy or as an add-on, popularly known as rider, on a life insurance policy. In fact, some of the health insurance plans come bundled with critic [...] View More

Is there any possibility of switching to different bank for a partially disbursed loan?

I am 35 years married and residing in Bengaluru. I had availed a floating rate home loan (taken in 2013), which is partially disbursed at the rate of 10%. The approved amount is INR 25 lakh and I have been disbursed INR 18 lakhs. I am paying a pre-EMI of INR 15,000 each month. Can I switch to different bank for a partially disbursed loan? Please advise?

Asked by : Chethan - Bengaluru | 69 Views

You can switch your loan to another bank even if it is partially disbursed. You can convert your partially disbursed loan to a fully disbursed loan and convert your pre-EMI to an EMI. You are paying a high interest rate as apparently the interest rate on home loan is linked to the base rate and not the marginal cost of funds rate (MCLR). This has to be converted to an MCLR rate. MCLR is closely li [...] View More

What kind of penalties are levied by the tax officer if the profits of stock market are not mentioned?

I am 26 years unmarried and residing in Belagavi. I earn a salary of INR 4 Lakhs a year. I will file ITR by July 31st 2017 but I plan not to mention the profits/capital gainsof around INR 50,000 I have made in the stock market. What kind of penalties are levied by the tax officer if I am caught. Kindly advise?

Asked by : Praveen - Belagavi | 56 Views

The last date for filing your income tax returns for the financial year 2016-17 is just a few days away, 31st July 2017. While filing your return, you are supposed to disclose all your incomes under all the income tax heads, irrespective of the amount of income or whether the income is considered tax-exempt or taxable. You may have to pay penalties if you under-report your income while filing your [...] View More

What are dynamic equity funds?

I am 32 years married with a daughter and residing in Mysuru. I am impressed by the ads on mutual funds by AMFI and want to invest in equity mutual funds. A friend has advised me to take a look at dynamic equity funds. What are these funds? Are they good to invest?

Asked by : Shrikanth - Mysuru | 74 Views

Equity investors pour more money into the markets when they are going up and stay away during downturns, which can hurt returns. To protect investors from such behavioral bias, there is a category of mutual funds called dynamic equity funds. Dynamic equity funds manage their equity portfolios, by investing more when markets are down and less when they are up. 1.Dynamic equity funds tweak thei [...] View More

Is there any possibility of getting a tax benefit for the money which have paid for the health check-up under Section 80D?

I am 44 years married with a son and residing in Dharwad. I had availed a family floater health insurance plan about 5 years ago and regularly pay the premiums. Recently I took up a preventive health check up package with a prominent hospital. Can I get a tax benefit for the money I have paid for the health check-up under Section 80D? Please advise?

Asked by : Chandan - Dharwad | 65 Views

Killer diseases like heart ailments, cancer, stroke and diabetes can by far be prevented, if diagnosed early in their stages. This can be achieved by regular preventive health check-ups. Within the maximum limit of INR 25,000, you get a benefit of up to INR 5,000. This means, if you pay premium of INR 20,000 towards your health insurance premium and undergo a preventive health check-up costing Rs. [...] View More

What happens to the tax benefits when surrendering life insurance policy?

I am 36 years old married with a daughter and reside in Hubballi.I had[NB1] availed an endowment life insurance policy a year ago and paid a premium of INR 15,000. I took this life insurance policy on advice of a friend to get the tax benefits. Now I don't want this life insurance policy and plan to surrender it. What will happen to the tax benefits I got last year?

Asked by : Mallesh - Hubballi | 67 Views

By surrendering a life insurance policy, you lose out on all the benefits of the policy and receive a much lower amount than the premium you have already paid. If you want to discontinue the endowment plan, there are two options: 1. Convert this policy into a paid-up policy without exiting it. The Sum Assured of the policy is reduced in proportionate with the number of premiums paid and tota [...] View More

Is there any possibility of withdrawing money from EPF to pay back the home loan?

I am 41 years married and reside in Chikkamagaluru. I have been working with an MNC Company for the last 7 years. I have availed a joint home loan with my spouse a year ago and pay EMI's regularly. I have heard that I can withdraw money from my EPF to pay back the home loan? If yes, then how much? Kindly advise?

Asked by : Kiran - Chikkamagaluru | 74 Views

The EPFO allows you to withdraw money from your EPF account to fund the purchase or construction of house or flat or to buy land. EPFO members will be able to withdraw up to 90% of their accumulation (employer's as well as employee's contributions, including interest) in the PF account or the cost of the property, whichever is less to provide for the purchase or construction of house/flat or for b [...] View More

How to file ITR with 2 Form 16's?

I am 40 years married with a daughter and residing in Bidar. I had changed my job in the last financial year and I now have 2 Form 16's. I plan to e-file my ITR all by myself. I am confused as I don't know how to file ITR with 2 Form 16's. Kindly advise?

Asked by : Surendra - Bidar | 115 Views

If you plan to e-file your returns on the income tax website all by yourself, you will have to first get both the Form 16's with you. Your employers have given you Form 16 which will have details such as gross total income from salary, tax deducted at source and deductions under 80C. 1. First, you have to pick the right ITR form and then provide general information such as address, full name [...] View More

Is there any way to get additional health and life insurance cover?

I am 38 years married with a son and residing in Bengaluru. I have a term life cover of about INR 50 Lakhs and a health cover of Rs 2.5 Lakhs under a group health plan provided by my employer. I have an annual income of INR 15 Lakhs. Last year I was hospitalized for a week with acute vein thrombosis. I am on medication, but fine. I have tried to get additional life and health insurance cover from a number of insurers, but failed. Is there any way I can get cover? Please advise?

Asked by : Subash - Bengaluru | 68 Views

Insurers hesitate to insure you if you have undergone surgery or have major treatment history. You have undergone treatment recently and this stands against you. If you want enhanced cover you must consider 2 options: 1. You must apply for a regular individual health insurance plan with a low sum assured, say around INR 5 Lakhs as large insurers would be less lenient when underwriting a lesse [...] View More

Why do different funds have different benchmark indices to compare?

I am 41 years married and residing in Raichur. I have been following and studying equity mutual fund schemes on various websites for the last 6 months to study their performance.I plan to invest in an equity mutual fund scheme soon but I have a doubt. Most schemes have compared themselves with a benchmark index. Why do different funds have different benchmark indices to compare with? Is it the right way to judge a scheme? I am confused. Please advise?

Asked by : Jagadeesh - Raichur | 69 Views

The purpose of having a benchmark for a fund is to be able to compare returns between a passive investment instrument (index) and an actively managed fund and thus determine the value that the fund manager is delivering to your investment. Depending on the category a scheme belongs, a benchmark index is chosen that is appropriate. 1. For example, a large-cap fund that invests in the largest com [...] View More

Is interest rate the only factor needed to see while deciding on the lender?

I am 41 years married with 2 children and reside in Shivamogga. Recently I fell into difficulty and approached a private bank for a personal loan of INR 2 Lakhs. They offered me a loan at an interest of 13%. I was surprised to find that my home bank was charging me more than some of the other private players whom I approached. This is the first time I am taking a personal loan of any kind. Is interest rate the only factor while deciding on the lender or is there something else I need to see? Please advise?

Asked by : Chethan - Shivamogga | 83 Views

Choosing the right lender to avail a loan depends on multiple factors, but interest rate is definitely an important one. You also need to check the tenure of the loan, eligibility in terms of loan offered, processing charges, penalties, speed of disbursal while deciding on a lender. 1. It is possible in certain scenarios that the rates offered by some banks may be better than your home bank. Y [...] View More

Will I have to pay a penalty for not filing ITR?

I am 25 years, unmarried and reside with parents in Mysuru. I work for a reputed IT Company where TDS is deducted. I have been ignorant and not filed ITR. Will I have to pay a penalty for this? What happens if you miss the deadline of filing Income Tax Returns?

Asked by : Steven - Mysuru | 76 Views

You have to file ITR even if TDS has been deducted from your salary. The finance ministry has said it won't extend the July 31 deadline for filing income tax returns this year, however, it got extended to 5th August. The government has not put any monetary penalties for crossing the deadline of July 31st. The penalty proposed for people missing the deadline doesn’t apply till next year and [...] View More

Are liquid funds Safe?

I am 32 years married and residing with daughter in Bengaluru. I have been investing in ELSS via SIP for the past 2 years. Recently, I have been hearing a lot about liquid funds. I want to invest in these liquid funds, but I am confused. Are these liquid funds safe?

Asked by : Rajesh - Bengaluru | 76 Views

ELSS is a type of diversified equity mutual fund which is qualified for tax exemption under section 80C and offers the twin advantage of capital appreciation and tax benefits. It comes with a lock-in period of 3 years. SIP allows you to invest a certain pre-determined amount at a regular interval (weekly, monthly, quarterly, etc.). 1. Liquid funds are the least risky of all mutual funds and inv [...] View More

Is it necessary to intimate the insurer about recently undergone heart bypass surgery?

I am 48 years married and reside in Bidar. I had availed a family floater health insurance with a reputed general insurer for the past 4 years. Recently, I had undergone a heart bypass surgery and incurred a medical bill of INR 3 Lakhs. These bills were settled through my corporate medical insurance plan. Do I need to intimate the insurer of my personal health insurance plan about this bypass surgery?

Asked by : Ravi - Bidar | 76 Views

It is not compulsory for you to intimate your insurer with whom you have this health insurance plan about the bypass surgery. You need to do so only if you are applying for a change in the terms and benefits of the policy or an increase in the cover limit. However, if you want to apply for an increase in the sum assured, you will have to disclose this bypass surgery and any change in the health st [...] View More

What can be done if I can't pay home loan's EMI regularly?

I am 33 years married with a son and reside in Shivvamogga. I had availed a home loan from a reputed bank and was paying EMI's regularly for the last 8 years. I quit my job for a new job, but due to some reason I could not get that job. Now my Financial condition is very bad. How can I resolve this problem until I get a new job?

Asked by : Rajendra - Shivvamogga | 78 Views

We are sorry to hear about your troubles and we hope that you are able to recover from this tough situation very quickly. As regards your home loan EMI payments to the bank, you do have a few options. 1. You can meet the loan officer, explain your financial situation and request for a grace period during which you will not be required to make EMI payments. The bank may charge some penalty for th [...] View More

Will tax liability reduce on selling a gifted house to a third party?

I am 41 years, married and and reside in Bengaluru with wife and daughter. I, my brother, my mother and sister have decided to sell our house which was bought in August 2010. This house is on my late father’s name. We had bought the house at Rs 20Lakh and plan to sell it for Rs 65Lakhs. Can you tell me how much tax each of us has to pay? Can this tax be saved? If I take this house as a gift and sell it to a third party, will it reduce my tax liability? Kindly advise.

Asked by : Siddesh - Bengaluru | 71 Views

The sale of the house property inherited by you and your family will attract capital gains tax. As the property is inherited, the period you have held this property would include the period of holding by your father. If the property was held for more than 24 months, the gains resulting from the sale would be taxable as (LTCG). 1. You will be taxed in respect of your respective share of LTCG at [...] View More

Will Debt mutual funds give higher returns than FD's?

I am 34 years married with a son and reside in Mysuru. I have been investing in FD's since the last 10 years. Recently, My friend told me that debt mutual funds give higher returns than FD's. Is this true? Kindly advise.

Asked by : Rudresh - Mysuru | 78 Views

Yes, debt funds have the potential to generate higher returns than FDs on a post-tax basis. Income funds are a type of debt mutual funds that Invest in a combination of government securities, certificates of deposits, corporate bonds and money market instruments. They are managed by expert fund managers who seek to generate returns both in declining and rising interest rate scenarios by managing [...] View More

Is it necessary for a nominee to have legal certificate to claim term life Insurance?

I am 45 years married with a daughter and reside in Chikkamagaluru. My brother and his wife passed away in an accident last week in which their car was totally destroyed. They have no children. My brother made me the nominee of his term life insurance plan. When I lodged the claim with the insurer, they asked me for a legal certificate. What should I do?

Asked by : Ajay - Chikkamagaluru | 85 Views

As per new insurance rules, the concept of beneficial nominee has been introduced. A beneficial nominee is the spouse, child or parent of the insured. On death of the insured, the beneficial nominee becomes the ultimate beneficiary of the proceeds, irrespective of other legal heirs to the deceased’s estate. Nominees other than beneficial nominees are only the custodian of the legal heir. Insurer [...] View More

Is it necessary to inform the bank of the loan been completed?

I am 39 years married with a son and reside in Belagavi. I had availed a home loan of INR 35 Lakhs from a reputed bank about 10 years ago and have regularly paid EMI's. The last couple of EMI's are left and my dues are cleared. Do I have to inform the bank on the loan been completed. Please advise?

Asked by : Vignesh - Belagavi | 89 Views

Congratulations on clearing the home loan and being the proud owner of your own home. Irrespective of whether you are closing your loan at the end of the tenure or prematurely, keep these points in mind to ensure a successful loan closure. 1. Once all the payments towards your loan are done successfully, request the bank to issue a no objection certificate (NOC). Do not fail to check if the NOC [...] View More

Will mutual fund houses consider KYC?

I am 36 years married with a daughter and residing in Bengaluru. My uncle 57 years old had bought units from 4 mutual fund schemes. He recently passed away, making me the nominee of all these funds. My uncle had not done the KYC and I am worried. What should I do now to redeem the units? Will mutual fund houses consider my KYC?

Asked by : Govind Raj- Bengaluru | 84 Views

You first need to get the mutual fund units transmitted in your name, and only then you would be able to redeem them. Transmission is the process by which units of a deceased account holder are transferred to the nominee. To get your uncle's mutual fund units transferred you must: 1. Write a letter to the AMC requesting transmission of units in the format prescribed by the fund house. 2. Su [...] View More

Is it possible to retain corporate cover even after retirement?

I am 39 years, single and residing in Mysuru. I am insured under the corporate cover of my company. I do not have any pre-existing diseases. I plan to retire at 50. Can I retain my corporate cover of INR 3 Lakhs even after retirement? Should I opt for a super top up health insurance plan as I already enjoy corporate cover?

Asked by : Narayan - Mysuru | 83 Views

You can continue with your corporate cover, but remember to convert the corporate coverage to an independent individual health cover with the same insurer when you exit/retire from the company. Involve your HR department in converting your policy to enjoy all benefits, which were available in the corporate cover. With steadily rising hospital and medical costs, you must take two additional cove [...] View More

Is it possible to claim on term life insurance if policy documents have not reached?

I am 39 years married with a son and reside in Davanagere. My brother who is 37 years had bought a term life insurance plan on 3rd July 2017. He completed all formalities and the term life insurance policy had been accepted by the insurer. Before the policy document reached us my brother passed away on July 15th. My brother had made his wife as the beneficial nominee. Can we make a claim on this term life insurance plan as the policy documents have not reached us? Kindly advise.

Asked by : Umesh - Davanagere | 63 Views

Sorry on your loss. Yes, the term life insurance plan of your brother is considered to be in force. The receipt of the hard copy of the policy is not mandatory/a prerequisite, for the risk cover to be effective. Term life insurance policies have no waiting period. So, coverage is immediately applicable. The only exception is that suicide is not covered in the first year of the policy. 1. The in [...] View More

Is it necessary to inform the bank while closing the car loan?

I am 37 years old and resident of Karwar. I had availed a car loan from a reputed public sector bank around 4 years ago. I have regularly paid my EMI's and now I have only 2 EMI's left. Do I have to inform the bank while closing out this loan? Kindly advise.

Asked by : Vijay - Karwar | 75 Views

When you buy a car via a loan, the car is hypothecated to the lender/bank. The car is pledged with the bank, while the car remains with you. The hypothecation letter is part of the car registration papers. Once you have paid all your EMIs, you must make sure to change the owner's name in the papers. Though the Car remains with you, it is hypothecated to the bank. If you default i.e. does not pay [...] View More

How to verify Income Tax Returns?

I am 26 years unmarried and reside in Mysuru. I work for a Company and filed my ITR for the first time before August 5th 2017. My friend has told me there is a way to verify if my returns have been filed. Is this true. I don't know much about ITR as I am filing returns for the first time.

Asked by : Nagaraj - Mysuru | 88 Views

If you happen to be among the new ITR filers, remember that after you file the return, you have to verify it. You can do it offline as well as online. If you opt for offline verification you have to download the ITR-V (acknowledgement form), sign it physically and mail it by ordinary post or speed post to the Income Tax Centralized Processing Centre (CPC) within 120 days from date of uploading th [...] View More

How to make a claim on multiple health insurance plan?

I am 43 years married with a son and reside in Bengaluru. I work for a reputed Company and have a corporate health plan. I also have a family floater health plan and an individual health plan. If I want to make a claim in what order should I make a claim to lower or retain my premium outgo?

Asked by : Adithya - Bengaluru | 88 Views

You have multiple health insurance plans and you have the right to choose the policy to make your claim. The main criteria here is, the health insurance plan should provide the cover for the ailment, for which the claim is being made. 1. If the claim amount exceeds the sum insured opted for in the policy, then you can make a claim on the other health insurance plans. 2. It is important to n [...] View More

Is there any way to change the debit date of SIP?

I am 35 years old resident of Madikeri. I have three mutual fund SIPs and my money gets auto-debited on the first of each month from my bank account. I recently changed my job and now my salary gets credited on the 10th of every month. Is there any way I can change the date of debit?Kindly advise?

Asked by : Bhaskar - Madikeri | 79 Views

The change of date for your SIPs can be done by submitting an SIP transaction slip. Every mutual fund company has such a common transaction slip, using which any such changes can be taken care of. A better way to manage your SIPs would be to use one of many digital platforms that are available for this purpose[NB1] . 1. You[NB2] can easily issue a one-time mandate that will allow you to set-up [...] View More

Which is the right time to sell Equity Mutual funds?

I am 30 years married and reside in Chikkamagaluru. I had invested about INR 5 Lakhs in three reputed equity mutual funds via SIP. I have made 20% average profit within a year on these funds and my friends have advised me to sell them. Is this a good move. Please advise?

Asked by : Nitesh - Chikkamagaluru | 52 Views

You should be guided by your financial goals when you invest in an equity mutual fund.You should sell a fund and get your money out when you need it. Check your financial goals and decide why you have invested in equity mutual funds. You should stay invested for around 4 to 5 years, continue your SIPs, till the money has grown to what you need.Now, your financial goal may be money for a down pay [...] View More

Is it possible to claim money from someone else's term life insurance?

I am 45 years married with a son and reside in Shivvamogga. My business is doing ok, but times are bad and I am facing difficulty repaying the loans. My creditors are good people but I am worried that if something happens to me, my wife will face tough times. I plan to avail a term life insurance plan to protect my family. I am worried that if something untoward happens to me, these creditors will take the money my wife should get. What to do?

Asked by : Prasad - Shivvamogga | 86 Views

You must take this term life insurance policy and get it endorsed under (MWPA) Married Women's Property Act. This simply means that any insurance policy taken by you on your own life and which is endorsed under the MWPA in favor of your wife or children, will always be their property. None of your creditors will have any right over the policy or the death benefits. Take a look at these points: 1 [...] View More

Is it necessary to file income tax return after deducting TDS?

I am 28 years and reside in Mangaluru. I have been working for the last 4 years. I earned a salary around INR 3 to 4 Lakhs each year and filed ITR. In my third year of working (Financial Year 2015-16), I earned INR 7 Lakhs and my employer deducted TDS, so I didn't file ITR. I have now got an income tax notice for not filing ITR. I am worried and don't know what to do?

Asked by : Vignesh - Mangaluru | 85 Views

First of all, Don't panic. Many people do not file ITR because they are under the belief that since TDS has been deducted, they don't need to file ITR. It is mandatory to file ITR, if total income exceeds INR 2.5 Lakhs before considering Chapter V1-A deductions.You have most probably got this notice because you have filed ITR in the past, but have not filed your ITR for a particular year. So check [...] View More

What happens if an education loan is not repaid?

I am 23 years and residing in Mysuru. I was a brilliant student and secured a seat in electrical engg in a reputed college in Bengaluru 4 years ago. The course fees was INR 4 Lakhs and I took an education loan of INR 5 Lakhs from a reputed bank as my parents could not afford the fees. I passed in first class but even after 4 months I have not found a job. I don't have the money to repay this loan. I don't know when I will get a job and my friends have advised me to default on this loan. What have I to lose anyways?

Asked by : Shekar - Mysuru | 82 Views

Yes, your education loan is unsecured and you may be tempted to default as your friends suggest. These points will tell you what happens if you default on the loan. 1. Bank could send recovery executives to your residence who could talk to your neighbors. Your reputation would be lost. 2. Not only your cibil score but also your father's cibil score is affected as he stood guarantor to the loa [...] View More

How to claim tax benefit on the second house?

I am 41 years married and reside in Dharwad. I took a home loan in 2011 to buy a house. I have repaid this home loan. Now, I want to take another home loan to buy a house. Will I still get tax exemptions as this is my second house?

Asked by : Sandesh - Dharwad | 84 Views

You can avail tax benefits in respect of the interest paid on the home loan availed for the second residential property and the quantum of interest that qualifies for the tax deduction would vary depending on whether the second residential property is let out or self-occupied. You can claim a tax deduction towards repayment of principal in respect of the housing loan borrowed from specified len [...] View More

How to get Tax benefits on education loan?

I am 27 years married and reside in Sirsi. I work in a reputed firm and want to avail an education loan to fund my sister's higher education (MBA). Will I get tax benefits on this education loan?

Asked by : Prakash - Sirsi | 85 Views

You can claim a deduction under Section 80E of the income-tax Act in respect of interest paid on an education loan, subject to other specified conditions, but only where the loan is taken by you to fund your higher education or the higher education of your wife/children or a student for whom you are a legal guardian. There are certain conditions which must be followed to get the tax deductions: [...] View More

How to avail a senior citizen health insurance plan?

I am 62 years married and reside in Karwar. I have a family floater health insurance plan which I had purchased from a reputed insurer more than 20 years ago which covers me and spouse. A friend has advised me that as I am a senior citizen, I must now avail a senior citizen health insurance plan. Should I pick up a senior citizen health insurance plan for me and spouse. Please advise?

Asked by : Shivappa - Karwar | 83 Views

If you have already bought a health insurance plan anytime before the age 60 or 65, it is better to continue with it. Individual or family floater health plan allows you to buy them till age 65, and have lifetime renewability. As per the IRDAI guidelines, you may continue renewing the family floater health insurance plan for a lifetime. Senior citizen health insurance plan, in that case, is not r [...] View More

How to redeem mutual funds?

I am 45 years married and residing in Arisikere. I have invested INR 3 Lakh in equity mutual funds, INR 4 Lakhs in debt mutual funds and INR 1 Lakh in liquid funds. I have a query. I want to redeem all these mutual funds. A friend has told me that since I am redeeming more than INR 2 Lakhs the normal T+3 Duration for equity mutual funds and the T+1 Duration for debt mutual funds does not hold. Is this true?

Asked by : Sachin - Arisikere | 89 Views

When it comes to redemption, the amount of redemptions does not matter. So even if you redeem more than INR 2 Lakhs, it shouldn't be a problem. As you pointed out, for domestic equity funds (that is, funds that invest in the Indian stock market), the redemption pay-out timeline is typically three business days (T+3). So, if you make a redemption on Monday, the money would be in your account by Th [...] View More

How to claim successfully for critical illness cover?

I am 32 years married and residing in Kodagu. I recently applied for a term life insurance plan with a critical illness rider. The insurer made me fill up the proposal form and then undergo a medical check-up. The medical reports came as normal. However, the insurer suggested a 100% loading on premium and then refused me critical illness cover. The insurer said I was overweight. I weigh 130 Kgs and am 6'3”in height. Can they do this?

Asked by : Rakesh - Kodagu | 99 Views

The insurer is allowed to accept or reject a proposal at the underwriting stage. A counter-offer can be made to you (customer) by the insurer. It is up to your discretion to accept or reject the counter-offer. You can also apply for reconsideration. Your reconsideration request could be supported by either similar cases issued at lower rates or with a rationale to be considered as a standard case. [...] View More

Can anyone ask for a copy of the detailed medical report from Insurer?

I am 39 years married with a son and residing in Kumta. I wanted to buy a term life insurance plan with a sum assured of INR 2 Crore and paid the premium of INR 16,000. After the medical tests the insurer increased the premium by INR 7,000. They said I consume tobacco which I have never done in my life. I’ve asked for a copy of the detailed medical report and am waiting for the same. What should I do. Please advise?

Asked by : Nagendra - Kumta | 82 Views

It's very good that you asked for the medical report based on which the loading has been advised. Insurers are allowed to accept or reject a proposal during the underwriting stage. In select situations, they can issue a counter-offer to the customer. It is up to your discretion to accept or reject the counter-offer. Insurer cannot force the counter-offer on you. In your case, you can reject their [...] View More

Do health insurance policies only cover hospitalization-related illnesses?

I am 45 years married with a daughter and reside in Bijapur. I have read reports that health insurance policies only cover hospitalization-related illnesses. Does this mean treatments such as dialysis and cataract surgery are not covered? Please advise.

Asked by : Manjunath - Bijapur | 88 Views

Most health insurance policies require minimum 24 hours of hospitalization for a claim to be admissible. The exception is day-care surgeries. Surgeries that can be done without hospitalization or less than 24 hours of hospitalization, due to advancement of technology, are classified as day-care surgeries.Dialysis and cataract are common types of day-care surgeries. However, these will be covered a [...] View More

What is the benefit of transferring money from liquid funds to equity funds?

I am 28 years single and residing in Badravati. I had invested INR 2 Lakhs in liquid funds. My friend has told me to shift this money into equity diversified mutual funds where I will get better returns. But if I move from liquid funds to equity funds, it will attract short-term capital gain tax. How does it benefit me after paying this tax?

Asked by : Sharath - Badravati | 83 Views

You have money in liquid funds and you can transfer it to equity diversified mutual funds using the Systematic transfer plan (STP). STP is essentially transferring investment from one asset or asset type into another asset or asset type. The transfer happens gradually over a period. If you sell your liquid funds before three years (36 months), you will have to pay short-term capital gains tax. S [...] View More

Are freelancers eligible for tax benefits?

I am 27 years single and residing in Bengaluru. I plan to be a freelancer offering services in graphic designing. I am not sure of the tax rules for a freelancer and if can avail tax benefits under Section 80C like salaried employees. Please could you tell me if freelancers are eligible for tax benefits?

Asked by : Manju - Bengaluru | 81 Views

Being a freelancer gives you dual tax benefits.As individuals, you can claim the Section 80 tax-saving deductions that are available to your salaried counterparts, and as freelancers, you can also claim the deductions available to business owners. You are eligible for deductions on taxsaving investments like ELSS, NPS and PPF under Section 80C, deduction on house rent under 80GG and so on. You ca [...] View More

Do payment banks offer credit cards?

I am 32 years married and reside in Bidar. I have heard that payment banks will be the next big thing. Can I invest my money in these payment banks and will it be safe? Do these banks give credit cards? Kindly advise?

Asked by : Naveen - Bidar | 89 Views

Payment banks can accept deposits restricted to Rs 1 lakh per customer, and are allowed to pay customers interest on the money that is being deposited in savings accounts. You will be able to operate your account using the mobile app offered by payment banks.It allows transfers and remittances through the mobile, offers services such as automatic payments of bills, cashless purchases, chequeless t [...] View More

Will CIBIL score inquiry from multiple banks reduce a credit score?

I am 35 years married with a son and residing in Udupi in a rented place. I want to reside in my own home and am looking for a home loan. A friend has told me that CIBIL score inquiry from multiple banks will reduce my credit score? Is this true?

Asked by : Prashanth - Udupi | 84 Views

All enquiries for CIBIL Score through any Bank will finally go to, and will be answered by the Credit Information Bureau (India) Limited or CIBIL, which is a Credit Information Company (CIC). Credit Information Report (CIR) and CIBIL TransUnion Score are very important in the loan approval process, to identify consumers who are likely to be able to pay back their loans. Inquiry about CIBIL [...] View More

How to claim tax relief on HRA receipts?

I am 28 years unmarried and residing in Tumakuru. I stay in a rented apartment and want to claim tax relief on HRA receipts. Many of my friends present fake rent receipts to make the claim. I am tempted to do the same but after demonetization, income tax department is very strict. Is there any other way to claim tax relief? Please advise.

Asked by : Ramesh - Tumakuru | 87 Views

You already know submitting rent receipts to your company’s human resource department can help you save taxes. But, what you may not know is that submitting a fake rent receipt can put you in trouble with income tax department. A recent judicial pronouncement has given powers to your assessing officer to check all your documents to see whether the House Rent Allowance (HRA) claimed by you is g [...] View More

Which is the best way to invest (SIP or lump-sum) in a mutual fund?

I am 35 year old housewife residing in Honavar with my daughter. I have been watching Mutual Funds Sahi Hai ads on television and want to invest in mutual funds. I have a doubt. Should I invest in mutual funds via SIP or lumpsum. I prefer lumpsum. Please advise.

Asked by : Sumathi - Honavar | 86 Views

If you switch on your TV, you will see the highly popular Ad, Mutual Funds Sahi Hai. This is a campaign launched by AMFI (Association of Mutual Funds in India), whose aim is to create awareness on mutual funds. As a rule, you should invest in debt schemes to achieve your short-term financial goals which are less than three years. You may invest in equity schemes to achieve your long-term goals [...] View More

Is Ayurveda Treatment Covered In Health Insurance Policies?

I am 47 years married and residing in Holenarasipura. I want to avail a health insurance plan which covers Ayurvedic treatments. Will I be able to get it? My son is studying Ayurveda. Will he be able to cater to those patients who want the treatment to be paid by their insurance? Please advise Is Ayurveda Treatment Covered in Health Insurance Policies?

Asked by : Nagaraj - Holenarasipura | 98 Views

Yes, several health insurance plans cover Ayurveda treatments. The coverage of ayurvedic treatments is dependent on the particular insurer. A few policies would cover such treatments up to the full sum assured, while several policies would limit the expenditure and cap the overall sum assured. There may be a cap on the amount covered which usually ranges from 7.5% to 25% of Sum Assured. Some healt [...] View More

Is ULIP child plan better than Sukanya Samridhi scheme?

I am 36 years married with a daughter and residing in Davangere. I have a 3 year old daughter. I want to take a ULIP child plan to finance her higher education. My friend has suggested a Sukanya Samridhi Scheme as a better saving scheme instead of Unit Linked Insurance Plan (ULIP) child plan. Is this true? Please advise

Asked by : Sunil - Davangere | 104 Views

Sukanya Samriddhi Yojana (SSY) is a small deposit scheme for the girl child currently fetching an interest rate of 8.3% for FY 2018-19 and provides Section 80C income tax benefit up to INR 1.5 Lakhs a year. A Sukanya Samriddhi Account can be opened any time after the birth of a girl child till she turns 10, with a minimum deposit of INR 1,000. To meet the requirement of your daughter's higher educ [...] View More

How to get information regarding the nominee and the benefits due from the insurer?

I am 39 years married and residing in Kumta. My mother died a year back. Recently I came across a term life insurance plan which my now (deceased) father had bought in my mother's name. Can I approach the insurer for more details? What information would I need to be able to find out who the nominee was and the benefits due?

Asked by : Murlidhar - Kumta | 79 Views

If you have the policy number, use that along with know your customer (KYC) details of your mother to seek the policy details from the insurance companies. Insurers should be able to provide you this information through their customer service helpline. You may have to visit the issuing branch to get these details.

If you have make a death claim, you would need the original policy document [...]
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Will a Health Insurance plan cover medical expense for a family after retirement?

I am 41 years married with a son and residing in Karwar. I work for the State Government and am covered for all medical issues. A friend has told me I should avail a health insurance plan which will cover my medical expense for my family after my retirement. Is this a good idea? Kindly tell me.

Asked by : Chandrashekar - Karwar | 85 Views

It is always a good idea to have your own health insurance cover over and above the one provided by your employer as an individual health insurance policy will remain with you, regardless of your retirement. You must take adequate health cover, well before you retire. With age, the health risk increases and also to be applicable for the pre-existing disease coverage, you would need to spend at le [...] View More

How to transfer shares from one stock broker to another?

I am 35 years married with a daughter and residing in Mysuru. I have shares of some blue-chip companies in my demat which I want to transfer from my current stock broker to another. Is this transfer possible? Are there any costs involved in the transfer?

Asked by : Anand - Mysuru | 90 Views

Before transferring shares between demat accounts, you have to first understand how your shares are maintained in depository systems. In India two organizations are authorized to hold your shares called depositories. 1. NSDL (National Securities Depository Limited) 2. CDSL (Central Depository Services Limited) Your broker will be attached to either one of them. You want to transfer share [...] View More

what is home loan switching?

I am 37 years married with a son and residing in Mandya. I plan to avail a home loan of INR 40 Lakhs to buy my home. I want to know if there are any tricks which will help me repay my home loan faster? Can you also tell me what is home loan switching?

Asked by : Nagendra - Mandya | 118 Views

You must avail a home loan with a shorter tenure which helps you complete the loan repayment quickly. This means you pay lesser interest. If you opt for a shorter home loan tenure, your EMI's are higher, but the principal amount gets repaid earlier. Since the rate of interest is calculated on the principal, once the bank recovers the principal amount, the absolute interest pays out decreases margi [...] View More

How to claim an income tax refund?

I am 31 years unmarried, residing in Shirva and working for a Company there. Excess TDS has been deducted from my salary. I want to claim an income tax refund. Can you please tell me how to claim an income tax refund?

Asked by : Kavitha - Shirva | 189 Views

You are eligible to receive income tax refund when you have paid more tax to the government than your actual tax liability. You can claim the refund of the excess tax paid/deducted during a financial year while filing your income tax returns for that year. · As per the Income Tax Act, youare required to file returns in the relevant assessment year by July 31 to claim the refund. [...] View More

Delay in claiming life insurance

I am 39 years married and residing in Kumta. My mother died a year back. Recently I came across a term life insurance plan which my now (deceased) father had bought in my mother's name. Can I approach the insurer for more details? What information would I need to be able to find out who the nominee was and the benefits due?

Asked by : Sambath - Kumta | 112 Views

If you have the policy number, use that along with know-your-customer (KYC) details of your mother to seek the policy details from the insurance company. Insurers should be able to provide you with this information through their customer service helpline. You may have to visit the issuing branch to get these details.

If you have to make a death claim, you would need the original policy [...]
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Having separate health insurance plan along with Government plan is good?

I am 41 years married with a son and residing in Karwar. I work for the State Government and am covered for all medical issues. A friend has told me I should avail a health insurance plan which will cover my medical expense for my family after my retirement.Is this a good idea? Kindly tell me.

Asked by : Ashuthosh - Karwar | 101 Views

It is always a good idea to have your own health insurance cover over and above the one provided by your employer as an individual health insurance policy will remain with you, regardless of your retirement. You must take adequate health cover, well before you retire. With age, the health risk increases and also to be applicable for the pre-existing disease coverage, you would need to spend at lea [...] View More