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  • MODERATOR:

    Hello and welcome to the webchat with Anil Chopra, Group CEO & Director, Bajaj Capital on tax planning


    ANIL CHOPRA:

    Hello


  • A

    AADITRI

    The Finance Minister has made EFP and NPS withdrawals on retirement partially taxable. Do you think one should shift from these instruments to other tax saving plans?

    ANIL CHOPRA

    Hi Aaditri, We would suggest that you should wait until the final decision comes from Finance Ministry.


  • R

    RANI

    Hello Sir, I am a first time investor in equity markets. What tax saving schemes can you recommend?

    ANIL CHOPRA

    Hello Ms. Rani, Equity Linked Saving Scheme (ELSS) is the best option which gives equity exposure to your investments along with tax saving u/s 80C. It comes with 3-year lock in period. Capital appreciation on your investments, if any will also be tax-free. You can invest lump sum as well as through SIP Mode. You can choose from these suggested ELSS schemes - Axis Long Term Equity, Reliance Tax Saver and ICICI Pru Long Term Equity.


  • M

    MICKEY

    Since the EPF and NPS, will be taxed can you suggest me 3 ELSS schemes where I can put my money in an SIP form?

    ANIL CHOPRA

    Hello Mickey, You can choose from these suggested ELSS schemes - Axis Long Term Equity, Reliance Tax Saver and ICICI Pru Long Term Equity. But please be informed that your every SIP will be locked in for 3 years.


  • S

    SANJANA

    Dear Sir, I am earning 50,000 per month. I want to save my tax without keeping money in for a long lock-in period. What are the options available?

    ANIL CHOPRA

    ELSS is one of best tax saving option with shortest lock in period. It also gives you discipline holding for longer period. Maximum limit U/s 80-C is currently fixed at Rs.1.5 lacs and ELSS should be a major part of it for young investors who are below 40 years of age. For high salaried or high income individuals, it is advisable to invest in ELSS amounts in excess of Rs.1.5 lacs also. Tax benefit will be limited to Section 80-C of 1.5 lacs but the overall returns will accrue on the total investments leading to formation of a big corpus in future. You can choose from these suggested ELSS schemes - Axis Long Term Equity, Reliance Tax Saver and ICICI Pru Long Term Equity.


  • S

    SHILPI

    What tax-saving investments would you recommend for a 57-year old, salaried person as he is getting closer to his retirement age? I'm seeking this advice on behalf of my father whose income is around 13.5 lpa. He has investments in traditional tools like LIC policy, health insurance and EPF, and he also enjoys some deductions because of a home loan.

    ANIL CHOPRA

    Thanks Shilpi, for your query, looking at your father's age, he can invest through Tax Saving Fixed Deposit with 5 year lock In or National Saving Certficate with lock in Period with 5 Year Lock In. At the age of 62 years he can park his money to Senior Citizend Saving Schemes. Also if he do not have any equity exposure, he can also look for ELSS schemes which comes with 3 year lock in period. With this he can get Tax benefits as well.


  • G

    GEETA DUTT CHOUDHURY

    Dear Mr Anil, I am a senior citizen, aged 78. I have lumpsum amount of Rs 2.5 lakhs. Would you please suggest me a low risk financial instrument from where I can receive regular income?

    ANIL CHOPRA

    Hi Geeta, You can invest through Post Office Monthly Income Scheme (POMIS). If you will invest around 3 lacs lumpsum, you will get close to Rs, 2100 per month with 8.4% annual interest.


  • A

    ANJALI ARORA

    Hi Sir, I have invested in insurance, ELSS and PPF to save on taxes. In the coming financial year, where should I invest so that not only I save taxes but it also helps me in building good corpus for my long term financial goals.

    ANIL CHOPRA

    Hi Anjali, if you are looking for long term investments with capital appreciation and tax saving, you should ideally increass your exposure in ELSS schemes. In our opinion, long-term is minimum 7 years and longer the period of holding, higher will be the extent of wealth creation.


  • S

    SUBHASH

    Dear Sir, can you explain me in which ELSS schemes should I invest? I am 56 year old Government employee and can invest lumpsum amount. But I am in dilemma whether I should go for ELSS or PPF. I am investing Rs 5000 per month in PPF for last 10 years.

    ANIL CHOPRA

    Hello Subhash, You can choose from these suggested ELSS schemes - Axis Long Term Equity, Reliance Tax Saver and ICICI Pru Long Term Equity, as you do not have any equity exposure. After 3 years of lock in, you can park all such investments in Senior Citizen Saving Schemes.


  • K

    KANHAIYA

    I have an approximate Gross professional income of – 450,000 p.a for FY - 2015-16, interest income and short term capital gain. Also, I have expenses related to my professional income. I would like to ask which income tax return form should I use? Also, is it mandatory to keep books for my professional income and expenses for expense credit as it is my first year of work? Which expenses can I deduct from the following as I have a) Rent expense b) computer expense c) mobile and internet charges (I don`t have bills of mobile and internet as I use prepaid number).

    ANIL CHOPRA

    Hi Mr. Kanhaiya, You can file Income Tax returns ( ITR - 4 ). This return form is to be used by an individual or HUF who is carrying out property business or profession. You can take all the deductions for all the expenses mentioned above upto certain clauses as per the Income Tax Act.


  • R

    ROHIT

    This is my first full financial year of service after my post graduation. What advice can you give me to reduce my tax outgo? My present salary is Rs 3,00,000/annum

    ANIL CHOPRA

    Hi Rohit, Your taxable income will be over Rs. 2.5 lacs i.e. Rs. 50000. If you live on rent, you can also save tax by showing the paid Rent Slips to your employer along with Rent agreement. Apart from this, you can also save your tax through ELSS (Equity Linked Saving Schemes) which comes with the shortest lock-in period. Ideally, ELSS schemes are suitable for young professional like you.


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