A N Shanbhag: Q & A CORNER

A N Shanbhag answers queries on mutual funds, VRS and leave salary

Although SIP is a popular form of investing, personally I do not approve of it much. It imposes an artificial discipline on the investor.  For example, sometimes, it may not be possible to invest during a given month. Yet, the SIP will force the investor to invest the earmarked funds.  There may be a period in the stock markets, when the valuations are either too high or are going down rapidly, when a wait and watch attitude would be more prudent. Or an investor may even have the money on hand before the due SIP date.  An investor should invest in investible funds as soon as possible and as much as possible, of course, keeping in view the economic and political climate. He should have the freedom to decide the scheme and the decision to invest or not.  The compulsory savings aspect of SIP is only of psychological value The investor should have a self-imposed discipline and not any artificial compulsion. However, if self-discipline and some amount of homework is not possible, then SIP is advisable.  I want a clarification about the Annual Information Return (AIR). As regards the AIR to be filed with the next year income tax return, how can we maintain our daily expenses?  Have we to maintain all the records of our expenses, even if it is a paltry Rs 10 on something or does it have to be consolidated for daily or weekly or monthly basis? Is there any minimum amount over which all the transactions are to be recorded?

Sunil Kumar Pahwa

Section 285BA has been replaced in FA04. The requirement to furnish AIR is in respect of