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    Hello and welcome to the webchat with Anil Rego, Founder & CEO, Right Horizons on Tax Planning Strategies for 2016



  • M


    Dear Sir I Would like to Invest in ELSS scheme in Axis Long Term and Reliance Tax Saver Rs3000/- SIP in each, please suggest should it be in Growth Option or Dividend Option.I will be investing for Long Term for 10-15 Yrs. Regards Mahesh Kumar


    Hello Mahesh, Since you are planning to invest for a long and if wealth creation is your objective then you should chose Growth option. But if the investment objective is regular income then you can chose Dividend payout. Also Growth option enables higher compounding effect as the money earned (i.e. the gain/profit component) is reinvested

  • P


    I want to invest in mutual fund for my girl education, she is 2 year old please guide me


    Hello Paresh, It is always advisable to start investing early. The ideal way to invest in mutual funds is through SIP - Systematic Investment Plan. SIP will help to invest regularly and consistently - also it will ensure Higher Risk Adjusted returns by averaging the cost in long term. You can have a combination of different categories of funds within equity mutual funds like - Large Cap, Mid & Small Cap, Balanced Funds. However the allocation towards would depend on your Risk Appetite.

  • G


    My mother had invested in NSS 1987 long ago, and I am a nominee in that scheme. She has not invested any amount in NSS since a long time now. We wish to close this investment now and withdraw the entire amount. She is not in a position to go to the Post Office in person to complete the requisite formalities. I wanted to know: 1) What is the procedure to close this account? 2) Can I be authorised to act on her behalf? If so, what are the documents needed? 3) Can the account be closed from any other branch of the Post Office, or is it necessary for us to visit the branch where the account is held? Can you please guide me on this? Thanks.


    Hello Gaurav, Ideally you can follow these steps 1. A medical proof or a certificate which mentions that your mother is not well and cannot visit the branch personally 2. An authorisation letter, which mentions that you as his son is authorised to carry out the investment closure procedure on her behalf 3. A proof of relation 4. Also these documents need to be submitted to the same Post Office branch

  • V


    My contribution to EPF works out to Rs 50,000. So I have another Rs 1,00,000 for investment under sec 80C. What investment avenues can you advice for an investment of Rs 1,00,000?


    Hello Vineet, There are various investment avenues wherein you can invest the additional Rs. 1 Lac to save on tax. However your investment decision should depend on your Risk Profile, ideally you can have a combination of multiple avenues instead of investing entirely in one asset class Following are the investment option available 1. ELSS - Tax Saving Mutual Funds 2. Insurance - Traditional or Market Linked (ULIP's) 3. Fixed Deposits 4. PPF

  • M


    Sir, my net income is around Rs 5 lakhs. I wish to avail a home loan of around Rs 15-20 lakhs. What are the deductions available for interest paid on home loans for a financial year?


    Hello Manish, When you start paying EMI's on your home loan, the EMI will have two component - Principal and Interest. The principal amount can be claimed as deduction u/s 80 C, however sec 80 C has a limit of Rs. 1.5 Lacs which also includes other contribuition like EPF, Insurance etc. The interest paid on the housing loan can be claimed u/s 24. The limit on this in case of a self occupied house is Rs. 2 Lacs, but if the house is rented out then the entire interest component can be claimed u/s 24.

  • S


    My monthly savings are around Rs 9,000- Rs10,000. I wish to invest in SIPs of mutual funds. Can you advise three schemes which could offer compounded returns of 12-15% over a 15 year investment period?


    Hello Sameer, We would recommend you to spread the investment across different categories within the equity mutual funds, like- Large Cap Funds 1. BSL Frontline Equity Fund 2. ICICI Pru Focussed Bluechip Fund Mid & Small Cap Fund 1. Franklin India Smaller Companies Fund 2. HDFC Mid Cap Opportunities Fund Balanced Fund 1. HDFC Balanced Fund 2. Reliance Reg Savings Fund - Balanced You can chose one from each category and have a portfolio of three different funds, also the investments should be in growth option

  • M


    Hell Sir! Is it a good time to do lumpsum investment in ELSS to save taxes? Given the current market situation, will it be advisable to start ELSS. Kindly suggest.


    Hello Mickey, Investments in equity should always be on regular basis i.e. through SIP mode. However if you wish to invest in order to save tax for the FY 2015 - 16 you can chose to do so. But for the FY 2016 - 17, it is advisable that you start investing early in ELSS schemes through SIP mode

  • S


    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.


    Hello Shilpi, Considering the investor age, it is advisable to invest in debt avenues with low risk as preservation of capital would be a priority considering that he is nearing to his retirement. You can consider following avenues 1. Fixed Deposits 2. National Savings Certificate

  • R


    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?


    Hello Rashi, Ideally tax saving avenues do have a lock in period. But there are few avenues which come with a lower lock in period like 1. Tax Saving Mutual Funds - 3 Yrs Lockin 2. Tax Saving FD's - 5 Yrs lockin However the investment in these avenues will depend on your Risk Appetite.

  • G


    My investments in insurance and contribution to EPF covers more than Rs 1,50,000 for the basic exemption under Sec 80C. However, I wish to build a huge corpus under PPF. I can invest Rs 1,50,000 under PPF. Is it a good strategy or else what other investment would you suggest?


    Hello Ganesh, Your investment strategy should be aligned to your Risk Profile and the financial need. For example, you have a high risk appetite and need money after 7 yrs then PPF will not be an ideal option. But if you need the same after 15 yrs then you can invest in PPF. Thus it is ideal to first classify your Risk Profile and then consider the investment avenue. Also if you wish to create wealth in long term, then you can consider asset classes like equities which yield higher compounding returns