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Do you have financial planning queries?
You can ask rediffGURU Colonel Sanjeev Govila (retd) your questions HERE.
Colonel Govila is the founder of Hum Fauji Initiatives, a financial planning company dedicated to armed forces officers and their families. He has over 12 years of experience in financial planning and is a SEBI certified registered investment advisor; he is also accredited with AMFI and IRDA.
Anonymous: IF SIGNATURES ON WILL TO BE COMPARED AFTER DEATH OF PERSON SIGNATURE OF WHICH YEARS ARE TO BE SUBMITTED BEFORE FSL?
If you wish to check the viability of sign and ensure same is done without any coercion, the following can be done:
1. The evidence of the witnesses come as deciding factor;
2. If the witnesses are not available, find out the typist (typists name is typed on the will most of the times) to stand witness that she/he has typed the said Will as per instruction of the testator or her/his lawyer etc.
3. However, before going for the above exercise, you will have to file an application for probate before the Court for which notice will be sent by the Court to other legal heirs.
Alok: I have taken loan this year to construct one residential house which is still under construction and I have also sold a flat for Rs.130 lakh. The long term capital gain amount is Rs.29 lakh. Now I want to repay the loan out of long term capital gain amount. Will I have to pay tax over the LTCG amount?
Considering the information rendered by you, I assume that you will be able to sell your existing house property within one year from the date of purchase of a new house.
If so, you will be able to claim the exemption in respect of long-term capital gains arising on the sale of the present house provided you invest the proceeds in construction/acquisition of the house under section 54F.
Thus, I would suggest you to repay the loan with capital amount received from sale of house.
Anonymous: We 3 brothers have sold in June 23 a property built by our father in 1953 in a town in East Bardhaman. My share is say Rs 6 lacs. What best can be done to avoid capital gain tax. I am submitting ITR every year.
Just having a broad look at your limited information, we are unable to ascertain whether you are liable to pay any tax on property sold as, any long term asset held for more than 24 months is eligible to claim indexation which increase the cost of acquisition, thus resultant gain/loss vary on that.
We suggest you to get the fair market value analysis done for property by a government authorised valuator as on April 2001 to get a clear picture whether you really are liable to any tax on gain. Further suggestion in this regard can be given thereafter and having full information about the subject.
Sunil: sir, my father was having a flat in patna. He expired and my elder sister somehow pursued my mother to stay with her although she was dependent on me for medical etc. My mother did not share any document on the said flat with me I suspect that my mother had given it to my sister before she expired last year. Now my sister is claiming that the said house is hers and neither showing the documents nor my late mother's ornaments etc. What are options left for me to put my claim on the said house (if any). She is my biological sister. please advice.
We understand this is a difficult situation for you, and we can guide you with general legal information, but not the specific legal advice.
As she is your biological sister, you can openly communicate with your sister, and try to reach an amicable agreement through mediation or family discussions could be a preferred option, depending on your relationship and willingness to compromise.
If your father and mother owned the flat and did not leave a will, the succession will take place as per the Hindu Succession Act and you will be entitled to a share along with your sister. The specific share will depend on various other factors as well including liabilities owned by father if etc.
We suggest you to seek professional legal advice to guide you through the legal/succession process, represent you in court if necessary, and help you protect your rights.
Anonymous: Hi i am 46 years old, married with no kids. Have my own house in gurgaon and no loan of any sort to be paid. Me and my wife (45 yrs) are both working and jointly earning 60 lacs pa after tax. Also 9 lacs pa we are getting annuity for life from LIC from jeevan shanti, which will increase to 15 lacs (for entire life) after 2028. Further I have invested in hdfc life sanchay plus that will generate another 3.2 lacs pa from 2028 for 25 years (with return of 40 lacs in 25 th year). Another 5 lacs per anum we will be getting from 2031 for next 25 years (with return of 50 lacs in 25th year) from another policy of sanchay plus. Also 7.5 lacs pa for 12 years after 2032 from one more policy of hdfc sanchay plus. Apart from above I have invested in nps tier 2 schemeE, current portfolio value is 35 lacs and my wife invested in nps tier 1 (75 per cent in scheme E) with current investment of 7 lacs. Further my plan is to invest in tier 2 @ 36 lacs per year for 5 years/ 7 years. Also we both are having ppf accounts and total corpus is 70 lacs and we are planning to continue investing 1.5 lacs in each account for next 15 years. Apart from above my wife is contributing 25 k per month in vpf, her portfolio cured value is aprox 7 lacs. Currently we are having approximately 40 lacs in bank FD We both have term insurance of 1.5 cr and 1 cr respectively. Also have health insurance of 40 lacs Our current monthly expenses are 1.5 lacs per month. Pls suggest if we are on right track to retire in next 7/ 8 years. Pls suggest/ comment on our current and planned future investments.
Based on the information you've provided, you and your wife appear to be on a very strong track for retirement.
• Retirement corpus estimate: Considering your planned investments and existing assets, assuming an 8 per cent annual return (market is not guaranteed), your accumulated corpus at retirement (in 7-8 years) will be more than sufficient to cater your future needs.
• Passive income estimate: Combined guaranteed future annuities from HDFC Sanchay Plus and LIC Jeevan Shanti & PPF withdrawals, you can expect at least 25 lakhs p/a passive income, which cover all your monthly expenses.
• Expenses vs income: This suggests your passive income can potentially cover your current expenses with some buffer.
Investment Recommendations:
• Review NPS contribution: Assess if contributing the maximum 36 lakhs pa in Tier 2 for 5-7 years is optimal, it's worth exploring other options, potentially offering higher returns,
• Balance equity exposure: While annuities and PPFs offer stability, consider exploring equity mutual funds or balanced funds for potential long-term growth, especially with your comfortable current income.
• Review VPF: Your wife's VPF contribution seems good; ensure the chosen scheme aligns with your risk tolerance and retirement goals.
• Contingency fund: Maintain an emergency fund (3-6 months of expenses) for unforeseen circumstances.
Disclaimer: This article is meant for information purposes only. This article and information do not constitute a distribution, an endorsement, an investment advice, an offer to buy or sell or the solicitation of an offer to buy or sell any securities/schemes or any other financial products/investment products mentioned in this QnA or an attempt to influence the opinion or behaviour of the investors/recipients.
Any use of the information/any investment and investment related decisions of the investors/recipients are at their sole discretion and risk. Any advice herein is made on a general basis and does not take into account the specific investment objectives of the specific person or group of persons. Opinions expressed herein are subject to change without notice.