» Business » Last minute tax tips? Read this!

Last minute tax tips? Read this!

February 19, 2013 18:24 IST
Get Rediff News in your Inbox:

TaxDo you find yourself in a situation where there are just a few days left before the deadline of submission of tax documents?

Are you confused about the best tax-saving avenues?

Did you make a few errors while chalking out your tax plan last year? Are you in desperate need of last minute tax tips?

During an hour-long chat with on Tuesday, Kripananda Chidambaram, director,, offered some valuable tips. Here is the transcript: 

sourabh asked, i would like to invest 35000 thousand under 1 lac tax rebate in order to save tax. kindly guide
Kripananda Chidambaram, Director- answers,  at 2013-02-19 15:47:29We will recommend you to go for Equity linked savings scheme (ELSS). ICICI Prudential tax plan or Franklin India Tax shield or Canara Robeco Equity tax saver fund. Go for any one of the above.

googlytaxer asked, what is the risks evolved in rajiv gandhi equity scheme
Kripananda Chidambaram, Director- answers, Broadly they are equity investments, hence all the risk of losing your capital is there. But in case you hold equities for more than 5 years the chances of losing you capital is low. And it also has the ability beat inflation in the long run.

berry asked, which is the best option for investing in tax saving schemes out of LIC, PPF and mutual funds
Kripananda Chidambaram, Director- answers, We would suggest you to invest in ELSS fund over LIC and PPF as ELSS has the power to beat inflation in the long run. LIC is an expensive way to save your taxes. In case of PPF, though it gives you safety of capital it cannot beat inflation in the long run. We would recommend you to invest in anyone from ICICI Prudential Tax Plan or Franklin India Tax Shield or Canara Robeco Equity Tax Saver Fund.

Ratnesh asked, My annual income is less than 2 lakhs but bank is cutting TDS on my interest. What should I do?
Kripananda Chidambaram, Director- answers, You have to just submit form 15G that allows you to declare to the Bank that you fall below the tax bracket. Whatever has been already deducted can be claimed back by filing Income tax returns.

ganesh asked, i am working for a private ltd company earning close to 8 Lac p.a. From april i would like to pose myself as a consultant and claim various expenses like petrol etc and lessen my liability. In case employer are not agreeing how shall i restructure my salary to reduce tax burden. am 32 years old, no physical disability among family members, Insha Allah,no house on my own name, any other detail required
Kripananda Chidambaram, Director- answers, If you position yourself as consultant, then your tax status will be as a professional or business. In that case you have the opportunity to deduct expenses. But if you continue as an employee the tax saving options are limited to HRA, LTA, Conveyance allowance, medical allowance, sec 80C, 80D, 80G etc.

sanjay asked, sir, please give information about rajiv gandhi equity scheme.
Kripananda Chidambaram, Director- answers, Rajeev Gandhi Equity Scheme (Section 80CCG)this is first of its kind scheme in India which allows the retail investor to invest upto Rs.50,000 directly into equity shares and avail tax benefit on 50% percent of investment made directly into equity shares. Some of the conditions put under the scheme to avail tax benefits are 1) The investor should have income of less than Rs. 10 lakhs in a year, 2) The benefit under the scheme will be given to the first time investors into equity market only, 3) investments will be subject to lock-in period of three years and 4) If the assessee has claimed and has been allowed a deduction under this section for any assessment year in respect of any amount, he shall not be allowed any deduction under this section for any subsequent assessment year.

SANTOSH asked, Hi Sir, I would like to know if I can avail tax benefit if I am planning only interest payment EMI for under construction house
Kripananda Chidambaram, Director- answers, Nope, you cannot claim tax benefits on interest payment for under construction house, however you may get the benefit of principle under sec 80C

ashish asked, Can we avail of the benefit of 20,000 for Infrastructure bonds this year.
Kripananda Chidambaram, Director- answers, No,80CCF has been scrapped this year.

berry asked, I have 15000 Rs to invest in tax saving scheme where I should invest these?
Kripananda Chidambaram, Director- answers, We will recommend you to go for Equity linked savings scheme (ELSS). ICICI Prudential tax plan or Franklin India Tax shield or Canara Robeco Equity tax saver fund. Go for any one of the above.

RAVIPRAKASH asked, Infra bonds are available for tax benifit for this year uder 80ccf?
Kripananda Chidambaram, answers, No Infra bonds tax exemption u/s 80 CCF has been withdrawn.

sudip asked, Is the interest income from my savings account is also taxable?.
Kripananda Chidambaram, Director- answers, No, it is not taxable up to Rs 10,000.

Lokesh asked, I have invested in Market Unit Linked policy in LIC for 15 years tenure.Please suggest whether i should exit id it is not good policy or should pay for the full 15 years tenure. My yearly amount in 10k
Kripananda Chidambaram, Director- answers, ULIPS are expensive way to save for taxes. We would suggest you to exit after 5 years and then move into an equity diversified mutual fund.

shiv asked, sir investment in which schemes in the name of children i can make to avail tax benefit
Kripananda Chidambaram, Director- answers, I would suggest you to invest in ELSS in your name. Child care plan of insurance policies are an expensive way to save tax.

sawant asked, Hi My wife has recently availed of a housing loan Can i claim exception for that in my IT returns ?
Kripananda Chidambaram, Director- answers, No. You need to be both the borrower and owner.

munesha asked, Rajiv gandhi equity linked scheme has not been declared to be operatonal yet? is it so?
Kripananda Chidambaram, answers, RGESS has become operational this year. A couple of ETFs have been named as RGESS eligible, besides NSE/BSE 100 stocks are also eligible. But it is risky for new investors to plunge into shares directly so you might skip RGESS this time and wait until you have more options in terms of mutual funds to choose from. asked, my early income is 15 lac. what is maximum or highest amount to be invested in different catagory to lower my taxation
Kripananda Chidambaram, Director- answers, You may find the below link useful

ratheesh asked, Poor common man in this country will think that all central govt schemes are charity given by Sonia Gandhi's family. People's fund should not be given some family tag. Shame on UPA
Kripananda Chidambaram, Director- answers, Partially agree!

vj asked, I would like to know high risk investment options. I am willing to take risks.
Kripananda Chidambaram, answers, Go for ELSS funds; they invest in equities. Some of the best ones are ICICI Pru Tax Plan, Franklin India Tax Shield, etc

hedf asked, Sir, Till how many years after taking the possesion of Flat, I can claim the Tax benefit on the interest paid to Housing loan ??
Kripananda Chidambaram, Director- answers, You can claim the tax benefits on the interest paid to housing loan for five years.

Lokesh asked, i don't want to pay any tax. Please suggest.
Kripananda Chidambaram, Director- answers, You may not have to pay tax provided you plan well and you taxable income is below Rs 2 lacs. You may read this article

rajeshwar asked, What is Rajiv Gandhi equity scheme introduced this year? My gross salary is above 10 lacs. Can i invest 50k in this ? if yes, Could you please suggest me some options.
Kripananda Chidambaram, answers, RGESS gives 50% deduction for maximum investment of Rs 50,000 in eligible securities which include certain mutual funds, ETFs and shares. To be eligible your gross income should be less than Rs 10 lakhs and should be a first time user of demat account for equities. So you do not qualify for RGESS.

Raghu asked, My wife has been gifted a building by her father which earns rent.It is a commercial property. Should she file the returns even if her rental income is less than 2 lacs?
Kripananda Chidambaram, Director- answers, Firstly, gift from blood relatives is tax free. Now since she is the owner of the property she is liable to pay tax. But since her taxable income is less than Rs 2 lacs she need not have to file returns. Though we strongly recommend to file returns as a good habit to inculcate.

how i save tax in hra asked, Sir i surrender my ulip policy after 3 years i the amount i get is taxable or not
Kripananda Chidambaram, Director- answers, Firstly the benefits you received under 80C in last 3 years would get reversed and also the amount you have got after surrendering is taxable.

Arnab asked, Hi Sir, I have save Rs.30000 in 80C bracket to save tax. which is the best option, if i dont want to go for ELSS. NSC or Tax saving FD which one is best.
Kripananda Chidambaram, answers, Both NSC and Tax Saver FD are similar in terms of tax saving since interest of both are taxable. So you can go for Tax Saver FD since that may be more convenient.

bpsaxena asked, After how much time one can withdraw from PPF a/c.
Kripananda Chidambaram, Director- answers, You can withdraw after 5 years. You can refer the link below:

BGPatil asked, I have 15000 to invest is ICICI is ok
Kripananda Chidambaram, answers, ICICI Pru Tax Plan for ELSS? It's a good fund.

Narayanarao asked, Does a Senior citizen having an monthly income of Rs. 30000-40000 from hoouse ren, has to file returns and what is the tax for the same
Kripananda Chidambaram, Director- answers, The tax starts for senior citizen if his annual income exceeds Rs 2,50,000 per annum. You will come under 10% slab and it is also good to file your tax returns.

gaurav asked, Do I need to have demat account to invest in RGESS. My gross annual salary is less than 10 lacs. Can I invest in RGESS?
Kripananda Chidambaram, Director- answers, Yes you need to have a demat account and also your income should be less than 10 lacs. You can also refer following link:

Mc asked, I wanted to Knw about NSC
Kripananda Chidambaram, answers, You can reduce your taxable income by Up to Rs 1 lakh by investing in NSC. You can apply for it through a nationalised bank. Returns is usually close to FD rate about 8.6-8.9% this time. Check

DAS asked, What could be the Max value that a house owner can issue Rental Receipt, without getting into IT bracket? Please help me.
Kripananda Chidambaram, Director- answers, As soon as your annual income exceeds Rs 2 lacs you come under tax bracket

ganpat asked, i want to invest in gold as SIP, which is the best suitable mode & plz suggest how I can do that.suggest also which one is best.
Kripananda Chidambaram, Director- answers, You can invest in gold mutual fund through monthly SIP. SBI gold fund and reliance gold savings are the best funds in this categories. Check the review:

nrk asked, DO you think will principle invested in ELSS in Icici and other will return ? Are support of them? May be LIC return may not be attractive but sure you get the money
Kripananda Chidambaram, Director- answers, ELSS has risks but if you stay invested in the long run you may not lose your capital. LIC though has assurance, the returns will not help you beat inflation. Insurance cum investment plans are expensive way to save taxes.

Archana asked, Hi My name is Archana,I have built a house for which i am claiming deduction and my mother stays there. I stay with my husband in a rented place,can i claim tax rebate for both home loan and rent?
Kripananda Chidambaram, answers, If the house you own is in a different city and you are staying in on rent in a different city for employment related reason you can claim both HRA and home loan tax rebate.

jatin asked, I pay Rs 25,000 for a combined health insurance of my parents. My father's age is 66 years and mother's 60. Will this money be deducted as insurance for senior citizens (above 65 years) or will it be considered for normal deduction of Rs 15,000?
Kripananda Chidambaram, Director- answers, No, it would be considered under deduction for senior citizens. So you can claim up to Rs 20000.

Kripananda Chidambaram, Director- answers, You have to take the market value as the notional rental income. You can deduct property tax, deduct 30% of the rental value and deduct the interest of home loan if any. This will become you taxable income for the second property.

rajkumar dodani asked, do we have infra bonds option this yr for the additional rebate of 20k ?
Kripananda Chidambaram, Director- answers, No, from 2012-13 80CCF has been scrapped.

deepa_pillai7 asked, Hi, can u advise if i am getting overseas commission in US$ to my India a/c, should I pay the Tax? Is it tax exempted?
Kripananda Chidambaram, Director- answers, You will be taxed in case your status is resident Indian

suresh asked, I am Senior Citizen.My Income is around 12Lakhs. I have saved upto Rs.1.00L under 80C. Any other tax saving scheme for me
Kripananda Chidambaram, answers, You might not have more tax saving 'investment' options but you can make sure you claim deductions for mediclaim premiums or you can donate to charity. Find the list of such deductions at

sai asked, Goldman Saches Gold Exchange traded scheme: is it good??
Kripananda Chidambaram, Director- answers, Yes

raje asked, Can u inform the Tax slab
Kripananda Chidambaram, Director- answers, You can refer following link:

k asked, Sir, to avail benefit of Section 80-C, i want to go for Retirement plan..which plan you suggest?
Kripananda Chidambaram, Director- answers, We would not recommend you to go for insurance cum investment plans for retirement as they are expensive way to save tax. You may go for NPS or stick to ELSS for saving taxes under 80C

sarri asked, how to use RGESS
Kripananda Chidambaram, answers, You might rather give RGESS a miss this time because you don't have many good options to invest in. Wait until next year. Read about it here

errrrrrrr asked, I have an old demat a/c which I never used. Can this be used for RGESS?
Kripananda Chidambaram, Director- answers, Yes

leslie asked, is deduction under section 80ccf available
Kripananda Chidambaram, answers, 80 CCF deduction has been scrapped for 2012-13.

vishal asked, what are the schemes to save the tax under 80 C.
Kripananda Chidambaram, Director- answers, Under section 80C, you can claim deduction up to Rs 1 lac. The various investment options in this section are – Life Insurance Premium, Tution Fee for Children ,PPF- Public Provident Fund, EPF- Employees Provident Fund NSC- National Saving Certificate, ELSS- Equity Linked Mutual Fund ,Housing Loan Principal Repayment ,Registration and Stamp fee on House Property ,Tax Savings Fixed Deposit (PO/Bank), Contribution in Pension Fund ,Contribution in New Pension Scheme.

jh asked, U/s 80D traeatment up to 5000/- in cash private doctor bill ammount is eligible for deduction
Kripananda Chidambaram, Director- answers, Under sec 80D only mediclaim premium is eligible for tax rebate. Check 80DDB

Ankur asked, I have taken a home loan 2 years back for a apartment under construction, I have taken the possession of the apartment on 1st Feb 2013. Till Jan 2013 I was living in a rented house. Can I claim both HRA and home loan tax benefits this year?
Kripananda Chidambaram, Director- answers, You can claim HRA for the period you did not have possession of your own property

nb asked, are infrastr bonds of rs 20000 avlb?
Kripananda Chidambaram, Director- answers, Not this year

rajeev asked, sir i pay rs 12,000 as my mediclaim & rs 15000 for my mother. will this both money be deducted as insurance
Kripananda Chidambaram, Director- answers, No, this wont be deducted as insurance but you can get deduction under 80D. You can claim up to Rs. 15,000 on mediclaim premiums paid for yourself, spouse and dependent children. In case youre also paying for parents an additional Rs. 15,000 can be deducted

va asked, Hello, Is it true that we can claim the full interest paid for a second housing loan with out any cap on it (>150,000)?.
Kripananda Chidambaram, Director- answers, Yes, you can get full benefit on your second home on the interest portion

rav asked, What is the age limit for Sr citizen women? Is it same as 65?
Kripananda Chidambaram, Director- answers, Age limit for senior citizen is 60 to 80 years.

vinay asked, I am 62 and have annual income of 11 lakhs. I have invested Rs.1 lakhs under 80C. However,to avail tax rebate on investment on Bond, the period of 10 yrs and 15 yrs is quite long considering my age. Please advice where I should invest to save additional income tax
Kripananda Chidambaram, answers, Vinay, the bonds you are talking about don't give tax deduction on the amount invested, rather only the interest is tax-free if they are held to maturity. So if you have exhausted your Rs 1 lakh quota under 80 C, make sure your other deductions like mediclaim premiums don't go. Refer to

vinay asked, I am 62 and have annual income of 11 lakhs. I have invested Rs.1 lakhs under 80C. However,to avail tax rebate on investment on Bond, the period of 10 yrs and 15 yrs is quite long considering my age. Please advice where I should invest to save additional income tax
Kripananda Chidambaram, Director- answers, There is no tax rebate this year on infrastructure bonds. What you see in market is bonds where the returns are tax free. You have very limited tax savings options outside 80C. Kindly read the article

kashi asked, I have savings in my wife's name plus she earns a rent from a comm property. Should she file the returns?
Kripananda Chidambaram, Director- answers, Yes if her annual income exceeds Rs 2 lacs.

docruchir asked, What are the mutual funds and which ETFs have been included under the Rajiv Gandhi Equity Scheme. And what would you suggest is the best option for investment under this scheme??
Kripananda Chidambaram, answers, A few mutual funds, ETFs and shares have been declared as RGESS-eligible. Find the list at If you are new to shares skip RGESS this time. The mutual funds are also new; we do not know how well they'd do.

va asked, Can you refer to a section where this is listed. "Yes, you can get full benefit on your second home on the interest portion".. MY Finance is not accepting this fact saying it is not listed in IT act
Kripananda Chidambaram, Director- answers, section 24

mbmpi asked, Sir will you please reply. I am abroad, is there any way to do tax saving FD online?? what is the most safe tax saving thing i can do online??
Kripananda Chidambaram, answers, Many Pvt sector banks offer online Tax Saver FD. But we would recommend ELSS. You'd have to check with an adviser how to do this.

chiru asked, You mentioned in this conversation that housing loan interest will be elegible for tax deduction only for 5 years after possition . Is any such time limit is there even for housing load principal repayment for tax benefit under section 80c
Kripananda Chidambaram, Director- answers, You can claim tax rebate for 5 years in after completion of construction. However you can get the benefit of 80C with an upper limit of Rs 1 lac

Pritam asked, This year there was not much new funds on Infrasatructure bond.i was unable to get this benefits this year
Kripananda Chidambaram, answers, 80 CCF tax deduction on Infrastructure bonds was withdrawn this year. There were a couple of tax free bonds but not under that section. They only give tax rebate on interest earned.

Arnab asked, i have invested Rs. 2000 monthly in Reliance equity mutual fund and Rs. 500 in Reliance gold fund. are they tax saving fund. how much profit they can give.
Kripananda Chidambaram, Director- answers, The returns in any equity mutual fund is tax free. But in case of reliance gold mutual fund,if units are sold within one year than returns are taxed on the marginal rate i.e. as per the tax slab and if the units are sold after one year than long term capital gain applies which is taxed as 10.3% of gains if non-indexed, or 20.6% of gains if indexed, whichever is lower. No body can predict the returns that one can get by investing in mutual funds. For more information you can refer mutual fund page on

Sen asked, Can any employee claim the benfit under Section 80D for a Group Insurance Mediclaim Policy which is offered by agents and does not provide any direct receipt to the employee ? Policy is being issued by the Insurance co.
Kripananda Chidambaram, Director- answers, 

Sachin asked, Give me ur mail id
Kripananda Chidambaram, Director- answers,

rishabh asked, sir, im having approx 5 lacs in my icici bank account which i made 1 year fd's.that is my saving and that amount is not in use since 2 years.tell me the best place to invest where there is less chances of loosing capital and moreover i can get maximum rate of intrest
Kripananda Chidambaram, answers, Rishabh, keep aside some money for about 6 months' expenses and put the rest in an MIP. Read about it in detail here

Jithesh asked, SK: I would like to know if medical expenses can used for tax benefits. are bills required
Kripananda Chidambaram, Director- answers, Yes, medical expenses can be used for tax benefits under medical allowance component of your salary and you need to submits bills also.

ramakant asked, what exactly is rajiv gandhi equity scheme could u kindly explain me. what is the approximate returns expected form this
Kripananda Chidambaram, answers, Under RGESS scheme you can save up to Rs 25000 a year for investing in certain ETFs mutual funds and shares. Your income should be less than Rs 10 lakhs and should be using demat account for the first time for equities.

Satish asked, I am investing in an ULIP since 7 years. If I sell that now, will the premium paid last year come under tax? what about the return value? Is it taxable?
Kripananda Chidambaram, Director- answers, No if you surrender after 5 years your earlier premium benefits will not be revoked.

amorey asked, i am a salaried person and have to give documents as a proof for tax savings . which documents should i submit?
Kripananda Chidambaram, answers, You have to submit relevant receipts on the permitted investments, deposits and expenses you made. You can read for more on that.

sgrsgr asked, My sons tution fees fees for Rs75000 says 'Tuition fee & other expenses'. Am I eligible for Rs75000 under 80c?
Kripananda Chidambaram, Director- answers, Yes, you are eligible to get deduction under 80C as its upper limit is up to 1 lac.

Salaried asked, Mr. Chidambaram : I am staying in 200 Sq ft rental house and bought new house of 180 sq ft near the rented house with housing loan.. now my company is not allowing to claim HRA since having a house in the same city..what should i do? if i claim refund under my I tax return than do i have to take notional income for SOP..
Kripananda Chidambaram, Director- answers, You can claim HRA till the period you paid rent

rajeev asked, I have 2 housing loan on 2 different property will the interest rate on 2 property will be fully deducted
Kripananda Chidambaram, Director- answers, Yes full interest portion on the loan on the second property can be claimed

naren asked, pls tell me about tax saving investment otions
Kripananda Chidambaram, answers, Invest in ELSS funds. They give tax benefit up to Rs 1 lakh and also good returns in the long term. You can refer to for the list of tax deductions.

Poonam asked, My salary is 10Lac/annum, where can i save money
Kripananda Chidambaram, Director- answers, Kindly read

sujit asked, Will you recommend taking term plans?
Kripananda Chidambaram, answers, Term insurance? Absolutely.

vishal asked, There is a LIC policy on my mothers name, can i take the Tax benifit under 80C.
Kripananda Chidambaram, Director- answers, No, you will not get tax benefit under 80C. Any amount that you pay towards life insurance premium for yourself, your spouse or your children can also be included in Section 80C deduction.Life insurance premium paid by you for your parents (father / mother / both) or your in-laws is not eligible for deduction under section 80C.

sharad asked, hello, i had taken tax benefit on my housing loan interest during the current whereas the posession of the same is yet to receive. now my headofice is asking for possession letter in the absence of which they will withdraw the tax benefit and i have to pay additinal tax of Rs.27000 approx. pls suggest some way to escape from this liability. plz revert.
Kripananda Chidambaram, Director- answers, If you had claimed the benefit under sec 24, then there is no way out...

hello asked, pls expalin about HDFC-TOP-200
Kripananda Chidambaram, answers, It is one of the best funds. But it is not among the ELSS funds. You can find review of it here

chandrakant asked, (Tuition fee receipt paid for your children if any- this qualifies for section 80C tax rebate.) Is it private tuition fees also calculated? or only school tuition fess has been calculated?
Kripananda Chidambaram, Director- answers, Only school tuition fees will qualify under 80C.

Sub asked, Name of best 5 tax saving mutual funds? Are Gold ETF also eligible for 80c?
Kripananda Chidambaram, answers, Gold ETFs are not eligible for 80C. Refer to for list of best ELSS funds.

Arnab asked, suggest a good plan for wealth creation
Kripananda Chidambaram, Director- answers, The mid cap mutual funds can be best for general wealth creation. Some of the best funds in this category are IDFC premier equity fund, ICICI prudential discovery fund , UTI MNC fund etc.

Arnab asked, Name of best 5 tax saving mutual funds? Are Gold ETF also eligible for 80c?
Kripananda Chidambaram, answers, Check the link for best mutual funds. Gold ETFs are not eligible for 80 C deduction.

kishor asked, hello sir i resigned in the month of Dec'2012 and wanted to something else. Till date have received my gratuity and super annuation amount from the company. my question is this exempted from tax or i have to pay tax on it. Also whether my Form 16 will have this figures. also suggest me where i should invest this money to save next years tax.
Kripananda Chidambaram, Director- answers, You may visit or contact us at

vindi asked, i am in 30%tax slab. first home loan interest 2.16 lakhs, it is rented 6000K/month and, second home loan 1.2 Lakh interest where i am residing, what is the maximum tax benefit i get on the interest part of the both home loans
Kripananda Chidambaram, Director- answers, on your residing property Rs 1.2 lacs on your rented property Rs 2.16 lacs

George asked, is there any infra structure bonds for this year
Kripananda Chidambaram, Director- answers, No it has been scrapped for this year

yash asked, Under which section, can i claim the registration amount for the property in my name
Kripananda Chidambaram, Director- answers, You can claim it under section 80C.

sujit asked, But in term plans there are no returns how can you say that term plans are the future?
Kripananda Chidambaram, answers, Insurance and investment should not be mixed. For investment choose mutual funds, FDs, PPF, etc. Term insurance gives best insurance cover. Traditional plans and ULIPs have very less cover and charges are very high. You can read

munesha asked, Sir, I own a house in Delhi but i m not residing in this house can I give rent receipt while taking tax exemption on house loan?
Kripananda Chidambaram, Director- answers, HRA and home loans benefits can be claimed only if the properties are in two different cities

Tushar asked, sir, my 2 childs total school fees 28,800.00/- (1200 per month). Should i get benefit under 80c for full amount of school fees?
Kripananda Chidambaram, Director- answers, Yes , surely you will get benefit up to 1 Lac under section 80C.

vishal asked, Last year my fathers death by heart attack in the month of Nov.2011, i cant submit the Medical bill of rs. 150000 last year, shall i submit the bill in this year.
Kripananda Chidambaram, Director- answers, I am sorry to hear about this. You cant claim any benefits on the bills now.

Mayur asked, hi, i had done 1lac 80C investment, is there any other investments left (like bonds or other) to safe tax, i am already doing trading in equity so can't use RGESS..!
Kripananda Chidambaram, answers, Mayur, if you have exhausted 80c deductions and are not eligible for RGESS there aren't more tax saving 'investments' but if you like you can make donations and claim deductions. Also make use of mediclaim premium deductions, education loan deductions, if any. Refer

opp asked, having 24K in PF saving is it better to invest 76K in UTIULIP for under 80C?
Kripananda Chidambaram, Director- answers, ULIPs are the expensive way of tax saving. Better invest in ELSS.

sgrsgr asked, If I sell my GOLDMAN etf , which is more than one year old, whether I have to pay any tax?
Kripananda Chidambaram, answers, Yes, you need to pay Long Term Capital Gains tax of 10% or 20% with indexation benefits on your profits.

Manish asked, Can I claim tax benefit for home loan for a house in another city, while claiming HRA for rented accomodation in city where I work?
Kripananda Chidambaram, Director- answers, Yes, in this situation you can claim.

arif asked, Can i get tax examption on houseing loan intrest paid and HRA both, i am living in rental house in different state
Kripananda Chidambaram, Director- answers, Yes

sai asked, which is best medi claim policy for the family?
Kripananda Chidambaram, answers, One of the best policies is Apollo Munich Easy Health Family Floater. Check review at

Param asked, Mr Chidambaram, I have got some shares transferred from my dad's demat account into my demat account. Most of the were held for more than a year in my father's demat account. How are short-term/ long term capital gain tax implications for both the demat accounts now. Can you help clarifying this?
Kripananda Chidambaram, Director- answers, Since it is from your father it is not taxable. We recommend you to document it through a gift deed

vass asked, i have invested 15K on HDFC SL Young Star Super II for my son ... is this a good choice ?
Kripananda Chidambaram, Director- answers, Not a good option as they are an expensive way to save for future. A simple SIP in MF will do the job for you.

raje asked, What is the tax % if the income is 2.5 lac pa
Kripananda Chidambaram, Director- answers, 10%

ary asked, i want to know that bypass surgery for father is having any exemtion and if yes then what documents reqdd
Kripananda Chidambaram, answers, Bypass surgery is not one of the diseases covered u/s 80DDB. Read

vishal asked, Demat a/c is necessary to invest in gold mutual fund
Kripananda Chidambaram, answers, No you don't need a demat account for mutual fund investment.

opp asked, Is investing UTIULIP having LIC cover (through SIP) better compared to taking sepatate LIC and other tax saving scheme?
Kripananda Chidambaram, answers, Definitely taking separate term cover is better. You can invest in mutual fund separately. Never combine insurance and investment.

cj789 asked, i live in a rented apartment but i have taken housing loan also. can i claimed for tax benefit in principle & interest amount and rent amount also
Kripananda Chidambaram, Director- answers, 1.Living in your own home if you have taken a home loan to purchase a house and you are residing you are not entitled for HRA, since you are not residing in a rented property. However the tax benefits for principal repayment and interest repayment can be availed by the person. 2.Home possession in another city For instance you have a house in another city for which you have taken a home loan and you reside in another city due to work or similar reason then you are eligible to avail the benefit including HRA tax benefit or principal repayment of home loan and tax benefit on interest payment of home loan.

sujit asked, Which term insurance plan would you recommend?
Kripananda Chidambaram, answers, Any one of the online term insurance plans are good. HDFC Life has HDFC Click 2 Protect, Aegon Religare iTerm. Refer

Arnab asked, which lic plan is best for wealth creation
Kripananda Chidambaram, answers, None. If you want to create wealth you should invest in shares or if you are a beginner start investing in equity mutual funds. Post your query in

vishal asked, how i invest in gold mutual fund, i have to invest approx. 25000, all the amount consider in 80 C.
Kripananda Chidambaram, answers, No Vishal. Investment in gold mutual fund is not for tax saving. Check for procedure.

sharad asked, sharad asked, hello, i had taken tax benefit on my housing loan interest during the current whereas the posession of the same is yet to receive. now my headofice is asking for possession letter in the absence of which they will withdraw the tax benefit and i have to pay additinal tax of Rs.27000 approx. pls suggest some way to escape from this liability. plz revert. sir can copy of house registration be considered in lieu of possession letter? plz reply
Kripananda Chidambaram, Director- answers, No my dear..

Kripananda Chidambaram, answers, Yes it is a better option to accumulate gold than buying gold coins, jewelry. Cap your investment in gold at 10-15% of your overall investments. Read asked, hello sir good evening i have some question o you regarding ITR
Kripananda Chidambaram, Director- answers, You may post in

Alhad asked, what is best tax saving instrument for Sr.Citizens.
Kripananda Chidambaram, answers, You can choose between NSC, Tax Saver FDs and ELSS.

sirajut asked, Sir,My office is not accepting my investment in Rajiv gandhi scheme as it is not clear, and they told you should be first time investor in equity, even if you have equity Mutual fund of Rs.5000/- than also you are not eligible, like this no one can invest in this scheme, pl suggest how to save now.
Kripananda Chidambaram, answers, For RGESS you should be using demat acount for first time for equity shares or equity funds. If you did not buy the mutual fund through demat account yo should be eligible. Your income should be less than 10 lakhs. For more you can read

df asked, how to know long term gains /short term gains in share purchases with the help of statements and their tax rules please
Kripananda Chidambaram, Director- answers, If you sell the shares within one year from the purchase date with gains then you have to pay short-term capital gains tax at the rate of 15.54%. But if you sell at profit after 1 year, then the long term gains are tax free

atul asked, I have sold out my flat and paid the dues to bank for this property and balance amount paid for new property loan repayment. How can I declare this process as payments have been through my salary bank account.
Kripananda Chidambaram, Director- answers, Not able to ascertain what you wish to know. You may post your query with details in

Sen asked, Having two house on two parts of maharasha. by taking loan for both the houses. Presently staying in Govt. Qrts and not getting any HRA. How the Interst on Housing Loan benfit will be allowed to me ?
Kripananda Chidambaram, answers, You can declare any one of the houses as 'self occupied' and claim tax deduction up to Rs 1.5 lakhs on interest part of EMIs. If the house is given on rent the entire interest can be claimed.

kaustubh asked, i have been asked some detials by IT department with code CIB & AIR where can i found the deatils & transaction matching with this codes if i reply to this notice with option that file is under preparatio then can i get extension till 31 st march to prepare a file & reply it ?
Kripananda Chidambaram, Director- answers, Not able fully ascertain you need, pls check with a practicing CA

Vgokak asked, Hi I am Vaju I have already saved my 1 Lac apart from this where I can invest and how much tax I can save I am in 30% bracket
Kripananda Chidambaram, answers, If you have exhausted tax deduction u/s 80C you do not have more tax saving investments. But you can claim deductions on mediclaim premiums, education loan EMIs etc if applicable. Check

naresh asked, I am being paid Rs.25,000/- per month as consolidated salary. Is the entire annual amount is taxable minus exemption. I am living in a rented house.
Kripananda Chidambaram, Director- answers, To educate yourself on this kindly refer

swami asked, my annual net income is Rs.360000 and am having one LiC for 897 quarterly, and Iam claiming HRA. Where i can invest to avoid tax
Kripananda Chidambaram, answers, Well there a host of tax saving options left for you. Please go through post

jatin asked, I was on a career break and joined an employer in November. My package puts me in a 20 per cent tax bracket. However, in the current finance year, I will be paid salary for 5 months. How will I be taxed? Will I be taxed based on the salary received or based on my package?
Kripananda Chidambaram, Director- answers, Only on the basis of salary received in the 5 month period. You may read more on this

sunilgr asked, Hi amorey i recently joined a company my package is 8 lakh before that i was working in a company where my salary was 20k so do i have to pay tax for these year
Kripananda Chidambaram, Director- answers, You will come under tax bracket if your annual income exceeds Rs 2 lacs asked,  I like to invest 5000 per month in mutual funds .pl suggest mutual funds .
Kripananda Chidambaram, answers, Please refer to for fund recommendation.


Get Rediff News in your Inbox: