[neoonwheels]

Originally Posted by ghodlur

I am sorry my friend but I beg to differ on this. The interest benefit is for single property and not on individuals. So the max interest rebate you can get is 1.5L no matter how many individuals are involved. If your argument was true then a single property would have many more applicants and everybody would be claiming the exemption which is absolutely not true.


You can get a max rebate of 1.5L thats straight and simple. If your CA says that more than one person can claim the 1.5L rebate please let us know under what circumstances is this possible.

I found 2 links on this topic:

Home Loan | Tax Benefits

Joint Home Loan: A wise decision for a double income couple : Rupee Times

Copyrights go to the respective source.

Both these links say, benefit of 3L if the home loan is a joint loan.

[ghodlur]

Originally Posted by neoonwheels

I found 2 links on this topic:

Home Loan | Tax Benefits

Joint Home Loan: A wise decision for a double income couple : Rupee Times

Copyrights go to the respective source.

Both these links say, benefit of 3L if the home loan is a joint loan.

@Neonwheels,

I would suggest to kindly check with the CA if possible and not believe the websites.

[muni]

Originally Posted by vina

Whatever you do, don't get a ULIP

Since you are looking at a 15-20year kind of horizon, given the state of Indian economy, equity MFs work best for you. Take some SIPs with mutual funds and you should be good to go.

I totally agree. I am having a bad experience with the ULIP thanks to some charges I was not informed about when I invested in the ULIP. The Sales rep who sold me this instrument doesnt work with the company anymore. This is Max Newyork ULIP for your information.

What the fund managers gain for the NAV with their allocation is taken by them in the name of administration charges. At the end of 3 years for an yearly investment of 30K, i was shocked to find out that my fund value was around 86K for 90K invested. A loss of 4K with around 400Rs per month fleeced by them in the name of Administative Charges when there was no administration done on my account. This is on top of the high fund allocation charged deducted by them up front ( 25,15 and 10% for the first 3 years if i recollect properly)

This inspite of the sensex being at 10,00 level when the 30K was invested.

Somehow I feel it's one of those instruments where the company uses your money to feed its employees.

[sgiitk]

@muni; I am also with these chaps. However, I had to go to them since I wanted to bring my retirement benefits back from the UK. Their Smartinvest was one of the four approved pension funds. Fortunately, I had to first open an account (about 7% charges), and then get the UK amount as a Top up (3%). This was on a lump sum mode. This year when I got the statement there was a mortality charge, when I queried as to what is the mortality risk for them in my case, I got a fresh statement without the charges but the total figure was higher. I am thinking of dumping them since three financial years are over from the top up transfer from the UK! Will invest in something like DSPBR Savings Manager!

[vina]

Originally Posted by benbsb29

I am not sure if you understood it right. What i meant was that since i specified the ratio as 60% for me, and 40% for my wife, i can claim 1,12,500 while she can claim on the remaining from the 1.5 lakhs rebate. The cumulative from both the individuals should add up to the upper cap of the amount which can be claimed. This means your company's finance guys are right, provided you only seek to claim 50% against your name.

benbsb - in your previous post you were quoting santhos and e had claimed that the total cap is on individuals and not property - he was basically saying that you can give a declaration (like yours) of 50:50 and claim 3L total.

I think that is where the confusion is stemming from.

I personally always believed that total limit on one independent property (i.e. one registration deed) is 1.5L, and one tax payer can claim rebate on no more than one property.

However santosh is saying that is not true - he may be right, and if he is then a lot of us will save some more in taxes.

Originally Posted by ghodlur

@Neonwheels,

I would suggest to kindly check with the CA if possible and not believe the websites.

sathosh quoted the 3L limit first (http://www.team-bhp.com/forum/shifti...ml#post2344515) and in his public team-bhp profile he mentions that he is a CA !

I think the limit applies to individuals and not to properties (come to think about it, the latter would be absurd, I can actually register one single room in my name in an apartment - so legally the co-owners could do that too and enjoy the 3L limit anyway)

Thanks to santhoshs for clearing this up - and now to everyone - get the full tax rebate, not partial.

Originally Posted by sgiitk

@muni; I am also with these chaps. However, I had to go to them since I wanted to bring my retirement benefits back from the UK. Their Smartinvest was one of the four approved pension funds. Fortunately, I had to first open an account (about 7% charges), and then get the UK amount as a Top up (3%). This was on a lump sum mode. This year when I got the statement there was a mortality charge, when I queried as to what is the mortality risk for them in my case, I got a fresh statement without the charges but the total figure was higher. I am thinking of dumping them since three financial years are over from the top up transfer from the UK! Will invest in something like DSPBR Savings Manager!

Financial services attract some of the biggest thieves and the "mandatory" ones are the worst and most shameless.

Unfortunately our country's best brains aspire to join the ranks these days.

[nileshch]

Hi guys. Just chanced upon this thread recently. There is a wealth of information on this thread!!

I am in a quandary of my own. I have a house loan which has started pinching me a little due increased expenses recently.

Now I also have a plot whose value has not been appreciating as much as I would like it to. I plan to sell off the plot and use most of the proceeds to clear about 80% of the outstanding amount of the loan. Then I'd get the loan refinanced and reduce the EMI.The plot is more than 10 years old and the house loan is a little more than 3 years old.

Would this be good idea? Would this invite capital gains tax even if I am reinvesting the money in real estate?

[shankar.balan]

if the sale proceeds of a property are reinvested in another property or to clear off an existing property loan within 6 months to one year of the said sale, then capital gains tax would not be applicable as far as I understand from my audit adviser.

Originally Posted by nileshch

Now I also have a plot whose value has not been appreciating as much as I would like it to. I plan to sell off the plot and use most of the proceeds to clear about 80% of the outstanding amount of the loan. Then I'd get the loan refinanced and reduce the EMI.The plot is more than 10 years old and the house loan is a little more than 3 years old.

Would this be good idea? Would this invite capital gains tax even if I am reinvesting the money in real estate?

[nileshch]

Originally Posted by shankar.balan

if the sale proceeds of a property are reinvested in another property or to clear off an existing property loan within 6 months to one year of the said sale, then capital gains tax would not be applicable as far as I understand from my audit adviser.

So does this mean the whole of the sale proceeds should be used? What if I want to chip off some part of it for other uses?

[Gansan]

I think there are also some special investments / bonds where the sale proceeds can be parked for three years?

[shankar.balan]

this is why people usually do a deal with the guideline value of the property coming into the picture.

Originally Posted by nileshch

So does this mean the whole of the sale proceeds should be used? What if I want to chip off some part of it for other uses?

[nileshch]

Originally Posted by shankar.balan

this is why people usually do a deal with the guideline value of the property coming into the picture.

This could be the last resort. But avoiding cash deals is what I'd prefer. Is there a better way?

[zaks]

Hi,
I have not invested any money so far apart from having a SB a/c , so here is my first dabble at this-

I have some 2 lakhs after selling off company stock and would like to invest it in some long term instrument which can grow.

I also need some advice on how to invest Rs.15k which I can spare every month. Do I do it via SIP in a ELSS or a regular Mutual fund or any other means?

[VindyWheels]

Hi,

I think it will be long term cap gain only. The amount may not work out to be too much. Short term cap gain is a killer

Originally Posted by nileshch

This could be the last resort. But avoiding cash deals is what I'd prefer. Is there a better way?

Zaks, I suggest you seek advice from a qualified financial adviser to check your entire portfolio and future goals. Investment should be spread in equity, gold and debt suiting your age and goals.
SIP is a great way of growing your money. Chose a good MF (do not go for insurance products as an investment tool, buy enough term insurance for risk cover only).

Originally Posted by zaks

Hi,
I have not invested any money so far apart from having a SB a/c , so here is my first dabble at this-

I have some 2 lakhs after selling off company stock and would like to invest it in some long term instrument which can grow.

I also need some advice on how to invest Rs.15k which I can spare every month. Do I do it via SIP in a ELSS or a regular Mutual fund or any other means?

Hi,

I used to work with a housing finance com. What Santosh mentioned is the most logical way of interpreting the law. In the law these things are not written in black and white (if it was this discussion would have been a nonstarter). It has to be interpreted and no harm in interpreting in a logical way which benefits us.

And its not correct that you do not get tax benefit for second property. Infact you might endup getting more benefit! The whole interest you pay (no cap) for second prop is expense and the rent you get is the income. The difference is a loss on the property which can be subtracted from your total income. Assume you pay interest of 4 lacs and gets rent of 1.2 lacs, you are incurring a loss of 2.8 lacs. So instead og 1.5 lacs you get to claim 2.8 lacs.

I hope I havent added to the confusion

Originally Posted by vina

benbsb - in your previous post you were quoting santhos and e had claimed that the total cap is on individuals and not property - he was basically saying that you can give a declaration (like yours) of 50:50 and claim 3L total.

I think that is where the confusion is stemming from.

I personally always believed that total limit on one independent property (i.e. one registration deed) is 1.5L, and one tax payer can claim rebate on no more than one property.

However santosh is saying that is not true - he may be right, and if he is then a lot of us will save some more in taxes.




sathosh quoted the 3L limit first (http://www.team-bhp.com/forum/shifti...ml#post2344515) and in his public team-bhp profile he mentions that he is a CA !

I think the limit applies to individuals and not to properties (come to think about it, the latter would be absurd, I can actually register one single room in my name in an apartment - so legally the co-owners could do that too and enjoy the 3L limit anyway)

Thanks to santhoshs for clearing this up - and now to everyone - get the full tax rebate, not partial.




Financial services attract some of the biggest thieves and the "mandatory" ones are the worst and most shameless.

Unfortunately our country's best brains aspire to join the ranks these days.

Hi, is anyone looking at the Power Finance FPO? I think its a neat bet. The current price is 218. After the discount for retail customers we will get at 193. Even if there is a 5% correction by listing day we can get a profit of more than 7% in 15 days.
But its not worth it if it gets oversubscribed many times.

[athul_S]

Hi everyone, I earned my first salary a few months ago and have practically very less knowledge about mutual funds etc(which is of course why am posting here).

I'd like to invest 20-30k and save tax as well

Is ELSS, the ones with 3 year lock in period a good option immediately considering the current downward spiral of stock values or should i wait for a while?

Which are the best ELSS that are available for the moment(based on, say more recent performances than 5 yr etc)

[Cayman360]

Originally Posted by athul_S

Hi everyone, I earned my first salary a few months ago and have practically very less knowledge about mutual funds etc(which is of course why am posting here).

I'd like to invest 20-30k and save tax as well

Is ELSS, the ones with 3 year lock in period a good option immediately considering the current downward spiral of stock values or should i wait for a while?

Which are the best ELSS that are available for the moment(based on, say more recent performances than 5 yr etc)

Pretty cool to hear that you are ready to invest so soon! I got into this mindset only 3 years after I got my first paycheck, and still rue the missed years.

Like you, I've invested 30k this year in ELSS funds(for the first time), and have distributed them among the best funds as per my research: HDFC Taxsaver, Fidelity TaxAdvantage, Canara Robecco ELSS, Reliance ELSS.

Keep in mind that ELSS will cease to be a tax saving instrument from next year(Direct Tax Code), after which these funds most likely will be merged with other diversified mutual funds.

That said, you can very well use this year to save tax, and invest directly into the market. Since the stock markets are hitting lows these days, you'll be purchasing units of mutual funds at lower prices, which should benefit you in the long term(3-5 years). Buy low, sell high!

Make sure you have a PPF account as well( it just needs a minimum of Rs 500 a year up to a max of Rs 70k).

Pick up a copy of ET Wealth from Economic Times every Monday for Rs 5, which has tonnes of articles on personal finance (and the annual returns from mutual funds etc) for beginners like us.

www.valueresearch.com also has the star ratings for the various mutual funds.

Good luck!