Frequently Asked Questions
How does Section 80D help in tax saving?
Section 80D provides tax deductions for premiums paid on health insurance policies. The maximum deduction is:
Can I claim a deduction for home loan interest under Section 24(b)?
Yes, under Section 24(b), you can claim a deduction of up to ₹2 lakh per year on the interest paid on home loans for a self-occupied property. This deduction is available irrespective of whether you are staying in the property or renting it out.
Under Section 80CCD(1B), you can claim an additional deduction of up to ₹50,000 for contributions made to the NPS. This is over and above the ₹1.5 lakh limit under Section 80C, making it an excellent option for additional tax saving.
Yes, under Section 80E, you can claim a deduction for interest paid on loans taken for higher education for yourself or your relatives. The deduction is available for a maximum of 8 years or until the interest is paid, whichever is earlier.
Yes, under Section 80G, donations made to approved charitable organizations are eligible for tax deductions. Depending on the type of charity, you can claim a deduction of 50% or 100% of the donated amount, with or without restrictions.
Tax-saving Fixed Deposits, with a 5-year lock-in period, qualify for tax deductions under Section 80C. The amount invested is eligible for tax deduction up to ₹1.5 lakh, but the interest earned is taxable.
A well-planned salary structure can significantly reduce your tax liability. For example, components like House Rent Allowance (HRA), Special Allowances, Leave Travel Allowance (LTA), and Provident Fund (PF) can be used to save taxes. Ensure to optimize them based on your individual needs and exemptions.
If you sell an asset like property or stocks, it could lead to capital gains tax. Short-term Capital Gains (STCG) are taxed at a higher rate, while long-term capital gains (LTCG) are taxed at a lower rate. Consider the timing of sales and holding periods to minimize tax liability, especially before year-end.
Tax-loss harvesting involves selling investments at a loss to offset taxable gains from other investments. This strategy can help reduce your overall tax liability by balancing capital gains with capital losses, thus lowering your taxable income for the year.
Section 80D provides tax deductions for premiums paid on health insurance policies. The maximum deduction is:
* ₹25,000 for insurance for self, spouse, and children.
* ₹50,000 for senior citizens (aged 60 or above).
* The deduction can also be availed for insurance premiums paid for parents (up to ₹75,000 if they are senior citizens).
The old tax regime allows you to claim various exemptions and deductions (like HRA, LTA, 80C deductions, etc.).
It is ideal if you have significant deductions and exemptions to claim, which may lower your taxable income and tax liability.
You can choose the old tax regime when filing your ITR.
The new tax regime offers lower tax rates but does not allow most exemptions or deductions (like 80C, HRA, LTA, etc.).
It is suitable for individuals who don’t have many deductions or exemptions, as they will benefit from the lower tax rates.
You can also choose the new tax regime when filing your ITR.
Tax-saving schemes (deductions) are available only under the old tax regime, not under the new tax regime. You must choose between the two based on your preference for either a simpler tax process (new regime) or a higher potential savings (old regime with deductions).
A portfolio manager is a body corporate who, pursuant to a contract or arrangement with a client, advises or directs or undertakes on behalf of the client (whether as a discretionary portfolio manager or otherwise), the management or administration of a portfolio of securities or the funds of the client.
The discretionary portfolio manager individually and independently manages the funds of each client in accordance with the needs of the client.
The non-discretionary portfolio manager manages the funds in accordance with the directions of the client.
For registration as a portfolio manager, an applicant is required to pay a non-refundable application fee of Rs.1,00,000/- by way of demand draft drawn in favour of ‘Securities and Exchange Board of India’, payable at Mumbai.
The application in Form A along with additional information (Form A and additional information available on SEBI Website : www.sebi.gov.in.) submitted to the at the below mentioned address
Investment Management Department – Division of Funds- 1
Securities and Exchange Board of India
SEBI Bhavan, 3rd Floor A Wing,
Plot No. C4-A, ‘G’ Block,
Bandra-KurlaComplex,
Bandra (E), Mumbai – 400 051.
The portfolio manager is required to have a minimum networth of Rs. 2 crore.
Yes. Every portfolio manager is required to pay Rs. 10 lakhs as registration fees at the time of grant of certificate of registration by SEBI.
The certificate of registration remains valid for three years. The portfolio manager has to apply for renewal of its registration certificate to SEBI, 3 months before the expiry of the validity of the certificate, if it wishes to continue as a registered portfolio manager.
The portfolio manager is required to pay Rs. 5 lakh as renewal fees to SEBI.
Yes. The portfolio manager, before taking up an assignment of management of funds or portfolio of securities on behalf of the client, enters into an agreement in writing with the client, clearly defining the inter se relationship and setting out their mutual rights, liabilities and obligations relating to the management of funds or portfolio of securities, containing the details as specified in Schedule IV of the SEBI (Portfolio Managers) Regulations, 1993.
SEBI Portfolio Manager Regulations have not prescribed any scale of fee to be charged by the portfolio manager to its clients.
However, the regulations provide that the portfolio manager shall charge a fee as per the agreement with the client for rendering portfolio management services. The fee so charged may be a fixed amount or a return based fee or a combination of both. The portfolio manager shall take specific prior permission from the client for charging such fees for each activity for which service is rendered by the portfolio manager directly or indirectly (where such service is outsourced).
The portfolio manager is required to accept minimum Rs. 5 lakhs or securities having a minimum worth of Rs. 5 lakhs from the client while opening the account for the purpose of rendering portfolio management service to the client.
Portfolio manager can only invest and not borrow on behalf of his clients.
Yes. For investment in listed securities, an investor is required to open a demat account in his/her own name.
The portfolio manager shall furnish periodically a report to the client, as agreed in the contract, but not exceeding a period of six months and as and when required by the client and such report shall contain the following details, namely:-
(a) the composition and the value of the portfolio, description of security, number of securities, value of each security held in the portfolio, cash balance and aggregate value of the portfolio as on the date of report;
(b) transactions undertaken during the period of report including date of transaction and details of purchases and sales;
(c) beneficial interest received during that period in respect of interest, dividend, bonus shares, rights shares and debentures;
(d) expenses incurred in managing the portfolio of the client;
(e) details of risk foreseen by the portfolio manager and the risk relating to the securities recommended by the portfolio manager for investment or disinvestment.
This report may also be available on the website with restricted access to each client. The portfolio manager shall, in terms of the agreement with the client, also furnish to the client documents and information relating only to the management of a portfolio. The client has right to obtain details of his portfolio from the portfolio managers.
The portfolio manager provides to the client the Disclosure Document at least two days prior to entering into an agreement with the client.
The Disclosure Document contains the quantum and manner of payment of fees payable by the client for each activity, portfolio risks, complete disclosures in respect of transactions with related parties, the performance of the portfolio manager and the audited financial statements of the portfolio manager for the immediately preceding three years.
Please note that the disclosure document is neither approved nor disapproved by SEBI nor does SEBI certify the accuracy or adequacy of the contents of the Documents.
No. SEBI does not approve any of the services offered by the Portfolio Manager. An investor has to invest in the services based on the terms and conditions laid out in the disclosure document and the agreement between the portfolio manager and the investor.
The Disclosure Document is neither approved nor disapproved by SEBI. SEBI does not certify the accuracy or adequacy of the contents of the Disclosure Document.
The services of a Portfolio Manager are governed by the agreement between the portfolio manager and the investor. The agreement should cover the minimum details as specified in the SEBI Portfolio Manager Regulations. However, additional requirements can be specified by the Portfolio Manager in the agreement with the client. Hence, an investor is advised to read the agreement carefully before signing it.
The funds or securities can be withdrawn or taken back by the client before the maturity of the contract. However, the terms of the premature withdrawal would be as per the agreement between the client and the portfolio manager.
Portfolio managers cannot impose a lock-in on the investment of their clients. However, a portfolio manager can charge exit fees from the client for early exit, as laid down in the agreement.
Portfolio manager cannot offer/ promise indicative or guaranteed returns to clients.
The performance of a discretionary portfolio manager is calculated using weighted average method taking each individual category of investments for the immediately preceding three years and in such cases performance indicator is also disclosed.
Investors can log on to the website of SEBI www.sebi.gov.in for information on SEBI regulations and circulars pertaining to portfolio managers. Addresses of the registered portfolio managers are also available on the website.
Investors would find in the Disclosure Document the name, address and telephone number of the investor relation officer of the portfolio manager who attends to the investor queries and complaints. The grievance redressal and dispute mechanism is also mentioned in the Disclosure Document. Investors can approach SEBI for redressal of their complaints. On receipt of complaints, SEBI takes up the matter with the concerned portfolio manager and follows up with them.
An Alternative Investment Fund (AIF) means any fund established or incorporated in India, which is a privately pooled investment vehicle that collects funds from sophisticated investors (whether Indian or foreign) for investing in accordance with a defined investment policy for the benefit of its investors.
An AIF does not include funds covered under the SEBI (Mutual Funds) Regulations, 1996, SEBI (Collective Investment Schemes) Regulations, 1999, or any other regulations of the Board to regulate fund management activities.
Further, certain exemptions from registration are provided under the AIF Regulations for family trusts set up for the benefit of ‘relatives’ as defined under the Companies Act, 1956, employee welfare trusts, or gratuity trusts set up for the benefit of employees, ‘holding companies’ within the meaning of Section 4 of the Companies Act, 1956, etc. [Ref. Regulation 2(1)(b)]
Applicants can seek registration as an AIF in one of the following categories, and in sub-categories thereof, as may be applicable:
[Ref. Regulation 3(4)]
AIFs that invest in start-up or early-stage ventures, social ventures, SMEs, infrastructure, or other sectors or areas considered socially or economically desirable by the government or regulators. This includes venture capital funds, SME Funds, social venture funds, infrastructure funds, and other AIFs as specified.
[Ref. Regulation 3(4)(a)]
AIFs that do not fall under Category I or III and do not undertake leverage or borrowing other than to meet day-to-day operational requirements, as permitted in the SEBI (Alternative Investment Funds) Regulations, 2012.
[Ref. Regulation 3(4)(b)]
Various types of funds such as real estate funds, private equity funds (PE funds), and funds for distressed assets are registered as Category II AIFs.
AIFs that employ diverse or complex trading strategies and may use leverage, including through investment in listed or unlisted derivatives.
[Ref. Regulation 3(4)(c)]
Examples include hedge funds, PIPE Funds, etc., which are registered as Category III AIFs.
An Angel Fund is a sub-category of Venture Capital Fund under Category I AIF. It raises funds from angel investors and invests according to the provisions of Chapter III-A of AIF Regulations.
An angel fund can raise funds by issuing units to angel investors. An “Angel Investor” is defined as:
Angel funds can accept an investment of at least 25 lakh from an angel investor for up to 3 years.
A Debt Fund is an AIF that invests primarily in debt or debt securities of listed or unlisted investee companies, in accordance with the stated objectives of the fund.
[Ref. Regulation 2(1)(i)]
These funds are typically registered under Category II. However, the amount contributed by investors cannot be used for giving loans.
A Fund of Funds is an investment strategy where a fund holds a portfolio of other investment funds rather than directly investing in stocks, bonds, or other securities. In the context of AIFs, a Fund of Funds is an AIF that invests in another AIF.
An AIF can be established or incorporated in the form of a trust, a company, a limited liability partnership, or a body corporate under the SEBI (Alternative Investment Funds) Regulations, 2012. Most AIFs are registered with SEBI in trust form.
[Ref. Regulation 2(1)(b)]
“Corpus” refers to the total amount of funds committed by investors to the AIF by way of a written contract or any such document as of a particular date.
[Ref. Regulation 2(1)(h)]
An AIF cannot make an invitation to the public at large to subscribe to its units and can raise funds only from sophisticated investors through private placement.
The Sponsor is any person(s) who set up the AIF and includes the promoter in the case of a company and the designated partner in the case of a limited liability partnership.
[Ref. Regulation 2(1)(w)]
Yes, an AIF may launch schemes, subject to filing a placement memorandum with SEBI.
An AIF must pay a scheme fee of Rs. 1 lakh to SEBI at least 30 days prior to launching a scheme, except in the case of the launch of its first scheme (other than angel funds).
The certificate of registration of an AIF is valid until the AIF is wound up.
[Ref. Regulation 3(7)]
Yes, Venture Capital Funds (VCFs) registered under the repealed SEBI (Venture Capital Funds) Regulations, 1996, may seek re-registration under SEBI (AIF) Regulations, 2012, subject to the approval of two-thirds of their investors by the value of their investment.
VCFs registered under the repealed SEBI (Venture Capital Funds) Regulations, 1996, will continue to be regulated by those regulations until the existing fund or scheme is wound up. The VCFs cannot launch new schemes after the notification of AIF Regulations. However, VCFs can seek re-registration under the new regulations.
No. AIFs are privately pooled investment vehicles and can only raise funds through private placement. The AIF’s memorandum and articles of association/trust deed/partnership deed must prohibit the solicitation of public subscription to its securities.
[Ref. Regulation 4(b)]
Yes, an AIF can change its category, but only if it has not made any investments in its previous category. The AIF must apply for the change and pay an application fee of Rs. 1,00,000.
If the AIF has raised funds or received commitments, it must offer investors the option to withdraw their commitments/funds without penalties. After approval from SEBI, the AIF must send a revised placement memorandum to all its investors.
[Ref. Circular No. CIR/IMD/DF/12/2013 dated 07th August, 2013]
No. Each scheme of the AIF (other than an angel fund) must have a corpus of at least twenty crore rupees. For an angel fund, the corpus must be at least ten crore rupees.
An AIF may raise funds from sophisticated investors, whether Indian, foreign, or non-resident Indians, who are willing to undertake the risk of investing in primarily unlisted or illiquid securities. However:
To ensure that the interests of the Manager/Sponsor are aligned with the interests of the investors in the AIF, the AIF Regulations require that the sponsor/manager shall have a certain continuing interest in the AIF, which shall not be through the waiver of management fees.
Reference: Regulation 10 (d)
No, the following conditions apply:
Reference: Regulation 13(1) and 13(3)
The AIF Regulations provide certain general investment conditions applicable to all AIFs, as well as specific investment conditions applicable to each category/sub-category. For detailed investment conditions, refer to Chapter III and III-A of the AIF Regulations.
Reference: Circular No. CIR/IMD/DF/10/2013, dated 29th July 2013
Yes, the leverage of a Category III AIF shall not exceed 2 times the NAV of the fund.
Reference: Circular No. CIR/IMD/DF/10/2013, dated 29th July 2013
Investors can refer to the SEBI (Alternative Investment Funds) Regulations, 2012, and related circulars available on the SEBI website. The list of registered AIFs is also available on the SEBI website.
SEBI Website: www.sebi.gov.in
Reference: Circular No. CIR/IMD/DF/14/2014, dated 19th June 2014
The placement memorandum must include the following disciplinary history:
This includes:
Reference: Circular No. CIR/IMD/DF/14/2014, dated 19th June 2014
Clarification: Circular No. CIR/IMD/DF/16/2014, dated 18th July 2014
Reference: Circular No. CIR/IMD/DF/14/2014, dated 19th June 2014
Yes, an AIF may accept joint investments for amounts of not less than ₹1 crore, as follows:
Reference: Circular No. CIR/IMD/DF/14/2014, dated 19th June 2014
Reference: Circular No. CIR/IMD/DF/14/2014, dated 19th June 2014
The tenure of any scheme of the AIF is calculated from the date of the final closing of the scheme.
Reference: Circular No. CIR/IMD/DF/7/2015, dated 1st October 2015
Reference: RBI Circulars No. 49 and 50, dated April 30, 2007, and May 4, 2007
SEBI Circular: CIR/IMD/DF/7/2015, dated 1st October 2015
An AIF must make allocated investments in offshore ventures within 6 months from the date of SEBI approval. If unutilized limits remain, SEBI may allocate them to other applicants.
Reference: SEBI Circular No. CIR/IMD/DF/7/2015, dated 1st October 2015
Submission Address: Investment Management Department
Division of Funds-1
Securities and Exchange Board of India
SEBI Bhavan, 3rd Floor A Wing
Plot No. C4-A, ‘G’ Block, Bandra-Kurla Complex, Bandra (E), Mumbai – 400 051
Reference: SEBI (Payment of Fees) (Amendment) Regulations, 2014
An AIF may be wound up:
Investors can lodge complaints through the SEBI Complaint Redress System (SCORES):
http://scores.gov.in
Additionally, AIFs must establish a dispute resolution mechanism, such as arbitration, to resolve issues between investors and the AIF.
Source: https://www.sebi.gov.in/sebi_data/attachdocs/1471519155273.pdf
Gift City (Gujarat International Finance Tec-City) is India’s first International Financial Services Centre (IFSC), designed to be a global financial hub that attracts international businesses and investments.
Gift City funds are mutual funds launched by asset management companies (AMCs) operating in Gift City under the regulations of the International Financial Services Centre Authority (IFSCA). These funds provide exposure to international equities, bonds, and alternative assets while allowing investments in multiple currencies.
Yes, after SEBI relaxed investment norms, NRIs and OCIs can invest in Gift City funds.
Both domestic (Indian individuals and institutions) and international investors (NRIs, FPIs, FIIs, and global financial institutions) can invest in Gift City.
Gift City provides tax benefits such as a 100% tax holiday for 10 out of 15 years for companies, no GST on transactions, and concessional tax rates for investors.
Yes, Gift City is designed to attract foreign investors, and they are allowed to invest in Gift City funds.
Yes, after SEBI relaxed the regulations, NRIs and OCIs can own up to 100% of global funds in Gift City.
The minimum investment required for Gift City funds is USD 150,000.
1.What is diversification in investing?
Diversification is the practice of spreading investments across different asset classes, sectors, or geographies to reduce risk.
2. Why is diversification important?
It helps reduce the impact of poor performance in any single investment on your overall portfolio.
3.How does diversification reduce risk?
When one investment underperforms, others may perform well, balancing the overall returns and reducing volatility.
4.Is diversification the same as asset allocation?
Not exactly. Asset allocation is the broader strategy of how you divide your money among asset classes. Diversification is how you spread your money within those classes.
5.What are the key asset classes I should diversify across?
Typically: Equity (stocks), Debt (bonds), Real Estate, Gold, and Cash or Cash Equivalents.
6.Can I diversify within a single asset class?
Yes. For example, in equity, you can diversify across sectors, market caps, and geographies.
7.Does diversification guarantee positive returns?
No, but it can reduce the severity of losses during market downturns.
8.How many mutual funds are enough for diversification?
Generally, 3–5 well-chosen mutual funds from different categories are sufficient for most investors.
9.Can over-diversification hurt my portfolio?
Yes, owning too many similar investments can dilute returns and make portfolio management difficult without adding much risk reduction.
10.Should NRIs diversify their investments in India and abroad?
Yes, NRIs should consider a globally diversified portfolio to hedge currency risks and access broader opportunities.
11.Is sectoral investing considered diversification?
Only if you invest across multiple unrelated sectors.Investing in just one or two sectors increases risk.
12.How does diversification help during market volatility?
Diversified portfolios tend to be more stable as all asset classes or sectors don’t move in the same direction at the same time.
13.Can diversification help in tax planning?
Yes, by choosing tax-efficient instruments across different categories, you can optimize post-tax returns.
14.How often should I review my diversified portfolio?
At least once a year or whenever there are major financial or market changes.
15.Do SIPs automatically diversify my portfolio?
Only if your SIPs are in different funds or categories. A SIP in a single fund doesn’t ensure diversification.
16.Should I diversify across fund houses too?
Yes, different fund houses may have varied investment styles, so spreading investments across a few helps mitigate fund manager risk.
17.What is international diversification?
It involves investing in foreign markets or global funds to reduce dependence on the domestic economy.
18.Can diversification protect against inflation?
Yes, by including assets like equities or real estate that tend to outperform inflation over time.
19.How can I diversify if I have a small investment amount?
You can start with mutual funds or ETFs which are inherently diversified and require low capital.
A Top-up SIP (also known as Step-up SIP) is a feature that lets you increase your SIP amount at regular intervals—automatically and systematically.
2. How does a Top-up SIP work?
When you start a SIP, you can choose an amount to increase it by (e.g., ₹500 or ₹1,000) and a frequency (e.g., annually or half-yearly). The SIP amount then automatically increases by the chosen value at that frequency.
3. Why should I choose a Top-up SIP over a regular SIP?
Because it helps you:
4.Is there any extra cost for opting for a Top-up SIP?
No. Mutual fund companies do not charge extra for enabling the Top-up SIP feature.
5.Can I start a Top-up SIP with any mutual fund scheme?
Most mutual fund schemes allow Top-up SIPs, but it’s always best to check with your fund house or financial advisor before starting.
6.What are the minimum and maximum top-up amounts allowed?
This varies by AMC (Asset Management Company). Typically, you can start with as little as ₹500 and increase it in multiples (₹500, ₹1,000, etc.). Some funds may have maximum caps.
7.Can I modify the top-up amount or frequency later?
Usually, modifications are not allowed in an existing SIP. To change the top-up details, you might need to cancel the current SIP and start a new one with updated instructions.
8.What frequencies are available for Top-up SIPs?
Most AMCs offer:
9. Can I stop the top-up feature midway?
No, you can’t remove just the top-up once the SIP is active. You’ll need to cancel the SIP and start a new one if you no longer want to top-up.
10. Does Top-up SIP apply to both lumpsum and SIP investments?
No. The Top-up feature is available only for SIPs, not for lumpsum investments.
11.Will I get a reminder when the SIP amount increases?
Usually, fund houses don’t send a separate reminder before the increase happens, but it will reflect in your SIP debit/statement.
12.Can NRIs also use the Top-up SIP feature?
Yes, NRIs can opt for Top-up SIPs provided their mutual fund and bank account are compliant with FEMA regulations.
13.How does Top-up SIP help with inflation?
As costs rise over time due to inflation, increasing your SIP amount ensures your investment value doesn’t fall short of your future goals.
14.Is Top-up SIP better for long-term or short-term goals?
It is best suited for long-term goals like retirement, children’s education, or buying a house, where you have time to grow wealth systematically.
15.Can I start a SIP with a Top-up from the very first installment?
Yes! You can set up a Top-up SIP from the very beginning. Just choose your initial SIP amount, top-up amount, and frequency when registering the SIP.
16.How do I activate a Top-up SIP in an existing SIP?
You usually can’t modify an existing SIP to add a top-up. You must stop the existing SIP and start a new one with the Top-up feature enabled.
17.How can I calculate the future value of a Top-up SIP?
You can use an online Top-up SIP calculator which considers your initial investment, top-up amount, frequency, time horizon, and expected return.
18.Can I skip the top-up in a particular year?
No, once set, the top-up happens automatically as per the schedule unless the entire SIP is cancelled.
19.What should I consider before choosing a Top-up SIP?
20. Can I invest in multiple funds using Top-Up SIPs?
Yes, you can set up separate Top-Up SIPs for multiple mutual funds.
Q1. How do I know it’s the right time to exit a mutual fund?
Review if you’re approaching your financial goal, or if the fund has underperformed consistently for 1–2 years compared to its benchmark and peers.
Q2. What if I exit too early and miss out on potential gains?
That’s why phased exits are useful. A Systematic Withdrawal Plan (SWP) helps you transition gradually, rather than all at once.
Q3. Is it advisable to exit during a market crash?
Usually not. Market dips are common and often temporary. Exiting during a crash may lock in losses. Instead, evaluate your risk tolerance and goals.
Q4. Can I re-invest after exiting a mutual fund?
Yes, you can reinvest. However, it’s important to avoid timing the market — instead, follow a goal-based investment strategy.
Q5. What is a Systematic Withdrawal Plan (SWP)?
An SWP allows you to withdraw a fixed amount from your mutual fund regularly. It’s a smart way to exit while still staying invested, especially as you approach your goals.
Q6. Should I exit all at once or in phases?
Exiting in phases is usually safer. It reduces the risk of market timing and helps you manage taxes more efficiently.
Q7. Are there tax implications when exiting a mutual fund?
Yes. Capital gains tax may apply depending on the holding period and type of fund (equity or debt). Always check with your advisor before exiting.
Q8. What if my fund is performing well — should I still exit?
If you’ve reached your financial goal or need funds for a specific purpose, it may be wise to exit regardless of performance. Always align exits with goals, not just returns.
Q9. How often should I review my exit strategy?
Ideally, review your investment plan once or twice a year, or when a major life event occurs (marriage, career change, retirement planning, etc.).
Q10. Can I switch to another fund instead of exiting completely?
Absolutely. Fund switching or portfolio rebalancing can be a smart move if your current fund isn’t meeting your expectations or your risk appetite has changed.
10. How do I get started with ECS Financial?
Just contact us through our website or visit our office. We’ll schedule a free consultation to understand your needs and begin your financial transformation.
10. Is it better to invest in a single mutual fund or multiple funds?
Investing in multiple funds can offer better diversification and risk management. However, avoid over-diversification by investing in too many similar funds, which can dilute your returns and complicate monitoring.
Income Tax Filing and Compliance in India
A : ITR-1 can be filed by a Resident Individual whose:
A: Latest Update: CBDT Extends ITR Filing Due Date for FY 2024-25 to 15th September 2025
A: If you are wondering “what happens if I fail to file the ITR on time” take a look below. Here are certain consequences of late filing of ITR:
A: According to Income Tax laws, an Indian citizen must file an ITR only if his/her taxable income exceeds the basic exemption limit. In case the person’s income falls below this threshold, it is not mandatory to file a return.
A: Filing ITR serves as proof of income, is useful for visa applications, applying for loans, or carrying forward losses. It also helps in claiming tax refunds if TDS was deducted.
A: Yes,
A: Yes, under Section 139(5), a return can be revised before 31st December of the assessment year or before completion of assessment, whichever is earlier.
A: Generally, NRIs are not mandated to file ITRs solely based on their non-resident status. However, their obligation to file hinges on their total income generated in India during a specific financial year.
The Income Tax Act 1961 dictates the income threshold that triggers mandatory ITR filing for NRIs.
A: Depending on the tax bracket the individual falls under, the list of documents that are needed will differ. Some of the common list of documents that are needed to file ITR are mentioned below:
A: Aadhaar number is mandatory for filing income tax returns from 1st July 2017.
A: Not filing your Income Tax Return (ITR) can lead to serious consequences, especially if you owe more than Rs. 25,000 in taxes. In such cases, you could face imprisonment for 6 months to 7 years and a fine. Even if you owe less than Rs. 25,000, failing to file can still result in imprisonment for 3 months to 2 years and a fine.
A: You can check it on the Income Tax e-Filing portal using your PAN and password.
Click here: https://eportal.incometax.gov.in/iec/foservices/#/login
A: Filing taxes plays a crucial role in nation-building, even though it’s often seen as a personal or administrative task. Here’s how your contribution as a taxpayer helps build a stronger and more prosperous country:
A: If you don’t have taxable income but TDS (Tax Deducted at Source) was deducted, you are entitled to claim a refund of the TDS by filing your Income Tax Return (ITR).
Eco-Conscious Investing in India
FAQs on Equity
A nomination is when you officially name a person who should receive your money (like in a bank account or insurance policy) after you pass away. It helps your family avoid delays and problems in claiming the money.
Yes. A nomination is only for certain assets like bank accounts or mutual funds. A will covers everything you own—like property, jewellery, cash, and more. Both are important for full protection.
Yes. A will is useful for everyone, not just the rich. If you have any savings, belongings, or even one house or plot, writing a will ensures your wishes are followed.
If there is no nomination or will, your money and property may get stuck. Your family might have to go to court and wait for years to receive what you left behind.
Yes. You can update or change your nominee anytime. It’s good to review your nominations after major life changes like marriage, birth of a child, or divorce.
You can nominate any person you trust—usually a close family member like your spouse, child, parent, or sibling. You can also choose more than one nominee if needed.
Yes. A handwritten will is valid if it is signed by you and two witnesses. But it’s better to keep it clear and simple, and inform your family where it is stored.
No, it is not required by law. You can write your own will on plain paper. But for complex matters, taking help from a lawyer or financial expert is a good idea.
Yes. It’s very important to inform your family where the documents are and what your wishes are. This avoids confusion and saves time in case of emergencies.
Start by checking your existing nominations in banks, insurance, and investments. Then, think about writing a simple will. Organize your important papers in one place and inform your family.
Absolutely. A good relationship manager watches closely—but only acts when there’s a real need. Silence doesn’t mean neglect. It often means things are on track.
Not if it’s well-designed. In fact, doing nothing can often be less risky than making frequent, unnecessary changes driven by emotion or market noise.
Because frequent switching can cost you—in taxes, charges, and missed compounding. Good advice isn’t about movement, it’s about measured, meaningful action.
Watch out for consistent underperformance (not short-term dips), major life changes, or shifting financial goals. These are the real reasons to realign.
They’re related, but not the same. Rebalancing adjusts asset allocation back to target weights. Realignment goes deeper—it may involve switching funds or changing strategy altogether, but only when needed.
Only if the funds are truly underperforming or misaligned with your goals. But if they’re doing well, staying invested is often the key to long-term success.
Proactive doesn’t mean restless. Being alert and watchful is good—but acting without reason can backfire. React only to meaningful data, not fear or trends.
Not necessarily. A dip in the market doesn’t mean your portfolio is broken. Reacting too soon can lock in losses instead of allowing recovery.
There’s no fixed timeline. Realignment should be event-based, not calendar-based. Quality portfolios can run steady for years with just periodic reviews.
It’s natural—we associate action with progress. But in investing, progress often comes from patience, not motion. Think of it like farming: you don’t dig up the soil every week to check the roots.
Insurance – Frequently Asked Questions (FAQs)
Life Insurance
1 . What is SIP?
SIP (Systematic Investment Plan) is a way to invest a fixed small amount of money regularly (like monthly) in mutual funds.
No. You can start a SIP with as little as ₹250 / ₹500 per month.
Your money earns returns, and those returns also earn returns over time. This is called compounding, and it helps your money grow big.
SIP is not completely risk-free, but because you invest regularly, the ups and downs of the market balance out over time.
You can stop SIP anytime. The money you already invested stays in your mutual fund until you decide to withdraw.
No. You can increase, decrease, or stop the SIP whenever you want.
Yes, but not overnight. SIP builds wealth slowly with patience and time.
When the market is down, you buy more units at a lower price. This helps you in the long run.
Yes. A savings account gives very little interest. SIP usually gives higher returns if you stay invested for the long term.
The best time is today. The earlier you start, the more time your money gets to grow.
. How can I balance enjoying life and saving for the future?
Enjoyment is important! Just plan it wisely. Allocate a fixed part of your income for fun and experiences, but always make sure your savings come first. Balance is the key.
10. What’s the one message Gen Z should remember about money?
Let saving become your lifestyle, not a burden. Every rupee you invest today is a quiet worker building your tomorrow. Start small, stay patient, and watch your dreams take shape.
