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Religare Tax Plan,Axis Tax Saver Fund,Fidelity Tax Advantage,Can Robeco Equity TaxSaver and Franklin India Tax Shield are some of the good mutual funds to buy for tax saving. All these funds have given above 15 per cent return over three-year period,making them a good choice for you. These are all growth plans and hence aggressive. SIP facility is available in all of them.

Can the money received from an FD for senior citizens and sale of house be remitted to the accounts of son and daughter settled abroad? What will be the tax implication?

Ajay Tiwari,Kolkata

Here,you can gift the money to your son and daughter abroad. But for that,you will first have to pay taxes on the capital gains arising from sale of the house and on interest income from fixed deposit. Here,the tax treatment on both the incomes interest on fixed deposits and capital gains from house will be different. The income from house will be treated as a long-term capital gain,which would attract 20 per cent tax with indexation or 10 per cent tax without indexation. However,interest earned on FDs will be treated as income from other sources,which would be taxed as per your income slab.Once,the tax is paid,there are no implications for the person making the gift. However,the amount remitted should be within the prescribed limits under the foreign exchange regulation,i.e., 2 lakh per financial year,with no restrictions on the frequency.

I pay an annual of R 3.5 lakh for my LIC policies. Can I get these policies converted into online policies to save the commission being paid to the agent?

Ranjeet Kumar,Pune

You can get the policy converted online and pay your future premiums online. For this,you have to create your user id and password by visiting the LIC website and entering your details and policy number.

An online policy would save you from the hassle of going to the branch and calling customer care again and again,whenever you want to know anything about the policy. Though the premiums are lesser for online policies,but as yours is an on-going policy,the premium will not reduce is your case.

Author is Business Head,Rupeetalk.com
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