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Ideally you should be able to save for both,but if the question is about priority,you should think about your retirement funds first. In today8217;s scenario,education loans are available to help fund your child8217;s college. Also,once your child understands he will be responsible for his higher studies,he will be more careful about spending money as well as put more heart into studies with such a responsibility resting on his shoulders.

Remember you cannot avail a loan for retirement. So prioritise for retirement savings. If you are keen on saving for both,then you should consider negotiating a raise at your current job,shifting jobs or take up a study program that will increase the value you can offer at your job.

Your wife could also consider taking up a job,now that your child is at school and there is a possibility to make alternate arrangements for his care,when she is away at work.

Is it essential to file my returns,even when I do not have any tax due? I do have a PAN number?

Shiv Gupta,Pune

It is not mandatory to file a tax return if you do not have any taxable income irrespective of whether you have a PAN number or not.

I have been allotted two PAN numbers. Can I use them for two different purposes? One for filing income tax and the other for online use,like demat transactions etc.?

Akshat Harbola,Delhi

It is illegal to possess two PAN numbers even if you have been allotted two by mistake. Surrender one of them as quickly as possible and notify the change wherever required. You are liable to pay a penalty of R10,000 if seen using two different pan numbers.

Can I pay rent to my parents and claim House Rent Allowance?

Manjusha,Mumbai

Yes,you can pay rent to your parents and claim HRA. If they are senior citizens and this rental income falls within their income exemption limits,this could be a good way to save tax.

Even otherwise this is permissible with your parents including rental income with their existing income,when they account for their tax.

The expert is CEO,Bankbazaar.com
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