Money: Ask Express

I have taken a medical insurance policy for my unmarried,unemployed 26 year old daughter in the financial year 2010-2011.

I have taken a medical insurance policy for my unmarried,unemployed 26 year old daughter in the financial year 2010-2011. Her premium is Rs 3,000. Please let me know if I will get tax benefit under section 80D or any other section? I am 70 year old. I also have a medical insurance policy for myself. My premium is Rs 10,000.

A medical policy taken on a child above 25 years cannot be claimed under Sec 80D,whether they are dependant or not. The only other people for whom you could take medical insurance are your parents. The limit is a premium of Rs.20,000 pa since they would be senior citizens separately for them..

DKChakrabarty,New Delhi

I am 24 and I want to invest 20,000 per month via sip to build a corpus of 15 lacs in 5 yrs for my sister8217;s marriage. I have assumed 10 per cent return with 8 per cent inflation taken into account. Pease suggest some funds to achieve this goal.

You could go for a combination of large cap and midcap funds. Suggested funds are HDFC Top 200 Fund,IDFC Premier Equity Fund,DSP Small amp; Midcap Fund,Fidelity Equity Fund amp; DSP Equity Fund. With a large and midcap allocation ,one could safely expect a return of 10 per cent compounded,over the period.

Satyansh Dubey,Ghaziabad

A PPF account was opened in the name of my minor son during March,2007. He is completing 18 years in March 2011 and thereby becoming a major. In order to claim,80C benefit for FY 2011-12,can I deposit Rs 70,000 in the said account. If no,can I open a new account in my name and invest in the said scheme for tax rebate. Also,please let me know whether I can invest some fund in the existing PPF account of my son just for sake of saving till the account completes 15 years. I am totally a conservative investor and not at all interested in MF or equity.

Once a person turns a major,it becomes a separate account. You could deposit the money in his account till it completes fifteen years,but cannot claim deductions under Sec 80C. You can open a separate account on your name if you want to continue investments and want to claim under Sec 80C.

Bansi Thakkar,Baroda

I am retired person in the late sixtees.Some 25 years back I have bought some land in Pune and now I plan to dispose it off. Please let know the income tax liabilites on this.

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If you sell land,then long term capital gains LTCG tax will apply. LTCG tax is 20 per cent with indexation. If you want to save tax,you could invest in a residential property the entire proceeds from your land sale or you could invest upto Rs50 lakhs in capital gains bonds and pay tax on the balance amount.

Balakrishna Pillai,Chennai

I am 31 and need to buy a life insurance policy and make some investments to save tax. My advisor has suggested me an Unit Linked Insurance Plan. Is it prudent to go for a ULIP?

If you need to buy a Life insurance policy,be clear as to how much insurance you require. A ULIP is a combination plan which gives life cover and investments. If your life cover is met by the ULIP and you are interested in the investment feature offered by the ULIP,check out the costs. ULIPs may make sense only if you have intentions of staying invested for over 10 years. You could consider a simple term plan for insurance and any investment option that suits you like PPF,MF schemes,Equity,Bonds,FMP etc,which can also achieve the same results. If you want to save tax,you could specifically consider ELSS MF schemes amp; PPF.

Manish Chapalgaonkar,Mumbai

Suresh Sadagopan

Ladder7 Financial Advisories

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