Need help on investment strategy

POSTED BY Gobi ON January 5, 2013 10:10 am COMMENTS (4)

My mother, who is 55 years old, has recently sold a land that she bought 15 years back for 35 Lakhs. She is a pensioner and don’t want to reinvest on another property. My questions are

  1. Is she need to pay long term capital gain tax?
  2. What are safest and best investment options that I can suggest to her?

Thanks

Gobi

4 replies on this article “Need help on investment strategy”

  1. You need to invest WITHIN 6 months. Bank will not question the source of the money.

    However if you are going to invest please keep all documentation safe because tomorrow there could be inquiry from the IT dept. If you show them proof of purchase of these bonds there should not be any problem

  2. Gobi says:

    Thanks for your reply. The link that you have provided was really helpful. If she wants to save capital gain tax by investing on NHAI or REC bonds within time frame of 6 months, whether banks will allow her to keep the money in her bank account? Does she need to provide any proof to the banks that source of the money is from land sale and will be investing the money on capital gain bonds after six months?

    Regards,
    Gobi

  3. Yes, She should pay tax. you can see how to do calculate this here

    https://www.jagoinvestor.com/2009/05/how-to-calculate-capital-gains-and-what_7801.html

    At 55 she must plan for a life expectancy of at least 80 year. The income from this money should add to her pension and compensate for increase in expenses due to inflation.

    20-30% in equities for compounding over long period.

    rest spread across tax free bonds, FDs post office mis

    and some portion in long-term income and gilt debt funds

    another option is to create a small health corpus for her future assuming she has enough mediclaim cover now

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