Queries
Kshitij Patel, email
I’ve been investing in equity-linked savings scheme (ELSS) and Public Provident Fund (PPF) for over a decade. With the new tax regime now seeming more beneficial, should I continue these or explore different options?
PPF is among the safest investments. With a government-backed fixed interest rate of 7.1 per cent, subject to change every quarter, its tax-free returns are equivalent to a 10.15 per cent return on bank fixed deposits (FDs) after tax, and is ideal for investors seeking capital protection and steady long-term growth. The 15-year lock-in strengthens its appeal for those focused on stable wealth accumulation in the long term.
For ELSS, focus on performance, since the new tax regime offers no deductions. Continue holding it till the three-year lock-in. After that, treat it like any equity mutual fund.
1 December 2025
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New ELSS investments should only be made if you value the lock-in for long-term equity exposure. Otherwise, regular equity mutual funds may offer better flexibility. PPF remains unmatched as a safe, tax-efficient investment, while ELSS should now be used strategically for long-term growth.
Col. Sanjeev Govila (Retd),CFP, CEO, Hum Fauji Initiatives
Akash Malik, email
I’m planning an international trip costing around Rs 4 lakh, but short of around Rs 2.5 lakh. Should I redeem mutual funds, take a personal loan, or use my credit card with equated monthly instalments (EMIs)?
It’s good that you’re considering your options before funding your vacation. If your mutual fund investments are meant for long-term goals such as retirement or your child’s education, it’s best not to redeem them for short-term expenses, as this can interrupt compounding and may incur capital gains tax.
A personal loan can be considered if the interest rate—typically 11 to 14 per cent—and EMIs fit comfortably within your budget. Since this is a discretionary expense, avoid taking a high-cost debt unless you have a clear repayment plan.
Using a credit card and converting the amount into EMIs is another option, but interest rates on such conversions are usually high, often 18 to 24 per cent annually. Choose this only if you can repay quickly or are offered a low-interest EMI plan.
Ideally, avoid liquidating long-term investments or taking high-interest debt for leisure spending.
Raoul Kapoor, Co-CEO, Andromeda Sales and Distribution
Saloni Mehra, email
I filed my income tax (ITR) return for FY 2024-25 in July, but realised that I missed reporting a Rs 2 lakh rental income. Can I revise the return, or do I need to file a new one altogether? Also, will there be penalties applicable?
Since you’ve already filed your ITR for FY 2024-25, you can file a revised return. No need to file a new one.
As per current tax rules, a revised return can be filed on or before December 31, 2025 (for FY 2024-25 or AY 2025-26) or before the assessment is completed, whichever is earlier. You can revise it by logging into the Income Tax e-filing portal, selecting “Revised Return”, and quoting the acknowledgment number of your original filing.
If the omission was unintentional, there’s no penalty for a revised return. However, you must pay the additional tax due on the unreported rental income, along with interest under Sections 234B and 234C for delay in advance tax payment, if applicable.
This interest is calculated monthly until the tax is paid. Since your original return was filed before the due date of September 16, 2025, you can revise it multiple times without paying any late fee.
Deepak Kumar Jain, Founder and CEO, TaxManager.in
