1. Gold Bullion Exchange traded fund is directly tied to the gold price. When you invest in this Exchange traded fund, the manager uses those funds to buy gold bullions. These bullions are then stored in a vault.

  2. which gold fund is good to invest kindly suggest some. Reliance gold saving fund is good to invest. kindly reply soon.

    • @Dheeraj
      There is not much difference among gold mutual funds as they all invest in same physical gold.
      You can invest into Reliance gold saving fund if you want to pick a gold mutual fund.

  3. I have used your income tax calculator 2011-12 but most of the things I do not understand. But I have calculated my income tax in a simple way as my monthly salary is Rs25000/- and annual salary is Rs300000/- the basic exemption for men is Rs180000/ so the gross income will be Rs120000/- and as per rule I can maximum invest Rs100000/- so the taxable income on which I have to pay tax will Rs20000/- and if I invest Rs20000/- in infrastructure bond then my whole tax will be saved. So Mr. Pankaj kindly analyse these calculation and reply with your suggestions soon.

    • @Dheeraj
      If you have salary components like LTA, HRA, Conveyance allowance and medical reimbursements etc., then not whole of your monthly salary might be taxable.
      If its not the case and you get just a fixed salary without any components, then your calculations are correct.

  4. Investments through SIP for ETF is now available. Period may be 1 day, 1 week, 1 month. The only difference is that rather than fixed amount every month (or every period), you have to buy fixed unit(s) in ETF for which the amount may change month-on-month (or period-by-period).

    • @Manish
      This is not a standard feature and only available with some of the online trading brokers only like ICICI securities or HDFC.

  5. Mr Batra glad for your suggestion. My salary breakup is like this Basic salary=13000, HRA=6000, Medical Allow= 3000, CCA=1000, Conveyance=2000 Total Monthly Salary is Rs25000/- I live in my father’s house and I get all allowances in a single salary I do not get separate allowances like hra to pay house rent. So, tell me now my tax calculation is correct. Moreover, I want that you plan tax saving investments for me so that I can follow and save tax. I just want to take your suggestion for example. After getting your suggestion I will think over it and change as per my mind. So, don’t hesitate to give suggested planning and do reply fast.

  6. I want to understand the tax liability for Car allowance. For an employee owned Car, the Company can reimburse fuel, maintenance, Chauffeur’s Salary expenses subject to the production of proof of the amount spent.
    1) Is this amount 100% tax free
    2) What does below line means “For a car of cubic capacity below 1.6 liters tax exemption is provided at Rs.1,800 per month for running/maintenance. An additional of Rs.900 is exempted from tax for chauffer salary.”
    Is only 1800+900 tax free.

    • @Amar
      Whole reimburse amount is not tax free. Only up to Rs 1800 (and 2400 in case of car with more than 1600cc engine) per month is non taxable for car maintenance and fuel expenses. Rs 900 per month is non taxable for driver allowance.
      So only 1800+900 would be non-taxable maximum in case of a car less than 1600cc engine.

      • Hi Pankaj, Thanks for your prompt reply.
        I am bit confused, my company has a car reimbursement and Driver salary component as part of the salary structure, which is very high amount than 1800 + 900 (it is around 7 times more). Why would they allow me to claim more than 1800+900, if anything above that is taxable. Also, I have used your tax calculator FY 2012-13, as per this entire amount for Car Reimbursement and Driver Salary falls under “Non – Taxable Allowances”. Can you please help me understand this.

        • @Amar
          As of now this is the only acceptable deduction on employee owned car used for commuting to work.
          Reimbursement for some other employees like Sales people may be done higher as travelling is part of their work. In Income tax calculator, no limit has been put on deduction, but user can put limits himself in cell C54 and cell 56.

  7. What would be better from an investment POV, buying a Gold ETF or buying E-Gold (where you can convert it into physical gold when you want) or or a Gold Mutual Fund

      • Thanks for the reply, Pankaj. Whats your opinion/ view about E-GOLD?

        • @Nitin
          E-Gold is also good. But investment is complicated. You need to open a separate account for this.
          Most of the online brokerage companies and demat does not support investment in e-gold.

  8. Dear Pankaj,
    Can you give your opinion onIDBI Gold Fund? Are there any bettr schemes?

    • @Kalpathy
      IDBI Gold fund is a mutual fund. If you have a demat account, you can better invest via Gold ETFs.

  9. Dear Pankaj,

    Thank you for your quick response. Your site is very very useful for me.

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