The Economic Times
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| 30 November, 2020, 05:02 PM IST | E-Paper


    Wealth management during coronavirus

    How your parents, spouse and children can help you save tax

    If your parents fall in the non-taxable or a lower tax bracket, you can invest in their names by gifting them money. Here are other ways you can invest, insure and save through your parents, spouse and children in a way that it reduces your tax liability.

    Renewal insurance premium excluded from LTC cash scheme: Does this apply to motor, health covers?

    The FAQs No 3 issued by the Finance Ministry on LTC Cash Voucher Scheme does not clarify whether payment of insurance premium refers to all the existing insurance policies or certain types of existing policies.

    Delay in LTC Cash Voucher Scheme notification may make it difficult to claim full benefit

    Although it has been almost a month since the scheme was announced many private sector companies have still not rolled out the scheme for their employees because they are waiting for the final notification CBDT before extending the benefit to its employees under the scheme.

    No tax on rent to be paid by owner, if the tenant defaults on it: Tax tribunal

    The Income-tax Appellate Tribunal has given this ruling in respect of a case pertaining to Navi Mumbai based leasing company. This will have an impact as many restaurants, shop owners and even house owners had either renegotiated rents or had defaulted on it during Covid pandemic.

    Sold two houses to invest in new one? You can get tax benefits

    Sold two houses to invest in new one? You can get tax benefits

    This ruling will be very helpful to many individuals. With work from home here to stay for longer than initially anticipated, several families are i

    View: It's time to make TDS less tedious

    Millions of I-T returns are processed with such TDS credit being denied. Taxpayers then apply for online rectification, which also doesn’t provide the correct TDS credit.

    Do you need professional help to file ITR?

    Filing your tax return is not a very complicated exercise. But if you are not aware of the new rules or understand the finer points, a tax professional can ensure you file an error-free return for a nominal fee.

    ITR filing mistakes often made by taxpayers

    Many taxpayers make errors in their income tax returns. Find out how you can file an error-free tax return.

    Tax implications of NRI transferring money to wife's bank account in India

    As per current income tax laws, an NRI is required to file an income tax return in India if his gross total income exceeds Rs 2.5 lakh in a financial year.

    Tax optimiser: Why IT professional Chaturvedi should replace LTC with NPS in salary package

    Tax optimiser: Why IT professional Chaturvedi should replace LTC with NPS in salary package

    Pune-based IT professional Animesh Chaturvedi pays a high tax because his pay is not tax-friendly. ET Wealth tells him how he can optimise his tax b

    How home buyers, developers will benefit from tax sop on purchase of new house up to Rs 2 crore

    The income tax sop announced by the government will provide relief to the home buyers on the notional gains on which he/she is required to pay income tax as per his/her slab. Here is how a home buyer and a builder will benefit under the announcement.

    Prepay these common services to avail LTC Cash Voucher Scheme benefit

    Services that attract more than 12 per cent Goods and Services Tax (GST) include TV DTH recharge (TATA Sky, Airtel Digital TV etc.), Internet broadband payments, mobile phone bills, health insurance premiums, purchases made on Apple Music and so on.

    These 4 lesser known tips can help you save tax

    If you think your tax liability has been very high so far, follow these tips to bring it down and not pay more than necessary in future.

    Who has to file income tax return mandatorily?

    As per income tax laws, ITR must be mandatorily filed if a resident individual's total income during the financial year exceeds the basic exemption limit. Remember, the basic exemption limit for an individual depends on his/her age.

    CBDT notifies extension of ITR filing date for auditable accounts, transfer pricing cases

    CBDT notifies extension of ITR filing date for auditable accounts, transfer pricing cases

    Among the various income tax deadline extensions announced for taxpayers, the due date for payment of self-assessment tax in case where the liabilit

    No LTC cash scheme under new income tax regime

    The guidelines allow extension of the facility to public sector, private sector and state government employees, provided they spend three times their LTA entitlement on buying goods that attract over 12% GST. Like the scheme for central government employees, cash allowance has been capped at Rs 36,000 per person as deemed LTC fare for a round trip.

    10 things to know about new provision of TCS on sale of goods

    If you are buying goods of more than Rs. 50 Lakhs be ready to pay TCS on the same and claim the credit at the time of filing your income tax return. In this article, we have touched upon 10 important key issues about this requirement.

    LTC Cash Voucher Scheme: 15 queries answered by government

    The government has announced the LTC Cash Voucher Scheme in lieu of LTC travel scheme via a press conference dated October 12, 2020. As the employees may have several queries regarding the scheme, the government has put 15 faqs to resolve the employees' queries.

    Income Tax Department issues guidelines for filing income tax returns

    The Income Tax Department has issued a detailed step by step reckoner for filing tax returns to be submitted under different heads. These instructions are guidelines to help the taxpayers for filling the particulars in Income-tax Return Form-1 for the Assessment Year 2020-21 relating to the Financial Year 2019-2020.

    I purchased a plot in June 1997 and sold it in June 2019. How will I calculate the capital gains tax?

    I purchased a plot in June 1997 and sold it in June 2019. How will I calculate the capital gains tax?

    If you have held the asset for more than 24 months, the resulting capital gain from the transaction will be categorised as long term capital gain. T

    I sold a flat in 2013 and invested some amount in an under construction flat. What will be my tax liability?

    Tax exemption under the Capital Gains Account Scheme, 1988 is transitory in nature. The interest earned is taxable as ‘Income from Other Sources’ at slab rates. The account holder has to invest the balance in the account within the stipulated period.

    New tax regime doesn't allow LTC cash voucher tax benefit: Experts

    As per existing income tax law, an employee can claim tax-exempt payment of LTA/LTC (if provided by employer) equal to the fare of domestic travel subject to limits and conditions. To claim this tax exemption, an employee is normally required to provide proof of his travel.

    How central government employees can avail benefit under LTC cash voucher scheme

    Here is a look at the details of how central government employees can avail the LTC cash voucher scheme as per an office memorandum issued by the government on October 12, 2020.

    Should you opt for the LTC cash voucher scheme? Here's how much tax you will save

    Here is a look at how much you stand to gain by opting for the LTC cash voucher. This story will tell you about the rules of availing the LTC benefit and compare it to the conditions specified under the new voucher. Further, we will tell you if you should indeed opt for this scheme.

    Govt launches tax-exempt LTC cash voucher scheme to boost consumer spending

    Govt launches tax-exempt LTC cash voucher scheme to boost consumer spending

    This is a one-time scheme and payment will be only in lieu of one LTC during the block of four years 2018-21. This should help people to some extent

    My total income from pension and investments is Rs 13 lakh. Which ITR form should I use for filing ITR?

    Your pension income will need to be declared under salary head and offered to tax at your applicable slab rate after standard deduction of Rs 50,000. LTCG on FMP maturity will be taxed at 20% after indexation.

    Tax optimiser: Salaried Kapoor can save Rs 19,000 tax via NPS, perks

    Taxspanner estimates that Kapoor can save almost Rs 19,000 if his salary structure is rejigged and he invests more in NPS on his own. Also, Kapoor should ask his company to replace the leave travel allowance (LTA) with tax-free perks like newspaper allowance and food coupons.

    Opting for New tax regime for FY 2020-21? You will have to fill this additional form

    An individual is required to exercise the option of choosing a new tax regime at the time of filing income tax return. However, it was not clear how such an option has to be exercised by an individual. To resolve this issue, CBDT has notified this form.

    How tax will be collected at source from individuals on these transactions from Oct 1

    TCS will be levied on foreign remittances made through the Liberalised Remittance Scheme (LRS) of the Reserve Bank of India (RBI) and for buying foreign travel packages. Here is a look at the rules regarding the applicability of TCS and how much tax is leviable.

    Belated, revised ITR filing deadline for FY2018-19 extended to November 30, 2020

    Belated, revised ITR filing deadline for FY2018-19 extended to November 30, 2020

    ​This is the fourth time the government has extended the deadline of filing belated ITR from the original deadline of March 31, 2020, due to novel c

    Two tax tasks to complete by September 30, 2020

    The government has extended multiple income-tax related deadlines. Here is a look at two tax-related deadlines that fall on September 30, 2020.

    Can I claim deduction on principal of home loan EMI paid if I have not received possession of property?

    The principal portion of the EMI paid for the year is allowed as a deduction under Section 80C in the year of payment. Do remember that the property should not be sold within five years of possession.

    You must check these 5 things in your Form 26AS

    One of the things you should check in your Form 26AS is the information related to income-tax payments such as advance tax and self-assessment tax paid.

    Tax optimiser: Why software engineer Menon should replace LTA, opt for NPS benefit to cut tax

    ​​Pune-based software engineer Vijay Menon should ask his company to replace the taxable medical allowances in his salary with tax-free perks such as newspaper allowance. The leave travel allowance should also be replaced.

    ITR filing: Computing your total taxable income

    ITR filing: Computing your total taxable income

    According to income tax laws, gross total income is divided into five parts. Here is how you can calculate income under each head and arrive at your

    9 key changes in ITR-1 and ITR-2 for FY 2019-20

    The Income-tax Department has made several changes in the ITR forms applicable for tax filing for FY 2019-20. Here are the key changes introduced in ITR-1 and ITR-2 which should be kept in mind while filing the return for the assessment year 2020-21.

    I bought a flat in February and want to sell it in October 2020. What will be the tax implication?

    If you are selling the flat in less than 24 months of purchasing it, the gains will be short term capital gains. These will be taxed at your applicable slab rate and there will be no indexation benefit.

    Missed ITR filing? You might pay penalty even if income is below exemption limit

    The government via Finance Act 2019 has amended the Income-tax Act whereby it has made it mandatory for certain categories of individuals to file their income tax return (ITR) even if their total income is below the exemption limit for FY 2019-20 onwards.

    I am a senior citizen and I did not incur capital gains in FY 2019-20. Can I file ITR-1?

    As per the ITR forms notified by the government, an individual is eligible to file a tax return using ITR-1 if the total taxable income from the specified sources does not exceed Rs 50 lakh in the financial year 2019-20.

    What other deductions can I claim from my salary part from common ones like 80C, 80D?

    What other deductions can I claim from my salary part from common ones like 80C, 80D?

    The current income tax laws allow various other deductions from the income chargeable to tax apart from common ones such as section 80C, 80D, sectio

    Tax optimiser: Bose can cut tax by Rs 1.5 lakh via rent to mother, NPS

    Bose lives in his mother’s house and pays a nominal rent to her. Though his HRA is Rs 3.16 lakh, he claims exemption for only Rs 1 lakh (Rs 8,300 per month) as he is not sure of the tax implications for his mother. Since she is a senior citizen with no other income, he can pay her up to Rs 4 lakh a year.

    Do you need professional help in filing ITR? Here's how much it will cost you

    Most taxpayers are not aware of the finer points of taxation. A professional can ensure you file an error-free return. Here are things to consider if you are planning on taking professional help to file your ITR and the likely costs of the same.

    ‘Excess sum from builder on flat cancellation is capital gains’

    In its recent order, ITAT’s Mumbai bench has held the excess consideration received is in the nature of ‘capital gains’. In the case heard by ITAT, Mukesh Sohanraj Vardhan, the taxpayer, had treated the benefit of Rs 18.75 lakh received from the builder on cancellation of his deal as a long-term capital gain.

    Importance of Form 26AS in ITR filing process

    The Form 26AS will come with a few rather significant changes this year. In its new avatar, the Form 26AS will become a potent tool in the hands of the tax authorities, which is why it is important for a tax payer to know about these changes.

    How PNB customers can download Form-16A, interest certificate

    How PNB customers can download Form-16A, interest certificate

    Punjab National Bank customers can get the Form 16A and interest certificates either by visiting the bank branch or download the same using Net Bank

    TDS certificates should be available now: 4 steps to prepare to file income tax return

    The last date of issuing TDS certificates such as Form 16, Form 16A etc has expired on August 15, 2020, for FY 2019-20. However, before you start filing your income tax return (ITR) for FY 2019-20, there are four things you should do.

    Returning NRI: What will be the tax liability on interest earned on NRE, RFC and FCNR deposits?

    This query has to be looked at from the perspective of the type of accounts that one can maintain under the provisions of the Foreign Exchange Management Act, 1999 (FEMA).

    Tax optimiser: Salaried Chawla can save Rs 54,000 tax via NPS, LTA

    Not only should you ask your employer for the NPS benefit, but you can also ask your company to replace the taxable medical and conveyance allowances in your salary with tax-free perks such as newspaper allowance and leave travel allowance (LTA).

    How to file ITR-1 with salary, house and other incomes for FY 2019-20

    This year ITR-1 form has introduced schedule DI to provide details of the tax-saving investments made in the extended period till July 31, 2020. To avoid payment of excessive tax, it is advisable that you should fill the information in the required columns.

    Working from home may prove ‘taxing’: Here's why

    Working from home may prove ‘taxing’: Here's why

    As professionals work from home, salary components such as conveyance allowance can no longer be tax-free, and given the spread of the pandemic, one

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    Income Tax: All about it

    Income tax is a tax levied directly by the central government on the incomes earned by the individuals and other non-individual entities such as Hindu Undivided Family (HUF), partnership firm and so on during a financial year. These various sources of income include salary, pension, capital gains, sale of financial investments, interest income, other incomes and so on.

    Unlike the Goods and Services Tax (GST) Council where the Union Finance Minister and State Finance Ministers decide the rates, the income tax rates are announced by the Finance Minister during the year’s Union Budget.

    The rate at which your total income earned during the year will be taxed depends on the slab in which your income falls. Over and above the income tax, a cess and surcharge is levied. The cess is payable by all taxpayers. For those earning more than Rs 50 lakh a year, a surcharge is levied between 10 percent and 37 percent.

    The total income earned by a taxpayer during a financial year has to be reported to the government in the assessment year by filing income tax return (ITR filing).

    Financial year is the year in which income is earned by a taxpayer; a financial year is between April 1 and March 31. Assessment year is the year immediately following the financial year for which the return is to be filed.

    Income earned from various sources such as salary, pension, interest from fixed deposits (FDs), savings account, capital gains from sale of house, equity mutual funds, debt mutual funds and so on have to be reported in ITR.

    1. What is the basic exemption limit for individuals aged below 60 years?
    According to income tax laws, it is mandatory to file ITR if your income exceeds the basic exemption level. The basic exemption level depends on the age of the individual during the financial year.

    Currently, for individuals below 60 years of age, the maximum income exempt from tax is Rs 2.5 lakh in a financial year. This can change depending on the announcements made in the Union Budget.

    2. What are the tax rates at which income is charged?
    The income tax slab rates are 5 percent, 20 percent, and 30 percent.
    Also Read: Latest income tax slabs

    3. How to file income tax return
    An individual can file income tax return by registering himself on the or via private e-filing websites.

    4. What is the difference between gross total income and net total income?
    Gross total income refers to the total income earned by the taxpayer. Income tax laws allow an individual to claim certain tax-exemptions (such as house rent allowance) and deductions under various sections such as section 80C for investments made in Public Provident Fund, equity mutual funds etc. of up to Rs 1.5 lakh.

    Gross total income minus tax-exemptions and deductions would result in net total income. The tax liability of the person will be calculated on the net total income.

    5. What is the last date to file income tax return?
    The last date to file income tax return for individuals is July 31, unless extended by the government.

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