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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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).
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.
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 incometaxindiaefiling.gov.in 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.