Your income is taxed under five broad heads. Various tax sops, be it for your salary perks or investments that you make, help reduce your tax outgo.
Given below are the latest income tax (I-T) slabs applicable for financial year 2018-19 (assessment year 2019-20).
Arun Jaitley reintroduced standard deduction which was scrapped in 2004-2005. Though there was an expectation that tax slabs would be revised, the FM left them unchanged.
The biggest gain from this is for someone at an income of just above Rs 10 lakh a year. With tax and cesses, such a person would now be paying Rs 1,15,875.
If you've been thinking that LTCG tax on equity will cost you just 10%, you are getting ahead of yourself. It may actually cost you much more.
The government has kept small investors out of the ambit of the levy by stipulating that the proposed 10% tax will apply only to LTCG exceeding the threshold of Rs 1 lakh.
Many fund houses had pushed the dividend option of equity-oriented balanced funds to investors as a safe way of earning assured monthly income.
The new measure of deputing two officials for one assessment case is being seen as increasing the level of monitoring as well as aiding the AO to quickly conduct the task.
Senior citizens save between Rs 3,060 to Rs 15,760 on the three income slabs.
The Finance Bill 2018 has proposed to come out with a new scheme for scrutiny assessment to improve effectiveness of tax administration.
The 10-digit Permanent Account Number (PAN) would be used as Unique Entity Number for non-individuals, said the memorandum to the Finance Bill 2018.
Read on to find out the impact of the announcements of this year's Budget on the taxpayer .
The Budget 2018 proposes to change how LTCG on equity shares and units of equity oriented mutual funds are taxed in your (an individual’s hands).
To provide some relief to salaried taxpayers, Finance minister Arun Jaitley proposed a standard deduction of Rs 40,000.
The budget, this time, has given a large benefit of flat Rs 40,000 as a standard deduction to the salaried class of taxpayers and pensioners.
The government has introduced the 7.75 per cent GOI savings (Taxable) Bonds, 2018 in lieu of 8 per cent Savings (Taxable) Bonds, 2003.
What Jaitley giveth, he also taketh away. Today's budget gives the salaried Rs 40K standard deduction, but takes away other allowances like medical.
The maturity corpus of NPS was earlier made partially tax-free by giving tax-exempt status to 40 percent of the corpus for salaried individuals.
The additional 1% education cess on tax proposed in the budget will push up the overall tax of the top 1% of Indian taxpayers.
"With the experience gained so far, we are now ready to roll out the E-assessment across the country," Finance Minister Arun Jaitley said in his Bud
Standard deduction was a part of the Income-tax Act until former Finance Minister, P. Chidambaram, withdrew it in the Union budget of 2005-06.
The dividend distribution tax on all non-equity funds is 25 percent plus 12 percent surcharge plus 4 percent cess totalling 29.12 percent.
Interest up to Rs 10,000 from all savings bank accounts, whether held with a bank or post office, is applicable for tax deduction under Section 80TTA.
Currently, long-term capital gains are exempt from tax on transfer of equity investments on which STT has been charged on sell transaction.
As per the current income tax slabs, taxation of income of resident individuals below 60 years is as follows: Income up to Rs 2.5 lakh is exempt fro
Sensex plunged nearly 400 points in knee-jerk reaction.
A taxpayer can currently maximise tax benefit under section 80D to a total of Rs 55,000 if his age is below 60, while parents' age is above 60.
Standard deduction will allow for a flat deduction from salary income, to make up for some of the expenses which an employee would typically incur in relation to his employment.
People are thinking of everything from a hike in exemption limits, to return to standard deduction and a introduction of long-term capital gains tax on equity.
Here is a look what the middleclass taxpayer can expect from Budget 2018.
Here is a look at how the country's income tax structure has evolved over the last 70 years.
Dilip Lakhani, Senior Chartered Accountant, answers queries from our readers on income tax and other levies.
The Finance Act 2015 inserted a new sub-section (1B) under Section 80CCD of the Income Tax Act to encourage investment in NPS.
Every taxpayer thinks he pays too much tax. ET Wealth looks at how the effective tax rate has changed in the past nine years for various income levels.
In Budget 2010, Income tax slabs were changed. Additional deduction for investing up to Rs 20,000 in infra bonds under Sec 80CCF.
A taxpayer is entitled to claim HRA exemption for rent paid to his or her spouse provided there is documentation to prove that the arrangement is genuine.
The I-Tax Act, 1961 provides several avenues by way of deductions under different sections of the Act, to help one invest or make an expense to reduce the tax outgo.
The income tax department has recently claimed to have busted a racket of fraudulent claim of tax refunds by employees of well known companies.
NSC and tax-saving FDs have certain common features. However, there are certain differences between the two which, give an advantage to NSCs over tax-saving FDs.
Here are 3 scenarios young earners are likely to face while claiming tax exemption on HRA and how they can deal with these.
Professionals from the legal, medical, engineering, architectural, accountancy, tech consultancy, and interior decoration backgrounds can use this section.
Paying too much tax? Write to us and our experts will tell you how to reduce your tax by rejigging your pay and investments.
59% of the respondents were of the view that multiple outdated deductions would be replaced with a standard deduction in order to cut tax burden of employees.
Here's how you can save on tax without locking away your money in long-term investments and without putting a dent in your wallet.
Here are 6 tax savers that will not only help you save tax but also help you earn tax-free income.
An individual's tax is calculated according to the income tax slabs announced by the government every year in the Budget.
It is taken for granted that the rich has to pay more tax because they can afford it.
Sudhir Kaushik of Taxspanner.com tells readers how they can optimise their tax by rejigging their income and investments.
The Gratuity Amendment Bill is likely to be passed in the forthcoming Budget session, which will make formal sector workers eligible for tax free Rs 20 lakh gratuity.
It's always better to plan your tax saving investments in advance than make the wrong moves at the fag end of the financial year.