The Economic Times
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| 08 August, 2020, 02:34 PM IST | E-Paper
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    Tax

    Wealth management during coronavirus

    Budget defers tax on stock options by 5 years, but is silent on double taxation

    Startups have long demanded that tax on Esops must be levied only at the time of sale and not at the time of vesting, as valuation of new ventures remains volatile even as opportunities to sell are rare.

    Budget 2020: Tax rejig to leave 'NRIs' and rich poorer

    High income earners could find staying with old I-T regime more attractive.

    NRIs may have to pay tax in India if not paying anywhere else: Budget 2020

    Budget 2020 has proposed to tax NRIs in India, who are not paying tax anywhere in the world.

    Two changes proposed in definition of residency in Union Budget 2020

    This will make it easier for tax authorities to determine residential status of such individuals without asking for passport copies. Individuals may not have to hold their old passports as proof of physical presence in earlier years in India if their ITR is processed.

    New cost valuation norms may impact capital gains on property bought before April 1, 2001

    New cost valuation norms may impact capital gains on property bought before April 1, 2001

    The existing provisions of section 55 of the Act provide that for computation of capital gains, an assessee shall be allowed a deduction for the cos

    Income tax highlights of Budget 2020

    While there is no change in existing income-tax slab rates for individuals, a new tax regime has been proposed in Budget 2020, under which individual taxpayers foregoing exemptions and deductions would be taxed at reduced rates. Here are other major announcements.

    Taxpayer opting for new tax regime to forego deductions on PF, tuition fee, insurance

    A taxpayer opting for the new scheme will not get tax benefit for leave travel concession (LTC), allowances for income of minors, and certain allowances of MPs/MLAs.

    Form 26AS to have information beyond TDS, will include property, share transactions

    Form 26AS would be required to be extended beyond the information about tax deducted (TDS), it is proposed to introduce a new section 285BB in the Act regarding the annual financial statement.

    New income tax regime vs old: Which is better for you?

    To see if the new regime is beneficial, each individual will have to make their own calculations.

    Employer's contribution to EPF, NPS over Rs 7.5 lakh proposed to be taxed

    Employer's contribution to EPF, NPS over Rs 7.5 lakh proposed to be taxed

    The employer's contribution over Rs 7.5 lakh in a fiscal to retirement funds is proposed to be made taxable.

    Income tax break that individuals can still claim in new personal income tax regime

    Most of the commonly available deductions such as section 80C, 80D, standard deduction etc. have been proposed to be removed but here is one tax benefit that can still be claimed by you under the new tax regime.

    Proposed income tax dispute settlement scheme waives interest, penalty

    Under the proposed ‘Vivad Se Vishwas’ scheme, a taxpayer would be required to pay only the amount of the disputed taxes and will get a complete waiver of interest and penalty provided he/she pays by 31st March 2020.

    Tax on allotment of start-up ESOPs removed by Budget 2020

    This is good news for employees of start-ups having ESOPs. Currently, the taxation of ESOPs is split into two components - (i) at the time of allotment of shares from the startups and (ii) as capital gains.

    Budget 2020 proposes to pre-fill donation details made by a taxpayer in ITR

    In order to ease the process of claiming deduction for donation, it is proposed to pre-fill the donee’s information in taxpayer’s return on the basis of information of donations furnished by the donee.

    Deductions, exemptions not available in proposed new tax regime

    Deductions, exemptions not available in proposed new tax regime

    All deductions under chapter VIA will not be claimable by those opting for the new tax regime, as per Budget 2020.

    Dividend income becomes taxable in receiver's hands, DDT abolished

    Currently, DDT is paid by the companies before paying a dividend to their shareholders. Therefore, it made a dividend received by the shareholders of the company of tax-free in their hands.

    Timeline to avail loan for affordable housing extended till March 31, 2021

    ​​As per income tax laws, an individual can claim interest paid on housing loan as a deduction from gross total income. The amount of interest which can be claimed as deduction is currently capped at Rs 3.5 lakh

    Budget gives option of lower income tax rates, new tax slabs minus 70 exemptions

    Once these proposals are passed by the Parliament, these changes will become effective from the financial year 2020-21.

    Tax queries: Will switching between mutual fund schemes attract capital gains tax?

    Dilip Lakhani, Senior Chartered Accountant, answers queries from our readers on income tax and other levies.

    Income tax e-assessment helpline phone number, email ID

    Income tax e-assessment helpline phone number, email ID

    The helpline phone number and email ID launched by the income tax department will help the taxpayers to get assistance regarding the income tax noti

    What is the tax liability on the profit I have made from selling a plot of land?

    If your taxable income for a given financial year exceeds the basic tax exemption limit, you will have to pay tax and file a return of income to report the capital gain and the tax paid thereon.

    Income tax dept warns taxpayers of phishing mails; lists out genuine senders

    Digital frauds are on the rise and taxpayers too are not safe from it. To help you, the income tax department has released a list of trustworthy sources that a taxpayer should make a note of. Do not just trust any other source.

    Tax queries: How will the refund I receive for delayed delivery of property be treated for tax purposes?

    Every week, an expert selected by ET answers queries from our readers on income tax.

    ELSS, PPF, NPS, ULIP: which is the best option to save taxes under Section 80C?

    We have compiled the features of these investment options - both the qualitative and quantitative data - that would help you to compare and find the best tax-saving option for you.

    I am an American and I lived in India for more than 182 days. Can I avail section 80C benefit?

    I am an American and I lived in India for more than 182 days. Can I avail section 80C benefit?

    Eligible instruments for the purpose of Section 80C are tax-saving fixed deposits, Senior Citizens’ Saving Scheme, NSC, etc. You can also claim a de

    When does your EPF become taxable?

    How much you withdraw and when you withdraw from the Employee’s Provident Fund determines how much TDS will be levied on the same. Here are five common scenarios and the tax implications on them.

    Want to know how much you need to invest to save tax? Use this calculator to find out

    Depending on the kind savings or expenditures you incur, under sections 80C and 80CCD1b of the Income-Tax Act, you are eligible for certain tax deductions.

    Can these deductions make you tax free?

    Different sections under the Income-Tax Act correspond to different savings or expenses, some of which are eligible for tax deductions and could be a great way to show that you are actually out of the taxable bracket. Here are 8 such deductions.

    Budget 2020 should cut income tax slabs, offer tax breaks to boost investment: EY

    The Indian economy is growing at around 5 per cent in FY 2019-20, which is the lowest in the past 11 years.

    Tax-saving guide for FY 2019-20

    Tax-saving guide for FY 2019-20

    In our hurry to complete the tax-saving exercise before the end of the financial year, we end up making expensive mistakes. Here is a handy guide to

    Does switching from one mutual fund scheme to another attract capital gains tax?

    An individual can switch from one mutual fund scheme to another. The money is redeemed and directly reinvested.

    Tax optimiser: Home loan, NPS, medical cover can cut tax by Rs 77,000 for Sinha

    For the home loan taken, the interest paid to the bank can be claimed as a deduction for a maximum of Rs 2 lakh under section 24. Further, the principal component also offers tax benefit under section 80C.

    Filing ITR1 for FY2019-20? Check latest eligibility norms set by CBDT

    After notifying the income tax return forms for FY 2019-20, which reduced the number of individuals who can file the ITR-1, CBDT has now rolled back such restrictions. Here's a look at who can file a tax return using ITR-1 for FY 2019-20.

    Income tax calendar for the year 2020

    The income tax department, via its Twitter handle and emails, has been informing taxpayers about the important tax dates for the year 2020. Being mindful of these dates can help taxpayers avoid penal consequences.

    ITR filing: 5 key changes in ITR-1 you need to know

    ITR filing: 5 key changes in ITR-1 you need to know

    The income tax department has notified the income tax return (ITR) forms for FY 2019-20 on January 3, 2020.

    Best tax-saving options: Ranking of the top 10 instruments

    ET assessed 10 tax-saving instruments on 8 parameters. Find out how the different options scored this year.

    Here's a trick to lower your tax on capital gains from equity

    Long term capital gains accrued from selling equity shares and equity-oriented mutual funds are exempt from tax for maximum up to Rs 1 lakh in a financial year. The gains in excess of Rs 1 lakh are chargeable at the rate of flat 10 percent.

    Tax optimiser: Avuluri can save Rs 43,000 tax via NPS, health insurance

    Not only should you ask your employer for the NPS benefit, but you should also invest in the scheme on your own. You can reduce your tax outgo significantly.

    PAN-Aadhaar linking deadline extended by 3 months to March 31, 2020

    The government has extended the deadline to link PAN with Aadhaar once again. The last time deadline was extended in September 2019 by three months to December 31, 2019. If the PAN is not linked with Aadhaar by March 31st, then PAN will become inoperative.

    December 31 is the last date to verify your ITR. Have you done it?

    December 31 is the last date to verify your ITR. Have you done it?

    According to income tax laws, a taxpayer gets 120 days from the date of filing an income tax return (ITR) to verify his/her tax return. The deadline

    Tax optimiser: Why Pai can save tax only marginally via NPS

    You can optimise tax by rejigging your income and investments. In this taxpayer's case, there is scope for further tax reduction if he makes use of all the deductions available.

    TDS to be deducted on annuity payable to Overseas Citizens of India, NRI NPS subscribers

    Based on a clarification received from IRDAI, it is hereby clarified that annuity payable by ASPs NRIs and OCIs will be taxed at source, at rates applicable as per the DTAA of the country where the annuitant resided.

    What is STT?

    STT is an indirect tax and is imposed on a broker rather than the investor/trader directly.

    Income tax changes of 2019: The impact they made on your personal finances

    The changes help salaried people save more tax, while the uber rich took a big hit on the taxation front.

    5 taxpayer friendly initiatives taken by tax department in 2019

    5 taxpayer friendly initiatives taken by tax department in 2019

    A look at five important steps introduced this year by the I-T dept to make the life of the taxpayer easier.

    I already have a PPF account. Can I open another account in my wife's name and invest Rs 1.5 lakh?

    You can open the PPF account in your wife's name and invest Rs 1.5 lakh per annum on her behalf. However, the money given to your wife will be clubbed to your income.

    Budget 2020: 20 tax-payer friendly ideas for the Finance Minister

    ET Wealth reached out to financial services cos and taxpayers on what they want to see in this budget.

    Tax optimiser: NPS, health insurance cover can help Rathore cut tax

    You can optimise tax by rejigging your income and investments. In this taxpayer's case, there is scope for further tax reduction if he makes use of all the deductions available. For instance, he should invest in NPS on his own too.

    Missed ITR deadline? File it before December 31 to avoid paying higher penalty

    The law of levying late filing fees under section 234F became effective from the financial year 2017-18 or assessment year 2018-19 onward. However, if your income is below the taxable limit, then you do not have to pay a late filing fee.

    ITR filing: All you need to know about treatment of income from self-occupied property

    ITR filing: All you need to know about treatment of income from self-occupied property

    A house property is ‘self-occupied’ when the owner or family members use it for residential purpose. It could be termed ‘self-occupied’ even where t

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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 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.


    The Economic Times