The Economic Times
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| 07 August, 2020, 01:27 AM IST | E-Paper
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    Tax

    Wealth management during coronavirus

    Tax optimiser: How salaried Kamal can save Rs 40,000 tax via perks, NPS

    Not only should you ask your employer/company for the NPS benefit, but you should also ask for other tax-free perks like LTA, telephone bill. You can reduce your tax outgo significantly.

    4 important tax benefits of buying a house jointly

    If a property is held jointly, individuals can receive additional tax benefits for the same cost.

    Tax queries: Annuity received on a periodic basis is taxable as an income under the head ‘Salaries’

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

    Income tax sop available even if capital gains not used for new house: ITAT

    If on sale of a residential house ( held for at least two years), the taxpayer makes a profit, then such profit is treated as a long-term capital gain.

    How to save income tax via medical expenditures under sections 80D, 80DD, 80DDB, 80U

    How to save income tax via medical expenditures under sections 80D, 80DD, 80DDB, 80U

    If you can't afford to pay for health insurance premium or unable to buy one due to pre-existing conditions, then also you can save tax via medical

    Disabled can claim tax saving deductions up to Rs 1.25 lakh under sections 80DD, 80U

    "The amount of deduction depends on the percentage of disability. The deduction claimed is fixed irrespective of the actual expenses."

    What is Form 16?

    An employee can use Form 16 to source information for filling up his/her income tax return (ITR) and should be retained as backup proof for TDS.

    How to find Income Tax Assessing Officer or AO details?

    Assessing Officer is authorized to assess the income tax return you have filed and if he finds any discrepancy in your filed return, he will send you a notice seeking clarification.

    Tax optimiser: Paying rent to mother, contributing to NPS can cut Kumar's tax by Rs 1.4 lakh

    Tax optimiser: Paying rent to mother, contributing to NPS can cut Kumar's tax by Rs 1.4 lakh

    Avinash Kumar has a very tax-friendly salary structure but still pays high tax because he is unable to avail some of the exemptions.

    Understanding how section 80C of the Income Tax Act works

    Eligible payments include life insurance premium, principal repayment of the home loan and children's tuition.

    How to avoid last-minute tax planning mistakes

    Taxpayers often commit mistakes in a rush to save tax. Here's how to avoid investing errors you might regret later.

    It won't be easy to claim 2 house properties as self-occupied for tax purposes: View

    As per the new provision, if an assessee owns more than two houses, then he can claim the annual value of any of the two house properties as nil.

    A visit to a medical lab or diagnostic centre can help you save tax; here's how

    Medical diagnostic laboratories are telling people how they can save tax by undergoing a preventive health check-up from their centre.

    How to secure your e- Tax Filing Accounts through e - Filing Vault

    How to secure your e- Tax Filing Accounts through e - Filing Vault

    The Income Tax Department has secured your e-filing account from possible misuse. To enable this additional secured access, here is the process of a

    What is the tax implication of sale of ancestral property?

    "You and your siblings will have to pay capital gains tax for your respective share received from the sale of the house. "

    Do I have to pay tax on insurance maturity proceeds?

    "According to Section 10(10D) of the Income-Tax Act, any sum received from a life insurance policy is exempt from tax."

    5 allowances that are taxable for employees

    City Compensation Allowance (CCA) is offered to the employees to meet the living expenses in areas like the metros and big cities.

    Tax optimiser: How salaried Kumar can save Rs 70,000 tax via perks, NPS

    Not only should you ask your employer for the NPS benefit, but you should also invest in the scheme on your own. Also, you can optimise your tax by rejigging your income and investments.

    All the documents you must collect at the end of financial year

    All the documents you must collect at the end of financial year

    Investors must compile all income earned from various investments in the form of capital gain or interest, to ascertain the tax liability while fili

    Posted overseas? Not disclosing foreign bank accounts can lead to prosecution under Black Money Act

    The Calcutta High Court in a recent ruling has upheld the initiation of prosecution proceedings under the Black Money Act against a taxpayer for failure to disclose foreign bank accounts.

    Your senior citizen parents' medical bills can help you save tax: Here's how

    Budget 2018 has amended Section 80D of the Income Tax Act which allows a deduction for medical expenditure incurred on senior citizens.

    Does Budget 2019 make 2nd house mandatorily 'self-occupied'? Experts differ

    The question now arises that whether the second house of a taxpayer will be mandatorily treated as self-occupied or can still be treated as deemed to be let out.

    Income tax dept to issue only e-refunds from Mar 1, 2019; bank account-PAN linking must

    The income tax refunds will be credited only to bank accounts (savings/current/cash/OD) which are linked to PAN, w.e.f. March 1, 2019.

    Tax optimiser: How salaried Manjunath can save Rs 70,000 tax via perks, LTA

    Tax optimiser: How salaried Manjunath can save Rs 70,000 tax via perks, LTA

    If the company offers various perks like LTA, etc., your tax can surely reduce by a good amount. These are tax-free against submission of bills and

    Pre and post-Budget 2019: How tax benefit changes for individuals with 2 home loans

    At present, if you have more than one property for self-occupation, then only one of those, would be considered as self-occupied property for taxation purposes.

    Budget 2019: No marginal relief for taxpayers whose taxable income exceeds Rs 5 lakh

    The marginal increase in income above Rs 5 lakh will result in more tax outgo than the incremental increase in income

    Tax queries: How much of my gratuity amount is tax-exempt?

    The maximum limit amount of gratuity under the Payment of Gratuity Act, 1972 has been enhanced from Rs 10 lakh to Rs 20 lakh vide notification dated 29 March, 2018.

    The impact & significance of tax changes

    The only sector that saw substantive changes in the Finance Bill was real estate.

    Medical expenses that can be claimed as tax break under section 80DDB

    Medical expenses that can be claimed as tax break under section 80DDB

    The deduction under section 80DDB can be claimed irrespective of whether you have paid a premium for a health insurance policy or not.

    Selling multiple flats to buy one? You can get tax benefits: ITAT

    This recent ITAT decision will benefit taxpayers in Mumbai and in the absence of any contrary jurisdictional order will strengthen the case of other taxpayers.

    Your parents, wife and children can help you save taxes. Here's how

    Salaried individuals can save tax by paying rent to their parents and availing the HRA exemption benefit.

    How to make payment of TDS on sale of property

    PAN of the buyer and the seller is mandatory to make e-payment of TDS on sale of property. However, the TAN (Tax Deduction Account Number) is not required to make this payment.

    Your employer can help you reach zero-tax income level of Rs 5 lakh: Here's how

    Here are six benefits that can help the salaried bring down the taxable component of income from the employer.

    How reachable is zero-tax income level of Rs 5 lakh using deductions, exemptions?

    How reachable is zero-tax income level of Rs 5 lakh using deductions, exemptions?

    For Rs 9.75L earners it will be difficult to claim deductions without drastic cuts in lifestyle.

    Cabinet approves abolition of Ombudsman for direct, indirect taxes

    The approval comes against the backdrop of people preferring online grievance redressal mechanism.

    Want to reduce your taxable income to Rs 5 lakh? Here's a list of all deductions you can claim

    If your gross total income is in the range of Rs 6-11 lakh, you could try and claim tax deductions to reduce it to Rs 5 lakh.

    Tax queries: Gifts received from a relative are tax-exempt

    "According to Section 56(2)(vii) of the Income-Tax Act, gifts received from relatives are not taxable. The specified list of relatives includes grandparents and grandchildren as well. "

    Tax optimiser: How salaried Tushar can save Rs 1.3 lakh tax via perks, NPS

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

    Budget 2019: Tax break for Rs 5 lakh earners is huge tax planning incentive for middle income group

    Budget 2019: Tax break for Rs 5 lakh earners is huge tax planning incentive for middle income group

    Taxpayers very close to the threshold limit will have to ensure their income does not exceed Rs 5 lakh.

    Tax rebate on Rs 5 lakh income: Helping the poor but surgically striking out the rich

    The virtuous cycle is completing itself. The payoffs of GST and tax reforms are being reaped by those who need it.

    Budget 2019: Income up to Rs 5 lakh can pay zero tax but still need to file ITR

    If you are earning anything above these exemption limits annually, then you need to file your ITR.

    How much money this Budget can help you save

    The change in standard deduction from Rs 40,000 to Rs 50,000 for salary earners will benefit even those with annual incomes above Rs 5 lakh.

    Budget 2019: Nine things you need to know about personal tax

    If you are a resident taxpayer earning taxable income (after all applicable deductions) up to Rs 5 lakh, you will get full tax rebate.

    Budget 2019: What happens to your taxes now

    Budget 2019: What happens to your taxes now

    What about the others, I.e., those earning more than Rs 5 lakh? Do they stand to gain anything? ​Pick the case study nearest to your annual salary t

    Budget 2019: No tax on rent you don’t get from 2nd home

    The interim Budget has given relief to second home-owners by exempting the second property from tax on notional rent.

    Budget 2019: Tax scrutiny goes digital; refund in a day

    Within the next two years, almost all verification and assessment of returns selected for scrutiny will be done electronically through an anonymised back office.

    Budget 2019: Sell a house and buy 2, with LTCG blessings

    Under the new Budget provisions, if a taxpayer has LTCGs of up to Rs 2 crore arising from the sale of a residential house, she can avail the deduction by investing in two residential houses in India.

    Budget 2019: Lenders hope you’ll bank on FDs again as TDS limit raised 4-fold

    The Budget proposes to exempt TDS on interest income up to Rs 40,000 against Rs 10,000 earlier on FDs.

    Budget 2019: Josh is high, but tax savings are low for the middle class

    Budget 2019: Josh is high, but tax savings are low for the middle class

    The increase in standard deduction will translate into a minor saving for those in the upper tax brackets.

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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.


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