Usually July 31st is the last date for filing tax returns. It is important to file the returns on time in order to avoid paying penalty. Besides it is a mandatory requirement of the government. Any person whose gross salary exceeds the basic exemption limit is required to file his income tax returns.
Tax treatment is where the PPF scores very high. The PPF comes under the Exempt- Exempt- Exempt category. This means that the amount invested gets tax benefits, the interest is not taxed and so is the final maturity amount. The investment gets benefits under Section 80C of the IT Act. The investment however is limited… Read More »
Although at a cursory glance some of the ideas discussed above might sound to be the stuff that our Auditor/Financial Planner should be concerned with and not us, it is imperative that we understand the philosophy behind them so that we are more in control of our income tax assessments. With the increasing benefits of… Read More »
A ready reckoner on how the taxman computes your income. This article tries to give an insight into what constitutes income and what does not according to the IT department.
The tax benefits are applied according to the proportion of the loan taken by everyone involved in the joint loan. For e.g. if the ratio of ownership is 70%:30% then the loan amount of 50 L will be split as 35 L and 15 L respectively and interest/principal applicable to the respective amounts will be… Read More »
Assume you have an FD of Rs 1 lakh with your bank. The rate of interest offered by your bank on this FD is 10%. It means the interest you earn on this FD is Rs 10,000. Now suppose the bank hikes the interest rate to 11%. This means the interest you earn now becomes… Read More »
2009 was a good year for the Indian FMCG sector. Strong volume and price hikes led to the sector grow at a strong 12% growth in 2009. Further, the reduction in excise duties as a part of the stimulus package offered by the government during last year aided the growth. The Rs 86,000-crore FMCG industry… Read More »
You must add up all your Section 80C and non-80C deductions of Income Tax Act. There are online and offline help resources available in computing this. For example, if you are paying house rent it is exempted from tax up to a certain limit. Conveyance up to a certain amount is also exempted. Similarly, leave… Read More »
The tax rules for leave encashment are treated differently depending on the two different instances. One, during your employment tenure, and two while you are leaving the company.Irrespective of you serving the government or the private sector the leave encashed during your employment tenure you will be taxed. But tax rules favour the government employees… Read More »
There is a possibility that the slabs for personal income tax may be increased. The current slab of Rs.1.6 lakhs for taxable income may be increase to Rs.2.5 lakhs for men. There will be suitable increments to women and senior citizens. Income above this slab is taxed at 10% till the next slab.