Income from winning a lottery, crossword, horse race, gamble or bet is not exempt. Tax at the rate of 30% is applied. Further, no expense allowance is possible against such an income. E.g. cost of lottery tickets purchased during the year cannot be deducted from the lottery winnings. Also, no basic exemption limit and no… Read More »
If you are someone like Rahul who needs a life insurance policy that would take care of his family needs upon his death and returns upon the maturity of the policy even during his lifetime the ULP could be your best option! In short the ULP is a perfect combo of the death benefits an… Read More »
In order to prevent the lapsing of policy, it is advisable to keep insurance and investment. It has three-fold advantage. First, if you opt to cancel your policy, you don’t suffer any financial loss. Also it is simpler to track your investment. If you are ever in financial need, you can always redeem these investments… Read More »
This year there is an increase in the scope of Section 80E. Till 2008-2009, the interest paid on the education loan taken for graduate and post graduate (PG) programs in engineering, medicine and management, or for PG programs in applied pure sciences (including mathematics and statistics) could be deducted from your taxable income. But from… Read More »
You should be ready to hand over all the paperwork related to the property to the buyer, whenever asked. But you are exempted from this rule under 2 circumstances: either you have clarified in the agreement with the buyer that you’ll retain a portion of the property or you have sold the property to various… Read More »
The step-up scheme can be implemented in different stages. In certain instance there are 2 phases, one lower and other higher. In other cases, it is a gradual system. It can be carried out annually, after 5 years or at any time intervals. Some step-up schemes from certain banks offer fixed interest rate, but these… Read More »
To decide whether the gold is long or short term asset, find out how long have held it. If your holding period is over 36 months, it is considered as a long term asset, and accordingly long term capital gains (LTCG) tax rate is charged. If you have held it for less than 36 months,… Read More »
The gifts received in the names of one’s minor children will be clubbed with the parents’ income for taxation purpose. Also the taxman is very alert in saying that, in case of both parents having income, clubbing will be done with that parent who is earning more. So one cannot hide under the cover of… Read More »
This piece will try to look at the numbers post budget 2010 and compare it with the tax laws prevailing in 2009-2010 to see which part of the Indian junta will laugh its way to the bank in 2010-11. There have been countless discussions on how the budget is pro-middle-middle class (the repetition of middle… Read More »
This article will try to look the pros and cons of investing in Infrastructure bonds for the sake of tax saving. The analysis will be from the perspective of the different “tax groups” post budget 2010. For the sake of parameters we will have to make an assumption on the lock-in period (as nothing… Read More »