If Sunil works in Mumbai and has a purchased a home in Mumbai for which he has taken home loan. Will he still get benefit under the Act for this second home in Nagpur? The answer is ‘Yes’. Benefits under Section 80C and Section 24(b) can be taken for more than one home if all [...]
The most neglected is health insurance. Most often this tax saving instrument is brushed aside with the logic that after all it’s an expense (no monetary gains) and well we all save for the “rainy day”. So why incur an additional expense? The moot point - Is it truly an additional expense?
The possible deductions on the employee’s gross salary after exemptions are taken into account come under Section 16 of the IT Act. These include dues paid as professional tax, deductions for investing in various tax saving investments like PPF, life insurance premium, pension schemes by life insurers, Mediclaim premium, interest on loans for education, house [...]
PPF, NSC, Post office accounts, insurance (except ULIPs) and FDs are safer, they offer lower returns and are not very liquid, due to their long lock-in period. On the other hand, ELSS (Equity Linked Savings Scheme) has a short lock-in period but is more risky, while ULIPs (Unit Linked Insurance Plan) carry [...]
After having identified your sources of income, you need to select the right income tax form. Forms have been categorized on the basis of streams of income. The income tax website clearly specifies which form to pick, depending on your stream of income. For .e.g. if you are a salaried individual [...]
No income tax return will be accepted without the PAN and incorrect PAN can result in a fine being levied. Communication address should be correctly stated as all notices or other communication from the IT department will be sent to the provided address. Also make sure that the MICR code is [...]
For the purpose of reporting, both the AIR and exempt income, you need to have all the documents in place such as bank statements, mutual fund statements etc among other things. So make sure you have these documents handy so that you can complete the process of filing returns with ease. [...]
Having all the documents in place is half the job done as all the inputs for completing the IT return form will come from them. So first look for all your documents, identify all your sources of income and then select the return filing form accordingly. Filing of returns can be done [...]
Filing returns electronically is eco-friendly as it reduces the usage of paper which is a step in the direction of protecting the environment. Also, in case you have made an error while filing the returns, like you have provided information on one particular head of income, in that case you can re-file your returns using [...]
There is a misconception among some salaried individuals that because the employer has deduced tax at source, they are not required to file tax returns. Even though tax has been deduced and there is no other source of income, or liability to pay tax, employees have to file income tax returns. Every individual has to [...]
The Income Tax Act treats HRA and home loan deductions under separate sections independently. The two are not interconnected to each other. HRA is dealt with in section 10(13A) Rule 2A while home loans are entitled for tax benefits under section 80C (tax benefit on principal repayment) and Section 24 (tax benefit on interest payment) [...]
If the gross receipts are less that Rs 1.5 L the assessee has to maintain his accounts which enables the Income Tax official to compute the taxable income. In the case of the gross receipts exceeding Rs 1.5L, the assessee has to maintain books of accounting like the cash book, journal, ledger, copies of bills [...]
Inspite of NPS being launched for the last 2 years, it has not been able to garner attention of the investor fraternity. Hence to promote it, the Government of India has announced that it will add Rs 1000 co-contribution every year for the next three years for everyone who joins the New Pension Scheme. Those [...]
The DTC which is in the proposal stages will replace the Income Tax Act come April, 2011, and hence, it is key to understand what the proposed changes are, and how it will impact you, the salaried individual. Following is a synopsis of the various changes announced.
Income tax authorities allow you to self assess your income and accordingly pay taxes. Many people tend to believe that his/her income tax return is a drop in the ocean for the income tax authorities and hence not declaring income or understating income may well be worth because it saves you [...]
The process of electronically filing Income tax returns through the internet is known as e-Filing. It is a simple process in which, you need to fill up the tax return form provided online and the other required information about income, expenditure and savings. Then, it is just a matter of logging [...]
The most significant advantage of a joint home loan is the increase in home loan eligibility. Incomes from all joint home applicants are pooled in to enable the applicants to obtain a higher loan amount towards purchasing their dream home. All the joint home applicants are eligible for tax rebates under Section 80 C for [...]
If you are thinking about putting all your eggs in one basket, better not do that because Section 80C has a limit of Rs. 1 L. That is, if you have made investments of Rs. 1.50 L in the investment instruments mentioned above, only Rs. 1, 00,000 out of it would be eligible for deduction [...]
Capital gains on stock and mutual funds, even those held for more than a year is proposed to be taxed. Also, capital gains could become part of total income after allowing a deduction at a specific percentage of capital gains without any indexation.
Any monies that you receive from your company for the purpose of travel to any place in India along with your family for the purpose of leave. The claim can be made two times in a bucket of 4 years. Family includes Wife and children and also parents, brothers or sisters if they are dependent [...]
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