All you wanted to know about advance tax
April 29, 2016
Think of advance tax as your EMI to the taxman In the home stretch to each financial year, advance tax collections become a much-watched metric for a whole bunch of market players. Banks watch the number to predict liquidity requirements, analysts monitor it to forecast quarterly results from companies, and economists scan it to map the economy. What is it? Advance tax simply means paying tax as and when the money is earned, rather than wait for the end of the fiscal year. The Income Tax Act requires taxpayers to shell out advance tax, in every case where the tax liability (after TDS cuts) during a fiscal year is Rs.10,000 or more. So, based on the estimated income for the
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Glimpses of Budget 2016
March 26, 2016
lf your income is less than Rs. 5 lakh, you will get a tax rebate of Rs.5,000 under Section 87A. Currently, the tax rebate is Rs. 2,000. If you do not have a house of your own and you do not get any house rent allowance from your employer, you can claim a deduction of Rs. 60,000. 00 under Section 80GG. At the moment, this Limit is Rs. 24,000. A National Pension System (NPS) subscriber can withdraw up to 40 per cent of the accumulated corpus tax free .At the moment, withdrawals are taxed at the income-tax slab applicable to the subscriber. Service tax on single-premium annuity (insurance) policies has been reduced to 1.4 per cent from 3.5 per cent
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De-Tax: How clubbing of income works
March 22, 2016
You will be taxed on income that’s yours but masquerades as someone else’s It’s a trick as old as the hills — trying to pass off your income as someone else’s to cut tax outgo. But the taxman wised up to this long ago and armed himself with clubbing provisions — Sections 60 to 64 of the Income Tax Act, to be precise. No, you won’t get chased by a sleuth with a club. But you can be made to pay tax on income that’s actually yours but masquerades as someone else’s. Here’s an idea of how clubbing of income works. Say, you come under the 30 per cent tax slab and your spouse has no taxable income. Let’s open
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PAN mandatory for all transactions over Rs.2 lakh from New Year
January 12, 2016
Move aimed at countering black money, says Finance Minister Jaitley Finance Minister Arun Jaitley on Tuesday said that to counter domestic black money, the Centre will make it mandatory to furnish PAN (Permanent Account Number) for cash dealings above Rs. 2 lakh. The Revenue Secretary, Hasmukh Adhia, said later in the evening that the Finance Ministry has changed the reporting requirements of PAN, making it mandatory for all transactions of overRs. 2 lakh effective January 1, 2016. “This will include transactions through cash, cheque and jewellery,” he told newspersons. In Budget 2015-16, Jaitley had proposed making PAN mandatory for all transactions over Rs.1 lakh, but Adhia said it has been revised upwards to “give some breathing time to people” based
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When are property gifts taxed?
January 12, 2016
Nature of the gift, its value and the relationship between donor and donee are determinants It is common in India to gift immovable property within the family. While the tax law takes cognisance of this and does not provide for taxation of such gifts to specified relatives, there are situations when a gift of immovable property is taxed. Here’s the low-down on when a gift is exempt from tax and when it is not. What’s tax-free? Normally, the giver is not liable to tax on any gifts made by him. But gifts received are taxable in the hands of the receiver under the head ‘Income from Other Sources’ under the Income Tax Act, 1961. However, the Act provides for specific
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