There’s no free lunch with food coupons
November 26, 2015
Being tax-free, the benefits of the meal vouchers have to meet stringent requirements Companies — both in the private and public sectors — give out meal coupons as a perk to their employees. This benefit is usually limited to Rs.1,000-2,000 a month. Still, there are many restrictions on their usage because of the tax-free nature of the benefit. If you receive this perk, it is important to understand the many dos and don’ts involved. How it works Employers pre-pay a certain amount per employee every month to a meal-payment service provider. In return, they get pre-printed coupons or a prepaid card that is given to the employees. These can be used to pay for meals, ready-to-eat food items and non-alcoholic
More »
Income Tax refunds to be sent to taxpayers in 7-10 days
October 5, 2015
Dept received 2.06 crore returns on its e-filing portal this year, against 1.63 crore filed last year In what could be good news for lakhs of taxpayers in India, the Income Tax Department will now process and send refunds in a short time of 7-10 days, as its latest technology upgrade of electronic and Aadhaar-based ITR verification has begun on a successful note. The department’s latest initiative to verify an Income Tax Return (ITR) by Aadhaar or other bank database, has received positive response from ITR filers because of which the taxman, for Assessment Year 2015-16, was able to process and send refunds to bank accounts of eligible taxpayers in less than 15 days. Customer-friendly system “Gone are the days
More »
How leave encashment is taxed
August 26, 2015
Government employees get full exemption on quitting, but others don’t Government employees may not draw the hefty pay packets their counterparts in the private sector do. But then, they do enjoy some unique ‘neighbour’s envy, owner’s pride’ benefits. One such goodie is the full tax exemption on the leave encashment they get on calling it quits from their jobs. This can translate into a tidy saving. Say, on leaving her job after years of service, a government employee gets leave encashment of Rs.6 lakh. She gets to take home the entire sum. Had the amount been taxable, she would have been poorer by about Rs. 62,000 to Rs.185,000 depending on her tax slab. Restrictions for some Now, the taxman is
More »
De-Tax: The HUF route to tax planning
August 26, 2015
Affluent Indian families often use an HUF structure to plan finances and reduce taxes An Hindu Undivided Family (HUF) is a separate legal entity under the Income Tax Act which is eligible for a basic income exemption limit of up to ₹2.5 lakh and several deductions, just like an individual. Under existing laws, the moment an individual (Hindu, Buddhist, Sikh or Jain) is born, he becomes a part of an already existing HUF of his father. Once he marries, another HUF headed by him comes into being. An HUF comprises the karta (the eldest male member), his wife and his three successive generations, which includes children, grandchildren and great grandchildren. It also includes the wives of the sons, grandsons and
More »
