Employees Provident Fund Organisation (EPFO) in its FAQs on reduction of Employees' Provident Fund (EPF) contribution to 10% for both employers and employees for May, June and July, 2020 has clarified that employees can also contribute at higher rate i.e. 12%. The higher contribution by an employee will go into Voluntary Provident Fund (VPF). Puneet Gupta, Director, People Advisory Services, EY India answers some of the common queries on VPF. Can an employee make VPF contribution? Is there a limit on the amount of VPF contribution that an employee can make?As per Section 6 of the Provident Fund Act, if an employee so desires, he/she can make provident fund contribution in excess of the statutory rate subject to the condition that the employer shall not be under an obligation to pay any contribution over and above its contribution payable under the law.Thus, an employee can make VPF contribution at any time while he/she is a contributory member of Employees' Provident Fund … [Read more...] about Voluntary provident fund: Investing, contribution, interest rate and other things to know
Investment losses tax deductible
Democratic leaders and Indian- American lawmakers have labelled the tax bill passed by the US Congress as "tax scam", as it robs future of the children, ransacks the middle class and rewards one per cent of corporate America. The entire Democratic party voted against the tax reform bill. The passage of the bill by the Senate and House of Representatives is considered to be the first major legislative victory for President Donald Trump, after coming to power. "The GOP tax scam robs from our children's future and ransacks the middle class in order to reward the top one per cent and corporate America," Democratic leader Nancy Pelosi said reflecting the sentiments of her party members. Trump's Republican Party enjoys majority in both the chambers of the US Congress - House of Representative and the Senate. "Now we know they're popping champagne down Pennsylvania Avenue," Pelosi said referring to the celebrations inside the White House. "There are only two places where America is … [Read more...] about Tax reforms a scam, rewards corporate America: Democrats
The government Saturday notified income tax return (ITR) forms for taxpayers for filing returns for assessment year FY 2020-21. Taxpayers including individuals, Hindu undivided family, professionals and businesses, will be able to avail benefits of savings or investments made between April 1 and June 30, following the extension timelines provided by the finance ministry owing to Covid 19 pandemic. Taxpayers will have dedicated space in each of the ITR forms - Sahaj (ITR-1), Form ITR-2, Form ITR-3, Form Sugam (ITR-4), Form ITR-5, Form ITR-6, Form ITR-7 and Form ITR-V – to describe investments of expenditures made during the quarter ended June 30, which will get counted in deductions or exemptions. The government has extended several timelines under income tax by a quarter from March 31, to allow taxpayers to make investments, payments or donations for claiming exemptions and deductions, besides the roll over benefit of capital gains. The forms also seek details from taxpayers … [Read more...] about Income tax return forms for FY 2020-21 notified
Bonds have much more money invested in them worldwide than in equities, but don’t get the column inches they deserve. That’s because bond returns don’t appear as spectacular as those in stocks, but in stressful times, they are good bets - more so if state backed. So, the latest Bharat Bond ETF issue will likely draw investors, who should earn 150 basis points more than the yields on existing tax-free debt. Set to be launched in July, the latest Bharat Bond ETF series aims to raise Rs 14,000 crore. This tranche of mutual fund units, tapping into retail savings, is estimated to yield a tax-free return of 6.21% for people in the marginal tax bracket. Those returns easily outpace the gains from existing tax-free bonds in the secondary market, perhaps by more than 150 basis points. So, these are cool bets for high net worth individuals shifting funds from risky assets. Tax Free Bonds (AAA) are now trading at 4.65% yield-to-maturity, a gauge used to measure returns on … [Read more...] about Should you invest in Bharat Bond ETF?
NEW DELHI: Singapore was the top source of foreign direct investment into India for the second consecutive financial year, accounting for about 30 per cent of FDI inflows in 2019-20. In the past two financial years, FDI from Singapore has surpassed that from Mauritius. In the last financial year, India attracted USD 14.67 billion in FDI from Singapore, whereas it was USD 8.24 billion from Mauritius, according to the data of the Department for Promotion of Industry and Internal Trade (DPIIT). In 2018-19, Singapore's FDI aggregated at USD 16.22 billion, while that from Mauritius it was USD 8.08 billion. According to experts, Singapore has been able to outpace Mauritius with its ease of doing business policies, simplified tax regime and a large number of private investors. "Mauritius was once seen as a tax haven making it the most favoured nation for routing investments in India. April 2017 brought key amendments to the bilateral treaties with Mauritius and Singapore which … [Read more...] about Singapore top source of FDI in FY20 with investments worth USD 14.67 bn