It is always better to plan your tax saving investments in advance than make the wrong moves at the fag end of the financial year. With FY 2019-20 nearing its end, some of you could have been late in tax planning and are likely to invest in any tax-saving instrument just to reduce the tax liability for the year. However, reducing tax liability may not necessarily require an investment to be made as there are certain expenses which also give you tax breaks. Further, one needs to be aware of certain important sections and avenues of the Income Tax Act under which the tax benefits can be availed. Of the many tax saving avenues, the most popular are the tax benefits under Section 80C of the Income-tax Act. Let's first see how Section 80C helps in reducing tax liability. Under Section 80C, an amount equal to the investment that you make in specified instruments, or if you incur any expense specified under the section up to a maximum of Rs 1.5 lakh in a financial year reduces your gross … [Read more...] about Check these 7 tax savers before you invest again
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The Finance Minister recently said that the employee’s contribution to PF will be reduced from 12% to 10%. Will it not increase our tax burden since PF is non-taxable? Also, is it to be done by choice of the employee or is it compulsory?Jayant R. Pai CFP and Head - Products, PPFAS, Mutual Fund replies: The reduction in contribution will lead to an increase in your takehome pay which, in turn, will be taxed at your income-tax slab rate. This reduction has to be undertaken by all companies falling within the ambit of EPF. As far as I am aware, employees too will have to mandatorily opt-in for this reduction. My wife and I bring home around Rs 1.2 lakh per month. My wife’s income doesn’t fall in any tax bracket. We are planning to buy a budget home in her name under the Pradhan Mantri Awas Yojana (PMAY) scheme. We will be taking a loan of Rs 15 lakh. Can I show the housing loan interest in my tax return?Homi Mistry Partner, Deloitte Haskins & Sells replies: If the … [Read more...] about Employee’s contribution to PF will be reduced to 10%. Will it increase the tax burden?
Determination of FMV: unlisted – price determined by the merchant banker; if listed – if traded, the average of opening price and the closing price on the exercise date, in case traded on both the exchanges, then, the exchange which records the most volume is to be considered. … [Read more...] about I have not received my income tax refund. Whom should I approach? Answers to your personal finance queries
Other agents, too, report that expats have been rushing to sell ahead of the deadline. “There has been a spike in these listings,” Ray White Double Bay’s Warren Ginsberg said. … [Read more...] about Game of Thrones house sold off as expats clear the decks ahead of June 30 deadline for tax slug
"With the entire assessment process now computerised, the income-tax department wants to finish the whole process within one financial year. It benefits the department as well as the taxpayers. Faster processing means faster assessment and quicker refunds," says Chetan Chandak, head -- tax research, H&R Block India. … [Read more...] about Filing IT returns? What you must know