Section 10(13A) of the Income Tax Act, 1961, provides exemption from tax on house rent allowance (HRA) received for salaried employees residing in a rented accommodation. Self-employed individuals and those salaried employees who do not have HRA in their salary structure cannot claim deduction of HRA. Still they can claim benefits on the house rent … Continue reading “House Rent Allowance – How to claim and maximize deduction?”
Prime Minister Narendra Modi led government caught the nation by surprise on November 8th, 2016, in a massive demonetization move. 3 weeks on, and the crackdown has only intensified to ride out the ills of black money hoarding and illegal monetary activities in the country. Following the bold stance, the Finance Minister, Arun Jaitley … Continue reading “Tax implications on Black Money: The Demonetization impact!”
The Government of India recently withdrew the legal validity of Rs 500 and Rs 1,000 currency notes. This means that all Rs 500 and Rs 1,000 notes with you in hand become invalid with effect from November 8th, 2016. Therefore, you cannot do any transaction with both of these currency notes. However, the … Continue reading “Places where you can use Rs 500 and Rs 1,000 notes till November 24th, 2016”
The Government of India recently withdrew the legal validity of Rs 500 and Rs 1,000 currency notes. This has led to chaos in the Country, with lots of questions running in the minds of people. The Reserve Bank of India has been issuing various answers to clarify confusions among people. We have explained … Continue reading “All you should know about Rs 500 and Rs 1,000 ban – RBI Clarifications”
With progression in the economy and an increasingly educated and well-informed populace, long term investment schemes have seen an upsurge. This is because the premia paid towards many policies and subscription to certain equity linked mutual funds, for example is not subject to tax, by and large. Simply put, an investor can save tax … Continue reading “Section 80C: Investment linked tax benefits”
A major concern for every earning individual today, is the quantum of benefit gained from medical insurance policies in comparison to the medical expenses incurred at a time of illness, both for self and for family members. The first step towards a sound financial plan is to have access to adequate health insurance, and … Continue reading “Section 80D: Tax benefits of health insurance and expenses”
The Government of India prescribes applicable tax rates and slab rates every year in its annual finance budget. Income tax rates applicable for Financial Year 2016-17 are as follows: All Individuals (resident or non- resident, Men or Women) below the age of 60 years: Illustration Now let us understand this with an example. … Continue reading “Income tax rates for 2016-17”
Missed the August 5th due date for filing ITR this year? Well, this might not outrightly land you in Jail but there are certain consequences of not filing your ITR on time. In this article we discuss the interest, penalty and prosecution implications of not filing your ITR on time. Interest under section … Continue reading “Interest, Penalty and Prosecution for missing ITR deadline”
Every year payment of taxes is followed by an income tax return (ITR) which is to be filed with the Government of India (usually 31st July, of the following year for individual taxpayers). Every taxpayer should be aware that filing ITR is not optional if you have taxable income. Notably, this year the due … Continue reading “Missed the August 5th deadline for ITR? This is what you would lose.”
What is Co-ownership? Co-ownership means where a single house property is owned by more than one person. How to calculate tax on House Property income in case of co-ownership? If there are multiple owners of a single house property, then the income shall be taxed in the hands of all such owners in the ratio of … Continue reading “House Property income for Co-Ownership”
