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Income Tax Financial Year 2020-2021 (AY 2021-22)

Tuesday, March 31st, 2020 Amritesh no responses

Personal Income Tax has undergone drastic changes for the Financial Year 2020-21. New Tax Regime has been proposed, in continuation with the Existing Tax Regime. Individuals now have the option to choose between these two Tax Regimes, the existing tax regime remains unchanged while the new tax regime comes with new slabs and reduced rates. Under the existing regime Individuals will continue to enjoy the Tax Breaks, but new tax system does not have provision for such tax breaks. However, under the newly proposed Tax Regime, the tax rates have been reduced significantly to provide benefits to the Individual Tax Payers, not looking to avail Tax Deductions. The new tax system will benefit Individuals who are not interested in availing…

Income Tax Slabs FY 2020-21 (AY 2021-22)

Saturday, February 15th, 2020 Amritesh no responses

Under New Tax Regime: Income Tax Slabs Budget 2020 announced recently comes with sweeping changes to the Personal Income Tax Slabs. The tax rates have been slashed and the slabs revised as per the new tax regime. However, under the new tax system 70 exemptions available previously will be removed, including Standard Deduction and House Rent Allowance (HRA). Individuals will have the option to choose between existing tax regime or the newly introduced tax regime. The new tax regime will provide relief to the tax payers in terms of reduced tax rate, increasing the take home amount. But the fact that it does not provide incentive to invest is one of the major drawbacks under the newly introduced tax norms,…

Small Savings Schemes Interest Rates: Q3 2019-20

Thursday, October 10th, 2019 Amritesh no responses

Small Savings Schemes interest rates remain unchanged for the 3rd Quarter of the Financial Year (FY) 2019-20. The interest rate on popular Savings Schemes like Kisan Vikas Patra (KVP), Public Provident Fund (PPF) and National Savings Certificate (NSC) has been retained for the current period; the rates were reduced by 10 basis points (0.1%) in the previous quarter. Government had decided to align the small savings interest rates with the relevant market rates of Government Securities. The rates are now recalibrated every quarter in order to maintain it at par with the current market rates. The interest rates on Small Savings Schemes are marginally higher as compared to rates offered on Banks Deposits, along with Tax Benefits on Selected Schemes.…

Tax Planning for Salaried Individuals

Thursday, September 19th, 2019 Amritesh no responses

Tax Planning for Salaried Individuals is very important as it not only helps in reducing the tax outgo but also encourages investment towards secured future. Salaried Individuals may avail the tax benefits to significantly reduce their tax outgo.  Furthermore, some of the salary components are partially or fully exempted from tax, subject to fulfilment of the conditions laid down for the same. Standard Deduction is one of the benefits available to the Salaried Class to reduce the tax liability. Salary Components and Income Tax Implications Contribution to Statutory Funds: Tax Planning for Salaried Individuals Employees Provident Fund (EPF): Contribution towards EPF is eligible for deduction under section 80C up to the maximum limit of Rs 1,50,000/-. Currently, EPF fetches an…

Salary Structure & Components

Saturday, September 7th, 2019 Amritesh one response

Salary is paid in lieu of service provided by an Employee to the Employer in accordance to the terms agreed upon in the Employment Agreement. Employer is also required to make legitimate deductions from the Salary as per the provisions of the Statutory Acts. Salaried Individuals need to understand the Salary Structure & Components in order to efficiently minimise the out go. Deduction from Salary includes contribution to Statutory Funds, Tax Deducted at Source (TDS), Professional Tax, etc. Individuals may be able to increase their take home salary by smart planning. This is possible by availing sops intended at providing relief to the Salaried Individuals. Salary Structure & Components: Difference between CTC, Gross Salary and Net Salary Cost to Company…

Income Tax Deductions & Exemptions FY 2019-20

Monday, July 8th, 2019 Amritesh 6 responses

The Income Tax Slab Rates remain unchanged for the Financial Year 2019-2020. However, Individuals with Taxable Income up to Rs 5,00,000/- per annum may avail Tax Credit up to Rs 12,500/- under Section 87A on the Income Tax payable. Thereby, implying that Individuals with Income up to Rs 5,00,000/- will not have any Tax Liability for the Financial Year 2019-20 and Assessment Year 2020-2021. Standard Deduction benefit has been increased to Rs 50,000/- for the Financial Year 2019-20. For FY 2019-20, Income Tax Deductions and Exemption is available to reduce the Taxable Income, allowing Individuals to minimize the Tax Implications. Income Tax Calculation for Various Income Slabs  Income Tax Slabs and Rates For Financial Year 2019-20 Income Tax Deductions and…

Income Tax Calculation FY 2019-20

Sunday, July 7th, 2019 Amritesh 3 responses

Income Tax calculation for Salaried Individual (below 60 years of age) for the Financial Year 2019-20 has been discussed below, post Budget 2019. The Income Slabs and Rates remain unchanged for the Assessment Year 2020-21 (FY 2019-2020). Standard Deduction has been raised to Rs 50,000/-, Tax Rebate under Section 87A has been increased to Rs 12,500/- from Rs 2,500/-. Thereby, Individuals with Taxable Income up to Rs 5 lacs will not be required to pay any income tax. Income Tax Slab Rates For Financial Year 2019-20 Income Tax Deductions and Exemptions Standard Deduction is a flat deduction from the Salary Income of an Individual. Health & Education Cess @ 4% is levied on Income Tax Payable. Income up to Rs…

Intraday Trading Income Tax Reporting

Thursday, June 6th, 2019 Amritesh no responses

Equity Investors classify gains/losses as capital gains based on the holding period. Equity or Equity Oriented Funds held for more than 1 day but less than 12 months, the gains is classified as Short Term Capital Gain (STCG). In case, Equity Investment is held for more than 12 months, the gain is classified as Long Term Capital Gain (LTCG). However, Gain/Loss incurred in intraday trading is not treated as Capital Gains for taxation purpose. Intraday Trading Income Tax is treated differently as Gains are not considered as Capital Gains but as Business Income. Again, such Business Income is of two types, Speculative Business and Non Speculative Business. Long Term Capital Gain (LTCG) Tax Short Term Capital Gain (STCG) Tax Speculative…

ITR Forms Applicable for AY 2019-20 (FY 2018-19)

Thursday, May 9th, 2019 Amritesh no responses

Time for filing income tax returns is here. Income Tax Return (ITR) Forms for the Assessment Year 2019-20 (Financial Year 2018-19) is available on the Income Tax Portal. Central Board of Direct Taxation (CBDT) has issued 7 ITR forms for the Financial Year 2018-19 (Assessment Year 2019-20). The applicability of the ITR forms has been discussed below. IT Forms for Assessment Year 2019-20 The new ITR forms require Salaried Individuals to provide the basic details of the Salary (components as available in Form 16). Furthermore, for Income from Businesses, GST and Turnover details need to be furnished while filing returns. Non-Resident Individuals need to provide any one Foreign Bank account details so that the refund could be processed. Income Tax…

Top ELSS Mutual Funds FY 2019-20

Thursday, May 2nd, 2019 Amritesh one response

Mutual Fund is gaining popularity among Investors looking for higher returns. In this post I will share my Top ELSS Mutual Funds FY 2019-20 for the Financial Year 2019-20. Equity Linked Savings Scheme (ELSS) is Tax Saving Mutual Fund Investment Scheme. The investment in the scheme is eligible for Income Tax Deduction U/S 80C up to the maximum limit of Rs 1,50,000/-. However, the maximum limit is inclusive of tax benefits available on other investment instruments eligible for deduction under Section 80C of the Income Tax Act. ELSS has the shortest lock in period of 3 years among other tax saving investment plans. The return on the ELSS Fund is linked to capital market which makes investment moderately volatile, but…

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