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Salary Structure & Components

Saturday, September 7th, 2019 Amritesh no responses

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 4 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…

Small Savings Schemes Interest Rates: Q2 FY 2019-20

Saturday, June 29th, 2019 Amritesh no responses

Small Savings Schemes interest rates have been revised for the 2nd 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 revised for the current period; by 10 basis points (0.1%). 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 slightly higher as compared to rates offered by Banks, along with Tax Benefits on Selected Schemes. The Central Bank (RBI) had been clamoring for…

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…

How to e-File Income Tax Return (ITR1-Sahaj)?

Thursday, July 26th, 2018 Amritesh 5 responses

The last date to file income tax return for the Financial Year 2017-18 (Assessment Year 2018-19) is 31st July, 2018 (Date extended till 31st August,2018 for certain categories of tax payers). Previously, I had shared details of the Income Tax Return (ITR) Forms applicable for different class of income, link for the same is provided below. Income Tax Filing: Types of Income Tax Forms Income Tax Slabs For Financial Year 2017-18 (Assessment Year 2018-19) In this post I will discuss the probable steps to file return using ITR-1 (Sahaj) form in a nutshell. The detailed instruction related to file income tax return is provided in the link below. Income Tax (ITR-1) Instructions: Income Tax Department ITR-1 (Sahaj) is applicable for…

Income Tax Return Filing: Forms

Tuesday, July 4th, 2017 Amritesh 2 responses

Income Tax Return Forms for the Financial Year 2016-17 (Assessment Year 2017-18) may be downloaded from the Income Tax Department (ITD) official portal. CBDT has provided number of forms for the Income Tax payers depending on the source of income of the respective individuals. The various types of Income Tax Return (ITR) and its applicability have been discussed in this post. Few major changes have been made to the ITR Forms to make it simpler. Changes introduced in the Income Tax Return Forms for the Financial Year 2016-17: Paper Returns can only be filed by Individuals above the age of 80 years or one’s (includes HUF) whose annual income is up to 5 lacs during the Financial Year. New Single…

Equity Linked Saving Scheme (ELSS): An Investment cum Tax Saving Scheme

Sunday, April 30th, 2017 Amritesh 2 responses

Equity Linked Saving Scheme (ELSS) is equity oriented Mutual Fund scheme in which allocation is primarily made in to Equity market. In some of the Schemes partial allocation is also invested in debt instruments to provide more balance to the Fund. However since majority of the investment is allocated in equity it is highly volatile in nature and returns are dependent on the market performance. Thus the prices of the units keep fluctuating with the shifts in the Equity market. Although diversification of funds in equities across sectors reduces the risk. It is an open ended fund and can be subscribed at any point of time. The Funds have their Net Asset Value (NAV) which changes according to the market scenario and Investment…

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