Long Term Capital Gain (LTCG)

Wednesday, June 6th, 2018 Amritesh no responses

Gains arising out of transfer of capital assets are considered as Capital Gains. Any Profit or Gain made on transfer of capital assets is liable to tax under the head “Capital Gains” of the Income Tax Act. “Sale Consideration” is an important component for determination of the Tax Liability under Capital Gain. Capital Gain Tax is not levied when there is a transfer of property, due to inheritance. Although, Capital Gain Tax is levied on the Gain made by the heir through sale of such assets. Gains from Sale of Capital Assets is classified into: Short Term Capital Gains (STCG) Long Term Capital Gains (LTCG) STCG has been discussed in details earlier. Please refer to the link shared below. Short…

Professional Tax Rates For The Financial Year 2018-19

Wednesday, April 4th, 2018 Amritesh 175 responses

Professional tax is a tax levied by the various State Governments of India on salaried individuals, working in government or non-government entities, or in practice of any profession, including Chartered Accountants, Doctors, Lawyers etc or carry out some form of business. This form of tax is in practice for a long time and States were conferred the power of leveling the Tax under Clause (2) of Article 276. The Professional tax rates is based on the Income Slabs set by the respective State Governments. However, the maximum Professional Tax that may be levied by any State has been capped at Rs 2500/-. The total amount of professional tax paid during the year is allowed as Deduction under the Income Tax…

Professional Tax: Procedure and Guidelines

Thursday, March 15th, 2018 Amritesh 4 responses

Professional tax is levied by the State Governments in India on salaried individuals, working in government or non-government entities, or in practice of any profession, including chartered accountants, doctors, lawyers etc or are involved in business. Professional Tax is levied by the respective States. States were conferred the power of leveling the Tax under Clause (2) of Article 276 of Constitution of India,1949. The rate at which Professional tax is charged is based on the Income Slabs set by the respective State Governments. However the maximum Professional Tax that can be levied by any State till date is Rs 2500/-. The total amount of professional tax paid during the year is allowed as Deduction under the Income Tax Act. The…

Tax Deductions For Financial Year 2018-19

Thursday, February 8th, 2018 Amritesh no responses

Salaried Individuals with Annual Income above Rs 2,50,000/- per annum are liable to pay Taxes on the earnings above the Income slab. However, Individuals with Taxable Income up to Rs 3,50,000/- per annum may avail Tax Credit up to Rs 2,500/- under Section 87A on the Income Tax payable. Thereby, implying that Individuals with Income up to Rs 3,40,000 will not have any Tax Liability for the Financial Year 2018-19 and Assessment Year 2019-2020. Since the newly introduced Standard Deduction provides flat deduction of Rs 40,000/- on the Salary Income. Income Tax Applicable for Various Income Slabs Income Tax Slabs and Rates For Financial Year 2018-19 In this post we would look at the Tax Deductions available under various Sections…

Income Tax Applicability For The Financial Year 2018-19

Tuesday, February 6th, 2018 Amritesh 2 responses

The Tax Implications shown above is applicable for Salaried Individuals below 60 years of age. For the Financial Year 2018-19, Standard Deduction of Rs 40,000/- is available to the Salaried Individuals in lieu of Conveyance Allowance of Rs 19,200/- and Medical Reimbursement of Rs 15,000/- available in the Financial Year 2017-18. Standard Deduction is a flat deduction from the Salary Income of an Individual. However, the Cess on the Income Tax Payable has been increased by 1%. Income upto Rs 2,50,000/- is exempted from Tax. Tax Rebate U/S 87A of Rs 2,500/- is available to Individuals with Taxable Income up to Rs 3,50,000/-. Health and Education Cess of 4% is additionally levied on the Income Tax payable for the Financial…

Income Tax Slabs & Rates Financial Year 2018-19 (Assessment Year 2019-20)

Saturday, February 3rd, 2018 Amritesh 2 responses

Income Tax Rates remain unaltered in the Budget 2018 for the next Financial Year. The chart above shows the latest Tax rates applicable for the FY 18-19 (Assessment Year 2019-20). However Cess has been revised to 4% from 3% and Standard Deduction reintroduced, details about the applicability on the Income along with exemption limit has been discussed below. Impact of the minor changes to your Tax Liability will be discussed in the upcoming post. Income Tax Rates applicable for Senior citizens has also been discussed below. Re-Introduction of Standard Deduction for Salaried Individuals: Standard Deduction of Rs 40,000/- has been provided in lieu of existing Conveyance Allowance (Transport) of Rs 19,200/- and Medical Reimbursement of Rs 15,000/-. Thus the actual…

Short Term Capital Gains: All You Need To Know

Wednesday, December 6th, 2017 Amritesh no responses

Capital Gain Capital Gain is the appreciation in value of the asset over a period of time when compared to the purchase price. The Gain is realized only at the time when the asset is sold. This post discusses about Short Term Capital Gains. Any Profit or Gain arising out of transfer of capital asset held in form of investment (including real estate or stocks) is known as Capital Gain. The gain or profit is charged to Capital Gains Tax in the year the sale of asset is done. Any property, whether movable or immovable when sold, capital gain tax is applicable. However, Income Tax Act exempts assets received in form of inheritance or will. Income from Capital Gain is…

6 Ways To Save Tax: All You Need To Know

Thursday, July 20th, 2017 Amritesh one response

Tax Planning is the evaluation of individual’s financial position from the tax point of view so as to optimize the Finances in the most efficient way. It helps to make optimal use of the tax benefits available in order to reduce the tax liability during the financial year. Tax Planning is the best method of reduce Tax Liability and utilize the tax exemptions provided on the Income. Tax Planning is the ethical mean to reduce the tax liability through proper tax exemptions channels available to the Tax Payers. Most of the Individuals are aware of the Tax Deductions available U/S 80C up to the maximum limit of Rs 1,50,000/-. However, Individuals are eligible to avail additional deductions under some of…

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

Saturday, July 8th, 2017 Amritesh 3 responses

The last date to file income tax returns for the Financial Year 2016-17 (Assessment Year 2017-18) is 31st July, 2017 ITR-1 (Sahaj) is applicable for following class of Income for the Individuals: Income from Salary/Pension Income from House Property (Only 1 House) Income from Other Sources This form is not applicable for following class of Income for Individuals: Income from more than 1 House Property Winnings from Lotteries or Horse Races Income from Capital Gains Not Exempt from Tax (Short or Long) Income from Agriculture Income in excess of Rs 5,000/- Income from Business or Profession Losses brought forward from previous years or Other Head Sources. I have discussed about the various Tax Forms and their applicability in my previous…

Income Tax Return Filing: Types of Income Tax 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. Income Tax Department (ITD) 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…