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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 Return Filing for Salaried Individuals

Tuesday, August 6th, 2019 Amritesh no responses

Last Date for Income Tax Return Filing for Financial Year 2018-19 (Assessment Year 2019-20) is 31st August, 2019. The filing date was extended from 31st July,’19 to allow Individuals sufficient time to file their returns. It is very important for the Tax Payers to file the returns on time, as missing the deadline will result in penalty of up to Rs 10,000/- or even prosecution in case one fails to file the ITR altogether. Now, everyone needs to file their returns online except for Super Senior Citizens above 80 years of age. Income Tax Department: ITR-1 Filing Instructions Income Tax Slabs and Rates for Financial Year 2018-19 (AY 2019-20) Income Tax Department has also launched the “e-filing lite” version to…

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…

Income Tax Slab Rates FY 2019-20 (AY 2020-21)

Friday, July 5th, 2019 Amritesh 4 responses

Income Tax Slab Rates remain unaltered in the Union Budget 2019 for the current Financial Year. Tax Rebate U/S 87A increased in the Interim Budget 2019 from Rs 2,500/- to Rs 12,500/- is available to the Individuals with income up to Rs 5 lacs. Thereby, Individuals with Taxable Income up to Rs 5 lacs will enjoy 100% tax rebate.  Income Tax Slab Rates in the chart above shows the latest Slabs applicable for the Financial Year 2019-2020 (Assessment Year 2020-21). Health & Education Cess is levied @ 4% on Income Tax payable.  Standard Deduction re-introduced last year is increased to Rs 50,000/-. Higher Surcharge to be levied on income slabs of Rs 2-5 crore & above Rs 5 crore. Health…

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…

Professional Tax: Enrolment, Registration & Payment

Wednesday, April 3rd, 2019 Amritesh 15 responses

Professional tax (PT) 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. States were conferred the power of leveling the Tax under Clause (2) of Article 276 of Constitution of India,1949. The rate at which PT 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 paid as PT during the year is allowed as Deduction under the Income Tax Act. The professional tax is a source of revenue for the State…

Professional Tax Rates For The FY 2019-20

Monday, April 1st, 2019 Amritesh 373 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…

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