Mutual Fund Taxation-Capital Gains

Thursday, September 13th, 2018 Amritesh no responses

Capital Gain Tax is levied on transfer (sale) of Capital Assets. Investment in Mutual Funds is ideally done with the aim to earn decent returns which would enable Investors to meet future financial objectives. Capital Gain Tax on Mutual Fund gain is levied as per the provisions under the Income Tax Act. In this article we would try and understand the Mutual Fund Taxation-Capital Gains and Tax Implications. Classification of Mutual Funds (Long or Short Term Gains) Capital Gain may be classified as Short Term Capital Gain (STCG) or Long Term Capital Gain (LTCG) based on the holding period of the respective asset. Equity oriented Mutual Funds, Balanced Mutual Funds (More than 65% diversified in to Equity), holding period of…

Tax Benefits on Health Insurance

Friday, August 31st, 2018 Amritesh no responses

Health Insurance is aimed at providing the Insured with financial cover in case of any medical exigency.  Health Insurance covers the medical cost incurred on treatment undergone by the policy holder or any of the member covered under the policy. The Health Insurance plans have been discussed in my previous articles. However, in this post I will discuss about the Tax Benefits on Health Insurance available to the Individuals on the premium paid towards the same. These tax benefits are available on the Mediclaim (Cashless) and Critical Illness Insurance Plans. Health Insurance: Importance & Need Medical Insurance (Mediclaim) Accident Insurance Critical Health Insurance Budget 2018, Tax Deduction for current Financial Year (FY) 2018-19 on premium paid towards medical insurance for…

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

Thursday, July 26th, 2018 Amritesh 4 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…

Instant e-PAN Online For Individuals

Tuesday, July 10th, 2018 Amritesh 2 responses

Income Tax Department (IDT) has launched facility to apply for instant e-PAN online for Individuals with valid Aadhaar ID, free of cost, for limited time period. This step is taken to facilitate the income tax return filing process, the last date for return filing is 31st July, 2018. The facility is provided for free and e-PAN (Permanent Account Number) is allotted in shortest possible time to the Individual. Currently, the Instant e-PAN facility (Beta Version) is closed as of 06.07.2018. However, the facility is expected to be made available at a later date. Income Tax Return (ITR Forms): Assessment Year 2018-19 e-PAN card is digitally signed electronic version of the conventional PAN Card issued by the Income Tax Department using the…

Income Tax Return (ITR) Forms: AY 2018-19

Sunday, July 1st, 2018 Amritesh 2 responses

Income Tax Return (ITR) Forms for the Financial Year 2017-18 (Assessment Year 2018-19) is available on the Income Tax Portal. Central Board of Direct Taxation (CBDT) has issued 7 Income Tax Return (ITR) forms for the Financial Year 2017-18 (Assessment Year 2018-19). The applicability of the Income Tax Return (ITR) forms has been discussed below. Return Forms: Income Tax Assessment Year 2018-19 Some of the changes introduced in the previous year have been continued in the current Assessment Year as well. Instructions related to Filing of Returns The new forms require Salaried Individuals to provide the basic details of the Salary (components as available in Form 16). Furthermore, for Income from Business, GST and Turnover details need to be furnished…

Marginal Relief on Surcharge: Income Tax

Friday, June 22nd, 2018 Amritesh no responses

Income Tax is levied on the basis of the income slab an Individual falls under and the tax rate fixed for the same. The maximum tax rate on Individual income currently levied is 30% plus Health & Education Cess of 4%. Income Tax Surcharge of 10% is levied if the income exceeds 50 lakhs, whereas income above 1 crore attracts 15% surcharge on the Tax payable. Marginal Relief on Surcharge is applicable, provided the incremental income tax (including surcharge) is more than the incremental income (above Rs 50 lakhs or Rs 1 crore, as the case may be). As per Concept of Marginal Relief, if the amount payable as surcharge exceeds the income above Rs 50 lakhs or Rs 1…

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 253 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 6 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 2 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…
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