Foreign Account Tax Compliance Act (FATCA): All You Need To Know

Saturday, May 6th, 2017 Amritesh no responses

Foreign Account Tax Compliance Act (FATCA) has been made mandatory for the Investors and Bank holders alike from 1st May 2017 in India. FATCA is an anti tax evasion agreement signed between United States and India which is effective from 31st August 2015. FACTA regulation is aimed at curbing tax evasion practices and bringing uniformity in Global Tax compliance. India had entered into an agreement with the United States for implementation of FATCA with effect from 31st August 2015. Bank Account holders as well as Mutual Fund investors need to comply with the regulation and have to submit the FATCA Declaration form to their respective Bank Branch and Financial investment intermediaries. How does FATCA Impact? FATCA facilitates automatic exchange of…

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 based 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 allocation is 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…

Income Tax Deductions Available For The Financial Year 2017-18

Thursday, April 20th, 2017 Amritesh no responses

Individuals whose Annual Income is above Rs 2,50,000/ p.a- will be liable to pay Taxes on the earnings above the prescribed amount. However, Individuals earning up to Rs 3,50,000/- p.a can avail Tax Credit up to Rs 2,500/- Under Section 87A on the Tax payable. Thereby, implying that Individuals with Income up to Rs3,00,000 would not be required to pay tax as per the new Tax Slabs for the Financial Year 2017-18. In this post we would discuss the Tax Deductions available under various Sections and the investment options available to the Individuals. Kindly refer to the Link shared below for the latest Income Tax Rates. Income Tax Slabs & Rates Financial Year 2017-18 (Assessment Year 2018-19) Deductions Available Under…

Tax Saving Investment Options For The Financial Year 2017-18

Sunday, April 9th, 2017 Amritesh no responses

The New Financial Year is here and I’m pretty sure that most of you have started with your investment/tax planning for the year. The Investment Schemes discussed here can provide you with maximum tax saving Under Section 80 (C) of Rs 1,50,000/-. Please refer to the links shared below to read in details about the schemes and benefits offered. I will be discussing the some of the notable investment options available under various Sections in my upcoming post for the Financial Year 2017-18. However, in this article I will restrict only to investment options which offer decent returns under section 80C. Do subscribe to my Wealthtech Speaks Blog and Youtube Channel for more updates. The Investment schemes “Header” are hyperlinked…

Income Tax Implication For The Financial Year 2017-18

Friday, February 24th, 2017 Amritesh no responses

FY stands for Financial Year. The Tax Implications shown above is applicable for Individuals below 60 years of age. In the above illustration, I have used the maximum deduction applicable under each income group to minimize the Tax Liability. Income Tax Slabs & Rates Financial Year 2017-18 (Assessment Year 2018-19) BUDGET 2017-18: Things To Know Income upto Rs 2,50,000/- is exempted from Tax. Tax Rebate U/S 87A of Rs 2,500/- is available to Individuals with Income upto Rs 3,50,000/-. Education Cess (2%) and Secondary Higher Education Cess (1%) totaling up to 3% is additionally levied on the Income Tax payable. U/S 80C: Tax Deduction up to Maximum of Rs 1,50,000/- is available on Investment in Life Insurance policies, Public Provident…

Income Tax Slabs & Rates Financial Year 2017-18 (Assessment Year 2018-19)

Monday, February 20th, 2017 Amritesh one response

Revision in Tax Rates was announced in the Budget 2017 for the next Financial Year. The chart above shows the latest Tax rates applicable for the FY 17-18 (Assessment Year 2018-19). Also refer to the points discussed below, explaining in details about the applicability of Cess and Surcharge on Taxable Income. The exemption limit for Senior Citizens has also been discussed. Please also read about the Tax Liability in the Financial Year 2017-18 in the link provided below. Income Tax Implication For The Financial Year 2017-18 *Tax Rebate of 10% (Rs 2500/- maximum) is available under Sec 87A to individuals whose Taxable Income is in the range of Rs 2,00,001-3,50,000/-. No Rebate is available on annual Income above Rs 3,50,000/-.…

New Income Declaration Scheme (IDS): Pradhan Mantri Garib Kalyan Yojana 2016

Wednesday, November 30th, 2016 Amritesh no responses

                                  Post Demonetization, Government has realized it needs to do more in terms of tax reform to eradicate the influx of Black Money in the economy. The new amendment bill introduced in the Parliament is aimed at plugging the loopholes in the Income Tax Act which may be exploited by the illicit to disclose their undeclared income. The disclosure scheme has been named as Garib115BBE and Kalyan Yojana 2016 which is an amendment to existing Income Tax Act, levies tax and penalties U/S 271 AAB. If undeclared Income is disclosed under the Scheme, the respective Individual will have to pay 30% tax on the income,…

Goods and Services Tax (GST): All About GST

Sunday, November 6th, 2016 Amritesh no responses

Goods and Services Tax (GST) is the most awaited indirect tax reforms in India. It is aimed at removing various points of tax levy which has a cascading effect and would simplify the tax barriers. Indirect Taxes are imposed by the Central Government as well as the State Government. The current setup has number of tax barriers which is confusing for the layman to decode. GST is the much needed tax reform which will simplify the Indirect Tax regime. India has been trying to replace the prevalent tax regime as we are liberalized economy and tax barriers act as a hindrance to the growth of the economy.  Goods and Services Tax (GST) will impact the entire gamut of Business Activity and…

Income from Other Sources: Inclusions and Tax Implications

Sunday, October 2nd, 2016 Amritesh no responses

  “Income from Other Sources” is any income which is not taxable under any other “Heads of Income”. Any income which does not specifically come under Income from Salary, Income Business or Profession, Income from House Property or Income from Capital Gain, will be taxed under “Income from Other Sources.   Income from House Property: Tax Implications   Income from Salaries: Tax Implications Following Incomes are taxed under “Income from Other Sources”: Dividends received from non Indian entities is chargeable to Tax. Dividend received from Domestic company is exempt from tax if it chargeable to dividend distribution tax (DDT) U/S 115-O. But as per the Finance Act,2016, Dividend in excess of Rs 10,00,000 received by any individual/HUF/Firm is chargeable to…

Income from House Property: Tax Implications

Wednesday, September 28th, 2016 Amritesh 2 responses

  Any Income earned in form of rent through a property like land, house, apartment, building, etc by the owner is chargeable to tax under “Income from House Property”. Income earned from such properties cannot be included under any other “heads” of Income. Income from Salaries: Tax Implications Income from Other Sources: Tax Implications   Types of Income falling under the heads “Income from House Property”   Income earned in form of rent by the owner is only chargeable to tax under the head “Income from House Property”. It includes any rental income arising out of land/building being let out for residence or shop, commercial purpose of which the tax payer is the legal owner.   Income not considered under…