Impact Of Income Tax For The Financial Year 2015-16

Thursday, March 5th, 2015 Amritesh no responses

(For Individuals Below 60 years) TOTAL INCOME TAX LIABILITY in FY 2015-16 Tax After Deductions Under **(Sec 80C,80CCD,80D) Up to Rs 2,50,000/- Nil Nil Rs 3,00,000/-               Rs 3090/- Nil Rs 4,00,000/- Rs 13,390/- Nil           Rs 5,00,000/- Rs 23,690/- Rs 2575/-           Rs 7,50,000/-               Rs 77,250/-    Rs 30,900/-   Rs 10,00,000/-   Rs 128,750/-    Rs 82,400/-   Rs 20,00,000/-    Rs 4,37,750/-       Rs 3,68,225/-     Rs 100,00,000/-      Rs 29,09,750/-         Rs 28,40,225/- *Income up to Rs 2,50,000/- is exempted from Tax.** Deduction is available on Investment up to Rs 1,50,000/-  U/S 80C.     Deduction…

Income Tax Slabs And Rates For The Financial Year 2015-16

Monday, March 2nd, 2015 Amritesh 4 responses

ASSESSMENT YEAR 2016-17 INCOME SLABS (INDIVIDUALS BELOW 60 YRS) TAX RATES 1.) Total Income not exceeding Rs 2,50,000/- Nil 2.) Rs 2,50,001 but not exceeding Rs 5,00,000/- 10% of Amount above Rs 2,50,000/-* 3.) Rs 5,00,001-Rs 10,00,000/- Rs 25,000/- Plus 20% of the amount exceeding Rs 5,00,001/- 4.) Above Rs 10,00,001/- Rs 1,25,000/- Plus 30% of the amount exceeding Rs 10,00,001/-** NOTE: *A Tax Rebate of 10% (Rs 2000/- maximum) is available under Sec 87A to individuals whose Taxable Income is in the range of Rs 2,00,001-5,00,000/-. However if the income exceeds Rs 5,00,000/- the rebate is withdrawn.**Surcharge of 10% and Additional Super Rich Surcharge of 2% (Effective Surcharge 12%) is applicable if the Total Income exceeds 1 Crore.Education Cess…

Tax Planning for the Assessment Year 2015-16(Financial Year 2014-15)

Saturday, January 10th, 2015 Amritesh 4 responses

It is again that time of the Financial year where you start looking at the possible Tax Saving Options. In most cases people are unable to do the Tax Planning wisely and end up either investing entirely on Insurance Policies or opt for Low Return scheme. But if you spend some time in planning your investment not only will you get better coverage but also reduce your Tax Burden effectively.I will try and highlight possible Tax Saving Investment options for you. Now let’s look at the Tax Deductions available under Various Sections.Under Section 80C: Deductions available upto Rs 1,50,000 on the Investment.Under 80D: Deductions is available on Health Insurance Premium paid upto Rs 15,000/- for Self, Spouse and Dependent Children.…

Professional Tax for the Financial Year 2014-15

Wednesday, September 24th, 2014 Amritesh 5 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 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…

Tax Deductions Available Under Various Sections For Assessment Year 2015-16

Sunday, September 21st, 2014 Amritesh no responses

Individuals whose Annual Income is above `2,50,000/ p.a- will be liable to pay Taxes on the earnings above the prescribed amount. However those earning below `5,00,000/ p.a- will get a Tax Credit of `2000/- on the Tax payable. Now we will look at the Tax Deductions available under the Income Tax Act and Sections applicable. We would also find out Investment and Saving options which could be availed. DEDUCTIONS U/S 80CDeductions are available to the Individuals under Section 80C, 80CCC & 80CCD up to the extent `1,50,000/-. These are now effectively clubbed under Section 80C with the aggregate deduction ceiling of `1,50,000/-. SAVING/INVESTMENT SCHEMES RETURN ON INVESTMENT LOCK IN PERIOD Contribution to Employee’s Provident Fund (EPF) Varies year to year (Generally…

Income Tax Slabs & Rates For Assessment Year 2015-16

Saturday, September 6th, 2014 Amritesh no responses

INCOME SLABS (INDIVIDUALS BELOW 60 YRS) TAX RATES 1.) Total Income not exceeding `2,50,000/- Nil 2.) Rs 2,50,001 but not exceeding Rs 5,00,000/- 10% of Amount above Rs 2,50,000/-* 3.) Rs 5,00,001-Rs 10,00,000/- Rs 25,000/- Plus 20% of the amount exceeding `5,00,001/- 4.) Above 10,00,001/- Rs 1,25,000/- Plus 30% of the amount exceeding Rs 10,00,001/-** NOTE:  *A Tax Rebate of 10% (Rs 2000/- maximum) is available to Resident Individuals whose earning is in the range of 2,50,001-5,00,000/-. However if the income exceeds Rs 5,00,000/- the rebate is withdrawn.   **Surcharge of 10% if the Total Income exceeds 1 Crore.   Education Cess of 3% is payable on Total Income Tax and Surcharge.   Individual Residents who are above 60 yrs…

Life Insurance: Assurance And Investment

Sunday, April 13th, 2014 Amritesh no responses

Life Insurance is assurance by the Insurer that upon the demise of the insured person the claim amount as per the contract or agreement will be paid to the nominee of the Insurance holder in exchange of the premium paid by the insurer for the same. The payment of premium can be on the monthly, quarterly, yearly basis depending on the terms agreed upon. There are various types of Insurance policies in the market which not only provide Life cover but also provide additional benefits such as Accidental and Disability benefits. Life Insurance is very essential for every individual as you are not aware about the future shortcomings. Moreover you have responsibilities and obligations to fulfill which make insurance even…

Public Provident Fund (PPF)

Sunday, March 16th, 2014 Amritesh one response

Public Provident Fund (PPF) scheme was introduced in 1968 by the Central Government of India and is one of the tax saving small saving scheme. PPF provides guaranteed returns along with Tax Relief on the Investment. Considered as an ideal investment scheme for risk averse investors as it offers decent returns when compared to other fixed return instruments. It is risk free investment plan and does not get impacted due to market fluctuations as observed in Equity Linked Schemes (Stock Market).  It is viable saving cum investment option for the salaried as well as self employed Individuals. The PPF fund is managed by the Central Government and interest on the investment is now being declared on quarterly basis prior to…

Tax Deductions Available Under Various Sections For Assessment Year 2014-15

Saturday, February 8th, 2014 Amritesh 2 responses

Individuals whose Annual Income is above `2,00,000/ p.a- will be liable to pay Taxes on the earnings above the prescribed amount. However those earning below `5,00,000/ p.a- will get a Tax Credit of `2000/- on the Tax payable. Now we will look at the Tax Deductions available under the Income Tax Act and Sections applicable. We would also find out Investment and Saving options which could be availed. DEDUCTIONS U/S 80CDeductions are available to the Individuals under Section 80C, 80CCC & 80CCD up to the extent `1,00,000/-. These are now effectively clubbed under Section 80C with the aggregate deduction ceiling of `1,00,000/-.  SAVING/INVESTMENT SCHEMES RETURN ON INVESTMENT LOCK IN PERIOD Contribution to Employee’s Provident Fund (EPF) Varies year to year (Generally…

Tax Planning

Thursday, February 6th, 2014 Amritesh no responses

The evaluation of Financial affairs and Investments to reduce the burden of Tax on an individual is known as Tax Planning. It is quite a board term and includes Tax Management with it. Tax Management merely looks into the compliance with the Statutory Tax Laws with regard to disclosure of Income and filing within specified time. While Tax Planning looks at the legitimate ways by which the Tax liability could be brought down to minimum. It steers clear from the unfair practices such Tax Evasion and Tax Avoidance. Tax Planning involves strategic planning to avail the deductions and reliefs provided under the Income Tax Act. Thus it is a long term planning which one needs to adopt. You have to…