The Economic Times
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| 07 March, 2021, 10:38 PM IST | E-Paper


    Wealth management during coronavirus

    Using only 80C for tax saving? New tax regime may be beneficial for you at this income

    From FY 2020-21, an individual can continue with the old tax regime and avail common deductions such as section 80C, section 80D etc. of the Income-tax Act, 1961. Else, she/he can opt for the new, concessional tax regime without any commonly availed deductions and tax exemptions.

    How to save tax without fresh investments

    Here is a look at expenses/deductions which can be used to reduce tax payable under the old tax regime.

    Types of taxes that are levied on listed equity shares

    An equity share listed on a stock exchange attracts different types of taxes. Here is a look at different types of taxes levied on listed shares.

    How to save tax via NPS by investing Rs 50,000 additionally

    If a taxpayer has exhausted the limit of Rs 1.5 lakh under Section 80C of the Income-tax Act,1961 then additional tax can be saved by investing Rs 50,000 in NPS. The deduction claimed will be over and above Section 80C deduction of Rs 1.5 lakh.

    Tax saving: How section 80C of the Income-tax Act works

    Tax saving: How section 80C of the Income-tax Act works

    Deduction under section 80C of the Income-tax Act, 1961 can reduce up to Rs 1.5 lakh from the gross total income in a financial year. Here is how th

    A quick guide on how to save tax in a financial year

    For FY 2020-21, if you have opted for the old tax regime, then there are various ways to save tax. Here is a quick look at how you can save tax in a financial year.

    Tax planning tips for professionals

    Efficient tax planning can help in saving a good amount of money over the long run. With smart tax planning, you can enjoy your income to the fullest and achieve your financial goals as well.

    No TDS on buying property under liquidation: NCLAT

    In the case between S Kumars Nationwide and Chief Commissioner of Income Tax, the NCLAT ruled the liquidator is not required to prepare a balance sheet and profit & loss account and get it audited during the liquidation process.

    PPF stays out of tax on EPF interest

    “The cap is not applicable on PPF because there is already a limit of ₹1.5 lakh contribution in a year to PPF,” the official said. The government has proposed changing taxation rules for provident funds by levying income-tax on the interest earned on contributions exceeding ₹2.5 lakh in a financial year.

    High-income PF lovers not to get 8.5% gains

    High-income PF lovers not to get 8.5% gains

    Effective interest earned will fall sharply, particularly for those in topmost income slabs. The return falls marginally to 8.06% for someone contri

    What will be tax implications if I give away inheritance received by me to my grandchildren?

    As per current income tax laws, the sum of money received by you by the way of inheritance after the death of the elder son is exempt from tax.

    How will interest on PF contributions above Rs 2.5 lakh be taxed?

    Finance minister Nirmala Sitharaman had announced in the Budget presented on Monday that employee contributions to EPF over ₹2.5 lakh a year would be taxable from April 1. The move is set to impact people with high incomes and high contributions to EPF, but the government has argued that it will affect less than 1% of contributors.

    Will tax on PF interest also cover contribution to PPF account?

    On the plain reading of the budget documents, it appears that tax will apply to the interest earned on contributions made to Employees' Provident Fund (EPF), Voluntary Provident Fund (VPF) as well as Public Provident Fund (PPF).

    7 direct tax announcements in Budget 2021 and its impact on taxpayers

    In order to encourage first time homebuyers, deduction on account of home loan interest up to Rs 1.5 lakh which was available on loans taken up to March 31, 2021, has now been extended by one year to March 31, 2022.

    Tax on EPF interest will not impact these salaried people

    Tax on EPF interest will not impact these salaried people

    If your current basic salary is up to Rs 1,73,611 per month and you are not contributing to VPF then you do not need to worry about the tax imposed

    Maximise income: Line up your pieces to pack a punch

    Gifts from specified relatives or those received on certain occasions like marriage; interest from PPF account is also tax-free. Your salary includes income from employer, including value of perks and allowances. Here are other sources of income.

    Union Budget 2021: A guide to saving your taxes

    If you have not opted for the new ‘simplified’ personal income tax regime and your basic salary is over Rs 1 lakh a month, your 80C limit will be used up by provident fund contributions alone. Want to save more? Read to know how.

    Capital gains: Master your tax game

    When securities (listed other than a unit/equity oriented MF/zero coupon bonds) are held for up to a year, the gain is treated as Short Term Capital Gain (STCG). For all other type of capital assets, holding up to 24/36 months will qualify as STCG.

    Budget 2021: Personal income tax 'checks' you must watch out for

    Finance minister Nirmala Sitharaman on Monday announced the Union Budget for 2021-22. While the government has kept the tax slabs unchanged, taxpayers will have some relief in dealing with their personal finances.

    Five things about home loan tax incentives you should know

    Five things about home loan tax incentives you should know

    Even a loan taken from an employer, friend, private lender is eligible for deduction — but only on the interest and not principal. And you’ll need a

    2021 is a good time to buy a house: Here are the tax benefits you get

    For those who have been eyeing a home for years, 2021 may be a good year to jump in. Home loan rates are down, as are property prices. States such as Maharashtra and Karnataka have also slashed stamp duties. The bonus is that you get tax breaks.

    Union Budget 2021: 10 things individual taxpayers should know

    Taxpayers will not be required to estimate their dividend income while making advance tax payments. Advance tax will now be payable only when dividend is declared or paid by the company. This will save payment of interest by taxpayer due to underestimation while paying advance taxes.

    Budget 2021 leaves tax slabs unchanged: How to choose between old and new tax regime now

    You can intimate your employer if you want to opt for the new regime and the employer will deduct tax accordingly. The only bar is that once intimated to the employer, the option cannot be modified during the year.

    Are you now a gig worker? 9 tax-related issues you need to know

    The silver lining of being a gig worker is that you can claim various expenses. Against capital expenditure incurred on purchase of assets such as furniture, computer, or laptops you can deduct depreciation from your income – in short, the deduction for impairment in asset value is spread over a number of years at the prescribed rates.

    Last date for filing declaration under Vivad Se Vishwas Scheme further extended to Feb 28, 2021

    Last date for filing declaration under Vivad Se Vishwas Scheme further extended to Feb 28, 2021

    This is the fourth time that the deadline of the scheme has been extended- first from March 31, 2020, to June 30, 2020, secondly to December 31, 202

    Budget 2021: Many happy returns, only if you file by Dec 31

    The time-limit for belated or revised returns (to correct any errors) is shorter, and these can now be filed three months before the end of the relevant assessment year, or before the completion of the tax assessment, whichever is earlier. Let us look at a case study.

    No new tax benefits, relief comes in other forms

    Budget 2021 stopped short of granting much sought after income tax breaks, specially for higher expenses of the salaried on account of working from home. However, taxpayers aged above 75 with only pension and interest income won’t have to file their tax returns.

    Finance minister eyes your PF with interest: How you can deal with this googly

    With this amendment, return on investment up to Rs 2.5 lakh in PF will remain tax-free while the return on the portion exceeding that amount will be treated as income in the investor's hand. This portion will be taxed at the rate at which the investor’s income is taxed, said Sonu Iyer of Ernst and Young.

    B Negative: Two tax-free options go poof

    The tax on PF interest comes after the last budget had capped the tax exemption on employers’ contribution to PF, NPS and superannuation fund to Rs 7.5 lakh. That impacted only employees with very high salaries. This year’s proposal has a wider impact.

    Taxman can go back only three years to scrutinise any lapses in small cases

    Taxman can go back only three years to scrutinise any lapses in small cases

    The finance minister on Monday said that tax officials can only go three years back in time to scrutinise any lapses in tax payment, a step that wou

    Middle class wears a frown: Waited, but nothing for us

    Disappointment was writ large on the face of the common man on the street after the Union Budget was presented by Union finance minister Nirmala Sitharaman with many saying that it had nothing much for the middle class.

    Max time for processing your ITR, tax refunds now 9 months vs 1 year earlier

    Effectively this means that if an individual files ITR for FY 2019-20 by July 31, 2020, then the income tax department has time till March 31, 2022 to process and send the intimation notice to the taxpayer as per current laws. However, as per the budget proposals, the tax department will now be required to process such ITR by December 31, 2021.

    Key Budget 2021 announcements that impact individual tax payers

    While no changes have been proposed to the personal tax rates, the budget contains various relief measures and proposals to facilitate ease of compliance for the taxpayers.

    Non filers of ITR to face higher TDS on interest, other specified incomes

    This proposal may be bad news for those who are otherwise not mandatorily required to file income tax return under the tax laws but have total income comprising of interest income, dividend income, annuity received from insurance companies etc.

    ULIPs with over Rs 2.5 lakh annual premium to lose their tax-edge over equity MFs

    ULIPs with over Rs 2.5 lakh annual premium to lose their tax-edge over equity MFs

    “Instances have come to the notice where high net worth individuals are claiming exemption under this clause by investing in ULIP with a huge premiu

    Paying advance tax on dividend income made easier, to help save late payment interest

    The FM's budget proposal will bring payment of dividend tax on par with capital gain tax in terms of compliance which is paid only after realisation of the gain in the hands of the taxpayer. This will also save the unnecessary late fee and interest which taxpayers would have incurred thanks to late payment of advance tax due to failure to estimate dividend income.

    No changes in income tax slabs, rates, deductions, exemptions in Budget 2021

    With no change in the basic exemption limit, income tax slabs and rates, an individual tax payer will continue to pay the tax at the same rates applicable in FY 2020-21. Effective from April 1, 2020, a salaried individual was supposed to choose between the new and old tax regime.

    Tax optimiser: How IT professional Garewal can pay rent to parents and be tax free

    A big reduction in taxable income is possible if he pays rent to parents and claims exemption for the HRA. That will shave off Rs 2.4 lakh from his taxable income and bring him close to the Rs 5 lakh threshold.

    Haven't got income tax refund as yet? You may need to confirm it to the tax dept

    This is largely happening in the cases where the difference on account of deductions and exemptions shown in the Form 16 and the ones claimed in final ITR is big.

    Income tax refund of this amount will not be paid by tax dept

    Income tax refund of this amount will not be paid by tax dept

    As per a government press note in 2012, if the amount of income tax refund or tax payable is this much, then you are neither liable to pay such tax

    ET Edit: Not the time for big bang tax reform

    A possible reform is to raise the tax-exempt limit of Rs 1.5 lakh on savings schemes for individuals, unchanged since 2014-15, to let taxpayers (mostly the salaried) diversify their financial savings to more rewarding instruments.

    Changing jobs? Protect yourself financially by using this checklist

    Check tax benefits in terms of tax-deductible allowances offered. If the taxable component of your salary is higher than in the previous job, it could lead to a higher tax outgo. Here's how to protect your finances and cover the risks when you move to a new job.

    5 types of tax benefits available to individuals under the Income-tax Act

    Income-tax Act offers five different types of tax benefit to the individuals. Some of these include allowances, tax exemptions, rebate tec.

    Best tax-saving options: Comparison, ranking of top 10 instruments

    ET Wealth assessed 10 popular tax-saving instruments on eight key parameters. We have also explained the pros and cons of each tax-saving option to help readers invest in the one that suits them best. Find out how the different options scored this year.

    Income tax dept launches portal for online filing of info about tax evasion, benami properties

    Income tax dept launches portal for online filing of info about tax evasion, benami properties

    The facility allows for the filing of complaints by persons who are existing PAN/Aadhaar holders as well as for persons having no PAN /Aadhaar. An i

    I made LTCG on sale of equity shares in FY 2020-21. Can tax be saved by buying a house?

    As per income tax laws, exemption from capital gains tax on sale of equity shares, being long term in nature, is available in Sec 54F if the sale proceeds are utilised for the purchase or construction of a new residential property.

    Tax optimiser: Jalan can save over Rs 30,000 in tax if he invests in NPS, gets these allowances

    Vishwesh Jalan should start by asking for a higher telephone allowance. The work-from-home arrangement has pushed up this expense for the average employee. He should also ask for a newspaper allowance and food coupons. Here are other ways he can save tax.

    What will be the tax implications if I invest the money sent by my NRI son as a gift?

    If you take any gift from your son, the amount is not treated as income itself and there is no column in which such amount can be reported and you may need to explain the same during any assessment by the tax authorities.

    Income tax calendar 2021: All the important tax-related dates you need to know

    To bring ease to the taxpayers, the income tax department has sent an email containing the link of the tax calendar for 2021. If you have not received the link, here is a link for you to bookmark the important income tax dates for 2021.

    Tax optimiser: IT professional Saluja can save tax of Rs 65,000 by rejigging salary structure, NPS

    Tax optimiser: IT professional Saluja can save tax of Rs 65,000 by rejigging salary structure, NPS

    Paying too much income tax? ET Wealth tells readers how they can optimise their tax by rejigging their salary, other income and investments to minim

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    Income Tax: All about it

    Income tax is a tax levied directly by the central government on the incomes earned by the individuals and other non-individual entities such as Hindu Undivided Family (HUF), partnership firm and so on during a financial year. These various sources of income include salary, pension, capital gains, sale of financial investments, interest income, other incomes and so on.

    Unlike the Goods and Services Tax (GST) Council where the Union Finance Minister and State Finance Ministers decide the rates, the income tax rates are announced by the Finance Minister during the year’s Union Budget.

    The rate at which your total income earned during the year will be taxed depends on the slab in which your income falls. Over and above the income tax, a cess and surcharge is levied. The cess is payable by all taxpayers. For those earning more than Rs 50 lakh a year, a surcharge is levied between 10 percent and 37 percent.

    The total income earned by a taxpayer during a financial year has to be reported to the government in the assessment year by filing income tax return (ITR filing).

    Financial year is the year in which income is earned by a taxpayer; a financial year is between April 1 and March 31. Assessment year is the year immediately following the financial year for which the return is to be filed.

    Income earned from various sources such as salary, pension, interest from fixed deposits (FDs), savings account, capital gains from sale of house, equity mutual funds, debt mutual funds and so on have to be reported in ITR.

    1. What is the basic exemption limit for individuals aged below 60 years?
    According to income tax laws, it is mandatory to file ITR if your income exceeds the basic exemption level. The basic exemption level depends on the age of the individual during the financial year.

    Currently, for individuals below 60 years of age, the maximum income exempt from tax is Rs 2.5 lakh in a financial year. This can change depending on the announcements made in the Union Budget.

    2. What are the tax rates at which income is charged?
    The income tax slab rates are 5 percent, 20 percent, and 30 percent.
    Also Read: Latest income tax slabs

    3. How to file income tax return
    An individual can file income tax return by registering himself on the or via private e-filing websites.

    4. What is the difference between gross total income and net total income?
    Gross total income refers to the total income earned by the taxpayer. Income tax laws allow an individual to claim certain tax-exemptions (such as house rent allowance) and deductions under various sections such as section 80C for investments made in Public Provident Fund, equity mutual funds etc. of up to Rs 1.5 lakh.

    Gross total income minus tax-exemptions and deductions would result in net total income. The tax liability of the person will be calculated on the net total income.

    5. What is the last date to file income tax return?
    The last date to file income tax return for individuals is July 31, unless extended by the government.

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