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Tax-saving guide

What is the tax liability on the profit I have made from selling a plot of land?

If your taxable income for a given financial year exceeds the basic tax exemption limit, you will have to pay tax and file a return of income to report the capital gain and the tax paid thereon.

Income tax dept warns taxpayers of phishing mails; lists out genuine senders

Digital frauds are on the rise and taxpayers too are not safe from it. To help you, the income tax department has released a list of trustworthy sources that a taxpayer should make a note of. Do not just trust any other source.

Tax queries: How will the refund I receive for delayed delivery of property be treated for tax purposes?

Every week, an expert selected by ET answers queries from our readers on income tax.

ELSS, PPF, NPS, ULIP: which is the best option to save taxes under Section 80C?

ELSS, PPF, NPS, ULIP: which is the best option to save taxes under Section 80C?

We have compiled the features of these investment options - both the qualitative and quantitative data - that would help you to compare and find the

I am an American and I lived in India for more than 182 days. Can I avail section 80C benefit?

Eligible instruments for the purpose of Section 80C are tax-saving fixed deposits, Senior Citizens’ Saving Scheme, NSC, etc. You can also claim a deduction of up to Rs 50,000 towards medical expenses under Section 80D.

Can these deductions make you tax free?

Different sections under the Income-Tax Act correspond to different savings or expenses, some of which are eligible for tax deductions and could be a great way to show that you are actually out of the taxable bracket. Here are 8 such deductions.

When does your EPF become taxable?

How much you withdraw and when you withdraw from the Employee’s Provident Fund determines how much TDS will be levied on the same. Here are five common scenarios and the tax implications on them.

Want to know how much you need to invest to save tax? Use this calculator to find out

Depending on the kind savings or expenditures you incur, under sections 80C and 80CCD1b of the Income-Tax Act, you are eligible for certain tax deductions.

Budget 2020 should cut income tax slabs, offer tax breaks to boost investment: EY

Budget 2020 should cut income tax slabs, offer tax breaks to boost investment: EY

The Indian economy is growing at around 5 per cent in FY 2019-20, which is the lowest in the past 11 years.

Tax-saving guide for FY 2019-20

In our hurry to complete the tax-saving exercise before the end of the financial year, we end up making expensive mistakes. Here is a handy guide to set you on the right path.

Does switching from one mutual fund scheme to another attract capital gains tax?

An individual can switch from one mutual fund scheme to another. The money is redeemed and directly reinvested.

Tax optimiser: Home loan, NPS, medical cover can cut tax by Rs 77,000 for Sinha

For the home loan taken, the interest paid to the bank can be claimed as a deduction for a maximum of Rs 2 lakh under section 24. Further, the principal component also offers tax benefit under section 80C.

Filing ITR1 for FY2019-20? Check latest eligibility norms set by CBDT

After notifying the income tax return forms for FY 2019-20, which reduced the number of individuals who can file the ITR-1, CBDT has now rolled back such restrictions. Here's a look at who can file a tax return using ITR-1 for FY 2019-20.

Income tax calendar for the year 2020

Income tax calendar for the year 2020

The income tax department, via its Twitter handle and emails, has been informing taxpayers about the important tax dates for the year 2020. Being mi

ITR filing: 5 key changes in ITR-1 you need to know

The income tax department has notified the income tax return (ITR) forms for FY 2019-20 on January 3, 2020.

Here's a trick to lower your tax on capital gains from equity

Long term capital gains accrued from selling equity shares and equity-oriented mutual funds are exempt from tax for maximum up to Rs 1 lakh in a financial year. The gains in excess of Rs 1 lakh are chargeable at the rate of flat 10 percent.

Tax optimiser: Avuluri can save Rs 43,000 tax via NPS, health insurance

Not only should you ask your employer for the NPS benefit, but you should also invest in the scheme on your own. You can reduce your tax outgo significantly.

Best tax-saving options: Ranking of the top 10 instruments

ET assessed 10 tax-saving instruments on 8 parameters. Find out how the different options scored this year.

PAN-Aadhaar linking deadline extended by 3 months to March 31, 2020

PAN-Aadhaar linking deadline extended by 3 months to March 31, 2020

The government has extended the deadline to link PAN with Aadhaar once again. The last time deadline was extended in September 2019 by three months

December 31 is the last date to verify your ITR. Have you done it?

According to income tax laws, a taxpayer gets 120 days from the date of filing an income tax return (ITR) to verify his/her tax return. The deadline to file ITR for FY 2018-19 was August 31, 2019, makes December 31, deadline to verify the ITR.

Tax optimiser: Why Pai can save tax only marginally via NPS

You can optimise tax by rejigging your income and investments. In this taxpayer's case, there is scope for further tax reduction if he makes use of all the deductions available.

TDS to be deducted on annuity payable to Overseas Citizens of India, NRI NPS subscribers

Based on a clarification received from IRDAI, it is hereby clarified that annuity payable by ASPs NRIs and OCIs will be taxed at source, at rates applicable as per the DTAA of the country where the annuitant resided.

What is STT?

STT is an indirect tax and is imposed on a broker rather than the investor/trader directly.

Income tax changes of 2019: The impact they made on your personal finances

Income tax changes of 2019: The impact they made on your personal finances

The changes help salaried people save more tax, while the uber rich took a big hit on the taxation front.

5 taxpayer friendly initiatives taken by tax department in 2019

A look at five important steps introduced this year by the I-T dept to make the life of the taxpayer easier.

I already have a PPF account. Can I open another account in my wife's name and invest Rs 1.5 lakh?

You can open the PPF account in your wife's name and invest Rs 1.5 lakh per annum on her behalf. However, the money given to your wife will be clubbed to your income.

Budget 2020: 20 tax-payer friendly ideas for the Finance Minister

ET Wealth reached out to financial services cos and taxpayers on what they want to see in this budget.

Tax optimiser: NPS, health insurance cover can help Rathore cut tax

You can optimise tax by rejigging your income and investments. In this taxpayer's case, there is scope for further tax reduction if he makes use of all the deductions available. For instance, he should invest in NPS on his own too.

Missed ITR deadline? File it before December 31 to avoid paying higher penalty

Missed ITR deadline? File it before December 31 to avoid paying higher penalty

The law of levying late filing fees under section 234F became effective from the financial year 2017-18 or assessment year 2018-19 onward. However,

ITR filing: All you need to know about treatment of income from self-occupied property

A house property is ‘self-occupied’ when the owner or family members use it for residential purpose. It could be termed ‘self-occupied’ even where the house was not occupied throughout the year due to owner’s employment at another place.

Tax queries: No GST on sale of unfinished flat to another home buyer

Dilip Lakhani, Senior Chartered Accountant, answers queries from our readers on income tax and other levies.

Can I claim deduction on my contribution to NPS as well that put in by the employer

The contribution from your employer will be exempt up to 10% of basic salary + dearness allowance for deduction under Section 80CCD(2). There is no upper limit (in terms of amount) on this tax deduction and it is available only to employees.

Tax optimiser: NPS, perks can help Yadalam reduce tax outgo by Rs 87,000

Yadalam should opt for the NPS benefit offered by his company. Under Sec 80CCD(2), up to 10% of the basic salary put in the scheme is tax free.

Can I claim HRA exemption for rent paid for two locations?

Can I claim HRA exemption for rent paid for two locations?

An individual can claim an exemption on house rent paid during the financial year. There are certain rules that must be followed to calculate the am

How to calculate tax liability on LTCG accrued from selling gold?

An individual is required to pay tax either short term capital gains or long term capital gains accrued due to selling of financial assets such as mutual funds and physical assets such as gold. If you have sold gold, you are liable to pay tax.

CBDT notifies TDS certificate to be issued by individuals deducting tax on payments to contractors

According to the CBDT notification, an individual is required to deposit the tax deducted within 30 days from the end of the month in which the deduction was made. The tax must be deposited along with a challan-cum-statement in Form 26QD.

Tax optimiser: Salaried Kumar can save over Rs 68,000 in tax via NPS, perks

Not only should you ask your employer for the NPS benefit, but you should also invest in the scheme on your own. You can reduce your tax outgo significantly. Hence in this way, you can optimise your tax by rejigging your income and investments.

How can I avail tax break on interest income earned on RD, monthly income schemes and NSC?

Under Section 80TTA, you can claim a deduction of up to Rs 10,000 on savings bank/post office deposits. Interest earned on post office RD and NSC is eligible for exemption under Section 80C within the overall limit of Rs 1.5 lakh in the years.

Tax optimiser: NPS, LTA claim can help salaried Gupta cut tax by Rs 4 lakh

Tax optimiser: NPS, LTA claim can help salaried Gupta cut tax by Rs 4 lakh

Not only should you ask your employer for the NPS benefit, but you should also invest in the scheme on your own. You can reduce your tax outgo signi

Can laid off employees save tax on their severance pay?

According to the provisions of Rule 21A(1)(c), an individual will be eligible to claim relief under Section 89 in respect of compensation received by him in connection with the termination of his employment.

Tax optimiser: IT professional Halder needs to use Sec 80C limit fully, opt for NPS

A big tax break will come your way if you opt for the NPS benefit offered by your company. Under Section 80CCD(2), up to 10 % of the basic salary put in NPS is tax-deductible. ET wealth tells how you can optimise your tax by rejigging your income.

You can save tax on up to Rs 17,000 savings account interest: Here's how

Post office savings interest up to Rs 3,500 is exempt for single a/cs and up to Rs 7,000 for joint a/cs.

How the proposed new Direct Tax Code could cut your income tax

The Akhilesh Ranjan taskforce, set up to suggest an overhaul of the Income Tax Act, has also recommended sweeping changes in the tax slabs. It submitted its report on the new Direct Taxes Code to the government in August.

How is the residential status of an individual determined for income tax

How is the residential status of an individual determined for income tax

The income tax laws classify the residential status of an individual into three categories, depending on the individual's stay in India in the relev

Do senior citizens with income less than Rs 5 lakh need to pay tax on FD interest income?

You are eligible for a basic exemption of Rs 3 lakh plus a tax rebate under Section 87A on taxable income up to Rs 5 lakh for the financial year 2019-20.

Tax query: How is the interest paid on borrowings taxed?

Dilip Lakhani, Senior Chartered Accountant, answers queries from our readers on income tax and other levies.

How to get your ITR related queries answered by income tax officers

If you have any query related to ITR filing, you can directly approach the I-T department.

Does pension from EPFO qualify for standard deduction?

"The pension received from EPFO is taxable under the head salary and it will qualify for the standard deduction. "

You can get credit for TDS deducted on cash withdrawals of over Rs 1 crore from bank account

You can get credit for TDS deducted on cash withdrawals of over Rs 1 crore from bank account

Claiming credit for this TDS would allow them to set it off against their total tax liability for the relevant financial year.

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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 incometaxindiaefiling.gov.in 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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