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Tax queries: Who can claim tax benefit if more than one person pays the home loan EMI?

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

Booking under-construction flat not a purchase, merits tax relief

Under section 54 of the I-T Act, the period prescribed for investing the LTCGs in a new house is two years from the date of sale of the old house.

How to calculate taxable portion of gratuity

Currently, maximum tax-exempt gratuity is Rs 10 lakh. The government has tabled the Payment of Gratuity (Amendment) Bill, 2017 to raise the limit to Rs 20 lakh.

Tax Optimizer: How salaried Gupta can further reduce his tax outgo by 28%

Taxspanner estimates that Gupta can reduce his tax further if his company offers him the NPS benefit and he invests more in the pension scheme himself.

Tax queries: Contribution to NPS can lower tax liability

Tax queries: Contribution to NPS can lower tax liability

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

Tax dept's felicitation of highest tax payers makes HNIs nervous

With income-tax offices across India set to invite up to top 100 tax payers in their regions for felicitation, several individuals have red-flagged data-privacy.

Tax queries: Can I avail of any benefit of pension schemes to reduce tax liability?

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

How to save tax under Section 80C using mutual funds

You can save tax by investing up to Rs 1.50 lakh in equity-linked savings scheme (ELSS).

Tax Optimizer: How salaried Maniar can save tax via NPS investment, interest on study loan

Sudhir Kaushik of Taxspanner.com advises readers on how to restructure their income, investments and expenses to optimise their tax.

Tax queries: Contact employer to get Form 16 error rectified

Tax queries: Contact employer to get Form 16 error rectified

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

Tax queries: Is interest on KVP, post office MIS, term deposit taxable for senior citizens?

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

No tax relief on EPF interest if not employed: ITAT

I-T laws provide that interest credited to EPF account after an individual ceases to be in employment is taxable in his hands in the year of credit.

RBI questions dealings under liberalised remittance scheme on laundering suspicion

Last week, many who figured in the Panama list received notices from Enforcement Directorate which has the power to arrest under antimoney laundering laws.

Tax optimizer: How salaried Ahuja can cut tax outgo by 75%

Sudhir Kaushik of Taxspanner.com advises readers on how to restructure their income, investments and expenses to optimise their tax.

Tax queries: How is an NRI taxed on income from investments in India?

Tax queries: How is an NRI taxed on income from investments in India?

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

Relief for PE, pension funds from multiple taxation

CBDT said these rules will not apply to investment made by non-residents through the multilayer structure if the fund’s income is already chargeable to tax in India.

How NRIs can avoid tax troubles

The tax rules for NRIs are quite different from those that apply to resident citizens and are subject to very elaborate tax reporting.

Tax optimizer: Salaried Ghosh should use NPS, home loan to save more tax

Ghosh can save nearly Rs 74,000 in tax if he avails of the NPS benefit offered by his company, invests in the pension scheme on his own and takes a home loan.

Tax queries: How is LTCG tax on property/land bought on borrowed money calculated?

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

Routine functions won’t make MNCs liable to pay Indian tax

Routine functions won’t make MNCs liable to pay Indian tax

The Finance Act, 2015, provided that a company would be considered a resident in India in any previous year if it is an Indian company or its place

Tax optimizer: Salaried Joshi should opt for NPS, tax-free perks to save on tax

Sudhir Kaushik of Taxspanner.com advises readers on how to restructure their income, investments and expenses to optimise their tax.

Income tax department launches 'online chat' service to answer taxpayers' queries

A window has been hosted on the main page of I-T dept's site -- www.incometaxindia.gov.in/ -- with a prominent icon stating 'Live Chat Online- ask your query'.

Tax queries: You can appeal against assessing officer after he rejects your claim

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

Know how gold is taxed before investing in it this Diwali

Gold jewellery is taxed both at the time of buying and selling.

Should India reintroduce inheritance tax? Here are 4 expert views

Should India reintroduce inheritance tax? Here are 4 expert views

Known as the estate tax, it is levied on the value of assets passed on to legal heirs through inheritance. Here is what four experts have to say on

How to check income tax refund status

If you have filed your income tax returns with a refund request, here is a step by step guide for you to track the refund status due to you.

Tax queries: Deductions not claimed in returns can be admitted

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

Mutual funds have multiple tax advantages over bank fixed deposits

In three years, falling interest rates have knocked off around 40% from the annual income that a FD would yield. That’s a shocking decline.

Tax Optimizer: Perks, NPS can help salaried Chowdhury cut tax outgo

Taxspanner estimates that Chowdhury can reduce his tax outgo by almost 50% through tax-free reimbursements and investing in NPS.

How to check income tax return status

How to check income tax return status

During processing the department checks if there are any discrepancies between the income declared and the tax paid by you and the data available to

Interest on refunds from builders adds to tax burden

Those hoping to get I-T deductions on investments in a new house are now at a complete loss. If they don't get possession, these claims will be denied.

Tax queries: Do I need to pay outstanding tax demand if amount is less than Rs 100?

The Government has issued a press note dated Jan 5, 2012, wherein it is clarified that demand of less than Rs 100 will not be collected from the assessee.

You can now access I-T return filing account without updating contact, profile details

The advisory issued on September 22 said, "New Registration process to facilitate effective communication between the tax payer and department is enabled.

Should agricultural income be taxed?

ET Wealth reached out to experts to see if they feel the government should bring agricultural income under the tax net.

Tax Optimizer: NPS, tax-free perks can help salaried Shiva save over Rs 1 lakh

Tax Optimizer: NPS, tax-free perks can help salaried Shiva save over Rs 1 lakh

Taxspanner estimates that Prasad can cut his tax by over Rs 1.12 lakh if his company offers him a few tax-free perks as well as the NPS benefit.

Filing I-T returns online? Government may want your feedback

Taxpayers may get an opportunity to rate whether the process was simple and whether it was difficult to get a refund.

Tax queries: Does the senior citizens savings scheme qualify for section 80C benefits?

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

Recent low inflation means you pay more capital gains tax

Between 2008 and 2012, consumer inflation was raging in double digits, which meant that debt fund investors were earning tax-free gains.

Tax optimizer: Salaried Saha can cut tax outgo by investing in NPS, debt mutual funds

Sudhir Kaushik of Taxspanner.com advises readers on how to restructure their income, investments and expenses to optimise their tax.

Tax queries: Pay 10% tax on dividend in excess of Rs 10 lakh

Tax queries: Pay 10% tax on dividend in excess of Rs 10 lakh

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

How to apply for PAN card

PAN is a 10-digit alphanumeric identity allotted by the income tax department which is required to conduct even the simplest of financial transactions.

Tax queries: Approach I-T department if TDS is not deposited by deductor

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

Higher tax mop-up has 12 states in Rs 4,000-crore fiscal surplus in Q1

These states have, in fact, budgeted a fiscal deficit of whopping Rs 1,14,160 crore for the current fiscal year, says a report by the domestic rating agency Icra.

Interest income under tax scrutiny: Here's what you must know to stay clear of taxman

There are a lot of misconceptions about the taxability of interest earned on bank deposits. Here's what you must know to avoid falling foul of the law.

Tax Optimizer: NPS, LTA can help salaried Passi reduce tax outgo

Tax Optimizer: NPS, LTA can help salaried Passi reduce tax outgo

Paying too much tax? Write to us and our experts will tell you how to reduce your tax by rejigging your pay and investments.

How to file tax return as a representative of someone

There are specific people, such as a guardian, trustee, or some other competent person, authorised by law to file tax returns on behalf of someone.

If you don't link Aadhaar, PAN by Aug 31, your ITR won't be processed: Here's the implication

Even if you have filed your return by August 5 but have not linked your PAN and Aadhaar latest by August 31, your ITR won't be taken up.

Tax queries: What you can do if you haven't declared income from other sources in your tax return

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

How to respond to income tax notice online

While processing your ITR, if the assessing officer finds that you have paid less tax than what he has calculated, you will be served with an outstanding tax demand notice.

I-T lens on individuals who earn Rs 5-lakh interest on FDs

I-T lens on individuals who earn Rs 5-lakh interest on FDs

Many senior citizens and professional, who either don't include this in taxable income or simply don't pay tax or file returns, will come under I-T

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).

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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