The Economic Times
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| 09 August, 2020, 02:41 PM IST | E-Paper
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    Tax

    Wealth management during coronavirus

    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?

    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 amount of exemption that can be claimed by you.

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

    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 m

    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

    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.

    Can laid off employees save tax on their severance pay?

    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 b

    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

    The income tax laws classify the residential status of an individual into three categories, depending on the individual's stay in India in the relevant financial year as well as his/her stay in the previous years. Here is a look at these categories.

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

    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 201

    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

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

    I-T dept has to quote DIN to taxpayer

    I-T dept has to quote DIN to taxpayer

    A DIN will be mandatory for every type of communication with the income tax department without which, the document and communication will be deemed

    What will be your tax liability if you sell shares traded in the US stock market?

    When the shares are allotted to an employee, it is taxed as a prerequisite. When the shares are sold by the employee, it is taxed as capital gains.

    Tax optimiser: By paying rent to father, Sirohi's HRA can become tax-free

    The benefit is available only to a salaried individual who receives HRA as a part of his salary and is staying in rented accommodation.

    PAN-Aadhaar linking deadline extended to December 31

    Earlier, the deadline to PAN with Aadhaar was September 30, 2019.

    Not got your income tax refund yet? Here's how you can raise a re-issue request

    Do keep in mind that you will only get the refund if into a pre-validated bank account.

    PAN-Aadhaar linking: What will happen if PAN is not linked with Aadhaar by September 30?

    PAN-Aadhaar linking: What will happen if PAN is not linked with Aadhaar by September 30?

    The last date for you to link your PAN with your Aadhaar number is September 30, 2019.

    How is the surrender value of single premium ULIP taxed?

    For policies purchased after 1 April 2012, if the premium paid on the policy is less than 10% of the sum assured, the amount received on maturity is exempt from tax.

    Tax optimiser: How Ranjan can save Rs 50,000 in tax via NPS

    ET Wealth tells readers how they can optimise their tax by rejigging their income and investments.

    FM announces withdrawal of enhanced surcharge on capital gains from equity for individuals, HUFs

    While presenting the Budget in July 2019, Nirmala Sitharaman had introduced a surcharge on individuals earning more than Rs 2 crore.

    ITR not processed by the tax department? Here's what you can do

    If your ITR is not processed by the tax department, then you can raise a grievance for the same.

    What is the tax liability of buying a second house using a home loan?

    What is the tax liability of buying a second house using a home loan?

    "Income from house property is taxable once the taxpayer gets possession of the property."

    Government notifies faceless e-assessments in tax: More transparency, but some challenges too

    The e-assessment scheme has now been notified, under which CBDT will set up national and regional e-assessment centres as well as various units to conduct e-assessments.

    E-assessment scheme for faceless scrutiny of income tax returns notified

    The notification was issued by the CBDT on Septemeber 12, 2019.

    Finance Ministry notifies cost inflation index for FY 2019-20 as 289

    This number is important as it is used to arrive at the inflation-adjusted purchasing price of assets and thereby long-term capital gains.

    ITR processed? Here's how to request intimation notice u/s 143(1)

    While processing ITR, the department on a prima facie basis checks your income details, TDS claimed by you and if that matches with Form 26AS and so on.

    Can you claim deduction under section 80C for PPF contribution made into your major son's account?

    Can you claim deduction under section 80C for PPF contribution made into your major son's account?

    According to current income tax laws, investment under section 80C allows a deduction up to Rs 1.5 lakh in a financial year.

    Can you claim refund on tax deducted on FD in the name of your children?

    As per the Income-tax Act, the income of minor child shall be included in the income of the parent whose total income after including minor’s income is greater.

    Tax optimiser: Investing in debt mutual funds can help Shukla cut tax by Rs 83,000

    ET Wealth tells readers how they can optimise their tax by rejigging their income and investments.

    Digital: The Taxpayer’s Panacea

    The Tax Technology Summit provided opportunities to learn about digital disruption in tax function and gain strategic insights

    CBDT’s norms for manual ITR scrutiny

    For the current financial year 2019-20, ITRs filed by charitable trusts entities will be manually selected and will be subject to complete scrutiny.

    How to change bank, personal details in ITR after filing it

    How to change bank, personal details in ITR after filing it

    After uploading ITR, if you want to make changes in, say, your bank account, address etc., you can update them through 'Change ITR Form Particulars'

    7 changes in income tax laws that come into effect from Sept 1

    Here is the list of the seven main changes in tax laws that will come into effect from September 1.

    ITR filing last-minute checklist

    If you file your ITR before the deadline of Aug 31, you can avoid paying a penalty of up to Rs 10,000.

    Reporting of foreign assets in income tax return: CBDT issues clarification

    CBDT has clarified that only foreign assets acquired as per the relevant accounting period of the foreign country have to be reported while filing ITR for FY 2018-19.

    ITR filing: How to read tax intimation notice under section 143(1)

    This notice is sent to you on your registered email ID to inform you whether income tax calculation in the ITR filed by you matches that of the tax department.

    From Sept 1, individuals must deduct TDS on payments to contractors, professionals: Know all about it

    From Sept 1, individuals must deduct TDS on payments to contractors, professionals: Know all about it

    The rate at which the tax has to be deducted is 5% unless the payee has obtained a lower withholding tax certificate from the department.

    Can I save tax if I invest sale proceeds from commercial property to buy residential home?

    If sale proceeds are reinvested under Sec 54 in which capital gain from a previous property was rolled over, you can’t sell it for three years.

    Got an income tax notice? Now you can check if it is real or not

    Recently, CBDT had issued a circular according to which every income tax notice issued by the department will have a computer-generated Document Identification number.

    Faceless tax assessment from Oct 8: FM

    All information will be sought through available technologies and the assessment will be done randomly.

    How to correct mistakes made at the time of paying income tax

    While depositing self-assessment tax or advance tax during the year, you may have selected the wrong assessment year which could lead to a discrepancy.

    ITR filing: TDS related queries answered by income tax department

    ITR filing: TDS related queries answered by income tax department

    Here are three common TDS-related queries answered by the income tax department.

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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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