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Tax-saving guide

How is long-term capital gain from Nabard bonds taxed?

Long term capital gains (LTCG), after indexation, from zero-coupon bonds are taxable at 20.8% and without indexation they are taxable at 10.40%.

How equity oriented mutual funds are taxed

Mutual funds that invest 65% or more of their corpus in equity and equity-related securities at all times are called equity oriented mutual funds.

Tax Optimiser: Kadam can cut tax outgo by Rs 67K via NPS, tax free perks

Sudhir Kaushik of Taxspanner.com tells Anil Kadam that as the sole breadearner, he should buy a term insurance cover of at least Rs 1 crore.

Tax queries: I am a senior citizen with income from various sources. How will I be taxed?

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

How much tax are you liable to pay on long-term capital gains on property?

How much tax are you liable to pay on long-term capital gains on property?

"If the amount is not utilised within three years for purchasing/constructing a house, it will be taxable after the expiry of three years from the d

Tax Optimiser: How IT professional Gupta can save Rs 78,000 in tax via home loan, NPS

Rahul Gupta pays a very high tax, with almost 12% of his income taken away by the taxman. He can reduce his tax by almost Rs 78,000 via home loan, NPS.

Withdrawing EPF before completion of five years? Here's how you will be taxed

According to EPF rules, one can withdraw up to 75% of corpus after 1 month of quitting job. The remaining 25% if he/she remains unemployed for more than 2 months.

Tax optimiser: How NPS will help Bahugana further lower her tax outgo

Even though NPS reduces your monthly take-home pay, it helps you save substantially on annual tax. You can later opt for a balanced allocation in the NPS.

Not eligible for HRA? Here's how you can claim tax deduction on rent paid

Section 80GG of the Income Tax Act allows claiming of tax deduction for the house rent paid for a self-employed or salaried person who has not received HRA.

Smart things to know about tax audits

Smart things to know about tax audits

Tax audit is a review of taxpayers' accounts with business or profession from an I-T perspective such as incomes, deduction, compliance with tax law

How to claim tax benefits on medical insurance premium

Medical insurance premium paid for a family member enjoys Rs 25,000 deduction. Tax benefit of up to Rs 50,000 for medical insurance paid for parents is allowed.

New ITR forms ask for year-wise PF contribution details in case of taxable withdrawal

The Income Tax Department has made changes in the ITR forms 2 and 3 applicable for FY 2017-18 to ascertain whether the PF withdrawal made by you is taxable or not.

How to check ITR-V receipt status

You can verify your ITR either electronically, using OTP, EVC, or physically by sending a signed copy of ITR-V to CPC, Bengaluru.

Tax queries: Pay tax on cash gift from nephew in excess of Rs 50,000

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

Tax Optimiser: NPS, interest on home loan can help salaried Dama save tax by Rs 17,000

Tax Optimiser: NPS, interest on home loan can help salaried Dama save tax by Rs 17,000

To save tax, start investing in NPS and ask your employer for some tax-free perks. Dama also needs to rejig is tax planning.

Missed the income tax return filing deadline? Here's what you can do

There is a provision in Income Tax Act through which an individual can file a belated return.

ITR filing: No penalty if you file by midnight today and revise later if needed

According to current income tax laws, there is no fees or penalty for revising your income tax return within the prescribed time limits.

What happens if you miss the ITR filing deadline

You can file a belated ITR before the end of the relevant assessment year. However, a penalty will be levied.

Here's your last minute ITR filing checklist

Make sure you file your tax return using the correct form applicable according to your income, using the wrong one would make your return defective.

Are you liable to pay tax on money received as gift?

Are you liable to pay tax on money received as gift?

According to Section 56(2) of the Income Tax Act, 1961, any sum received from relatives is not chargeable to tax.

Tax Optimizer: NPS, debt MFs, buying medical cover can help George cut tax by Rs 50,000

To save tax, use debt funds as these are taxed only at the time of withdrawal. To plan tax better, instead of maintaining a large PPF corpus, start an SIP.

ITR Filing: Do you have to report payments bank account held with Paytm, Airtel?

As per the existing ITR forms, you should report all your bank accounts except dormant ones, any interest income earned from these should be reported too.

Tax queries: Can an HUF claim deduction u/s 80C for contribution made to PPF of its member?

PPF account in the name of HUF is not permitted by the Finance Ministry, HUF can contribute to the PPF account of its members and claim tax deduction.

Penal interest applies on late payment of advance tax: Here's how to calculate it

Taxpayer is liable to pay penal interest on advance tax if he has failed to pay any advance tax or the advance tax paid is less than 90& of the assessed tax.

What will be the tax implication on sale of inherited non-agricultural land?

What will be the tax implication on sale of inherited non-agricultural land?

The difference between the selling price and the indexed cost of the land’s acquisition will be your long-term capital gain.

Latest ITR forms ask for more income details: Here's how to get them

This is the second time in a month the income tax department has updated these utilities. Earlier the department had revised the utilities on August 1.

Take this tax quiz to find out how much you know about basic tax laws

Filing tax returns is very easy. Yet, a lot of taxpayers are not aware of basic rules. Take this quiz to test your knowledge of tax regulations.

Tax Optimiser: Chenappan can cut tax outgo by Rs 64K via NPS, salary rejig

Taxspanner estimates that Chenappan can reduce his tax by nearly Rs 64,000 if he gets some tax-free perks and his company offers him NPS benefit.

How is interest income taxed?

Banks deduct tax when a customer's total interest income is more than Rs 10,000 in a year. TDS is higher if the person's PAN is not available.

Booked profits from HDFC AMC IPO? Here's how you will be taxed

Booked profits from HDFC AMC IPO? Here's how you will be taxed

HDFC AMC made a stellar listing on the bourses at 58% premium over its issue price which was Rs 1,100 whereas the scrip got listed at Rs 1,739.

Tax queries: After resignation, interest on PF corpus is taxable

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

Buying non-resident’s flat involves TDS risks

If there’s no or wrongly deducted TDS, the I-T dept takes action- interests, penalties and imprisonment, against the buyer and not the non-resident seller.

Buying an NRI's flat? Know the tax impact

The TDS rules in case of purchase of property from a resident individual are completely different than those of non-resident individuals.

How to pay taxes online and offline

How to pay taxes online and offline

You are required to calculate your tax liability on income earned in the previous FY and deposit any balance tax payable as self-assessment tax.

Will I have to pay tax on selling an agricultural plot gifted by my mother?

If the land has been held for more than two years from its date of purchase, it will be considered a long-term capital asset.

7 ITR filing 'clever' moves that the tax department will spot easily

One might find it easy to get away with small changes in declaring facts or hiding minor details while filing ITR but these acts must be avoided.

Lied in your tax return? You are liable, not your ITR preparer and here's how to save yourself

Thousands of taxpayers file faulty tax returns. For that, the taxpayer is liable, not the ITR preparer.

Benefits of filing ITR even when income is below exemption limit

Even though filing of ITR is not mandatory for some individuals, there are certain benefits that one can avail of provided the ITR has been filed. Here are few of those.

Income tax return filing deadline extended to August 31

Income tax return filing deadline extended to August 31

The government gave a breather to those who have to file their income tax returns. The ITR filing deadline has been extended by a month from July 31

Penalty you will pay for missing ITR filing deadline and who won't have to pay

If you file your return after midnight of Aug 31, then you are liable to pay a late fee of upto Rs 10,000.

Made a mistake while filing ITR? Here's how you can correct it

Section 139(5) of the I-T Act states that after filing their return, if someone discovers any omission or wrong statement, he can furnish a revised return.

Will switching from equity to debt scheme's of the same fund house have tax implications?

A switch will be considered as redemption from one fund and fresh purchase in another fund and will have tax implications.

Tax optimiser: How investing in NPS can help Vinod cut tax by over Rs 50,000

Gupta can reduce tax by over Rs 50,000 if some of the taxable allowances in his salary are replaced with tax-free perks.

Can I file ITR based on payslips if there is no Form 16?

Can I file ITR based on payslips if there is no Form 16?

Based on your income tax slab, you can compute your taxes, claim TDS and pay-off balance taxes, if any, and file your return of income.

What are the five heads of income under Income Tax Act?

Incomes earned by you during the year are divided into five heads under the I-Tax Act. Here's a look at how these incomes are classified.

5 confusing pairs of income tax terms

As you prepare to file your income tax returns this year, don’t be stumped by the terminology in ITR forms or Form 16.

ITR verification: Here are 6 ways to do it

After filing your return if you have not verified it within 120 days, then it will not be considered as valid.

Filing ITR? Here's how to claim HRA exemption

​The return filing forms notified by the CBDT for the assessment year 2018-19 require you to provide a detailed break-up of your salary.

'CAs' help you get fat income tax refunds, with a bit of fraud

'CAs' help you get fat income tax refunds, with a bit of fraud

Thousands of taxpayers may already have filed their returns through these entities and claimed refunds.

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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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