Last minute Tax Planning guide

Last minute Tax Planning guide

guest: Hello Sir,in my Form 16 I show Rs.150000/- deposited in ELSS fund but actually I deposited Rs.150000/- in my PPF account , is it make any punishment if I file return and get 80C deduction? please must answer. Anil Rego: First you have to confirm the assessment year. if it is for FY2016-17 then , you can ask the concerned department for rectification. if it is for FY2015-16 , then already form 16 would have been generated and further rectification is not possible. if scrutiny comes, explanation should be…

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Filing income tax returns: Keep these documents handy, now

Filing income tax returns: Keep these documents handy, now

Whether salaried or running your own business, it’s about time to get your investment proofs in tax-saving instruments ready for filing your income tax returns later this year. Here’s a brief gist of all the documents which you need to keep handy. 1. Section 80 C investments Section80C investments constitute an important chunk of tax planning that people do and hence contributes towards lower income tax. Let streamlined finances be a feature from this year, and may it never lose its sheen the way New Year resolutions do after a…

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5 ways to beat the sharp cut in FD rates

5 ways to beat the sharp cut in FD rates

Interest rates on bank FDs have started coming down and rates on other fixed-income products will also decline. Investors should lock into instruments offering higher returns, reports Sanjay Kumar Singh. Being flush with liquidity and having limited avenues to deploy their funds, banks have begun to cut deposit rates. The State Bank of India, ICICI Bank and HDFC Bank, among others, have reduced fixed deposit rates by 15 to 25 basis points (bps) for retail (small) deposits. For bulk deposits (Rs 1 crore and above), SBI cut rates by 125…

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Net Returns is all that matters – Asset Classes and Tax Implications.

Net Returns is all that matters – Asset Classes and Tax Implications.

As an investor it is imperative that you understand the different asset classes and its varied tax implications. It is true that every financial advisor you approach would talk about diversifying your investment portfolio and allocating your assets to a variety of asset classes depending on your risk profile and your short and long term financial goals. That’s enough of jargon talk. We’ll cut the finance babble and get to the point. First things first. Do you know how much you are taxed on your investments? Taxes make a big…

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TDS – Paying the government when you get paid

TDS – Paying the government when you get paid

If you are under the impression that you pay tax only while filing income tax returns; you are wrong. Tax is deducted before the income reaches your hands, and hence the term TDS (Tax Deducted at Source). Accept it, the government’s smarter than you think it is. Expenditure, like payments as salary, payments to freelancers and consultants, payment of rent, commission income from lotteries and interests from banks are taxed or reach the receiver only after a tax deduction. When a payment is made under any of the above mentioned…

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Tax Refund – It is a right. Why you need to know about it.

Tax Refund – It is a right. Why you need to know about it.

At the end of the financial year we are all dogged with thoughts about declaration of investments and keeping aside as much money as possible for tax deduction, and never flip our thoughts to the possibility of a tax refund. A tax rebate or tax refund is not something that everyone receives.  However, it is definitely something worth knowing about. An individual gets a tax refund when the tax liability or the amount of tax to be paid is lesser than the actual taxes paid. Does the possibility perplex you?…

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Income Tax Exemptions – The layman’s look up

Income Tax Exemptions – The layman’s look up

Talking about Tax Exemptions, the Salaried individual would have heard lot of jargon from the HR or finance personnel in the company regarding elements in the pay structure which are exempt from tax. Well, if you really want to know what these exemptions are all about, and the effect it has on your taxable salary read on….   What are Tax exemptions really? Tax exemptions are monetary exemptions. It reduces the total taxable salary. An item from the income that is exempt from tax or not taxable has a tax…

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ATM to e-verify your income tax return. Did you know?

ATM to e-verify your income tax return. Did you know?

Every year, when the last date for filing IT returns approaches, income tax assesses crowd tax-filing kiosks and the income tax department’s website. To help the income tax payers the banks have started to provide ATM machines as an alternative. The usual last date is 31 July. During the assessment year (AY) 2015-16, more than 1.4 million returns were filed on 31 August (8% of all the returns filed till then). That year the deadline was extended by a month to 31 August and then again to 7 September. Similarly,…

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ITR-4S – As a small business owner, are you checking all the right boxes?

ITR-4S – As a small business owner, are you checking all the right boxes?

So what’s the small business man doing about his taxes? Let’s take a look. Over the years there has been a steady rise in the number or ITR forms filed. While we see a consistent increase in the forms across different categories there has been a sharp and steep increase in the number of ITR-4S Sugam forms. While we peek into those reasons a little later, let us first understand who are the individuals or businesses who file the ITR -4? An ITR-4 can be used by individuals or HUFs…

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What you need to do to save enough for your Child’s Education?

What you need to do to save enough for your Child’s Education?

Best Investment Instruments & Strategies for Saving for a Child’s Education Providing the best education to their children is every parent’s dream and one of the biggest goals. But are you saving enough or investing in the right instrument to achieve this goal? From child plans offered by insurance companies to the Sukanya Samriddhi scheme for girl child, there are a plethora of investments in the market. So which option to choose and how much to invest are the most critical questions. First, you need to set a target. It…

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