In
the full Budget, displayed on July 5, 2019, another Section 80EEB was
presented which would surrender charge exception to Rs 1.5 Lakhs on
intrigue paid for the buy of electric vehicles gave it satisfies certain
conditions.
Showing posts with label Save Tax. Show all posts
Showing posts with label Save Tax. Show all posts
Monday, 15 July 2019
Thursday, 11 July 2019
Wednesday, 24 October 2018
Wednesday, 17 October 2018
Saturday, 28 March 2015
In the Budget 2015 the FM has extended tax concessions mostly for senior citizens in this Budget without doing any changes in Income Tax Slabs and there are no changes in Section 80C limits for the salaried. The FM also went all out to fight against black money announcing a string of stringent tax measures for concealment of foreign income or non-disclosure of foreign assets in Income Tax Returns.
For Senior Citizens
Section 80D limit raised to Rs 30,000 - Deductions under section 80D are allowed on health insurance premium paid. In case of premium paid for senior citizens the deduction allowed shall be up to Rs 30,000. This is a great relief to Senior Citizens who may have to shell out a higher premium. This limit was Rs 20,000 earlier.
Under Section 80DDB – Deduction towards medical treatment for senior citizens suffering from specified diseases raised from Rs 60,000 to Rs 80,000. If actual expenses incurred for treatment are lower, such lower amount shall be allowed as a deduction.
Deduction for Medical Expenses for Super Senior Citizens up to Rs 30,000: Individuals who are more than 80 years old shall be allowed a deduction for medical expenses of up to Rs 30,000 from their total income.
Service Tax Exemption on premium paid by Senior Citizens for Varishtha Bima Yojana – Senior citizens shall not be required to pay for service tax component on insurance premium of this bima.
Want to know how much tax you will pay in FY 2015-16?
For those less than 60 years old increased deduction under section 80D to Rs 25,000 from Rs 15,000 – when you pay health insurance premium for self or spouse or children (allowed for dependent children) you can now claim a deduction of Rs 25,000 instead of Rs 15,000 allowed earlier. This increase is a great encouragement to tax payers to insure their health if they haven’t already.
Higher Income Tax Deductions for the differently abled – In order to provide tax benefit to those who are differently abled or those caring for dependents who may be differently abled, the FM increased the deduction – Under Section 80DD and Under Section 80U – where disability is 40% or more but less than 80% the fixed deduction. The deduction earlier allowed was Rs 50,000 which is now raised to Rs 75,000. And in case of more than 80% disability deduction allowed was Rs 1,00,000 which is now raised to Rs 1,25,000.
Transport Allowance now Rs 1600 pm up from Rs 800 pm – Total exemption that will be allowed on transport allowance is now Rs 19,200 annually instead of Rs 9,600 earlier. This limit has been revised after several years and will be a welcome relief for low income earners.
Tax free Infrastructure Bonds – The FM announced that tax free infrastructure bonds shall be announced to support the government’s plan for investing more money into roads and railways.
100% deduction under Section 80G for contributions to Swaach Bharat Abhiyaan and Clean Ganga Fund
Interest earned on Sukanya Samridhi Account to be fully tax free – Under this scheme a minimum amount of Rs 1,000 has to be deposited each year for the girl child account. A maximum Rs 1,50,000 can be invested in each financial year. The amount deposited in this account shall be eligible for deduction under section 80C. The FM announced that interest payments shall be fully exempt from tax.
Additional deduction of Rs 50,000 towards contributions to Pension Funds – The FM emphasized the government is committed to ensuring pension for the common man and towards this effort they enhanced the deduction under section 80CCD by Rs 50,000 for contribution to pension funds
Friday, 17 October 2014
Download Master of Form 16 for the Financial Year 2014-15( This Excel Utility Can prepare at a time 100 employees Form 16 for the Financial Year 2014-15)
Your family is always there to give you support -- not just emotional, but sometimes financial as well. For instance, your family members can be of great help for saving on taxes. However, all your investments and spending for your family are not eligible for tax rebates. There are rules and some of them are pretty complex. To make things simpler, here we list 7 perfectly legal ways your family can assist you cut your tax bill:
1. Buy health insurance for the family: A medical insurance is a necessity that helps you save taxes. If you buy it only for yourself, you can save up to Rs 15,000, but if you buy it for the whole family (including your parents), you can save up to Rs 40,000.
Under Section 80D, a deduction of Rs 15,000 can be claimed for the health insurance premium and preventive healthcare check-up costs for yourself, spouse and your children. If you decide to protect your parents as well, you get an additional deduction of up to Rs 20,000, if they are senior citizens. Otherwise the regular Rs 15,000 limit is also applicable for your parents. Also, this deduction is available irrespective of whether the parents are financially dependent on the taxpayer or not. So, if your wife is an earning member as well, she can use the same strategy and reduce the taxable income of the family by buying her parents a plan as well.
Download All in One TDS ON SALARY for FY 2014-15 ( Prepare at a time Tax Compute Sheet + Arrears Relief Calculation + Form 10E + HRA Calculation + Form 16 Part A&B and Part B)
2. Invest through your spouse: Exhausted your 80C limit? Gift some money to a non-earning spouse and invest that in a tax-free instrument. There is no upper limit to the amount you can give as your spouse is in the list of specified relatives whom you can gift any sum without attracting a gift tax. However, the taxman is not foolish. If you invest the gifted money, the Section 64 of the Income Tax Act, a provision for clubbing income, comes into play. Therefore, the escape route is by investing in a tax-free option such as a PPF or ELSS scheme.
Also, there is no tax on long-term gains from shares and equity mutual funds. So, if you invest in them in your spouse name and then hold for more than a year, there will be no additional tax liability. What's more? When you re-invested these earnings from the investment, it will be considered the spouse income and you'll have no further tax liability on that money. You can use this strategy even if your spouse is earning, but falls in a lower tax bracket.
Similarly, you can also invest in your parent's name and the best part is the clubbing rule won't be applicable here. Also, there is no gift tax on the money you give to your parents. So make use of their a basic tax exemption limit—Rs 2 lakh for up to 60 years, Rs 2.5 lakh for people above 60 and Rs 5 lakh if they are above 80 years of age. In case, they are exceeding the exemption limit, help them save taxes by investing in a tax-free option.
3. Loan money to spouse: Another way to avoid tax is by showing the monetary transaction as loan. So, for instance, if you buy a house in your wife's name or transfer the second property to her, the rental income from it will not be treated as your income if she pays you a nominal interest on the loan. She can also transfer her jewellery worth the value of the property in your favour. Then also the rental income from that house would not be taxable to you.
Even your fiancee (or, fiance) can help you save taxes. "If a couple is engaged, and the one of them does not have any taxable income or pays tax at a lower rate, her fiance can transfer money to her. The income from those assets won't be included in his income because the transaction took place before they got married," says Sudhir Kaushik, co-founder and CFO of Taxspanner.com. One can give up to Rs 2 lakh (the tax exempt limit) without putting any tax liability on the partner.
To avoid clubbing of your child's income, you may invest in tax free instruments such as PPF, mutual fund (MF) or ULIP. Open a minor PPF account in the name of your child and it won't be taxable. However, there is a limitation to this option—the contribution to your own PPF account and that of the child cannot exceed the overall limit of Rs 1 lakh a year.
You can buy a child plan from an insurance company or invest in an MF. The premium paid (or investment made, in case of MFs) by you for your child's future qualifies for a deduction under Section 80C of the Income Tax Act, 1961. A private trust for your child can also be created to save tax.
There is also a small deduction available in case that investment earns you some money. You can claim up to Rs 1,500 exemption per child per year for a maximum of two children. This means you can invest Rs 15,000 (or, Rs 30,000, if you have two children) in a one-year fixed deposit scheme which gives an annual return of 10%, and be exempt from tax.
5. Adult children can be big tax saver: The clubbing rule does not apply once the child turns 18 and the person will be treated as a separate individual for all tax purposes. This means, you can transfer money to a major child and have another 2 lakh exemption limit along all the exemptions and deductions any other taxpayer enjoys. So you can freely gift him any amount of money and invest it for tax-free gains. Your PPF limit also increases by another lakh. "You should also transfer all investments made for the child's future—deposits and investments—in major child name," . You can also invest if the child is 17 and will turn 18 before 31 March of that year and get the benefit for the entire year.
6. Pay rent to your parents: If you live with your parents, pay them rent and claim your HRA. However, the house should be registered in their name for you to make this claim. Your parents will be taxed on this. They can claim a flat 30% of the annual rent as deduction is for maintenance expenses such as repairs, insurance, etc., irrespective of the level of actual incurred expenditure.
So, say you pay Rs 25,000 a month, that is, Rs 3 lakh a year, your parents will have to pay tax on only Rs 2.1 lakh. The amount that is over and above the basic Rs 2 lakh exempt limit (Rs 2.5 lakh in case they are above 60 and up to Rs 5 lakh if above 80 years of age), can be invested in their name under tax-free Section 80 C options such as the Senior Citizens Saving Scheme, five year bank fixed deposits or tax saving equity mutual funds. You get a bigger benefit if the house is co-owned by your parents. Then they can split the earning from rent and show separate tax liability.
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