Banks may have to align systems to accept deposits for a previous financial year
Investors must understand as to how the change works before committing to any tax regime
If you are a rich salaried individual and yet struggle to use all deductions and exemptions, you need to improve your awareness levels and investment habits
A steady increase in the impact of exemptions on tax revenue is a good enough reason to wean people from tax sops
The ‘simpler’ tax regime comes with embedded complications, triggering confusion rather than a sense of relief
Taxpayers, especially those in the higher income groups, are unlikely to benefit from the new income tax regime.
It would be better to link them to long-term goals such as retirement
Everyone is looking forward to the prospect of saving more taxes
Here are some important exemptions/deductions for reducing your tax outflow
Know the various provisions that can help you optimise tax benefits on offer
Various income-tax deductions and allowances are calculated and allowed only upon submission of proofs by an employee
The Tier 1 account is covered under EET (Exempt Exempt Taxed) regime
Strictly speaking, since the fee has been paid by the employer, it does not satisfy the condition of ‘paid by the individual’ and hence should not qualify for a deduction in the hands of the employee.
Increase in basic exemption limits, enhancement in home loan interest deduction and easing of the tax filing process are eagerly awaited
In the case of a jointly-owned property, each co-owner is liable to pay tax on his/her share of the rental income
Those earning under Rs 5 lakh will benefit the most, while the super-rich will feel the pinch.
Raising investment limit under Sec 80C will improve domestic saving and channelize it into infrastructure financing. Creation of a separate investment deduction limit for insurance will help insurance industry to grow and meet long term financing needs.
One will enjoy tax deduction either as per section 80C or section 80D or any other section of the Income-tax Act when you make the investment today or you make the investment at any point of time before 31st March 2014.
There are often questions in the mind of investors whether a mutual fund that they have chosen for the purpose of investment will get the benefit of Section 80C deduction.
Normally people do their investment planning at the fag end of the month of March, hence majority of life insurance policies are purchased on tax considerations only and that too in the last quarter of the financial year.
Professionals are clamouring for a rise in current tax exemption limit of Rs 200000 to atleast Rs 300000 in line with the inflation, so that monthly disposable income is slightly higher.
The limit of deduction for interest payable on loan taken to acquire a self- occupied property was fixed at Rs. 1,50,000/- in 2001, which is a good 12 years ago. The increase in real estate prices since than has completely eroded the value of this deduction and this clearly needs an upward revision.
Most of the salaried employees might have received a reminder from the HR for submission of proofs of tax saving investments.
In CNBC-TV18's personal finance segment today, Pankaj Mathpal of Optima Money Managers highlights the tax and income benefits on a residential property. Mathpal believes that a self-occupied house gives lesser tax deductions than a rented house.
In case you do not yet own your own residential house property then it is time now to start investing in new residential house property so that you can have your dream house.