Are you planning to buy a house in the next couple of years? There is a hidden rule in the tax book that allows you to reinvest your capital gains, without paying any long-term capital gains (LTCG) tax, provided you use the money to buy a house or capital gains bonds. But for now, let’s […]
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Category: Tax Planning
Insurance & Pension plans may get you Tax Tension! Read fine print
When you invest in bank fixed deposits (FDs), you know very well that the interest income is subject to tax as per your tax slab. When you buy tax-free bonds, the rules are also easy to know. Your interest is tax free. But when you invest in any insurance policy for getting a tax deduction […]
Hindsight of Investing in Tax Free Bonds!
Ramesh is worried about to make fresh investment as interest rates going southwards, which is bad news for many savers , including senior citizens. Being a conservative investor, he has never looked beyond fixed deposits for his savings. Ramesh keeps evaluating bank FD interest rates for locking his funds for more than five years. But […]
Filing of Income Tax returns need not be Scary
Nobody wants to invite inevitable troubles at the time and after filing of income tax returns. However, inadvertent mistakes and ignorance of income tax rules while filing of income tax return may lead to a tax payable or refund situation or rendering the return as invalid, amounting to a defective return causing agony of issuance […]
Re-think before investing in the name of Spouse and Children!
Most of the families having the wives are home-makers and their husbands are in the highest tax bracket thanks to higher disposable income. Usually, high tax payers would temptation to pass on assets and invest in the name of family members mainly to save their taxes or emotionally or whatever other reasons. We have been […]
Insights of Budget 2015: More Deductions but Less than expectations !
Since the expectations from much awaited Modi-led-NDA Union Budget 2015-16 were sky high, people got mildly disappointing with much expected a change in tax slabs because everyone was expecting another round of rationalization of tax slabs in this budget and would get relief from huge tax burden. But this year budget, FM has shown us […]
ELSS: Grow your money and Save Tax!
The last budget hike in deduction limit under section 80C means that taxpayers have more room to save their money by up to Rs50,000, thanks to our finance ministry for enhancing the overall limit under Section 80C from Rs 1 lakh to 1.50 lakh per annum. The Government gives an opportunity to all tax payers […]
Equity Profit: Capital Gain or Business Income?
We have been seeing the prices of almost shares rapidly skyrocketing and touching new 52-week high. Many investors are, now contemplating to book their profit on such shares so as to limit their losses. While selling such shares, most investors get confused as their investments have to be treated as capital assets or business income […]