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Allabouttaxin2009ppt1 090430095745 Phpapp02
Allabouttaxin2009ppt1 090430095745 Phpapp02
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Rs.1,50,000 To Rs.3,00,000 Rs.1,80,000 To Rs.3,00,000 Rs.2,25,000 To Rs.3,00,000 10% Rs.3,00,000 To Rs.5,00,000 Rs.3,00,000 To Rs.5,00,000 Rs.3,00,000 To Rs.5,00,000 20% Rs.5,00,000 and Above Rs.5,00,000 and Above Rs.5,00,000 and Above 30%
Note : 3% Education Cess also on the tax amount after tax and surcharge (if any) What is surcharge? * If salary is above 10 lacs , 10% surcharge will also be applicable.
Gift Tax
Gift Tax was abolished with effect from October 1, 1998. The gifts are no longer taxable in the hands of donor or donee. donee. However, with effect from September 1, 2004, any gift received by an individual or HUF will be included in taxable income, provided the amount of gift exceeds Rs.50000/Rs.50000/-.
7. 8. 9.
Spouse Brother or Sister. Brother or Sister of Spouse. Brother or Sister of either of parents of the individual. Any lineal ascendant or descendant of the individual. Any lineal ascendant or descendant of the spouse of the individual. Spouse of the persons referred to in (2) or (6) Gifts received on the occasion of marriage Gift received under a WILL by way of inheritance are also tax free.
The pay which you get has many components , like HRA , conveyance allowance and others.
Out of this income some things are deductible on your hand and after deducting you arrive at a amount called Taxable income , on which you have to pay tax.
If the property is self occupied then the Income from House Property is treated as NIL.
If any loan is taken for the purchase of the property then the amount paid towards interest up to a maximum of Rs. 1,50,000/- is deducted 1,50,000/from taxable income.
In case Property is given on rent, then we have to find out the : Annual Rental Income From this deduct Property Tax paid if any From balance amount-deduct30% towards amountrepairs & maintenance From the residual figure- deduct the amount of figureinterest paid on loan taken for the purchase of the property. The resultant figure is the Income from House Property
Income
Interest Income from the following sources to be included in Gross Taxable Income:
Interest on company deposits. Interest on debentures/bonds. Interest on savings bank account/ fixed deposits with banks.
Interest on post office savings schemes like MIS, NSC, KVP etc. Interest on private loans given to relatives, friends or any other entity. Interest on government securities. Note: Deduction u/s 80 L has been omitted now and accordingly,interest income from the above sources is Fully Taxable now.
Capital Gains
Capital gain arises when certain assets like property (plot or a built up commercial / residential unit) or shares / mutual fund units / bonds etc are sold for a profit. The treatment of capital gains is slightly different. It mainly depends upon whether the capital gain (profit on sale) is Short Term or Long Term.
Capital gain is considered to be short term if immovable property is sold / transferred within THREE years of acquisition. Similarly, if shares or other financial securities such as mutual fund units are sold within ONE year of purchase, the profit earned is treated as short term capital gain.
is included in the gross taxable income like other sources of income and normal rates of tax apply, which depend on the gross taxable income from all sources including short term capital gains.
case of Sale of equity shares or units of equity oriented Mutual Fund schemes, short term capital gains are taxed at a Flat Rate of 15%, irrespective of the tax slab on other sources of income, provided securities Transaction Tax is paid on such sale.
If Immovable Property is sold after THREE years of purchase, Or Financial securities such as shares, deep discount bonds, units of open - ended or close ended schemes of mutual funds are sold/redeemed/transferred after holding the same for more than Twelve Months, then the gain is considered to be long term capital gain.
effect from October 1, 2004, long term capital gain on transfer of listed shares/units of equity oriented mutual funds schemes has been exempted from tax, provided securities transaction tax has been paid on such sale.
listed shares/units of equity oriented mutual fund schemes, tax is payable in respect of long term capital gains at a flat rate 20% and the amount of gain has to be adjusted for inflation. This inflation adjustment is known as indexation benefit.
Section 54 EC
LongLong-Term Capital Gain Tax (after availing indexation benefit ) can be saved by investing amount within 6th months in any of the following two schemes specified under section 54 EC ( upto Rs. 50 Lakhs only): 1 Bonds issued by Rural Electrification Corporation ( REC ) 2 Bonds issued by NHAI (National Highways Authority of India)
Life Insurance Premium. Contributions to Employees Provident Fund/ GPF UnitUnit-Linked Insurance Plan Contribution to Public Provident Fund Scheme (Max. Rs.70,000). National Savings Certificates VIII Tuition Fees Upto Two Children. Repayment of Housing Loan ( Principal)
Pension scheme of LIC of India or any other insurance company. Subscription to eligible issue of units of Mutual Fund (ELSS). Interest accrued in respect of NSC VIII issue. Fixed Deposit with Banks having a lock in period of 5 Years Premium on Mediclaim Policy.
Life insurance is a Very Good Investment. It gives Risk Cover, Tax Saving and Good returns. It is a contract that pledges payment of an amount to the person assured (or his nominee) on the death of insured person.
Savings through life insurance guarantee full protection against risk of death of the saver. Also, in case of demise, life insurance assures payment of the entire amount assured (with bonuses wherever applicable) whereas in other savings schemes, only the amount saved (with interest) is payable.
LongLong-term savings EASY Instalment facility. Instalment Premium payment for insurance is either monthly, quarterly, half yearly or yearly.
LOAN Facility Available. Also generally accepted as security, even for a commercial loan.
A policy that has a suitable insurance plan or a combination of different plans can be effectively used to meet certain monetary needs that may arise from time-to-time. time-toChildren's education, start-in-life or start-inmarriage provision or even periodical needs for cash over a stretch of time can be less stressful with the help of these policies.
Alternatively, policy money can be made available at the time of one's retirement from service and used for any specific purpose, such as, purchase of a house or for other investments. Loans are granted to policyholders for house building or for purchase of flats (subject to certain conditions).
National Saving Schemes (NSC) is used to be one of the popular Income Tax Saving schemes. But nowadays it is not so lucrative. This scheme is available throughout the year. It can be operated singly, jointly, or by a minor with his/her parent or guardian. Return on this scheme at interest rate of 8%.
The minimum investment limitation of the scheme is Rs.100/- and with no upper Rs.100/limit. This scheme has a maturity period of 6 years. There is a provision of loan on the basis of this scheme.
Amt Invested Interest Earned @ 8% P.A. Tax @ 30% on Rs.8/Rs.8/Net Interest Received
Under this scheme, there is a return at the interest rate of 8% p.a. The minimum investment limit is Rs. 500/500/and maximum limitation is Rs. 70,000/-. 70,000/It can be opened any time throughout the year. It can be operated either singly or jointly. In case of minor, with parent / guardian.
Loan amount can be returned in maximum of 36 installments. A person can withdraw an amount (not more than 50% of the balance). Tax Benefit Under Section 80C of Income Tax Act, 1961 is available. Interest on this scheme is tax free.
An ELSS (Equity Linked Savings Scheme) is a mutual fund scheme that invests in equity & equityequity-related securities. ULIP Plans (Unit Linked Insurance Plan) is a
ULIP & ELSS are also eligible investments under section 80C of Income Tax Act 1961. ELSS have a lock-in period of three years. lockThis allows the investors to benefit from the long term growth potential of equities.
Expected Returns
8.00% 8.00% Around 15%-20%
Lock-In Period
6 years Up to 15 years 3 years
Mutual Fund ELSS/ ULIP Plans returns are the assumed returns dependent on the markets and are not guaranteed or assured
Medical Insurance Premium paid for (Self, Spouse and Children Rs. 15,000/-) 15,000/additional for parent Rs. 15,000/- and 15,000/in case of senior citizen Rs. 20,000/20,000/-
I hope this information was helpful. If you need any further help you can get in touch with me via my email id harishsoneji@hotmail.com You can also get in touch with me on www.squamble.com