Sections in the Income Tax Act that give good benefits.
If extra tax has been paid on inflated income, only a 'bona fide mistake' will get refund.
At present, there is no income tax for people earning less than Rs 1.5 lakh as annual income.
Such capital gain can be exempted by availing the benefit available under section 54 or section 54 EC, if the gains are invested within the stipulated time. Section 54 requires you to invest the gains in another residential house.
The Central Board of Direct Taxes has clarified that employees are not to be taxed when they are issued non-transferable food coupons usable only at food outlets.
Buying a new flat by selling an old one allows you to get tax exemptions, but there are some conditions that need to be fulfilled.
With a slew of measures for mutual fund investors, Sebi has regulated that Selling of bonus units in mutual funds before nine months can lead to more tax liability, but it does not apply to stocks. This is because an amendment was made in the Income Tax Act, which prevents tax payers from 'bonus stripping'. This provision mentions that if there is any loss when the investor redeems bonus units in the first nine months the loss will not be considered as part of taxable income.
The Income tax Act, 1961 contains several provisions which can serve as tools for saving your tax outgo. While everyone is more focused on meeting the 80C limits, here are a few more options.
Saving tax through Ulips will lead to mixing of insurance with investment.
PPF is a good instrument for investors as it allows flexibility and tax benefits.
Making a proper will at an early age ensures that there are fewer people challenging it later.
Surveys suggest that while most women do not invest themselves, they have the ideal mindset to do so.
A husband-wife team with incomes from two separate jobs can take advantage of the tax laws by buying a residence through a home loan.
So give her the financial support, transfer your wealth to her and make investments in her name. Each of those decisions has tax implications. Here we take a look at each one of them:
For a non-Indian resident, any income earned and received outside India is not taxable in India.
After sale of original property, you need to either buy a flat or construct a house. Else you will be taxed.
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