Conviction of Mind

In this year's budget, the tax slabs are unchanged and Rs. 2000/- tax credit has been introduced. The tax slabs as such remain the same For both Men and Women in India, Income                       - Tax slab upto 2 Lakhs              - Nil 2-5 Lakhs                  - 10% 5-10 Lakhs                - 20% Above 10 Lakhs        - 30% This Rs. 2000/- tax credit is not for all the tax-payers. It benefits 1.8 crore people in the income group of 2-5 lakhs. Essentially people who are getting less than 2 Lakhs (tax would anyway be NIL) and more than 5 Lakhs have their tax rates unchanged without any tax credit. For those who are under 2 Lakhs will not be credited Rs. 2000/- The individuals less than 60 years of age will be paying Rs.2000/- lesser if their income is between 2.2 and 5 lakhs. I...

Income tax returns can be easily filed online for free with the help of government's income tax website. This can be done even if you don't have any digital certificate. Follow these simple steps: 1. Go to the income tax website . Income tax india e-filing home page. 2. Register using the above link. The username will always be your PAN number. If it says you have already registered and you haven't done so, then you might have to call the income tax department to get it resolved. This can happen only if you have given the details to another person for filing your income tax return. 3. Once you have registered, download the relevant ITR form. Use this link . Fill the excel file by following the instructions downloaded. This would ask you to enable macros. The instructions will be present as a README file when you download. 4. Validate the sheet and create XML using the macro buttons available in the excel sheet. This will create the xml file in the s...

If you are a salaried person, you'd have seen a HRA component in your salary. Also, you'd have known that you can save tax on whatever rent you pay. Once you have the rental receipts from your house owner, you can fill in the following excel sheet to know how much you can exempt tax from your income. Please edit only those in the yellow color and you can find the other details getting modified automatically. If you enter your basic, your HRA is also modified for the first time. This is because most of the time the basic and HRA are inter related. It is mostly 40% of your basic pay. In the example shown above, the basic pay is Rs. 8000/- and Rent paid is Rs. 5000/- But, It is not worth showing more than Rs.4000/- as it doesn't affect your tax exemption in any way. Also, you will be eligible for exemption only if you pay rent for more than Rs.800/- in this case. In this case, the tax excluded is 3200/-, in which case, you save the tax on that amount based on your tax slab. ...

Good News finally from the Budget of this year. our FM has reduced the tax we are paying by Rs.44000/- for people earning above Rs.5 Lakhs. The snippet on Income tax .., I propose to make some changes in the slabs for personal income tax. I propose to increase the threshold limit of exemption: In the case of all assesses, from Rs. 1,10,000 to Rs. 1,50,000, thus giving every assessee a relief at a minimum of Rs.4000/- Consequently, the four slabs and rates will be as follows: Upto Rs.1,50,000 - NIL 1,50,000 to 3,00,000 - 10% tax 3,00,000 to 5,00,000 - 20% tax Above 5,00,000 - 30% tax. Women Assessee - 1,45,000 to 1,80,000 -Minimum slab. Senior citizen - 1,85,000 to 2,25,000 - Minimum slab. The Income tax for almost everyone has been decreased at least to some extent after the budget. Here comes the bad news for short term traders/Speculators.(Investors?) Dividends that are distributed attract a tax of 15%. Short term capital gains attract a tax of 10% under Section111A. There is meri...

In my last post , I advised all to go to Term Insurance. This post is elaborate the same. First of all, on the safer side, you would have chosen to take insurance. Thats right. But what insurance plan to take. There are many insurance plans available in the market. Which to take?.. Thinking.. Here is the solution. You should remember that Insurance agent or Financial advisor has their own family and they also have to look for more money. so, they will also go with the company's plan that gives them more income.. Accept it? There are more companies offering insurance and some of them are, LIC , Kotak , ICICI , etc.,. You can check out the premium for each plan from their website. Dont take a decision to put your money into LIC or any other as someone told you to do so. Take your own decision after analying all the companies. Two things you should have to keep in mind. With Term insurance, 1. you will not get anything back in your life time. 2. Only the nominees will be getting the m...