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Category Archives for "Tax savings"

Find Out-Professional Tax &Professional Tax Slab Rate

Professional Tax is the tax charged by the state governments in India. Professional tax is levied from salaried employees or practicing professionals or persons engaged in any trade etc. Employers are liable to deduct professional tax from salary/wage and depositing the same to the concerned local body/authority and in other cases, persons themselves shall pay the professional tax.

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How to become an Investment Adviser

Investment adviser means any person, who for consideration, is engaged in the business of providing investment advice to clients or other persons or group of persons.

By virtue of (INVESTMENT ADVISERS) REGULATIONS, 2013 SEBI has made registration compulsorily to act as investment advisor. It is a step towards Investor protection. It aims to prohibit unqualified and inexperienced persons/entities from providing investment advises , which results in loss to investors. Recently, SEBI has suspended several persons who have been acting as investment advisors without seeking registration under SEBI. By the newly implemented regulations SEBI, clarified qualifications required to get registered as investment advisors and exempted certain group of persons/entities from registration ..

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Reverse Mortgage-?

Reverse mortgage means a mortgage on which the borrower need not have to repay the loan amount (principal and interest) taken against a residential house property of a senior citizen. Reverse mortgage was introduced to address the financial needs of senior citizens owning residential house property. It enables them to receive a regular income on fixed installments like pension. The home owner

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Fixed Deposits or Recurring Deposits?-benefit analysis

Fixed deposit or Recurring deposit, which yields more?

Financial planning is important in the current economy, where expenses run over income and savings are relatively small or nil. Financial planning will reap rewards in future.

There is always a doubt zone where to invest your surplus fund in fixed deposit or in Recurring deposit. Both FD (fixed deposit) and RD(recurring deposit) has more growth

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Tax benefit on house loan

Repayment of principal amount of loan taken from any bank, state/central government, LIC, NHB, etc. for the purpose of construction or purchase of a residential house property, the income of which is chargeable to tax under the head income from house property.A deduction of amount paid as repayment of principal amount on loan taken for the purpose of construction or purchase of residential accommodation is allowed

Deduction is allowed only to individuals and HUF

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Taxability of HRA and interest on housing loan

You can claim both HRA and Interest on housing loan even both the properties are in the same place.HRA can be claimed even, if your residential property is let out, or self-occupied or it remain vacant due to employment/business/profession carried on at any other place and he has to reside at other place in a house not belonging to him. it should be noted that employee should not be the owner of the property, for which he is paying rent [10(13A)].

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Weighted deduction allowed on in-house research and development extended

In order to mobilize funds for in-house research and development, weighted deduction allowed under section 35 (2AB) has been extended to 31st march, 2017 which was previously limited to 31st march, 2012.

Expenditure (not being in the nature of cost of any land or building)incurred by companies on in-house research and development approved by prescribed authority is allowed as weighted deduction at the rate of 200 %. Previously, expenditure incurred after 31st March, 2012 was not allowed as deduction.

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Tax to be charged on payments in excess of Rs 10,000

Payments made in respect of donations to specified funds and institutions as specified in section 80G and donations made for the purpose of scientific research or rural development to research associations, universities, colleges or other associations or institutions subject to specified conditions (80GGA), any payment made in excess of Rs 10,000 in cash will not be allowed as deduction.

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