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FINANCE TIP OF THE DAY
Can you afford your loan?!
Know the quantity of loan you can afford. The banks may sanction loan based on your income but you should look at your monthly expenditure and see if you can afford the maximum that banks offer. As a thumb rule, remember not to let your credit exceed 40% of your income!
Search Results for: service tax slab rates for FY 2012-13
EET, Exempt Exempt Tax – Boon or Bane?
Almost all the tax saving financial instruments today fall in the EEE tax regime. The taxman is truly the best friend for the investors in these tools. These investments do not tax us, the investors, at the time of investment, during the tenure of the investment and also at the time of the maturity. There has been considerable discussion during the past few years about the Government changing from the EEE to EET Tax regime related to tax savi…
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What to expect on the tax front this budget?
There is a possibility that the slabs for personal income tax may be increased. The current slab of Rs.1.6 lakhs for taxable income may be increase to Rs.2.5 lakhs for men. There will be suitable increments to women and senior citizens. Income above this slab is taxed at 10% till the next slab. The salaried class and the small businesses are more affected by rules related to income tax than the rules related to indirect taxes like sales tax an…
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Why is it important to file tax returns?
become essential to file returns? It is essential to file returns when your income crosses/exceeds the basic exemption limit even if it means that on account of you investment planning, your tax obligation may be nil. So for FY 2009-10, filing of tax returns is essential if Individuals have taxable income exceeding Rs.160,000 p.a. Women have taxable income exceeding Rs.190,000 p.a. Senior Citizens have taxable income exceeding Rs.240,000 p.a…
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Some pointers to help you apply for a tax refund
In a situation where you think that you forgot or did not have the proper documents to show the investments made, a Revised Return of Income needs to be submitted. Also, the actual claim for the tax refund needs to be done using Form 30. The Income tax department has recently started an initiative where you can check your tax return status online. Towards the end of the financial year, most of us are dogged with the thoughts about filing inves…
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Now service tax for property under construction!
ubject to 10.30 percent service tax. Vinod is looking to buy an apartment. Since properties under construction generally cost lesser than equivalent properties that are in a ready- to- move condition, he has been searching for properties under construction to find a home that he likes and also one that fits his budget! However, he recently came to know that ‘under construction properties’ will now cost more. The reason – n…
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Sec 80 C increase nil, a missed opportunity ?!
solution is to keep the tax rates at an optimum level so that the citizens do not see the tax as a burden and the government is able to collect taxes from as many people as possible. All undertakings depend on finance. Hence foremost attention must be paid to the treasury.. Thus when the receipts and expenditures are properly earned for, the king will never find himself in financial and military difficulties. – Kautilya in Arthasasthra Tax is t…
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The Direct Tax Code-How are you affected?
ted in mutual funds, PPF and insurance) + Rs 1 lakh paid towards home loan interest. So his tax exempted amount goes up to Rs. 2.1 lakhs. His total taxable income now becomes Rs. 2.9 lakhs. Ultimately he ends up paying Rs. 13,000 (Rs. 2.9 lakhs – Rs. 1.6 lakhs = Rs. 1.3 lakhs that is taxed at 10%). Rahul will now save Rs. 2000 in tax. He can do this because with the new tax code, the government plans to hike the tax slabs. While the o…
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The basics of filing income tax
You must add up all your Section 80C and non-80C deductions of Income Tax Act. There are online and offline help resources available in computing this. For example, if you are paying house rent it is exempted from tax up to a certain limit. Conveyance up to a certain amount is also exempted. Similarly, leave travel allowance is also not taxable but only for a certain number of journeys in certain number of years. Then there are medical allowanc…
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Understanding the implications of tax evasion
Simply put, tax evasion occurs when any trust, individual, or firm, seeks to avoid paying taxes by illegal and unfair means, by, for example, deliberately hiding income from the tax authorities to reduce the liability of tax. People have been known to submit dishonest reports, including declaring less gains, profits, or income than what was actually earned. Other means of evading tax are smuggling, and avoiding paying out customs duty, value ad…
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New Direct Tax Code Bill – lost its original fizz?
The earlier proposal of introducing taxation upon withdrawal (EET) instead of the existing tax free (EEE) status for certain instruments like PPF etc. had earlier been withdrawn in a revision. If that were to be implemented perhaps the tax slabs could have led to a dramatic saving for all the individuals in different tax brackets. So overall there have been adjustments all around to create a balance in accumulating government revenues fr…
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