Popular Articles – Taxation

What is Form 16 in income tax returns?. Form 16 is issued by an employer on or before the 15th of June. You might want to ask your employer about how to fill Form 16 if you are a first-time taxpayer. It enlists various details like total salary e...

If you’re new to this turf, it can be confusing to figure out how to go about investing your money correctly. Fortunately, there are many investment tricks that can help people who are just starting out. Learning the basics is the best place to st...

Step 1: Claim the standard deduction

The interim budget in 2019 gave salaried employees all over the country a reason to rejoice. Under the many proposed amendments offered by the budget, one of the most helpful provisions was an increas...

Read on to learn the major difference between direct tax and indirect tax, as determined by the Indian taxation structure....

The taxes payable by an individual depends not only on the amount of income they generate in the financial year, but also largely depends on their age. The Indian state has categorised resident individuals into three different age groups, on the b...

1. Finding the Best Life Insurance. Finding the best life insurance can go a long way in keeping you financially secure today. Look for life insurance plan that provides financial support to loved ones in the unfortunate case of the policyhol...

1. Pay yourself first. The first rule of financial planning requires that you pay yourself first. What this means, in essence, is that you should save first and spend only what remains. Draw up a budget to identify your obligatory expenses an...

Aside from the protective cover they offer, insurance policies also come with other advantages. For instance, with life insurance tax benefits, you can claim the premium paid as a deduction from your total income. Single premium life insuranc...

1. It is always a good time to buy a house. Buying a house should always be on top of the list of things you save for. A house is not just a property, it is a protective cover that you and your family can fall back on at any point in your liv...

Keep in mind that as an Indian citizen, you are not compelled to combine your incomes and tax filings. This means that you both can file for income tax returns individually and utilise the double benefit of tax exemptions for your household....

Fortunately, with a little bit of insight, financial planning for beginners gets quite easy. So, if you’re about to earn your first salary in 2020, here’s a guide on basic financial planning to help you get started on the right foot. By using thes...

Draw up a budget and stick to it. Budgeting is one of the most basic financial New Year’s resolutions to adopt. It can help you get a clear picture of where you stand financially. If you aren’t in the habit of drawing up your own personal balance...

Interest under section 234A

The 31st of July of every financial year is the due date set by the Income Tax department for filing income tax returns. Often, owing to various reasons, the authorities even extend the due date. If a notifica...

But the year 2020 can be different for you. With this tax planning guide, you can stay two steps ahead of any tax problems that may arise, whether they be generic or specific. Here are the most likely problems you might run into while tax planning...

This can leave sole-earner families in a somewhat vulnerable position. In the unfortunate event of the demise of the sole earner, the family can find themselves confronted by a dire financial emergency. That is why an increasing number of single f...

There are several salary tax calculators available online which can help you determine the precise amount you owe in taxes to the government. India follows a progressive tax structure and hence, different tax rates are applied to different income ...

On the other hand, throughout the year, we pay taxes in various forms and some of these modes are advance payments. Such advance payments can include advance tax, tax deducted at source (TDS), self-assessment tax, among others. When you have paid ...

Term insurance tax benefits encompass three different components of the insurance policy. These include the premiums paid for the policy, the lump sum amount that is paid out to the policyholder’s nominees upon their death, and the income amounts....

“Is it possible to reduce my tax liability by the end of the fiscal year? If so, how?”...

1. Higher basic exemption limit

   The tax benefits for senior citizens start right from the Income Tax slab rates. Unlike regular assessees, seniors enjoy a higher basic exemption limit. This essentially means that people over the age ...

Investment under 80C and 80CCD is one of the easiest ways to minimize your tax burden. The investments that qualify under these sections are also excellent instruments to help your money grow over the years. If you’re keen on taking advantage of t...

What causes an insurance policy lapse?

When you purchase an insurance policy, you essentially agree to pay a premium, which can either be a one-time payment or a recurring expense. This premium has to be paid within the due date specifie...

Whether a seasoned investor or a beginner, this blog aims to help you make informed decisions that could lead to substantial tax savings and set a solid foundation for the upcoming financial year....

Understanding Tax Benefits on Equity Shares

For investors aiming at achieving superior tax planning through their investments, equity instruments form a major part of their investment portfolio. While attempting to understand tax plannin...

As a doctor, you must be acutely aware of the many risks that life can throw. This is where term insurance proves its worth. Among the many options available as insurance for physicians, term insurance is truly a great one. But which type of term ...

Different sections of the Income Tax Act (ITA), 1961, refer to the various tax benefits available to those availing home loans, education loans or even personal loans. To avail the maximum amount of benefits, it can be advantageous to study these ...

But, keeping in mind the most popular financial needs except this, here are some of the best tax saving investments that you should definitely know about:...

Well, you need not worry any longer as this essential list of documents is certain to guide you in your income tax return filing process for next year. Here are the primary and most important documents you must collect for your ITR returns filing:...

Important Dates...

Get the documents in order:

Before starting with the process in this ITR filing guide, arrange all the required documents pertaining to your income. For a salaried person, these would include the Form 16 given by your employer, the salar...

Investing in different instruments not only helps you to diversify your portfolio and increase your returns, but also helps in maximizing tax savings. Read on to learn how to avoid income tax from cutting into your returns. ...

So, in order to avoid falling prey to the confusion of income taxes, make sure to closely follow the steps listed out in this ITR filing checklist. With these simple, basic steps you can cover the ground of the entire income tax filing process and...

1. Maintain all important documents: As a business owner, it is vital that you safeguard your company against the threat of tax troubles. During the tax filing process, a simple slip-up or missing document can have huge consequences for t...

What are ITR Forms? Types of ITR Forms Required for Filling ITR...

The income tax return also referred to as ITR is a form that all taxpayers must fill and submit to the government for each financial year. This form contains information on earnings from varied income sources, Tax Deducted at Source (TDS), and sav...

As we grow older, it is natural to want to take care of the people who are dear to us. When that loved one is living with a disability that requires complete care, a greater commitment is essential. Supporting their daily needs is as important as ...

Note on section 10(10D) of the Income-tax Act, 1961 (Act) with respect to Unit Linked Insurance Policy (ULIP) as amended by Finance Act, 2021...

The professional life of doctors can be full of challenges every day. The demanding nature of the job, followed by the grueling hours spent attending to patients can be taxing. However, there are also many benefits to being a doctor. They receive ...

Income tax is a tax levied by the Government of India on the earnings of taxpayers. Depending on the amount of earnings in a year, the government charges a fixed percentage of tax on the gross income as per the prevailing income tax rates. This in...

Financial advisors suggest making investments for multiple reasons, out of which the primary reason is to create an asset that will help you generate an additional income. Some say it is a way to make your money work for you. Another major factor ...

The Government of India levies taxes in India to develop and manage various social welfare activities and schemes. There are two types of Taxes in India, namely Direct and Indirect Tax. Direct Taxes are charged directly by the Government on the in...

Financial commitments can never be forgone in an individual’s life. A common man with a regular monthly income will have sufficient money to pay his taxes and further run his family. However, investments are necessary for these people to manage fu...

Personal Income is subject to Income Tax in India. Every individual is required to exhibit their income and file Income Tax in India. As a taxpayer, it is necessary to understand the taxes applied on personal income and about income tax saving opt...

The last year has been a rollercoaster with many changes happening around the world. Whether it was the lockdown or the virus wreaking havoc in the lives of millions of people, there were quite a few problems to deal with on multiple fronts. To ad...

Tax is a necessary yet complicated subject to comprehend. As a responsible citizen, tax planning is not only mandatory but also an important aspect of financial planning for you. Every year, you begin to evaluate your income, gather important rece...

Whether you are a salaried individual or a self-employed one, filing income tax returns or ITR is a must if you come under the tax bracket. If you earn more than the tax exemption limit, then you are required to file your tax returns as per the la...

Taxation is a major part of every individual’s life. Every year, you rush during the filing season to collate information regarding the income and expenses shown in the books for taxation. Being an inevitable aspect of financial planning, you also...

The importance of term insurance plans in safeguarding the financial future of loved ones is unparalleled. Term insurance plans protect your life and provide a financial shied to your family. In case of your unfortunate demise during the plan tenu...

When Mr. Sharma was 40 years old, he knew exactly how to tackle his finances and investments. He had a family to support, which included a wife, two children, and aged parents. Therefore, he used to invest regularly in various insurance and invest...

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House Rent Allowance or HRA is a vital component of the salary slips of employees. Basically, it refers to the amount paid by the employers to their employees – as a part of their salaries – to help them meet accommodation costs....

Every year, the Income Tax (IT) Department cuts a portion from the income of salaried individuals, business owners, senior citizens, and other tax-paying employees/entities as tax. The IT department doesn’t do this directly but relies on the indiv...

Under the Income Tax Act, 1961, every individual earning an income must pay their due taxes to the Indian government. The income can accumulate from salary, house rent, commissions, professional fees, bank interest, etc. For salaried employees, th...

Having a life insurance policy is imperative in today’s times. It secures the financial future of your loved ones and ensures that they continue to live peacefully even if you’re not there with them in the future. If you’re the sole breadwinner of...

A life insurance policy is an efficient tool to take care of your loved ones in your absence. It provides a death benefit to your dependents if anything unfortunate happens to you and acts as a financial cushion. In term insurance, the death benef...

The real estate sector is the most significant contributor to India's GDP (GDP). According to data, it is expected to reach a market size of around US$ 1 trillion by 2030, equating to 18-20% of GDP. All this is happening because of the increased t...

When you receive a salary from your employer, you may have noticed that a certain amount is deducted as tax. When you ask your company's human resources department, they will tell you that the deductible amount is TDS (Tax Deducted at Source). But...

The real estate sector contributes significantly to India's economic growth and offers numerous income opportunities. One of these is rental income from your property. You can earn money if you own land, plant and machinery, or any other immovable...

Tax is a necessary yet complicated subject to comprehend. As a responsible citizen, tax planning is not only mandatory but also an important aspect of financial planning for you. Every year, you begin to evaluate your income, gather important rece...

Section 10 of the Income Tax Act is meant for salaried individuals. This section's provisions aim to reduce total taxable income by covering salary components such as rent allowance, travel allowance, gratuity, etc. If you are a salaried employee ...

What Are the Different Types of Taxes in India?

Tax in India is broadly divided into two categories depending on their submission process: direct tax and indirect tax. While direct taxes are levied on earnings in India, indirect tax is i...

Understanding Tax-Saving Instruments

By channelling funds into different tax saving investments such as the Employees' Provident Fund (EPF), Public Provident Fund (PPF), Equity Linked Savings Scheme (ELSS), and others, individuals can le...

Therefore, understanding the tax benefits associated with term insurance plans becomes crucial. In India, term insurance stands out as one of the most popular tax-saving methods, offering individuals a dual advantage of financial protection and ta...

What is a Tax System?

A tax system comprises a series of rules, regulations, and guidelines adopted by a government to accumulate taxes from individuals and businesses within its jurisdiction....

How Tax is Calculated on Salary for 2024–2025?

Here is a step-by-step approach to how to calculate income tax on salary for 2024-2025:...

Tax Benefits on Term Insurance

The solution of how to save income tax in India through term insurance plans in 2024 can be executed by understanding several key points and strategies:...

Understanding the Old Tax Regime

The old or existing tax regime allows taxpayers to benefit from a wide range of deductions and exemptions under different sections of the Income Tax Act, such as 80C, 80D, HRA (House Rent Allowance), and ...

What is Section 16 of the Income Tax Act?

Section 16 of the Income Tax Act provides deductions and allowances from income subject to tax under the head for salaries. Salaried individuals can claim this deduction regardless of the tax sla...

What is the New Regime?

The new tax regime was introduced in the Union Budget 2023. It outlined new tax slabs under Section 115 BAC of the Income Tax Act, 1961, for individuals, businesses, and Hindu Undivided Families (HUFs). The key fe...

1. Equity-linked savings scheme (ELSS)

Equity-Linked Savings Schemes are diversified mutual funds savings schemes that help investors avail themselves of the twin benefits of investment and tax saving. The returns under the ELSS are n...

Tax Liability on Salary of Minimum 50 Lakhs in Financial Year

Assuming there is no other income an employee has earned, below is the calculation of tax on a resident individual’s minimum salary without any deduction for Assessment Year 2...

How to Save Tax for Senior Citizens

1. Life insurance

   Life Insurance represents an essential component of financial planning, offering the benefit of providing financial protection to the policyholder's family in the event ...

One of the common components of a salary receipt is HRA (House Rent Allowance). This allowance is provided to help the employees living in rented housing cover their rental expenses....

This guide delves into the details of Sec 44AD of the Income Tax Act and highlights how professionals can leverage it for tax savings in 2024....

The Union Budget for the fiscal year 2024-25 was presented by the honourable finance minister on July 23. The new TDS rules on life insurance have got a significant place on the list of changes made related to the insurance sector....

The very first thing that comes to people's minds when thinking about tax planning is Section 80C. But once you have utilised that Rs 1.5 lakh limit, it feels like putting a full stop to your tax-saving opportunities. The good news is that beyond ...

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Section 87A provides individuals with tax assistance, which lowers their tax payment. With the new tax structure, Indian residents with taxable incomes up to Rs 7,00,000 are eligible for this rebate. In India, a tax rebate of up to Rs 25,000 is pr...

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This difference is quite fundamental and important to the taxpayers, business owners, and any other finance professional. For some time now, the two terms, FY and AY, have been used interchangeably; however, this is only on paper or books because,...

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This blog will discuss Section 80E of the Income Tax Act, eligibility criteria, and more!...

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Tax free investments are a godsend for those who want to protect their income and also achieve their long-term financial goals. Such investment opportunities not only save you taxes but also allow you to accumulate wealth over time without worryin...

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Income tax is an important part of financial planning and knowing how tax laws particularly apply to women can give them the power to take decisions about finances. While the Indian Income Tax Act treats male and female taxpayers alike in terms of...

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The income tax in India is calculated on a slab basis, and different tax rates are prescribed for different income ranges. Thus, the higher the income, the higher your applicable rate of tax. The income tax, therefore, assures that the taxation sy...

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