This article explains how the income tax Section 80c deductions of the Income Tax (IT) Act can help reduce your income tax liability in your yearly financial planning. Though most of us use some of the deductions under Section 80C each year, we might be doing so unknowingly. Read on to understand what are theRead More
Tax
5 Heads of Income – Indian Income Tax Act
Income is classified under five heads in the Indian Income Tax Act. Each year, you or your qualified chartered accountant is expected to put all your earnings or incomes under these 5 heads of income for calculating tax. Here is a small primer of what these 5 heads of income mean and what all theyRead More
Long Term and Short Term Capital Gains
Capital Gains is an often heard term in the Indian income tax world. Here is a preliminary article on what the terminology means and what Long term and short term capital gains are. Capital gains arises only when a capital asset is transferred. So if the asset transferred is not a capital asset, it will notRead More
New income tax slabs under Direct Tax Code (DTC)
The new Direct Tax Code (DTC) will come into effect on April 1st 2012. DTC is meant to replace the Income Tax Law 1961. By the time the implementation of the DTC begins, we would have enough time to be excited and subsequently forget the impact of DTC on our income tax slab. This isRead More
Your guide to advance tax
Paying taxes is a game that is going to catch up with you all the year round. So if you have just filed your income tax returns (ITR) for last year, it’s time to swing in action to pay advance tax depending on what time of the year you are in. Who pays advance taxRead More
Income Tax (IT) deduction of House Rent Allowance (HRA).
House Rent Allowance or HRA is an allowance given by the employer to the employee for taking care of his rental or accommodation expenses. Note that your employer can choose to offer you HRA in your salary package irrespective of whether you live in a rented accommodation or in your own house. While most ofRead More