Sections Under Income Tax where You can SAVE

As the last date of filing income tax is approaching, still many of us are not aware of deductions which we can claim. Most of us know about only the popular deductions, here are few which are either introduced this dear or are not very popular:

1. Section 80TTA: Interest on savings bank account will now be exempt up to Rs. 10,000 in a year.But income generated from the savings bank account should first be declared and then the exemption can be claimed.

2. Section QQB: For authors of certain specified books, royalty income or copyright fees up to Rs. 3 lakh […] Read more

Tax Planning for Current Financial Year

Today people are earning more so they need proper tax planning but most of us wait till the last month for planning our tax. We should plan it at the starting of the year so that we can also get benefit of returns from those investments. Most of us know the deductions under section 80C but today we are discussing deductions under section 80s( other than 80C).

1. Section 80D- for premium paid for medical insurance- Rs15000 or Rs 20000 in case of senior citizens

2. Section 80DDB- for expenditure incurred in respect of medical treatment- max. Rs 40,000 or Rs 60000 […] Read more

Which ITR is suitable to you in Assessment Year 2013-14?

ITR-1: It can be used for income from salary/pension, income from one house property(excludes the cases where loss is brought forward from previous years) , income from other sources (excludes winning from lottery & income from race horses)

ITR2: For those individuals or Hindu Undivided Family who has income from salary/pension, income from house property, income from capital gains or income from other sources (includes income from winning from lottery & income from race horses)

ITR3: For those individuals or Hindu Undivided Family who are partners in a firm or income from profits or gains of business or profession but should not […] Read more

Inflation Indexed Bonds- No Tax Exemption

As we all know that by investing in bonds we get exemption but Reserve Bank of India has cleared that there will be no special tax exemption for inflation indexed bonds.
The Finance Minister P.Chidambaram , announced that RBI would launch inflation indexed bonds to help public hedge themselves against price increases at a time real interest rates are still negative, hence crimping their savings.

But do these indexed bonds are really protecting our savings?
Firstly, from last six months inflation is easing so time is clearly favoring government.
Under the scheme, the principal amount of these 10-year bonds will be adjusted against […] Read more

Rajiv Gandhi Equity Savings Scheme- New Deduction Introduced

A new section 80CCG is introduced for deduction upto Rs 25000. This scheme would allow for income tax deduction of 50% to new retail investors, who invest up to Rs 50000 directly in equities & whose annual income is below Rs 10 lakh. The lock in period for this scheme would be 3 years. From Financial year 2013-14, a resident whose gross total income for a year is up to Rs 12 lakh, can claim deduction under this scheme. This deduction can be claimed by a resident individual who has not opened a demat account & has never made […] Read more

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