Provident Fund is Taxable- If withdrawn before 5 years of continuous service

Provident fund account becomes non operative if there is no credits or contributions for continuous 36 months & interest will not be credited after that period.

Provident fund is taxable if it is withdrawn without rendering continuous services for five years, though employers can be different. Provident fund’s accumulated amount can be transferred from one firm to another.

For example: If you are working in Firm X for 2 years then you joined Firm Y and you transferred accumulated provident fund amount with Firm X to Firm Y, then it will be treated as continuous service and Provident fund will be considered […] Read more

Income Tax Return Filing- After Due Date- Certain Limitations

The due date for filing income tax returns is 31st July,2013 except for those individuals who are engaged in business or profession and whose accounts are required to be audited as per the provisions of the Act. Individuals earning more than Rs 40 lakhs in a year in profession is required to get their accounts audited.

Last date for these individuals is 30th September. Tax returns filed after due date is considered as belated returns. You can file belated return for a particular financial year (within 2 years form the end of the relevant financial year under Section 139 (4) […] Read more


1. FILE YOUR RETURNS: There is a misconception in the minds of salaried persons that when employer has deducted tax at the source then what is the need of filing tax return by them. If your income is below the exemption limit, which is generally with everyone at the beginning of the career, filing returns will help in the documentation process if you are taking a loan or an insurance policy or when you are applying for visa.

2. PICK THE CORRECT FORM: Depending upon the various streams of income you have, you have to select the form accordingly.

3. DISCLOSE […] Read more

Incomes that should be declared

Here are some of the incomes that assessee should not forget to declare:

1. Interest earned from savings bank account (maximum exemption is Rs 10,000, but it should be declared first)

2. Interest earned from fixed deposit

3. Interest earned from recurring deposits

4. Cash Gifts (more than Rs 50000 should be declared as they are taxable, except in case of marriage)

5. Capital Gains or Losses(from trading equities, selling mutual funds, gold, etc., should be declared even if they are non taxable and losses should be declared as they help in offsetting gains in subsequent years)

6. Exempt Income(should be declared for auditing purpose only)

7. […] Read more

Senior Citizens- Tax Planning

The exemption limit for senior citizens is Rs 250000 and age limit is between 60 & 80. After 80 years the category of very senior citizens starts & their exemption limit is Rs 500000.

The short term capital gains for senior citizens will be tax free if the basic threshold limit of 15% is not crossed.

Public Provident Funds or the PPF are also very attractive source of investment for senior citizens as it allows an exemption upto Rs. 70, 000 for all citizens of India.

Senior citizens do not have to pay advance tax.

[…] Read more