Glimpses of Budget 2016
March 26, 2016
lf your income is less than Rs. 5 lakh, you will get a tax rebate of Rs.5,000 under Section 87A. Currently, the tax rebate is Rs. 2,000. If you do not have a house of your own and you do not get any house rent allowance from your employer, you can claim a deduction of Rs. 60,000. 00 under Section 80GG. At the moment, this Limit is Rs. 24,000. A National Pension System (NPS) subscriber can withdraw up to 40 per cent of the accumulated corpus tax free .At the moment, withdrawals are taxed at the income-tax slab applicable to the subscriber. Service tax on single-premium annuity (insurance) policies has been reduced to 1.4 per cent from 3.5 per cent
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De-Tax: How clubbing of income works
March 22, 2016
You will be taxed on income that’s yours but masquerades as someone else’s It’s a trick as old as the hills — trying to pass off your income as someone else’s to cut tax outgo. But the taxman wised up to this long ago and armed himself with clubbing provisions — Sections 60 to 64 of the Income Tax Act, to be precise. No, you won’t get chased by a sleuth with a club. But you can be made to pay tax on income that’s actually yours but masquerades as someone else’s. Here’s an idea of how clubbing of income works. Say, you come under the 30 per cent tax slab and your spouse has no taxable income. Let’s open
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Small savings interest rates slashed
March 22, 2016
Investor returns will come down by 60-130 bps for the quarter from April 1 Your small saving investments are will fetch lower returns starting April 1, with the Finance Ministry on Friday announcing revised interest rates for these schemes. The vastly popular Public Provident Fund will earn 8.1 per cent against the current rate of 8.7 per cent. The new interest rates, which will be applicable for the first quarter of 2016-17 (April 1 to June 30), are 60-130 basis points lower, depending on the scheme. The interest rate on Kisan Vikas Patra has been slashed to 7.8 per cent from the current 8.7 per cent and that on the five-year National Saving Certificate to 8.1 per cent from 8.5
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Portfolio Ideas: How you should prioritise your life goals
March 22, 2016
Is your corpus falling short? Ways to deal with the situation smartly Creating goal-based portfolios help you stay focused on achieving your objectives without taking additional risks. If you have three life goals to pursue now, you should have three different goal-based portfolios. But what if you are unable to contribute enough capital to all the portfolios? Or, if you face shortfall in one of your goal-based portfolios? In this article, we discuss how to prioritise your goals and bridge the investment value gap, if any. Allocation criteria Your investment choices should be driven by your goal priorities. Why? The goal will rank as high priority only if achieving it is important to you. What if you experience losses in
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PAN mandatory for all transactions over Rs.2 lakh from New Year
January 12, 2016
Move aimed at countering black money, says Finance Minister Jaitley Finance Minister Arun Jaitley on Tuesday said that to counter domestic black money, the Centre will make it mandatory to furnish PAN (Permanent Account Number) for cash dealings above Rs. 2 lakh. The Revenue Secretary, Hasmukh Adhia, said later in the evening that the Finance Ministry has changed the reporting requirements of PAN, making it mandatory for all transactions of overRs. 2 lakh effective January 1, 2016. “This will include transactions through cash, cheque and jewellery,” he told newspersons. In Budget 2015-16, Jaitley had proposed making PAN mandatory for all transactions over Rs.1 lakh, but Adhia said it has been revised upwards to “give some breathing time to people” based
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