Mukesh Patel.in
practical tax & investment planning online
international tax expert / columnist / author / speaker

WATCHDOG TO SETTLE YOUR TAX GRIEVANCES

Income-tax Ombudsman Mechanism For Improving Quality Of Tax Administration

                     The next time you are disturbed by the delay in getting your refund, rectification or appeal effect order in time or you are irritated by the lack of transparency in identifying your case for scrutiny or you are upset over the harassment, rude behaviour or non adherence of the prescribed working hours by any Income-tax Officials, you need not feel helpless or take it down lying low. You now have an independent Watchdog whom you can approach for seeking effective resolution of your tax grievances and even obtain a token compensation of Rs. 1,000 for the loss suffered by you. (more…)

TAX HOLIDAY FOR LEAVE TRAVEL CONCESSION

Get LTC from your Employer and Enjoy Family Vacation with Tax Exemption

One of the important tax free perquisites available to salaried employees is ‘Leave Travel Concession’ (LTC) or ‘Leave Travel Assistance’ (LTA) which is treated as exempt under Section 10(5) of the Income-tax Act read with Rule 2B of the Income-tax Rules.

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TAX INCENTIVES FOR HIGHER EDUCATION

Eight Years Deduction for Interest on Loan for Higher Education, without any Monetary Ceiling

Section 80E provides for deduction in respect of any amount paid by an individual (without any monetary ceiling) by way of interest on loan taken from any bank or notified financial institution or an approved charitable institution for the purpose of pursuing his higher education or the higher education of his relatives viz. his spouse or his child or even in respect of a student for whom the individual is the legal guardian.

This deduction is allowed for a maximum period of eight years starting from the year in which the taxpayer starts paying interest or until the interest payable on such loan stands paid in full, whichever is earlier.

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DUMP THE DIRECT TAX CODE!

DTC virtually beyond repair, present Income-tax Act should be revised to achieve the underlying objectives!

The Direct Taxes Code (DTC) Bill, 2010, was presented in the Lok Sabha on the 30th August, 2010, to replace the existing Income tax, 1961 and Wealth tax Act, 1957 with effect from 1.4.2012.

Tax law, which has been subject to extensive review by the Indian Parliament every year and in-depth scrutiny of the Supreme Court, High Courts and Tribunals, for nearly five decades, is now proposed to be crucified by a legislation, the draft of which has been prepared by a bunch of North Block officials with a bureaucratic mindset.

Though the preamble to the draft claims to have accommodated public opinion raised within a span of only three months, it is a mere eyewash, since the public could hardly have figured out, leave aside digest or comprehend several grave implications. Moreover, no debate was ever sought on whether there was at all a need for a fresh legislation and if there should be one, what should be its shape and frame. To a wrong question, answer could never possibly be right. “You can’t depend on your judgment when your imagination is out of focus”- Mark Twain.

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GET SET TO FILE RETURN THOUGH NO TAX PAYABLE!

If Your Gross Total Income Exceeds The Taxable Limit You Are Under Obligation To File Your Income-tax Return!

                       Section 139 of the Income-tax Act provides that an Individual or a Hindu Undivided Family is required to file his income-tax return, if his Gross Total Income (GTI) prior to various deductions under Section 80 family (such as 80C, 80D, 80G etc.) exceeds the basic income-tax exemption limit. From Assessment Year 2012-13, the prescribed exemption limit is Rs.1,80,000 (Rs.1,90,000 in case of a female, Rs.2,50,000 for individuals aged 60 years and above but below 80 years and Rs.5,00,000 in case of individuals aged 80 years and above).

                 GTI includes within its scope the total of all taxable incomes, after considering the relevant deductions available under the five heads of income, but before allowing the eligible deductions under Section 80 family for purpose of computing the Total Income. The case studies below will meaningfully illustrate this point. (more…)

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