TAX FREE DIWALI GIFT FOR YOUR EMPLOYEES!
Gift Below Rs.5,000 on any Ceremonial Occasion
Treated as a Tax Free Perk for the Salaried
STAR INVESTMENT FOR SENIORS
Senior Citizens Savings Scheme Scores High On Tests Of Security, Return, Tax Saving & Liquidity
A secured investment, offering a reasonable return of 9% per annum (payable on quarterly basis), assuring premature encashment in case of need and enjoying the added benefit of deduction under Section 80C, have made the Senior Citizens Savings Scheme (SCSS) a popular choice of the elderly for catering to their regular income needs.
EMPLOYEE OR CONSULTANT? MAKE YOUR SMART CHOICE!
Opting to be a Consultant gives the Privilege of claiming
Many Deductions not available from Employee Remuneration!
Anand Roy is offered a marketing work assignment by a company with an annual package of Rs.8,80,000 during FY 2010-11 and he is given the choice to either join the company as an employee or offer his services as a consultant. Weighing the income-tax implications in respect of the same, he is wondering what should be his best choice.
If Anand decides to accept the status of an employee, he needs to be aware of the fact that he would have a comparatively limited choice of exemptions that he can claim from his taxable salary income of Rs.8,80,000. These could possibly be structured in the form of Transport Allowance of Rs.9,600, Children’s Education Allowance of Rs.2,400, Reimbursement of Medical Expenses of Rs.15,000, Attire Allowance of Rs.18,000 and Food Coupons for a value of Rs.15,000, in all amounting to Rs.60,000. This would still leave his taxable salary at Rs.8,20,000 and even after deducting Rs.1,20,000 as the eligible deduction under Section 80C and 80CCF, income-tax of Rs.76,220 would be deducted at source by his employer on his Total Income of Rs.7,00,000.
However, if Anand goes for the choice of becoming a consultant to the company and accepts the consideration of Rs.8,80,000 as professional fees, he would enjoy distinct tax advantages as explained hereinafter.
NA BULL… NA BEAR…BANO MARKET KE SHER!
Investment In Shares Is Your Best Bet To Beat Inflation
And If Rightly Handled Can Earn Big Fortunes For You!
TAX LURES OF THE CAPITAL MARKET
· Dividend from shares/income from units totally exempt from income tax
· All investments of capital market exempt from wealth tax
· LTCG on sale of equity shares/units of equity funds chargeable to STT fully exempt from income tax
· STCG on sale of equity shares/units of equity funds chargeable to STT liable to tax at a flat rate of 15%
· Short term capital loss (STCL) on shares/units eligible for set-off against STCG arising from any other assets liable to tax even at the rate of 30%
KEEP IT IN THE FAMILY AS YOU SAVE TAX!
Payment of House Rent & Interest on Housing Loan
to Family Members can prove a Win-Win Situation !
ELSS BONANZA – TAX SAVING WITH AMAZING RETURNS
Via Mutual Funds Coupled With Valuable Tax Saving Benefits
THE ELSS TAX BONANZA
- Tax Saving upto 30.9% of investment under Section 80C
- Tax Exempt Dividends under Section 10(35)
- Tax Exempt Capital Gains under Section 10(38)
TDS SHOCK FOR SMALL INTEREST EARNERS!
Strong Protest Needed Against Harsh DTC Provision
Abolishing Declarations For Non Deduction Of TDS!
But this luxury of TDS exemption may not live long. The new Direct Tax Code to be effective from 1st April, 2012 does not provide for any similar relief and hence Manubhai’s interest receipts of Rs.2,40,000 will have to bear the harsh 10% TDS brunt of Rs.24,000. (more…)
BUILDING TAX FREE CAPITAL FOR CHILDREN!
Investment In Your Minors’ PPF Accounts
Can Weave The Amazing Magic!
ENJOY FREEDOM FROM TAX BURDEN!
Income-tax of Rs.2,87,370 on Family Income of Rs.27,60,000
Average tax rate of just 10.4% – Myth or Reality?
INCOME TAX IS NO LONGER AS TAXING!
Just consider some tax facts of the past six years as highlighted hereunder:
- In FY 2004-05, taxable income exceeding Rs.1,50,000 attracted the maximum tax rate of 30%.
- Today in FY 2010-11, the basic Income-tax exemption limit is Rs.1,60,000 and the maximum tax rate of 30% is attracted only if the taxable income exceeds Rs.8,00,000.
- In FY 2004-05, the Income-tax payable on taxable income of Rs.8,00,000 was Rs.2,18,280, on the basis of which the average rate of tax worked out to 27.29%.
- Today in FY 2010-11, the Income-tax payable on the same taxable income of Rs.8,00,000 is Rs.96,820, resulting in an average tax rate of 12.10%.
Thus, during the past six years, taxpayers earning taxable income of Rs.8,00,000 or more, have effectively enjoyed a tax relief of Rs.1,23,600.
