Mukesh Patel.in
practical tax & investment planning online
international tax expert / columnist / author / speaker
Currently Browsing: Smart Strategies for Tax Saving

How Important is Your Will?

Remember That Executing Your Will Is Very Simple

But Its Absence Can Create A Host Of Difficulties!

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Inherit Today, Sell Tomorrow, Still Keep Away Tax Sorrow!

ITAT Special Bench Grants Unique Tax Shelter

For Capital Gains On Gifted & Inherited Assets!

If your grandfather had acquired a plot of land for Rs.10 lakhs in late 1981, which you receive by way of inheritance on his death now in 2009 and you are planning to sell the same in early 2010 for a consideration of Rs.63 lakhs, what would be the income-tax you would be required to pay on your capital gains? Difficult to believe, but ‘zero tax’ is the correct answer.

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Tax Stimulus for Medical Insurance

An Individual Is Allowed Additional Deduction

If He Pays Premium For His Parents

Medical Insurance has becoming increasingly popular in India with the increasing cost of medical treatment and hospitalization expenses. The benefit of having a medical insurance is that by making a small payment of insurance premium, the proposer can cover the cost of medical treatment and hospitalization of himself and his family members in case of need.

Section 80D of the Income-tax Act provides for deduction out of the Gross Total Income of the taxpayer in respect of such medical insurance premium paid. The popular medical insurance policy offered by the General Insurance Corporation of India is the ‘Mediclaim Policy.’ Several private insurance companies recognized by the Insurance Regulatory & Development Authority (IRDA) also offer a variety of medical insurance products, the premium payment of which is eligible for deduction under Section 80D.

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Perk up your Employee’s Diwali with a Tax-free Gift!

Gift Below Rs.5,000 On Ceremonial Occasion

Treated As Tax Free Perk Under I.T. Rules

“If you give what can be taken, you are not really giving,” quoted the noted Sufi author Idries. Trying to think of giving something to your employees during the coming festive season, out of which even the Taxman cannot take anything? Here is a smart idea!

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TDS Becomes Less Taxing!

TDS Rates Rationalized

No Messy Computation Of Cess & Surcharge

 October 1, 2009, has also brought some welcome provisions of rationalization of TDS rates and reducing multiple classifications (see Box). (more…)

Three More Days Before Your Gifts Get Taxed As Income!

Purchases Below Fair Market Value Also

Trapped In Tax Net From 1st October’09

If your friend had promised you to gift a diamond studded gold watch worth Rs.3 lakhs, encash that promise in three days. Delay may cost you dear, since the receipt of this gift after 30th September, 2009 will be treated as your taxable income, attracting a straight income-tax of Rs.92,700, if you fall in the top tax-bracket of 30.9%.

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Drive Home Amazing Tax Saving!

Purchase New Car Before September, ‘09

And Recover 25% Of Your Car Cost By March, ‘11

Note the figure ‘632,’ being the Cost Inflation Index just announced for FY 2009-10. This would be helpful in computing any taxable long term capital gains earned by you in the current financial year.

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50% Depreciation on Car can drive amazing Tax Saving!

Recover 25% Of Your Car Cost In 2 Years

Through New Purchase By 30th September, 2009!

Planning to purchase a new motor car for your business or professional use sometime in 2009? Are you aware of the fact that buying your car by 30th September, as compared to any time on or after 1st October can have a huge impact on your resultant tax saving? (more…)

Minus FBT Shock Pay Packets Rock!

Conveyance, Telephone, Entertainment & Medical Reimbursements Get Increasing Attention After FBT Abolition!

The notorious Fringe Benefit Tax (FBT) having been abolished with effect from 1st April, 2009, employers have started taking a fresh look at restructuring the pay packets of their employees to make them more tax friendly. (more…)

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