The Income-tax Act provides for special deductions in computing the taxable income of a taxpayer who is disabled or who is required to incur expenditure for the medical treatment, training or rehabilitation of a disabled dependent or any amount deposited for the maintenance of such disabled dependent.

Similarly deduction is also allowed to a taxpayer who is required to incur any expenditure for the medical treatment of specified diseases or ailments, either for himself or a dependent relative. (more…)

The importance of executing a Will has yet not been appreciated to its fullest extent in the Indian society. It is, therefore, not surprising to come across several cases where in pursuance to the death of an individual, there are several family disputes and practical problems in the absence of the Will by the deceased. The execution of a Will is very simple and at the same time non-execution of the same can create several difficulties. (more…)

Thousands of Non Resident Indians (NRIs) settled overseas fly frequently to India, the home of their hearts. Many of them yearn to have a land or house of their own in their native land, either for future settlement or even to share rental gains or just property appreciation. There are those who have come to acquire properties either by way of gifts or inheritance and desire to sell them and repatriate the proceeds overseas. Today’s article deals with FAQs on the liberalized regulations in this regard. (more…)

Glittering Gold has overshadowed many other asset classes in the recent past with a healthy annualized return of around 25% during the last three years. Gold also serves as an excellent hedge against inflation and it makes sense to diversify your portfolio by taking a reasonable exposure to gold as an investment.

Traditionally, the only option available to buy gold was in the physical form whether as in the form of ornaments or as bars or coins. But with the launch of Gold Exchange Traded Funds (ETFs), investors now have the option of investing in gold in the Demat form. (more…)

Manan’s SIP has a track record of offering a 15% annualized return and thus he has calculated that he would become a ‘Crorepati’ reaping Rs. 1.1 crores after 18 years of regular savings. Chintan wakes up 4 years late and also wants to catch up with his friend.

However, he is just unable to believe how much his delayed decision is going to cost him when he is told that to earn the same target amount of Rs. 1.1 crores in the remaining 14 years, he would be required to invest double the savings amount i.e. Rs. 20,000 per month. (more…)

As per Section 2(14) of the Income-tax Act, ‘personal effects,’ excluding jewellery, are not treated as capital assets and hence any gain arising on their transfer cannot be made liable to capital gains tax.

‘Personal effects’ would include movable property such as wearing apparel, furniture, household articles, utensils, vehicles, etc. held for personal use. Jewellery which has been excluded from ‘personal effects’ would include ornaments made of gold, silver, platinum or any other precious metal, precious or semi-precious stones and any articles set in any such stones.

A motor car or any other conveyance held for the personal use of a taxpayer is also a personal effect and any profit or gain arising from the same cannot be charged to tax as capital gains. In this regard, one can rely on the decision of the Bombay High Court in the case of ‘CIT vs. Sitadevi N. Poddar’ 148 ITR 506(Bom.). (more…)

Under Section 10(16) of the Income-tax Act, any scholarship granted to a person to meet the cost of education is exempt from tax. The term ‘scholarship’ should be interpreted liberally and it would also include within its scope and ambit, amounts of fellowships, stipends, grants for travel and incidental expenses, etc. awarded for acquiring education. (more…)

Under the Direct Tax Laws in our country, a Hindu Undivided Family (HUF) has been granted the status of an independent tax entity. Thus, an HUF has assumed a useful role in personal tax planning. (more…)