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

BANK ON TERM DEPOSITS FOR AVAILING TAX SAVING

Investing in the ‘Tax Saving Deposit Scheme’ can be a great choice for NRIs & HUFs who cannot invest in PPF!

              The Finance Act, 2006 enlarged the scope of investments and allocations eligible for deduction under Section 80C of the Income-tax Act through the inclusion of ‘a term deposit for a period of 5 years or more in accordance with a scheme framed by the Central Government.’  Pursuant to this, the ‘Bank Term Deposit Scheme, 2006’ was announced vide Notification No.203/2006 dated 28th July, 2006. (more…)

PPF INVESTMENT NOW MORE ATTRACTIVE!

PPF’s tax saving bonanza gets much bigger with investment raised to Rs.1 lakh & interest to 8.6% p.a.!

A PPF investor, who could earlier invest only Rs.70,000 in a financial year, would now no longer be required to scout around for other avenues of savings, investments or allocations for availing the full benefit of deduction of Rs.1,00,000 under Section 80C. His long time prayer has finally come to be answered with the Central Government declaring the hike for annual investment in PPF from Rs.70,000 to Rs.1,00,000. This happy announcement on11-11-11was coupled with added joy with the assurance of a higher annual return of 8.6% on PPF accounts, as against the current 8% per annum. (more…)

WILL PPF INVESTMENT BE REVISED TO RS.1 LAKH?

With exemption of interest & deduction for investment PPF can effectively yield a return of upto 16.75% !

        Section 80C of the Income-tax Act was amended by the Finance Act of 2005 with effect from Financial Year 2005-06, permitting an individual and HUF to avail of higher deduction for specified investments and allocations of upto Rs.1,00,000, revising it upwards from the earlier limit of Rs.70,000. 

        However, even after six years of the aforesaid amendment under the tax laws, the erstwhile limit of maximum investment under the Public Provident Fund (PPF) Scheme during a Financial Year having not been revised, it still continues to be Rs.70,000 only. As a result, for availing the full benefit of deduction of Rs.1,00,000 under Section 80C, a taxpayer is required to look at other avenues of savings, investments or allocations after exhausting his choice for PPF investment of Rs.70,000. (more…)

PPF MAGIC UNSTOPPABLE!

You Can Build Amazing Tax Free Capital

For Your Children Via Investment In PPF!

(more…)

Roti, Kapda but No Makaan!

Analyzing Tax Gain & Pain In The New EET Regime

  • Tax Incentives for Housing Scrapped: Current deductions in respect of interest & repayment of housing loan abolished under the new Code.
  • Higher Deduction For Savings & Children’s Education: Individual & HUF entitled to an aggregate deduction of upto Rs.3 lakhs in respect of permitted savings & children’s tuition fees payment, as compared to current ceiling of Rs.1 lakh.
  • Accretions Exempt but Withdrawal Taxable: No tax on accretions to the permitted savings. However, any withdrawal from permitted savings to be taxed.
  • Tax Shelter for Old PF/PPF Accumulations: Future withdrawals out of accumulated balance of PF & PPF as on 31stMarch, 2011 to enjoy special exemption. (more…)
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