MAJOR TAX SAVING FOR MINOR’S INCOME
Using the medium of a discretionary trust, you can plan to save a decent tax of Rs.2,06,000 on income of Rs.10,00,000!
Section 64(1A) of the Income-tax Act provides that “in computing the total income of any individual, there shall be included all such income as arises or accrues to his minor child.” With a view to ensure building up income for minors without attracting the above provisions relating to clubbing of income, one of the effective tools is a Private Discretionary Trust.
WHAT IS A DISCRETIONARY TRUST?
A private discretionary trust is a trust wherein the beneficiaries and/or their shares in the income and assets of the trust are not specified in the trust deed. The trustees of such a trust are given full discretion in deciding these matters. The provisions of Section 164 of the Income-tax Act which govern the taxability of a private discretionary trust specify that income-tax shall be charged on the income of the trust at the ‘maximum marginal rate’ (currently 30.9%). (more…)
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!
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.
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.
TAX SAVING MAGIC OF SECTION 80C!
Do Not Miss to Buy, Beg or even Borrow…
Be Smart to Invest & Avoid your Tax Sorrow!
‘Be happy and gay … saving tax the 80C way!’ This should be the ‘Magic Mantra’ of all taxpayers with taxable income above Rs.8,00,000, who attract the maximum tax bracket of 30.9%. If you think smart, you can save a good Rs.45,743 as income-tax, without even investing a penny from your pocket! (more…)
INDEX YOUR GAIN AND REDUCE YOUR TAX PAIN!
Availing the Benefit of Indexation, you can Inherit Today,
Sell Tomorrow & Still Keep Away your Tax Sorrow!
Difficult to believe, but ‘zero tax’ is the correct answer. (more…)
TAX FREE RETIREMENT BENEFITS!
Retirement Benefits that can be claimed as fully tax exempt:
- Gratuity upto Rs.10,00,000
- Leave Encashment upto Rs.3,00,000
- VRS Compensation upto Rs.5,00,000
- Entire PF Balance, without any ceiling (more…)
ETF – A GOLDEN INVESTMENT!
Gold Exchange Traded Fund (ETF) scores over Physical Gold on counts of
Easy Buying, No Hassles of Safety or Quality & Attractive Tax Benefits!
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…)
NO TAX ON STIPENDS & SCHOLARSHIPS
Amounts Received to Meet Costs of Education & Training
Are to be Treated Tax Exempt, Even if Not Fully Spent!
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…)
TAX SAVING VIA HUF
Granted the Status of an Independent Tax Entity
HUF has a Key Role in Personal Tax Planning
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…)
