FINANCE

An income tax return (ITR) is basically a document that is filed as per the provisions of the Income Tax Act, reporting one’s income, profits and losses and other deductions as well as details about tax refund or tax liability. The deadline for filing Income Tax Return for corporate and other assessees who are to get their accounts audited under Income Tax Act 1961 or under any other law for the time being in force is 30th September and for others, it is 31st July every year as have been prescribed under the Act. However, with the ongoing COVID -19 pandemic a lot of income tax due dates were extended by The Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 read with Notification No. 35 /2020, dated 24-06-2020. In view of the same, the due date of furnishing ITR for FY 2018-19 has been extended till 31st July, 2020 and for FY 2019-20 till 30th November, 2020. The Income Tax Law provides for mandatory filing o...

Everyone wants to save tax and that is why all of us want tax free income. In fact, there is a need to look at various investment options that offer tax free income in India. Tax planning is not a bad thing even the government itself has given many ways to save tax. There are various investments that offer return without any tax, but, in some cases, you can also get tax exemptions under sec 80C of the Income Tax Act, 1961.Therefore, I have compiled a list of investment options for tax free income. Tax Free  Income Tax free income is the income received but not subject to income taxes. Any profit from investments is considered as the earning and the same profit is added to the taxable income. But there are many investments which are not taxable at the time of maturity. The profit from these investments is not added to the taxable income. Income received from these investments is called tax-exempt income 7 Investments for Ta...

The government has introduced two new deductions for the income earned during financial year 2019-20, which individual taxpayers should take note of. These are linked to the purchase of affordable houses and electric vehicles. Here is how these deductions work and the essential conditions to avail these. 1.Home Loan : A new deduction under section 80EEA was introduced in the Finance Bill 2019 to give additional deduction of Rs 1.5 lakh on interest payment for a home loan taken for an affordable house. The housing loan should have been taken only from a financial institution for the purchase of a residential property . To claim the deduction in the current assessment year the home loan should have been sanctioned by the financial institution between April 1, 2019 and March 31, 2020. To be eligible for this deduction, the total value of the house measured as stamp duty value should not exceed Rs 45 lakh. You can claim this deduction only if you do not own any other residential house p...