FINANCE

keep in mind this tax planning calendar. April  - First, decide the tax regime for the financial year. If you choose the old one, begin your tax planning. Make sure you set aside an amount monthly that could go into the tax-saving instruments. Please don’t wait till the year-ending in March to do this. Also, if you’ve banked some money in fixed deposits, make sure you submit the Form15G/H to your bank. Otherwise, they’ll deduct some tax on the interest you earn. May  - This is when you typically get an email from your employer asking you to declare all the tax-saving investments you’re making during the year. Think carefully and don’t do it as just a tick in the box exercise. June   - Make sure you remind your employer of Form 16 - for the previous financial year. That’s the document that contains details of all the money you earned as salary along with the tax they’ve deducted and deposited with the government in your name (or rather, under your PAN). Oh, and if you have...

Income tax department has created an Annual Information Return (AIR) statement of financial transactions to trace high-value cash transactions of taxpayers Income tax department has become highly vigilant against cash transactions these days. In the last few years, Income Tax Department and various investment platforms like bank, mutual fund houses, broker platforms, etc. have tightened the cash transactions rules for public in general. Now, these investment and lending institutions allow cash transaction to a certain limit only. In the case of little violation, the Income Tax Department may send notice to the offender. Advising taxpayers to report high value cash transaction in one’s income tax return (ITR); Amit Gupta, MD at SAG Infotech said, “If an individual makes high-value cash transactions, there are chances that he or she might get a notice from Income Tax Department. The different cash-related transactions include banks, mutual fund houses, brokerages and property registrars....

Failure to comply with the deadline may create inconvenience for the defaulters. The year 2021 is about to end. However, before the new year dawns, there are some important things that one needs to complete, pending which, defaulters may face inconvenience and, may also have to pay hefty fines. Here are some important tasks the deadline to finish which is December 31, 2021: (1.) Income tax return filing: The deadline to file income tax returns (ITR) has already been extended several times due to issues such as the Covid-19 pandemic, and technical glitches on the new income tax portal. Now, one final date to file returns is December 31. If not done by the said date, defaulters will have to pay penalty of up to ₹5000. (2.) Aadhaar-PF linking: The linking of Aadhaar card to the Universal Account Number (UAN) by December 31, as mandated by the Employees' Provident Fund Organisation (EPFO), is applicable only to the seven northeastern states and certain class of establishments. In the r...

Article Contents Unit Linked Insurance Plan (ULIP) 2. ELSS Mutual Funds 3. Public Provident Fund (PPF) 4. Sukanya Samridhi Yojana (SSY) 5. National Savings Certificate 6. Tax-savings fixed deposit 7. Senior Citizen Savings Scheme 8. School Tuition Fees: 9. National Pension Scheme ( NPS ) 10. Health Insurance premium under section 80D: 11. Repayment of an education loan 12. Rent paid and no HRA received: 13. Interest paid on home loan 14. Savings bank account interest: 15. Medical expenses towards disabled dependent: 16. Treatment of specified diseases u/s 80DDB 17. Donations made to charitable institutions:

Please pay your pending taxes of ₹7900!' My relative received this message even after filing ITR with nil demand. Here's what happened. Before filing his current FY ITR, he was prompted to pay his pending taxes including on short term gain on equities.  He did and completed his e-filing too. But due to wrong input, tax on short term gain not calculated with special rate.  Few days later, he received the above message from the IT department. Now he running pillar to post to get it corrected! A classic example getting in trap of no advice or wrong advice. I read about such stories far too often. That's why, we decided to offer something more to our customers. Whenever, a customer files their ITR with us they get 1) A to Z tax guidance 2) Tax Planning 3) Complete solutions if the customer recieves any Tax Notices.  We don't charge a single ruppee for this. I cannot stress enough on this but, Our job as a tax-filing portal does not end after filing a customer's ITR. Whe...

In today's blog we explain a digital payment initiative that the government believes could revolutionize the public distribution system We won’t talk about e-RUPI just yet. Instead, we will look at direct benefit transfers.   Back in the day, if you were struggling to access the basic necessities, the government would foot a part of the bill, by subsidizing its cost. You only had to pay a reduced price for these items and the government in turn would reimburse the company offering you said products.  However, there was one massive problem with the public distribution system. The government could never truly target the real beneficiaries. For instance, a middleman in the distribution system could help you claim subsidies even if you weren’t eligible. And the Indian government routinely lost millions each year offering subsidies to people, who in some cases didn’t even exist.    But then, the introduction of Aadhar and the Jan Dhan account changed the equat...

The taxpayers were able to take the advantage so far, because the Income Tax Department used to get information related to just income from salary, interest on Bank FD and taxes paid There are many salaried persons, who invest in stocks or even do daily trading but never reveal the information related to capital gain / loss in their Income Tax Return (ITR). The motive of not revealing the capital gain/loss in their return of income may be due to sheer ignorance, avoiding trouble of calculating the gains / losses, fear of filing more complicated ITR form than the ITR-1 or to suppress the information to avoid paying higher tax. The taxpayers were able to take the advantage so far, because the Income Tax Department used to get information related to just income from salary, interest on bank fixed deposit (Bank FD) and taxes paid from the respective sources, which were revealed in Form 26AS. But now on, the Department will also get information related to capital gains / losses, dividend in...