Though I have talked about the difference between Tier 1 and Tier II NPS accounts in many of my earlier posts, I still receive a number of queries from investors asking about the difference between the two. In fact, I had a query where the investor invested in Tier 2 NPS to avail tax benefit (figured out later). Therefore, I think it will be useful to dedicate a post to the … [Read more...] about What are Tier 1 and Tier 2 NPS accounts? What is the difference?
When you are starting your professional career, the excitement of getting the first salary credited to your bank account is palpable. However, the difference between expected credit and actual credit can many times leave you puzzled. The difference is due to income tax. It is correct that you cannot save taxes beyond a point. However, by planning your taxes properly, you can … [Read more...] about Primer: Income Tax Calculations for Beginners
Many of us rely on interest income for our regular cash flows. A few can’t look beyond such investments. However, are you aware how your interest income is taxed? Taxation of Interest Income for various Investments The tax treatment of interest income varies across investments. Clearly, a few investments receive favourable treatment as far as taxation of interest income is … [Read more...] about How is Interest Income from your Investments taxed?
Every Union budget comes with a few positive and negative announcements. In Budget 2017, there were a few positives on personal income tax front. Tax slab rate was reduced from 10% to 5% for the income tax slab of Rs 2.5 lacs to Rs 5 lacs. Holding period for long term capital gains in real estate transactions was reduced from 3 years to 2 years. There were a couple of … [Read more...] about Budget 2017: How cap of Rs 2 lacs for Loss under Income from House Property affects you?
I have already covered the most aspects in my earlier post on Bank Fixed Deposits vs Debt Mutual Funds. In this post, I will discuss a very specific case when you need to withdraw money before 3 years. In such a case, which investment product should you choose? Debt MF or a Fixed Deposit? Taxation of Fixed Deposits and Debt Mutual Funds Interest income from fixed deposits … [Read more...] about Bank Fixed Deposits Vs Debt Mutual Funds : Part II
Cost of higher education has been rising very fast. Sometimes, the jump in fees can be really sharp. When I went for my higher education, the fee was Rs 8.5 lacs for two years. The year before, it was only ~Rs 5 lacs. A couple of years after I left college, the fee shot upwards of Rs 12 lacs. This sharp jump in fee can’t be explained through any general inflation. This is more … [Read more...] about Tax Benefits on Education Loan
The Union Budget may have brought some relief to tax payers through reduction in slab rate from 10% to 5% for income slab of Rs 2.5 lacs-Rs 5 lacs. At the same time, it dropped a bomb on those taxpayers with taxable income (after deductions) between Rs 50 lacs and Rs 1 crores. A surcharge of 10% over the tax payable was introduced for such tax payers. For those whose taxable … [Read more...] about How Marginal Relief helps those who pay Surcharge on Income Tax?
The Finance Minister, in his budget speech, made three significant announcements in terms of taxation of long term capital gains. Change in holding period (for capital gains to qualify as long term capital gains) for real estate from 3 years to 2 years. Holding period for other capital assets has been left unchanged. More options to be offered under Section 54EC in … [Read more...] about How change in base year for indexation from 1981 to 2001 affects you?
You are aware of the health benefits of health insurance. But, are you aware of the tax benefits of health insurance? Do you know that you can claim tax benefit for payment for preventive health checkup too? Are you aware there are exemptions/deductions available for medical expenses incurred under specific cases? In one of the earlier posts on how to save income tax, I had … [Read more...] about How to save Income Tax? – Part II – Tax Benefits of Health Insurance
Starting January, you will be running around to make investments in tax-saving instruments or collect proofs for such investments already made. Most of us are aware of the tax deductions available for premium paid for life insurance and pension plans, investments made in ELSS, PPF and EPF and principal repaid on a housing loan. However, there are many lesser known tax benefits … [Read more...] about 15 lesser known Income Tax Deductions