Moving abroad for employment or planning to shift back to India permanently? How will your income be taxed? Can you continue holding NRE deposit and continue to get tax-free interest? Well, everything begins with finding out whether you qualify as an NRI or a resident. And this may not always be easy. To add to the confusion, the definition of Non-resident is different under … [Read more...] about Who is NRI as per FEMA and Income Tax Act?
income tax act
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
Have you ever created a fixed deposit in the name of your spouse thinking that interest income will be taxed as your wife’s income? For instance, you are in 30% tax bracket while your spouse is in 10% tax bracket. You want to open a fixed deposit. Interest from fixed deposits is taxed at the marginal income tax rate of the depositor. You transfer (gift) money to your spouse … [Read more...] about PFP Primer: Clubbing of Income