Myth 1: The entire life insurance premium is eligible for tax deduction. Myth 2: The payouts from the life insurance policies are always exempt from income tax. Reality: You may not tax benefit for the life insurance premium paid. Moreover, the payouts from the life insurance policies may not be tax exempt either. There are a few conditions involved before you enjoy … [Read more...] about Misconceptions about Life Insurance Tax Benefits; Insurance payouts can be taxable too
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
The Finance Minister made some key announcement in the Union Budget, 2016. Here are some of the takeaways for investors from the budget announcements. Please note following are only budget proposals (as mentioned in the Finance Bill). The Bill needs to be passed by the Parliament before it becomes an Act. Based on feedback from various quarters, it is quite possible that some … [Read more...] about Budget 2016: Key Highlights
During the tax-saving season, ELSS vs PPF is a very common topic of discussion. Conservative investors consider PPF better while proponents of equity investments can not see anything beyond ELSS. A number of my clients and friends inexplicably ask this question during the last quarter of financial year. I find this question quite amusing and in fact wrong at some level. Apart … [Read more...] about Should you invest in ELSS or PPF for tax-saving?
You got the pay slip for the last month. It was your first salary after the annual hike and bonus. You are still scratching your head to understand how so much tax got deducted from your monthly salary. Don’t worry. You are not alone. A number of people I know find it difficult to estimate their tax liability. And this is not true for those who recently started working. Even … [Read more...] about PFP Primer: How to calculate Income Tax Liability?
Almost everyone wants to own a house. An own house not only gives you that sense of pride but also provides financial security to the family. However, with real estate prices at elevated levels, it is not easy to purchase a house outright. Most people rely on home loans to own that dream house. And they have huge EMIs to take care off too. A big EMI can put huge burden on your … [Read more...] about Tax Benefits on Home Loan Repayment
Sitting at your desk and checking your salary slip - seeing so much of your hard earned money being deducted towards income tax is not the most pleasant feeling. If this was not enough, you also need to file your income tax returns before August 31, 2015. You must be wondering if all your income is from salary and your employer is already deducting TDS (tax deduction at … [Read more...] about Why should you file income tax returns on time?