Showing posts with label save tax. Show all posts
Showing posts with label save tax. Show all posts

New Income Tax Rules Come Into Effect.




The Finance Bill 2017 was approved by Parliament on March 30. Two days after a green signal from the Lower House, President Pranab Mukherjee gave his ‘historical’ assent to the bill thus turning it into a law.

The government tagged along the Finance Bill 2017 some 40 amendments in different acts and passed them under the "cover" of Money Bill to get a speedy clearance.

 The Parliament on Thursday approved the Finance Bill 2017. Starting April 1, 2017, some income tax laws will change. Finance Minister Arun Jaitley had announced a number of income tax changes in Budget 2017.

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 The Finance Bill 2017 was passed with some sweeping changes to country’s existing tax system. Here are a few things that you must know what you have to do when you file your tax returns and apply for important documents like PAN and Aadhaar cards.
(How GST Will affect Taxation as common man ?)

In addition, 

Some amendments were also introduced in the Finance Bill. Aadhaar number will be a must while applying for PAN as well as filing of income tax returns. To curb black money, the limit on cash transactions has been set at Rs. 2 lakh
  • Instead of raising income tax limit, the government opted for a reduction in income tax rate. This for the first time in recent years, the minimum valid rate of income tax was reduced from 10 per cent to 5 per cent. There will be only 5 per cent tax on an income from Rs 2.5 lakh to Rs 5 lakh. However, rebate under Section 87A gets reduced from Rs. 5,000 to Rs. 2,500. And no rebate will be applicable for taxpayers having income above Rs. 3.5 lakh. This means tax savings of up to Rs. 7,700 for those with a taxable income between Rs. 3 lakh and Rs. 5 lakh
  • The government has decided a 10 per cent surcharge for an income of Rs 50 lakh to Rs 1 crore Existing surcharge of 15 per cent will remain the same for individuals having income above Rs.1 crore.
  • Aadhaar, a unique identity handed out to all Indians, has been made compulsory for applying for a Permanent Account Number (PAN) card as well as filing for income tax returns. This has been introduced to avoid duplicity in filing of income tax.
  • The Central Board of Direct Taxes (CBDT) launched a new simple one-page form - ITR-1 'Sahaj' - on Friday for taxpayers who have income from salary, a house property or earn interest income totalling up to Rs. 50 lakh. Part-E of the ITR-1 form seeks information on cash deposits made by the assessee between November 9, 2016 and December 30, 2016 if the "aggregate cash deposits" during this period were Rs. 2 lakh or more.
  • The government has put a limit on cash transactions to prevent occurrence and recurrence of incidents of black money. From now on, a cap of Rs 2 lakh for cash transaction has been brought under amended rules in Finance Bill 2017. The Finance Bill had originally proposed the cap at Rs. 3 lakh. If a person receives any sum in contravention of the tax law, he/she will be liable to pay, by way of penalty, a sum equal to the amount.




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Some useful tips for money investment and saving tricks?



Sometimes the hardest thing about saving money is just getting started. It can be difficult to figure out simple ways to save money and how to use your savings to pursue your financial goals.

Money is just a tool and depending on what your goal is, you might need a whole lot less (or more) than you think. Our goal is to be freedom.

Want to Know Earn money through investments t? Just leave a missed call on Moneymindz.com India’s Best Financial Advisor 022-62116588 or Download Financial Freedom application and post to expert your Queries . Moneymindz.com offers Free, Unbiased and on-call financial advice on Investment Assistance for insurance, Loan Assistance Retirement, Planning, Money Management Investment, Advisor, Retirement Planning, Best Health Insurance.

Saving money is supposed to get you to a point where you spend less than you earn. Once you’re in that territory, you can of course try to maximize it, but being in this position in the first place already puts you on the right track.

“Money, like emotions, is something you must control to keep your life on the right track.”


This step-by-step guide to money-saving habits can help you develop a realistic savings plan

  • Always carry a water bottle with you while eating out. Subway costs you Rs 30 for a water bottle that you get outside for Rs 10. Soft drinks are usually 1.5X-2X the actual price in Dominos.
  • Do NOT use debit or credit cards while shopping as much as possible.
  • Decide your monthly budget. Cut your costs accordingly. If you save some money, put it aside in a saving box. Use it for personal purpose like travelling. Such goals keep you motivated.
  • Install apps for coupons. You get a lot of coupons for salons, restaurants, electrical appliances.
  • For travelling, use trip planning apps. Also, before visiting a place, get tips from someone who has been there or read blogs related to the place.
  • Use public transports instead of cab.
  • Buy a basic surge protector for all electrical appliances to protect it during electricity fluctuations.
  • Learn about the service tax, service charges and VAT in your area. 
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Location: India

Misconceptions can make offenders of law-abiding taxpayers.



Here are blunders that can invite a tax notice, a penalty or both.

Though interest earned from fixed deposits, recurring deposits, even tax-saving bank deposits and infrastructure bonds, is fully taxable, people often do not report any interest income below Rs 10,000.

The exemption of Rs 10,000 a year under Section 80TTA applies only to the interest earned on the balance in a savings bank account. Another common misassumption is that one need not pay tax as TDS has been deducted on the income.

What people forget is that the tax deducted by the bank at source is at a flat rate of 10 per cent. 

The department can catch such mistakes by matching your ITR with Form 26AS.

The penalty is more severe (up to 200 per cent of the tax evaded) as it is not a mis-calculation, but concealment of income. Many people invest in the names of spouse or minor children. There is no limit to the amount you can give your spouse, but if you invest the gifted money, Section 64 of the Income Tax Act, a provision for clubbing income, comes into play. Under this, any earning from the gifted amount is added to your taxable income.

For a minor child, the earning is treated as income of the parent who earns more. You also get an exemption of Rs 1,500 a year, per child, up to a maximum of two kids. If you want to escape tax, invest the gifted money in a tax-free option, such as the PPF or ELSS scheme. Or invest in the name of your parents or a major child, where clubbing provision does not come into play. If you think you don't need to file returns because you don't have a tax liability, you are mistaken.

This exemption is only for those with an annual gross income below the basic exemption level of Rs 2.5 lakh. Anyone with an income above this has to file a return. The basic exemption is Rs 2.5 lakh per year for people below 60 years, Rs 3 lakh for senior citizens above 60, and Rs 5 lakh for very senior citizens above 80. The rest, including NRIs, have to comply. If you fail to file your return in time, the assessing officer may levy a penalty of Rs 5,000 under Section 271F.

For more information, contact, Moneymindz, the best free financial advice.



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