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Crucial changes in Income Tax returns for A.Y. 2018-19 Returns filing season is here and several changes were made by the Finance Act 2017 which will be applicable in the returns which will be filed in the current Assessment Year 2018-19. This article has guides you to consider changes that has come to the return forms this year. 1.) Surcharge on income over Rs 50 Lakhs A new surcharge @ 10% has been introduced in case of individuals whose Total income exceeds Rs. 50 Lakhs but is up to Rs. 100 Lakhs 2.) Rebate of Section 87A Till last year, any individual having Total Income of less than 5 Lakhs were awarded with a rebate of Rs 5,000 u/s 87A. However, this rebate amount has now been reduced to Rs 2,500 and that too is available only for those individuals whose Total Income is up to 3,50,000  Lakhs   3.) Changes in Tax rates - Income falling in the second slab rate of 2.5 Lakhs - 5 Lakhs (3 Lakhs to 5 Lakhs in case of senior citizens) shall be taxed at ...

Deadline for filing first instalment of advance tax ends 15 June. Come let us have a synopsis of what is Advance tax all  about: Paying advance tax helps you divide your tax liability over the year rather than paying at one go. Not paying advance tax can attract a penalty You need to pay the first instalment of advance tax by 15 June. Paying advance tax helps you divide your tax liability over the year rather than paying at one go at the end of the financial year. Who needs to pay At the beginning of the year, you should ideally estimate your total income for the year, especially if you are a businessman or professional. If the expected tax liability on the estimated annual income is more than Rs10,000, you have to pay advance tax. For individuals with salary as the sole income, advance tax is taken care of by the employer who deducts tax at source at the time of crediting salary. But even if your primary source of income is salary but you have other income which is not declared...

Importance to file your Income Tax Returns on time We have observed on and off that people are at times careless and ignorant about the importance to filing their Income Tax returns and that too on time.   Hence, we thought it was imperative to list down some crucial reasons as to how filing income tax returns helps citizens: 1.      Filing your tax return is one way of having a legitimate proof of your income. It also helps you establish a good record with the I-T Department.   If you fail the Income Tax Department might issue notices to you. 2.      If you are looking for Housing, Vehicle, Commercial, Personal or Education loans, etc. it is important that you provide your income tax return receipts that you have filed for the loan to be processed. Else, banks will not provide any loan if the return stays to be NIL for three years immediately preceding your date of loan application. 3.      Filing ...

Know Your Tax Exemptions! Few weeks are left before the end of the financial year (FY) 2017-18.   It is important to make sure that you have been able to take the maximum advantage possible of the various tax exemptions available for this year and also know what you can plan for the upcoming FY 2018-19. For you benefit we have enlisted below the tax exemptions available for FY 2017-18 & FY 2018-19 as proposed under Budget 2018: Section 80C One could invest in the following instruments under this section to claim tax deductions: 1. Employee Provident Fund (EPF), 2. Public Provident Fund (PPF), 3. National Savings Certificate (NSC), 4. Payment towards children’s tuition fees, 5. ELSS, 6. National Pension System (NPS), 7. Life Insurance policy premiums, 8. Deposits in the Sukanya Samriddhi Yojana, etc.   Under this section, any individual or a Hindu Undivided Family (HUF) can claim deductions up to Rs 1,50,000. Section 80CCD An individual can clai...

Important things to take care of before transferring a Home Loan Banks and finance companies are trying to gain business by offering lower interest rates. But you, as a borrower, need to look at other aspects as well, before moving your loan from one bank to another. Here are the six things you must consider “You can transfer your high-cost home loan from any other bank to our bank and not only save on interest but also avail a higher loan amount” is the pitch from one of well-known banks. Most of us would definitely be tempted to go in for such a transfer. And why shouldn’t we? For the double benefit that is being provided, why would anybody not avail such an opportunity and that too when interest rates are so high? But stop and think. Is it all so simple? Should I actually go a step ahead to find the details? The answer is “yes, you should” and here is WHY and WHAT you should look at. Technically called “takeover of loan”, transferring a loan means approaching a bank a...