Most of the employees in India either buy apartments or build their own house with a home loan during their employment. Home loans have two components, interest and principal amount which are allowed as income tax deduction up to an extent as provided in the IT act. HRA forms part of your taxable salary which your employer gives you to take care of your living expenses at … [Read more...] about Tax deductions for your HRA and Home loan
HRA Exemption can be claimed on rent paid to wife
Relationship between husband and wife is not commercial and based on this concept it was a settled rule that rent paid to wife can not be claimed as a HRA or House Rent Allowance exemption. As per the income tax act, employee can not claim HRA or House Rent Allowance exemption if he is the owner of such accommodation or he is not paying any rent for the rented … [Read more...] about HRA Exemption can be claimed on rent paid to wife
5 Ways to reduce your credit card debt
Credit Card Debts carries high interest rates in comparison to other debts and you can save big money in the long run if you pay down your dues in time. Low monthly payment offers of credit card will cost you a lot of money because of the interest amount that you need to pay on your outstanding. Here are 5 best ways to reduce your credit card debt. Budget Your Monthly … [Read more...] about 5 Ways to reduce your credit card debt
Credit score – How credit score works in india
Credit score is a 3 digit summary of your credit history which indicates your financial health. It will tell your lender or bank, how likely you are paying your debts dues based on your past repayment history. When you apply for a bank loan, the banker will first check your credit score with CIBIL. CIBIL or Credit Information Bureau Limited is known as India’s first Credit … [Read more...] about Credit score – How credit score works in india
Interest free or concessional loan is taxable in India
Many companies in India are providing interest free or concessional loan to their employees or to the members of employee’s household for purchase of various assets like computer, vehicle etc or for various household expenses like medical, Marriage or education. As per the provisions of income tax act and rules these amounts as incurred by employer for the benefit of … [Read more...] about Interest free or concessional loan is taxable in India
How tax can be deducted at a lower rate from salary
Employees are liable to tax only if their gross salary after all exemptions and tax deductions are exceeding the basic exemption limit of tax. For the financial year ending 31st march 2017 and 31st march 2018, basic exemption limit for the purpose of income tax is Rs. 2,50,000 for an assessee who is below 60 years of age. Recommended Read: Income tax slab rated for … [Read more...] about How tax can be deducted at a lower rate from salary
Holiday packages for employees are taxable
Holiday availed by a employee or any member of the household of employee’s are taxable to the extent of such expenditures that are reimbursed by the employer. Holiday expenses includes traveling, touring and stay expenses.Its taxable in the hand of employee. Any amount reimbursed by the employer as leave travel allowance will not be covered in this case i.e. LTA or LTC … [Read more...] about Holiday packages for employees are taxable
Losses and other incomes that can be disclosed to employer for TDS
As per section 192 of income tax act, an employee may furnish particulars of other incomes to employer that he has incurred during the financial year. While disclosing, employee can also disclose income tax that has already been deducted from such other incomes. After employee’s declaration, employer will consider other incomes and Tax deducted at source from it while … [Read more...] about Losses and other incomes that can be disclosed to employer for TDS
More than one PAN will attract penalty of Rs.10000
PAN is an alphanumeric 10 digit number which is used in all communication to income tax department. As per the provisions of income tax act, one tax payer can not possess more than one PAN. This does not mean that you can not apply for a PAN card if it’s lost. What we are talking about is one individual or company or firm can not possess more than one number. One number should … [Read more...] about More than one PAN will attract penalty of Rs.10000
How to Apply for a Duplicate PAN Card
PAN card is an essential document for all purpose. Now a days its not only required for income tax purpose but for all financial transactions and identity proof PAN card is required. You should not be tensed or restless by losing your PAN card as your can get issued a duplicate one from income tax department. Obtaining a duplicate PAN card is a very simple process. To get a … [Read more...] about How to Apply for a Duplicate PAN Card