I am a salaried person and filling my income tax return regularly. Every month I am paying Rs.30, 000 to my wife for our household expenses. She has accumulated around Rs. 2, 50,000 from the money I gave to her for house hold expenses over a period of 8 years. Now she has invested the entire accumulated money in a fixed deposit scheme of a bank. Will the interest amount be … [Read more...] about Income Tax Effects of Giving Money to Spouse
Income tax
FAQ on Income Tax Benefit of Housing Loan
Construction of my self occupied house has been completed during the financial year. To construct this house I have taken a loan from bank for which I am paying a yearly interest of Rs. 1, 25,000 in addition to the principal amount starting from this year. Can you please let me know if I am eligible for any income tax benefit? Yes, you can claim income tax benefit for both … [Read more...] about FAQ on Income Tax Benefit of Housing Loan
How Per Diem is taxable in India
Per Diem means an allowance paid by the employer to employee for each day he spent outside of his normal work location to take care of his daily expenses. Per Diem can be claimed in addition to your conveyance allowance. Employer generally paid Per Diem for training, deputation or any other official work which need to be executed at such other place not being a normal work … [Read more...] about How Per Diem is taxable in India
Difference between Direct and Indirect Tax
Government requires fund for various reasons like investing in defence, infrastructure, health and other social measures. Govt collects these funds from difference sources. One of the major sources of government revenue is TAX. In India it's divided into two parts. Any duty paid directly to the government is called direct tax and all others which are not directly paid are … [Read more...] about Difference between Direct and Indirect Tax
Income Tax treatment of your leave encashment
Leave salary is taxable in certain cases based on the type of employment and time of encashment. An employee is eligible for leave based on the service rules of company where he is working. After joining a company an employee will earn leave as per his eligibility and after earning it he can claim those when ever requirement arises. At the end of the year, leave to the … [Read more...] about Income Tax treatment of your leave encashment
Income Tax Planning for a Salary Individual
Most of the employees are paying higher income tax because of non inclusion of certain components which are exempted. Restructuring their salary components and investing in certain specified investments might help them in reducing their tax liability. Restructure your Salary You can include following components to your salary to reduce your tax liability: Medical … [Read more...] about Income Tax Planning for a Salary Individual
How to claim income tax benefits for Your Housing Loan – Section 80C and section 24 of Income Tax Act, 1961
You have two components in a housing loan. One is the interest portion that you paid for your housing loan and the other one is periodical principal amount paid. The interest amount payable on housing loan borrowed for the purpose of acquisition, construction, renovation, repairing or reconstruction can be claimed as a deduction under section 24 of income tax act. If you … [Read more...] about How to claim income tax benefits for Your Housing Loan – Section 80C and section 24 of Income Tax Act, 1961
How salary is taxable in India
For income tax purpose, any income earned by an individual is classified in to 5 different heads of income and income tax is charged on such income according to the act and rule prescribed. Those five major head of incomes are; Salary House Property Business and Profession Capital Gain Other Sources If during the financial year, you have generated any amount as … [Read more...] about How salary is taxable in India
Incomes to be disclosed in addition to your Salary
Most of the individuals do not disclose certain incomes as those are not noticed by them while filing there IT return. As per the provisions of IT act, all incomes are taxable if it’s not exempted specifically under the act. When you get your form 16 from your employer, it will contain only your salary for the financial year and not the other incomes that you are receiving … [Read more...] about Incomes to be disclosed in addition to your Salary
Can tax deduction on tuition fees be claimed for 3rd and 4th child
Income tax deduction on Tuition fees can be claimed under section 80C of the income tax act, 1961. It can be claimed for any two children of the individual for a full time education in India. Tax deduction on Tuition fee is allowed to every individual who is liable to pay income tax or to a Hindu undivided family. If in a family both husband and wife are tax payers and … [Read more...] about Can tax deduction on tuition fees be claimed for 3rd and 4th child