Income Tax - Save Tax through Investments
Income Tax - Save Tax through Investments
According to the assessment year 2006-07
Quick Look
* Up to Rs 1 lakh deduction on investments in specified instruments is available.
* All regional cap (PPF) than have been removed.
* EET, if implemented, could impact small savings.
* ELSS tax breaks than the best defense against inflation offers.
Investment in as little as Rs 100 to invest to keep your account alive - * PPF is pressure on the pocket.
* Life insurance to cover risks is fine, but no great shakes as an investment option.
Eligibility for Tax Saving through Investment
* Only individuals or HUF were eligible.
* Only those investments have contributed, and the payment of income considered relevant financial year.
* Income is taxable in India should have been.
* Set limits for each type of monetary investment contributions, payment was to be followed.
For individual and HUF, deduction entitled to Rs. Invest contributions and paid life insurance, housing loans, PPF, infrastructure bonds, etc. There is no other than sub-threshold PPF, are made towards the 1 million. It is limited to Rs. 70000.
Popular investment choice
* (With post offices / banks), PPF, provdent statutory fund (paid for by cuts and staff).
* Life incurance premium (LIC or other private insurance companies as well).
* Unit Linked Insurance (UTI mutual funds).
* Equity - linked savings schemes.
* National Savings Certificates.
* Infrastructure bonds.
* Home Loans.
Public Provident Fund
* (With post offices / banks), PPF, provdent statutory fund (paid for by cuts and staff).
* Minimum Limit - Rs. 100
* Maximum Limit - Rs. 70,000
* Term - minimum 15 years
* Must be invested each year
The State Bank of India or any of its subsidiaries into branch can be opened at any post office or specially designated branches of nationalized banks. Standing balance at the end of 4 years 50 percent of withdrawals are restricted to.
Life Insurance
* Maximum Limit - Rs. 1 million.
* The amount of premium payments in any year 20% (1 April 2003 after the release) should not cross.
* 20% more than the amount paid will not allow for any cuts.
Tax-exempt status and not for direct taxes payable at maturity is limited to service insurance *.
ULIP
* It is the combination of investment funds and insurance policies.
* Minimum Limit - Rs. Rs 15,000 with an annual contribution. 1000.
* Maximum Limit - Rs. 2 lakh with annual contribution of Rs. 20000.
Investors * Age - 12-55 years, 6 months.
* It also exempt from wealth tax.
* Service charged since insurance cover can be taken.
ELSS (equity linked savings schemes)
* Maximum Limit - Rs. 1 million.
* It provides a window of equity investors 'power' with a sweetener from the tax benefits, benefits.
* Lock in period - 3 years.
* Cut the liquidity option.
* This risk but maximize return, even to 47%.
National Savings Certificate (NSC)
* Offer flexibility like PPF.
At any post office money as low as * is available in a community. 100.
Infrastructure bonds
* Investment / Public bond issues by financial institutions / debentures as stocks are.
* There is no chance of a capital gains tax.
* Long time for these investments are useful for.
* Money, like 5 years or 3 years is a relatively short period.
* Interest rate current interest rate.
Monthly Income Scheme (MIS)
* 8% interest.
* 10% bonus on maturity.
* Minimum Limit - Rs. 1,000
* Maximum Limit - Rs. 3 lakh (Rs. 6 lakh for joint account, seconds).
* Maturity Period - 6 years
* Lock in period - 3 years
* Clearance 3 years ago there were a reduction of 3.5% is
Return after 3 years but 6 years ago, will not be paid bonuses.
Kisan Vikas Patras
* Money doubles in 8 years and seven months.
Any post office in denominations of Rs * is available. 100, Rs. 500, Rs. 1000, Rs. 5,000 and Rs. 50000.
* Interest is paid only after maturity.
first take FBT(FBT ):Fringe Benefit Tax
FBT a tax according to the Income Tax Act, section 115W, except individual assessee applies to all types of people. Company, firm, etc., mainly to pay FBT FBT. Maximum margin rate of tax ie 30% more than currently spent 10% surcharge and 3 defined in the evaluation of education cess is payable if the fixed rate responsive. Full cost is not responsible for FBT FBT explain all cases and for different types of costs between 5% to 100% is defined under the FBT assessment if the cost so we have to have 100% 33.99% Effective Tax pay .. And where the net cost is 17% to 50% at a cost impact assessment (effective rate) at the many streams / costs are below / on which FBT is applicable, but we discuss here only the festival expenses and gifts related to ..
: Festival expenses. Section 115WB (2) (l) the time spent in festivals and FBT under the FBT rate of 50% is responsible for assessing the Diwali festival means the amount spent is Rs 100 per FBT liable for the costs 50 to Rs 50 and Rs 17 100 of tax to be 33.99% to the total expenditure will be 17% effective rate. According to explanations given in 2005 Circular 8 / wide is clear that Diwali is responsible for the cost of FBT However, Independence Day and Republic Day celebrations spending may not be liable to FBT because they are festive as usual are considered as not. (Question No. 1995)
Gift:Section 115WB (2) According to (o) for gifts for employees or business partners are responsible for expenses incurred FBT valuation rate and the same as the rate of cost function that is 50% effective rate for total expenditures. 17% as explained above. According to the main explanations Circular 2005 / 8 relating to FBT on the gift has been here under brief
Question 97: gifts under trade schemes or the company's products distributors / retailers is liable to FBT to boost spending.
98 questions Category: Gift (O), sales promotion and customer not to fall down a gift. (98.)
99 no question. Employees spend on the occasion of the wedding, spend on gifts provided, is liable for FBT.
Questions (100). Liable for FBT in kind gifts and gifts for the purpose of such costs to the employer for the purpose of pricing will be taken.
After levy of FBT, I do not think there's send / employees and customers how we tax the above rules and "our" make sense in light of liability.Our can reduce gifts to present to the culture of out a major influence on whether employers or employees and net pay for both parties.Here to the various cases is how we can reduce tax liability
Case 1: where the employee is less than the income tax exemption or taxable income is less than 300,000: employees whose income we spend that case, we always effective FBT rate of 17% is paid as taxable limit 17000 100000 presented a gift to reduce the FBT though gifts from the employer as responsible for their FBT taxable to the employee does not mean.
But these types of employees cash bonuses for us as gifts instead of cash will be treated as wages under expenditure is not liable for FBT in the hands of employees and their salary income is taxable, But these types of employees should be included as wages taxable limit or reduce the net departure rate of 10% or there will not be taxed as in the case but it will share 10% lower than the FBT 17 % of the effective rate can mean savings of 7-17%.
-2 Episode: where employees pay more than the taxable income is over 300,000 or 500,000: In these types of cases we give gifts to employees in that case the effective rate of FBT to the employee bonus and 17% will allow The employee has to pay tax at 20% or as the case rate of 30% to be. In this case, we give gifts to employees as gifts are not taxable in the hands of staff and we net out to save 13% will go through 3 should be as the case may be.
I assume that workers can save as direct firm / company as well as by saving as employees after more than pure salary will be satisfied with.
Both of the above cases the business person in that case as the gift does not apply to individual assessment is beneficial in FBT goes.
I think the tip that the reader some insight on some of the FBT and gifts and to be able to save some may go out
Now as per the income tax:
As per the income tax benefits to be responsible for the FBT as perquisites will not be included in the employee's income tax applied because of the gifts received from the employer as a tax liability under the FBT it is so covered on gifts for employees do not receive work from employers
Personal Gifts:
After discussing corporate gifts to personalized gifts check provisions .. Diwali Gifts for there is no specific provision under the Income Tax Act and Income Tax is a gift that can read out here apply to the Act will be covered under the general rules
According to the assessment year 2006-07
Quick Look
* Up to Rs 1 lakh deduction on investments in specified instruments is available.
* All regional cap (PPF) than have been removed.
* EET, if implemented, could impact small savings.
* ELSS tax breaks than the best defense against inflation offers.
Investment in as little as Rs 100 to invest to keep your account alive - * PPF is pressure on the pocket.
* Life insurance to cover risks is fine, but no great shakes as an investment option.
Eligibility for Tax Saving through Investment
* Only individuals or HUF were eligible.
* Only those investments have contributed, and the payment of income considered relevant financial year.
* Income is taxable in India should have been.
* Set limits for each type of monetary investment contributions, payment was to be followed.
For individual and HUF, deduction entitled to Rs. Invest contributions and paid life insurance, housing loans, PPF, infrastructure bonds, etc. There is no other than sub-threshold PPF, are made towards the 1 million. It is limited to Rs. 70000.
Popular investment choice
* (With post offices / banks), PPF, provdent statutory fund (paid for by cuts and staff).
* Life incurance premium (LIC or other private insurance companies as well).
* Unit Linked Insurance (UTI mutual funds).
* Equity - linked savings schemes.
* National Savings Certificates.
* Infrastructure bonds.
* Home Loans.
Public Provident Fund
* (With post offices / banks), PPF, provdent statutory fund (paid for by cuts and staff).
* Minimum Limit - Rs. 100
* Maximum Limit - Rs. 70,000
* Term - minimum 15 years
* Must be invested each year
The State Bank of India or any of its subsidiaries into branch can be opened at any post office or specially designated branches of nationalized banks. Standing balance at the end of 4 years 50 percent of withdrawals are restricted to.
Life Insurance
* Maximum Limit - Rs. 1 million.
* The amount of premium payments in any year 20% (1 April 2003 after the release) should not cross.
* 20% more than the amount paid will not allow for any cuts.
Tax-exempt status and not for direct taxes payable at maturity is limited to service insurance *.
ULIP
* It is the combination of investment funds and insurance policies.
* Minimum Limit - Rs. Rs 15,000 with an annual contribution. 1000.
* Maximum Limit - Rs. 2 lakh with annual contribution of Rs. 20000.
Investors * Age - 12-55 years, 6 months.
* It also exempt from wealth tax.
* Service charged since insurance cover can be taken.
ELSS (equity linked savings schemes)
* Maximum Limit - Rs. 1 million.
* It provides a window of equity investors 'power' with a sweetener from the tax benefits, benefits.
* Lock in period - 3 years.
* Cut the liquidity option.
* This risk but maximize return, even to 47%.
National Savings Certificate (NSC)
* Offer flexibility like PPF.
At any post office money as low as * is available in a community. 100.
Infrastructure bonds
* Investment / Public bond issues by financial institutions / debentures as stocks are.
* There is no chance of a capital gains tax.
* Long time for these investments are useful for.
* Money, like 5 years or 3 years is a relatively short period.
* Interest rate current interest rate.
Monthly Income Scheme (MIS)
* 8% interest.
* 10% bonus on maturity.
* Minimum Limit - Rs. 1,000
* Maximum Limit - Rs. 3 lakh (Rs. 6 lakh for joint account, seconds).
* Maturity Period - 6 years
* Lock in period - 3 years
* Clearance 3 years ago there were a reduction of 3.5% is
Return after 3 years but 6 years ago, will not be paid bonuses.
Kisan Vikas Patras
* Money doubles in 8 years and seven months.
Any post office in denominations of Rs * is available. 100, Rs. 500, Rs. 1000, Rs. 5,000 and Rs. 50000.
* Interest is paid only after maturity.
first take FBT(FBT ):Fringe Benefit Tax
FBT a tax according to the Income Tax Act, section 115W, except individual assessee applies to all types of people. Company, firm, etc., mainly to pay FBT FBT. Maximum margin rate of tax ie 30% more than currently spent 10% surcharge and 3 defined in the evaluation of education cess is payable if the fixed rate responsive. Full cost is not responsible for FBT FBT explain all cases and for different types of costs between 5% to 100% is defined under the FBT assessment if the cost so we have to have 100% 33.99% Effective Tax pay .. And where the net cost is 17% to 50% at a cost impact assessment (effective rate) at the many streams / costs are below / on which FBT is applicable, but we discuss here only the festival expenses and gifts related to ..
: Festival expenses. Section 115WB (2) (l) the time spent in festivals and FBT under the FBT rate of 50% is responsible for assessing the Diwali festival means the amount spent is Rs 100 per FBT liable for the costs 50 to Rs 50 and Rs 17 100 of tax to be 33.99% to the total expenditure will be 17% effective rate. According to explanations given in 2005 Circular 8 / wide is clear that Diwali is responsible for the cost of FBT However, Independence Day and Republic Day celebrations spending may not be liable to FBT because they are festive as usual are considered as not. (Question No. 1995)
Gift:Section 115WB (2) According to (o) for gifts for employees or business partners are responsible for expenses incurred FBT valuation rate and the same as the rate of cost function that is 50% effective rate for total expenditures. 17% as explained above. According to the main explanations Circular 2005 / 8 relating to FBT on the gift has been here under briefQuestion 97: gifts under trade schemes or the company's products distributors / retailers is liable to FBT to boost spending.
98 questions Category: Gift (O), sales promotion and customer not to fall down a gift. (98.)
99 no question. Employees spend on the occasion of the wedding, spend on gifts provided, is liable for FBT.
Questions (100). Liable for FBT in kind gifts and gifts for the purpose of such costs to the employer for the purpose of pricing will be taken.
After levy of FBT, I do not think there's send / employees and customers how we tax the above rules and "our" make sense in light of liability.Our can reduce gifts to present to the culture of out a major influence on whether employers or employees and net pay for both parties.Here to the various cases is how we can reduce tax liability
Case 1: where the employee is less than the income tax exemption or taxable income is less than 300,000: employees whose income we spend that case, we always effective FBT rate of 17% is paid as taxable limit 17000 100000 presented a gift to reduce the FBT though gifts from the employer as responsible for their FBT taxable to the employee does not mean.
But these types of employees cash bonuses for us as gifts instead of cash will be treated as wages under expenditure is not liable for FBT in the hands of employees and their salary income is taxable, But these types of employees should be included as wages taxable limit or reduce the net departure rate of 10% or there will not be taxed as in the case but it will share 10% lower than the FBT 17 % of the effective rate can mean savings of 7-17%.
-2 Episode: where employees pay more than the taxable income is over 300,000 or 500,000: In these types of cases we give gifts to employees in that case the effective rate of FBT to the employee bonus and 17% will allow The employee has to pay tax at 20% or as the case rate of 30% to be. In this case, we give gifts to employees as gifts are not taxable in the hands of staff and we net out to save 13% will go through 3 should be as the case may be.
I assume that workers can save as direct firm / company as well as by saving as employees after more than pure salary will be satisfied with.
Both of the above cases the business person in that case as the gift does not apply to individual assessment is beneficial in FBT goes.
I think the tip that the reader some insight on some of the FBT and gifts and to be able to save some may go out
Now as per the income tax:
As per the income tax benefits to be responsible for the FBT as perquisites will not be included in the employee's income tax applied because of the gifts received from the employer as a tax liability under the FBT it is so covered on gifts for employees do not receive work from employers
Personal Gifts:
After discussing corporate gifts to personalized gifts check provisions .. Diwali Gifts for there is no specific provision under the Income Tax Act and Income Tax is a gift that can read out here apply to the Act will be covered under the general rules
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