Showing posts with label Save Tax. Show all posts
Showing posts with label Save Tax. Show all posts
Tax Slabs in India - 2009
Well, last year, Finance Minister P. Chidambaram, the Indian income tax slab by changing the tax burden on lower paid people. This article income men, women and senior citizens to various categories of taxpayers as income tax rates in India provides information on. Also last count, the best investment strategy for the deductible and other Indians, provides details on saving. Income tax rates here are for the year 2008-2009.
Income tax slab one - zero tax
Male salaried individuals to zero if their net taxable income of Rs 50,000 1, and down. Zero limit for women is Rs. Rs 1,80,000 for senior citizens, while it is. 225 000. According to the Income Tax Department, only (both men and women) individuals who are 65 years old and above are considered senior citizens. Invest wisely and using pay incentives, it proceeds down the levels are big this is possible to get.
Income tax slab 2 - ten per cent tax
People earning between Rs. 150 001 300,000 fall into this category. Men will pay 10 percent of the amount over Rs. While for women between Rs 1,50,000 10 per cent of the amount to be paid. Rs 180 001. 300,000. Senior citizens and 10 per cent of the amount between Rs 225 000 to pay. 3 lakh as income tax in India.
Three income tax slab - Twenty percent tax
Indian national income between Rs. 300 001 for 500,000 of the income tax rate is paid. In this class, salaried people more than Rs 15,000 will pay 20 percent of the amount between Rs. 3,00,000 and Rs. 500,000. Women pay Rs. ? 20 percent of the amount between Rs 12,000. While senior citizens pay Rs 3-5 lakh. 7500 more than 20 percent of the amount between Rs. 3-5 million.
Income tax slab four - thirty percent tax
All Indians, earning a salary of over Rs. 500,000 fall into this category. Men Rs.55, 000 more will pay 30 percent of the amount over Rs. 500,000. For salaried women taxpayers have to pay Rs. 52 000? 30% of income exceeding Rs. While it is Rs 5,00,000 for senior citizens. 47,500 plus 30 percent of income above Rs 5 lakh.
Income tax surcharge - in addition to the top income tax rates, a 10 percent surcharge (tax on) applies if after taking into consideration all the deductions from taxable income up to Rs. 10 million.
Education Cess - An education cess of all taxes in India, which are subject to 2 percent of total tax due. Assessment year 2008-09, secondary and higher secondary education cess of 1% of the effect is applied to half of the taxable income.
March 2009 - The current income tax slab rates are for the financial year to April 2008. The annual budget is expected to be announced at the end of this month, and it is expected that Finance Minister Mr.P.Chidambaram taxation, to introduce a new system
slabs, cut investment and expenses for the next year the tax rate in India is further reduced.
Keep reading the blog to stay informed.
Income tax slab one - zero tax
Male salaried individuals to zero if their net taxable income of Rs 50,000 1, and down. Zero limit for women is Rs. Rs 1,80,000 for senior citizens, while it is. 225 000. According to the Income Tax Department, only (both men and women) individuals who are 65 years old and above are considered senior citizens. Invest wisely and using pay incentives, it proceeds down the levels are big this is possible to get.
Income tax slab 2 - ten per cent tax
People earning between Rs. 150 001 300,000 fall into this category. Men will pay 10 percent of the amount over Rs. While for women between Rs 1,50,000 10 per cent of the amount to be paid. Rs 180 001. 300,000. Senior citizens and 10 per cent of the amount between Rs 225 000 to pay. 3 lakh as income tax in India.
Three income tax slab - Twenty percent tax
Indian national income between Rs. 300 001 for 500,000 of the income tax rate is paid. In this class, salaried people more than Rs 15,000 will pay 20 percent of the amount between Rs. 3,00,000 and Rs. 500,000. Women pay Rs. ? 20 percent of the amount between Rs 12,000. While senior citizens pay Rs 3-5 lakh. 7500 more than 20 percent of the amount between Rs. 3-5 million.
Income tax slab four - thirty percent tax
All Indians, earning a salary of over Rs. 500,000 fall into this category. Men Rs.55, 000 more will pay 30 percent of the amount over Rs. 500,000. For salaried women taxpayers have to pay Rs. 52 000? 30% of income exceeding Rs. While it is Rs 5,00,000 for senior citizens. 47,500 plus 30 percent of income above Rs 5 lakh.
Income tax surcharge - in addition to the top income tax rates, a 10 percent surcharge (tax on) applies if after taking into consideration all the deductions from taxable income up to Rs. 10 million.
Education Cess - An education cess of all taxes in India, which are subject to 2 percent of total tax due. Assessment year 2008-09, secondary and higher secondary education cess of 1% of the effect is applied to half of the taxable income.
March 2009 - The current income tax slab rates are for the financial year to April 2008. The annual budget is expected to be announced at the end of this month, and it is expected that Finance Minister Mr.P.Chidambaram taxation, to introduce a new system
slabs, cut investment and expenses for the next year the tax rate in India is further reduced.
Keep reading the blog to stay informed.
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Money sent to parents in India is tax-free
Resident individual partners, or owned by non-repairable rupee firm can borrow from the Non-Resident Indians:
* The loan term not exceeding three years;
Again for the loan to the lender requires the borrower's personal or business needs, and the whole not being used, and
* Interest rate does not exceed Bank Rate plus 2%.
If you have a friend in accordance with the above criteria are documentary evidence of debt, we do not see any problems.
However, if you do not have the necessary documentation, the loan you gave to your friend would be considered a gift. Consequently, it is not refunded to you, it can treat the loan as payment.
If this is the case, the only recourse available to give a gift to you is your friend.
A resident of an NRI / PIO to $ 200,000 per fiscal year for a gift can.
An NRI to a friend India (Jaipur) rented his shop. TDS purposes donor payee (ie, NRI) has demanded the PAN card. I have the following questions:
1. NRIs can apply for a PAN card?
2. NRIs face what will result if the donor fails to deduct TDS, or after the cut is the same, not to collect?
3. NRIs will have implications on? She files her return?
Yes, NRI a PAN card (Permanent Account Number) can apply for. The donor after the loss (deducted at source) TDS or lower fails, not the government a deposit account, it is not the donor is the responsibility of the payee diaspora.
As far as non-resident Indians are concerned, their own obligation to pay taxes is correct. If TDS has been applied, it will be over and above the only addition to TDS, if any, need to pay.
If an NRI total income before deduction of Rs.1.50 lakh (150,000 rupees), it essentially an income tax return filed in India is up. Despite the fact that the TDS has been cut or not.
I request you to please give your views on:
Whether interest RFC fixed deposits in banks (foreign and Indian currency) earned on taxable under the Indian Income Tax Act. Us provisions, namely section and sub section under FEMA, which is free from interest income earned by RFC deposits are known.
My humble understanding of the subject that RFC and FCNR deposits are governed by both FEMA and the interest so should be free from Indian income tax.
RFC deposits if interest is taxable, there is no benefit at all. There is not any discrimination or differentiation between the two be credited as the source for two out of India as an NRI should have earned.
A stream of income, including the RFC (Resident Foreign Currency) Account, the interest on Indian Income Tax Act are decided by weight. Foreign Exchange Management Act is not included with the taxes, the repatriation, remittance, investment, etc. What is with respect to rules and regulations
Taxability of interest on RFC about, note that one is free to Section 10 (15) (FA) of the Income Tax Act.
India, 5 May 2008 I was working. After that I was deputed to Sweden to work permit visa and then returned to India not to. I estimate for 2009-10 is considered to be a resident in India?
According to my understanding, I would consider a non-resident in India as I in India for 182 days or more to qualify as a resident should be attended to. However, I stretch to go abroad for employment purposes will be covered by the individual, even if I'm going there on a work permit or business visa?
Your understanding is correct. 2008-09 (09-10 Q), since the 182 days of his stay in India will be low, you will be considered an NRI.
A work permit or are going abroad on a business visa to go abroad only as employment is considered. In other words were you a tourist visa or other visa prohibits you from working on the trip, you are going abroad on employment and so on Enarae Upar rule do not qualify for status as the idea be.
I am an NRI (U.S. residence) holding NRE accounts in Mumbai. I have a NRE account with money in the branch his mother (who is an Indian resident) regular savings account, also am planning to transfer. I have the following questions:
1. I believe that this amount is tax free without any limitation. But can you please confirm this for me?
2. Since I will lose the amount obligations, there sending money abroad to relatives in India of any other lawful way. For example, I heard a legally for $ 25,000 per year is allowed to send abroad. Is this true? If so, how that will be reflected on my mother's IT return? Also, what are the implications for me?
1. Yes, the amount you transfer to your parents, without limitation, for free.
2. Master Circular on July 1, 2006 dated, according to the Indian inhabitants for the maintenance of close relatives abroad for up to $ 100,000 per year are allowed to remit. A close relative of your parents you may have by law and therefore should take care of your needs.
Also, the latest AP Dir circular, according to the range of $ 25,000 that you U.S. $ per fiscal year increase of 200,000 is mentioned, including the gift. Therefore, an Indian resident as much as $ 300,000 per year from overseas, out of which $ 100,000 is required to send to relatives.
You call your mother or vice contrast the amount of money according to the current Indian tax laws is neutral.
* The loan term not exceeding three years;
Again for the loan to the lender requires the borrower's personal or business needs, and the whole not being used, and
* Interest rate does not exceed Bank Rate plus 2%.
If you have a friend in accordance with the above criteria are documentary evidence of debt, we do not see any problems.
However, if you do not have the necessary documentation, the loan you gave to your friend would be considered a gift. Consequently, it is not refunded to you, it can treat the loan as payment.
If this is the case, the only recourse available to give a gift to you is your friend.
A resident of an NRI / PIO to $ 200,000 per fiscal year for a gift can.
An NRI to a friend India (Jaipur) rented his shop. TDS purposes donor payee (ie, NRI) has demanded the PAN card. I have the following questions:
1. NRIs can apply for a PAN card?
2. NRIs face what will result if the donor fails to deduct TDS, or after the cut is the same, not to collect?
3. NRIs will have implications on? She files her return?
Yes, NRI a PAN card (Permanent Account Number) can apply for. The donor after the loss (deducted at source) TDS or lower fails, not the government a deposit account, it is not the donor is the responsibility of the payee diaspora.
As far as non-resident Indians are concerned, their own obligation to pay taxes is correct. If TDS has been applied, it will be over and above the only addition to TDS, if any, need to pay.
If an NRI total income before deduction of Rs.1.50 lakh (150,000 rupees), it essentially an income tax return filed in India is up. Despite the fact that the TDS has been cut or not.
I request you to please give your views on:
Whether interest RFC fixed deposits in banks (foreign and Indian currency) earned on taxable under the Indian Income Tax Act. Us provisions, namely section and sub section under FEMA, which is free from interest income earned by RFC deposits are known.
My humble understanding of the subject that RFC and FCNR deposits are governed by both FEMA and the interest so should be free from Indian income tax.
RFC deposits if interest is taxable, there is no benefit at all. There is not any discrimination or differentiation between the two be credited as the source for two out of India as an NRI should have earned.
A stream of income, including the RFC (Resident Foreign Currency) Account, the interest on Indian Income Tax Act are decided by weight. Foreign Exchange Management Act is not included with the taxes, the repatriation, remittance, investment, etc. What is with respect to rules and regulations
Taxability of interest on RFC about, note that one is free to Section 10 (15) (FA) of the Income Tax Act.
India, 5 May 2008 I was working. After that I was deputed to Sweden to work permit visa and then returned to India not to. I estimate for 2009-10 is considered to be a resident in India?
According to my understanding, I would consider a non-resident in India as I in India for 182 days or more to qualify as a resident should be attended to. However, I stretch to go abroad for employment purposes will be covered by the individual, even if I'm going there on a work permit or business visa?
Your understanding is correct. 2008-09 (09-10 Q), since the 182 days of his stay in India will be low, you will be considered an NRI.
A work permit or are going abroad on a business visa to go abroad only as employment is considered. In other words were you a tourist visa or other visa prohibits you from working on the trip, you are going abroad on employment and so on Enarae Upar rule do not qualify for status as the idea be.
I am an NRI (U.S. residence) holding NRE accounts in Mumbai. I have a NRE account with money in the branch his mother (who is an Indian resident) regular savings account, also am planning to transfer. I have the following questions:
1. I believe that this amount is tax free without any limitation. But can you please confirm this for me?
2. Since I will lose the amount obligations, there sending money abroad to relatives in India of any other lawful way. For example, I heard a legally for $ 25,000 per year is allowed to send abroad. Is this true? If so, how that will be reflected on my mother's IT return? Also, what are the implications for me?
1. Yes, the amount you transfer to your parents, without limitation, for free.
2. Master Circular on July 1, 2006 dated, according to the Indian inhabitants for the maintenance of close relatives abroad for up to $ 100,000 per year are allowed to remit. A close relative of your parents you may have by law and therefore should take care of your needs.
Also, the latest AP Dir circular, according to the range of $ 25,000 that you U.S. $ per fiscal year increase of 200,000 is mentioned, including the gift. Therefore, an Indian resident as much as $ 300,000 per year from overseas, out of which $ 100,000 is required to send to relatives.
You call your mother or vice contrast the amount of money according to the current Indian tax laws is neutral.
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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