Profits or gains arising from transfer of a capital asset are called “Capital Gains” and are charged to tax under the head “Capital Gains”. • There should be a Capital Asset • Capital Asset should be transferred during the previous year • Gains/Loss has to be computed • Tax has to be paid on such gains
In the last four years, the government’s efforts to widen the tax base resulted in an 80% jump in the number of returns filed to 6.85 crore in 2017-18 from 3.31 crore in 2013-14. Data released by the income tax department showed a massive gap between the salaried whose taxes are deducted and the non-salaried. Rajesh, a client of ours, was unhappy with the Budget 2018 when the finance minister raised standard deduction to ₹40,000 and that too in lieu of travel allowance. He felt worse when he read about some professionals who probably earned three times his income and yet do not pay tax. “Does the government even listen to us? We are the most honest taxpayers and our salaries are deducted at source. What benefits do we get?” he asked. This is when we decided to tell him about the benefits available to salaried employees in the corporate sector.
Most people dread the tax season. Paying tax is seen as a burden and the whole process of filing returns is associated with boredom and complexity. Some taxpayers make mistakes too. For example, while filing taxes, some do not consider their entire income or others fail to consider all the taxation rules. Some try to evade taxes. Filing incorrect returns deliberately or unintentionally can land you in hot soup. It is important to file the correct income tax returns and to pay tax applicable before the due date .
An Income Tax Return(ITR) is a summary of income earned, losses made, investments made, taxes paid etc. It is not enough to just pay taxes. You have to file your income tax return with the government. This will help in recording that you have paid your tax as well as calculate the correct tax payable.
Capital losses are incurred when you sell a house property for a loss or sell shares at a loss.These losses can be set off against certain income heads. This will help to reduce taxable income, thus reducing tax liability.
The IT returns website might not work at the last minute or you are busy at work and do not have time to file the returns. We will not have time to get the documentation such as bills, Form 16, Form 26AS etc. ready. One can encounter many such issues. It is, therefore, better to plan for taxes at the beginning of the financial year, take the necessary steps throughout the year and prepare the IT returns and file it well in advance.
It is that time of the year when we have to file our taxes for the year. It is not a task that many of us enjoy and we want to quickly get it done with. But in our eagerness to get it done with, we must make sure that we do not file the returns inefficiently as this would mean increased tax outgo and mismanagement of our money. We must make the best use of the different ways to reduce our tax liability and at the same time ensure that our financial plan is on course to achieve our goals.
Income tax act provides multiple benefits to manufacturing enterprises, for example, additional depreciation, specified business under section 35AD, etc. In the case of a manufacturing enterprise, if a new machinery is installed during the year, then in addition to the normal depreciation, such units are also eligible to claim additional depreciation up to 20% in the year when the machinery is put to use. Read more
Real Estate Sector is one of the most sought-after investment alternatives in India. We usually make it as an emotional asset too. Many people want to make a mark of their own in the heart of their next generation and for that, they consider property as the best tool. The property thus acquired in one’s lifetime has to be transferred to the next generations like what our ancestors had passed on to us.
Many clients were recommended changes on their portfolio as part of portfolio optimisation requirements for FY17-18 (Assessment year 18-19)
The tax implications on any changes have been communicated to the client at the time of making the changes and the advance tax payment dates are 15th June/ 15th September / 15th December / 15th March.