#Income Tax Act 1961

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Deductions which can be claimed under the New Income Tax Regime

Are you navigating the complexities of tax planning under the new income tax regime? Are you looking to maximize your savings by leveraging all available deductions? Look no further! In this definitive guide, we’ll walk you through the myriad deductions offered under the Income Tax Act of 1961 in the new regime, empowering you to make informed financial decisions and optimize your tax…

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Taxation Rules for non-residents in India including Foreign Citizens

Incidents of taxation on Income earned by non residents in India depends upon his physical presence in India during last financial year. Whether an income earned by an individual in India or outside India, is taxable in India depending upon his stay in India rather than on his citizenship. Invariably, the person holding foreign citizenship remain under wrong impression that taking up foreign citizenship would help them for obtaining tax benefits. The Income Tax Act 1961 (as amended uptill date “the Act”)does not provide any benefit to an assessee on the basis of  his citizenship.  Read More - https://www.pkpconsult.com/blog/taxation-rules-for-non-residents-in-india-including-foreign-citizens.html

[indilegalonline]

Section 24 of Income Tax Act

Section 24 of Income Tax Act –Deductions from income from house property Income chargeable under the head “Income from house property” shall be computed after making the following deductions, namely:—  (a) a sum equal to thirty percent of the annual value;  (b) where the property has been acquired, constructed, repaired, renewed or reconstructed with borrowed capital, the amount of any…

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mera dushman?

INCOME TAX ACT 1961

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Income Tax Audit in India

What is a Income Tax Audit in India? Under Section 44 AB of the Income Tax Act, 1961, provision of Income Tax Audit is covered. Income Tax Audit is a way to examine an individual’s organization tax returns by any outside agency. Income Tax Audit done to verify all income

Income Tax Audit in India | Income Tax Audit in Delhi

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Sukanya Samriddhi Yojana 2023 Benefits & Interest Rates

Sukanya Samriddhi Yojana (SSY) is a savings scheme launched by the Government of India in 2015 as part of the "Beti Bachao Beti Padhao" campaign. The scheme is designed to encourage parents to save for the future education and marriage expenses of their girl child.

Here are some of the benefits and interest rates associated with Sukanya Samriddhi Yojana:

High Interest Rates: The current interest rate for Sukanya Samriddhi Yojana is 7.6% per annum (as of January 2022), which is higher than most other government-backed savings schemes.

Tax Benefits: Contributions to Sukanya Samriddhi Yojana are eligible for tax deductions under Section 80C of the Income Tax Act, 1961. The interest earned and the final maturity amount are also tax-free.

Flexible Investment Options: Parents or guardians can open an SSY account for their girl child with a minimum initial deposit of Rs. 250. They can make contributions in multiples of Rs. 100, up to a maximum of Rs. 1.5 lakh per annum. The account can be opened until the girl child attains the age of 10 years.

Long Maturity Period: The maturity period for Sukanya Samriddhi Yojana is 21 years from the date of opening the account. This makes it an ideal savings scheme for long-term financial planning.

Partial Withdrawals Allowed: Partial withdrawals of up to 50% of the balance in the account are allowed once the girl child attains the age of 18 years, for the purpose of higher education or marriage.

Account Transferable: In case of a change in residence of the account holder, the account can be transferred anywhere in India.

Overall, Sukanya Samriddhi Yojana is a great savings scheme for parents who want to secure their daughter's future education and marriage expenses. It offers high interest rates, tax benefits, and flexible investment options, making it a popular choice among investors.

[jjtax]

Women and Wealth

Are you aware of the lucrative tax benefits for salaried women? From home loans and HRA to investments in Sukanya Sam Riddhi Yojana (SSY) and education loans, knowing your options can help you save big and plan smarter.

As a working woman, you are balanced with many responsibilities. This should be one less thing to worry about-tax dues. Understanding tax-saving options not only reduces your liabilities but also empowers you to make better financial decisions. Let's look through some key benefits that each salaried woman should know.

1. Save While Repaying a Home Loan

Owning a home is a dream, and if you’ve taken a home loan, it comes with tax benefits:

Principal repayment: Claim up to ₹1.5 lakh under Section 80C of the Income Tax Act, 1961.

Interest repayment: The interest paid can also be claimed as a deduction under Section 24(b).

2. Use Your House Rent Allowance (HRA)

If you rent, House Rent Allowance (HRA) can help reduce your taxable income substantially. You can claim the least of the following as a deduction:

Actual HRA received. 50% of the amount of (basic salary + DA) in metro cities or 40% in non-metro cities. Actual rent paid minus 10% of the amount of (basic salary + DA).

3. Invest in Sukanya Samriddhi Yojana (SSY)

For women with daughters less than 10 years old, SSY is a great way of securing the future for your child and saving tax simultaneously. The scheme offers an EEE category triple tax benefit:

Investments are deductible under Section 80C, to the extent of ₹1.5 lakh annually.

The interest so earned is tax-free.

Withdrawals at maturity are tax-free as well.

4. Save Taxes While Repaying Education Loans Did you know your education loan can help you save taxes? Under Section 80E, the total interest paid on an eligible education loan is deductible during a financial year, without any upper limit. This applies to loans taken for yourself, your spouse, or your children.

5. Claim Deductions on Savings Bank Account Interest

Interest earned on your savings account is taxable under "Income from Other Sources," but Section 80TTA allows a deduction of up to ₹10,000 per financial year.

6. Donate to Relief Funds and Charities

Giving back can also help you save on taxes! Under Section 80G, donations to specified relief funds and charities can be claimed as deductions (50% or 100% of the donation amount).

Important: For donations above ₹2,000, make use of digital payment modes since cash donations are not admissible.

Slay and Save, Queen! The Income Tax Act, 1961 offers a plethora of methods to salaried women saving their taxes. From strategic deductions to smart investments, these provisions can help you keep more money in your pocket.

Need some help? Download the JJ Tax app or go to www.jjfintax.com to determine liabilities, track expenses, and learn all about your money. Empowering each other to be tax-saving queens!

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Late Fees for Default in Filing Income Tax Returns

Filing income tax returns is a crucial responsibility for taxpayers, ensuring compliance with the provisions of the Income Tax Act of 1961. However, failure to file returns within the stipulated deadline may attract late fees and penalties. In this blog post, we explore the implications of late fees for default in filing income tax returns, shedding light on the provisions laid down under the…

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Introduction of Income tax act 1961

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Section 16 of Income Tax Act 1961

Section 16 of Income Tax Act 1961-Deductions from salaries The income chargeable under the head “Salaries” shall be computed after making the following deductions, namely :—   (i) [***] (ia) a deduction of fifty thousand rupees or the amount of the salary, whichever is less;  (ii) a deduction in respect of any allowance in the nature of an entertainment allowance specifically granted by an…

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Maximising Benefits: Understanding Section 80P Deductions For Co-operative Societies

The Income Tax Act, 1961 provides for several profit-related deductions in Chapter VI-A. The objective of these provisions is to encourage taxpayers to invest in certain sectors

In case of profits and gains from certain industries such as hotels, small-scale industries, housing projects, export business and infrastructure development, these deductions are provided under Sections 80H to 80RRB.

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Do you handle financial planning for NRI and non-citizens of India?

Oh, absolutely! Navigating the financial seas for NRIs (Non-Resident Indians) and non-citizens of India is our forte. Think of us as your financial lighthouse, guiding you through the stormy waters of financial planning. Let’s break it down: Key Sections and Regulations FEMA (Foreign Exchange Management Act, 1999): Governs the flow of foreign exchange in India. It’s essential for NRIs to understand the regulations around investments, property purchases, and remittances. For instance, if you're an NRI looking to invest in Indian real estate, FEMA will define how you can legally remit funds to India and the types of properties you can purchase. Income Tax Act, 1961: Sections like Section 6 (residential status) and Section 44DA (taxation on foreign income) are critical for NRIs to understand their tax obligations in India. As an NRI, you’re only taxed on income earned in India, but that doesn’t mean you can skip disclosing your foreign assets in your income tax return. Examples: Mr. Sharma, an NRI based in the US, wanted to invest in Indian mutual funds. We guided him through the FEMA regulations and helped him choose the best investment options, ensuring tax-efficient growth of his portfolio. Ms. Smith: A non-citizen working in India, Ms. Smith needed help with her tax filings. We ensured she was compliant with Indian tax laws, guided her on taxable income in India, and helped optimize her liabilities through available exemptions. Data Points According to a recent survey, around 18 million Indians live abroad, making financial planning for NRIs a significant aspect of India’s financial landscape. Proper financial planning helps NRIs achieve their financial goals while staying compliant with Indian regulations. Given the growing number of non-resident Indians, their need for informed financial advice is ever-increasing. Futuristic Steps Stay Updated: Tax laws and financial regulations are constantly evolving. It’s crucial to keep up with changes to ensure your financial planning strategy remains compliant and efficient. Consult a Professional: Financial planning can be complex, especially with cross-border concerns. Consulting a professional ensures you’re on the right track and can help you navigate the intricacies of both Indian and foreign tax laws. Embrace Technology: The future of financial planning lies in digital tools. Use online platforms to manage your investments, track returns, and ensure compliance with tax laws from anywhere in the world. Wrapping Up: In short, managing financial planning for NRIs and non-citizens requires a deep understanding of regulations, personalized planning, and a proactive approach. We’re here to ensure you sail smoothly through your financial journey and secure a prosperous future, no matter where you are in the world. For expert legal guidance on financial planning, investments, and tax compliance for NRIs and non-citizens, LawCrust Legal Consulting is your trusted partner. With in-depth knowledge of Indian financial regulations, we provide tailored solutions to help you navigate complex laws and secure your financial future. For more details, call +91 8097842911 or visit our site.