Gifts Tax Act was introduced in India firts time in 1958 as gifts can be a big source of money laundering if there are no limits. But this tax was abolished in 1998. Realizing the misuse it was introduced again in 2004 thus making gifting a taxable transaction under head “Income From Other Sources“. So […]
How to do Year End Tax Planning?
Tax Planning is what Rajiv has always considered doing it in the last two months. Every year whenever he has to submit proof to his employer, he will search for the tax saving instrument. As a result most of his financial outgo is heavily burdened in these two months. But this year managing his outgo […]
Understanding Sec 54 & Sec 54F for Capital Gains
Sec 54 provides relief from the tax on long term capital gains earned from residential property while Sec 54F covers assets other than this. However, there are certain rules which the assesse has to remember to claim benefits under these sections.Take the case of Rajeev who has invested in a land three years ago. He […]
Rajiv Gandhi Equity Savings Scheme- Is it beneficial?
In the last year budget a new tax saving scheme was rolled out for new investors in equity markets- Rajiv Gandhi Equity Savings Scheme. The scheme was meant to deepen the equity market by adding more retail investors. But it didn’t received much attention from investors as the structure was too complex. So, in budget […]
Tax Planning for Small Businessmen
For a businessman, Tax Planning is a very important element. Being self-employed, their income is treated as income from business/profession and they have a higher probability of reaching in highest tax slab sooner. However, there are many deductions available to a them which helps in reducing the income almost by 10-15% as compared to a […]
