The deadline for making tax saving investments is 31 March. But, there is still time to adopt last minute tax saving tips to claims tax benefits offered by the Government. This article discusses some tax investment avenues which can be utilized before 31 March to lower one’s overall tax liability.
With a view to prevent undervaluation and under-reporting of transactions in the real estate sector and also to collect tax at the earliest point of time, vide the Finance Act, 2013, a new section 194-IA was inserted with effect from 1 June, 2013 to introduce TDS at the rate of 1% on the value of transfer of immovable property where the consideration is Rs. 50 Lacs or more.
Nowadays, it is observed that a lot of young talented kids are being hired in different fields like acting, singing, choreographing, etc., and they are paid handsome amount for their skill and talent. The question arises is whether the income earned by these children are taxable and if yes, in whose hands, will it be taxable.
Continuation of Lower Withholding Tax Rate of 5% on Foreign Currency Borrowings- It is proposed to continue the withholding tax rate of 5% on interest on foreign currency borrowings before 1 July 2020.
There has been no change in personal tax rates. The basic exemption limit continues at Rs.2.50 lacs. Tax Rebate of Rs. 2000 available to small tax payers under Section 87A has been increased from Rs. 2,000 to Rs. 5,000. This will benefit about around 2 crore marginal tax payers.
The Union Budget 2016 which shall be announced on 29th February 2016 is expected to be a reformist budget rather than a populist budget and could focus on the following aspects: a. Reduction in the tax litigation by bringing in clarity on taxation laws b. Incentivefor the ‘start-ups’ by providing tax breaks c. Rationalization of the corporate tax rates including Minimum Alternate Tax, Dividend Distribution Tax d. Deferment ofGAAR and ICDS regulations
Under the Indian Foreign Exchange Regulations, the limit for permissible remittance outside India (including for investing in property outside India) by resident individuals is cumulatively USD 250000 per financial year (April – March) per person as per the Liberalized Remittance Scheme. Since the aforesaid limit is per person, each member of family can remit out of his own balance USD 250,000 per financial year for purpose of acquisition of property.
To begin with, what constitutes an HNI is really a tricky question? In general parlance, HNIs are understood to be the individuals with ultrahigh net worth with deep pockets having surplus investible funds. As per the Credit Suisse Global Wealth Report, presently India is home to around 1,500 ultra-high net worth individuals with wealth of at least US$ 50 million and 700 who have more than US$ 100 million of assets.
The subject of Estate Planning has always engaged the kings and the common men alike. Estate planning requires a thoughtful plan weighing various alternatives and deciding whom to give, how much to give, when to give and in what form to give one’s estate.
Increase in the limit of deduction of Mediclaim- In view of continuous increase in medical expenditure, it is proposed to increase the limit of deduction under section 80D from Rs. 15,000 to Rs. 25,000. In case of senior citizens, the limit of deduction is proposed to be increased from Rs. 20,000 to Rs. 30,000.
