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Understanding Various Heads of Income

Understanding the various heads of income is very important as it forms the basis of your income statement. To be very precise, there are five different heads of income, namely: Income from house property Income from salary Income from business or profession Income from capital gains Income from other sources Income from house property To begin with, the statement of computation of income is first headed by “income from house property”. This heads of income shows the .....

Key to Efficient Tax Planning – Part-3

Tax planning is a task of great precision where each and every aspect has to be taken into account before any decision is taken. There are no textbook rules and regulations with respect to tax planning instead; tax planning is regarded as an art whereby personal skill and intelligence is required in order to get the best results. But on an overall basis, there are certain areas which appear to be common in most of the areas and these .....

What is Tax Planning and Need to Planning of Tax? – Part-2

Tax planning is a systematic way of distributing the funds of an assessee in such a way that his tax liability is the least and on the other hand, also provides him the best benefits available. Tax planning has been a pressing issue for quite a long time and in such context, many have taken ax planning to be an unfair mean, whereas the reality is completely the opposite. Tax planning involves correct judgment of investment and diversification of .....

Understanding Tax Planning Know Your Tax Liability – Part 1

India is a democratic country where most of the people work in service sectors, but presently a need as to felt to increase the awareness among people with respect to knowledge about right amount of tax liability that is required by them to pay to the Government at the end o every period. Most of the people are willing to pay their taxes on time and the right amount but the problem lies in lack of knowledge wit respect .....

The Indian Tax Scenario – Part 2 – The Need to Pay Taxes

Today India is facing a major problem by way of tax evasion. The basic reason for it being that most of the people do not find logic behind the taxation policy as they take tax to be an income for the Government, whereas in true sense, taxation is a very important part of every assessee’s income as it is an obligation for every assessee to pay taxes in order to ensure that the facilities that are being provided .....

The Indian Tax Scenario – Part 1

The Indian Tax structure is very wide with two main divisions- direct tax and indirect tax. The present tax structure is governed by Income Tax Act, 1961. This governing act would soon be replaced by Direct Tax Code with effect from April, 2012. There have been a lot of amendments in the tax structure in presents Union Budget (2011-12). The first and foremost amendment that had an impact on the tax scenario of the country is .....

How to Get Registration of VAT in Delhi?

VAT is the tax on the value that is added to the original price of the product. It is the modern type of policy to receive tax and is a sort of alternative of sales tax as at last the consumer is bound to pay the whole tax to the government. The difference in both is that sales tax is paid to the government only once i.e. when the customer buys the product and in .....

Things You Must Know About Mutual Funds

Mutual fund is the collection of funds from many investors to invest in stock, money market instruments, bonds and many assets. These funds are managed by money managers who produce capital gains and share the income with the investors. Investors can earn money in three ways through mutual funds. First is by receiving interest or dividend on their investment. Second is by selling the securities whose price has increased in the market. Lastly, by selling .....

International Tax Review Invites You to Second Annual India Tax Forum in New Delhi on September 6 & 7, 2011

International Tax Review’s India Tax Forum www.internationaltaxreview.com/IndiaTaxForum2011 Taj Mahal Hotel, New Delhi September 6-7, 2011 **In-house tax executives attend for free** Dear Friends,  EtaxIndia.org is the media partner for this event.  International Tax Review invites you to the second annual India Tax Forum in New Delhi on September 6 & 7, 2011. The forum is free to attend for tax professionals from banks and in-house tax executives from corporates. To register, or for more information visit:www.internationaltaxreview.com/IndiaTaxForum2011 Speakers include: RN Dash, .....

How to Open a Sole Proprietorship Business?

Sole proprietorship is a type of business in which only the owner, known as the sole proprietor, is responsible alone for all investment of capital and management of the business. He enjoys the profit solely and also suffers the risk alone. Sole proprietorship is the oldest and most common form of business in India. This is because sole proprietorship business enjoys several advantages which are not found in any other type of business. As the .....

Cost Inflation Index Up to 2011-12 [Updated: June 2011]

For computing long-term capital gains, ‘indexed cost of acquistion’ and ‘indexed cost of imporvement’ are required to be deducted from the full value of consideration of the capital asset. Both these costs are thus required to be indexed with respect to the cost inflation index pertaining to the year of transfer. Cost Inflation Index from 1981-82 to 2011-12 FINANCIAL YEAR COST INFLATION INDEX FINANCIAL YEAR COST INFLATION INDEX 1981-82 100 1982-83 109 1983-84 116 1984-85 .....

Cost Inflation Index for F.Y. 2011-12 is 785

NOTIFICATION NO. 35/2011 [F. NO. 142/5/2011-TPL] – Dated: 23-6-2011 In exercise of the powers conferred by clause (v) of the Explanation to section 48 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby makes the following amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), Central Board of Direct Taxes number S.O. 709(E), dated the 20th August, 1998, namely :— In the said notification .....

TDS Rates Chart A.Y. 2012-13/F.Y. 2011-12 [updated:June 2011]

With effect from 1-4-2010, the deductee shall furnish his PAN (Permanent Account Number) to deductor, failing which tax at the below rates of TDS or at the rate of  20% whichever is higher shall be deducted at source. Where PAN provided to the deductor is invalid or does not belong to the deductee, it shall be deemed that deductee has not furnish his PAN to the deductor and higher rate of TDS as mentioned below .....

Banks Won’t Have to Pay Service Tax on Forex Deals!

The era of development in the banking sector of the economy has come across many changes which have helped in catering the needs of the banking sector to a very large scale and thus, creating a pool of interest for both sections of the economy, that is, the bankers and its customers. With the presence of some fluctuating ratios such as cash liquidity ratio and statutory liquidity ratio, there is also some other charges which .....

SMEs Seek Taxation System for LLPs

A new form of partnerships which has been introduced in India very recently, called the limited liability partnership and it has an important role to play in development of industries, especially Small and Medium Enterprise. This form of partnership is now increasingly becoming popular in India as integrates the features of both corporation and partnership firm. In this form of partnership the liability of partnership is limited unlike the other form of partnership where the .....

Special Discount for etaxindia Subscribers on JS@eTDS Software for FY:2011-12

With the commencement of the new Financial Year 2011-12, comes again the task of filing all your tax returns amongst which eTDS return filing is one of them. In order to file TDS Returns conveniently on-time, you need a smart & hassle-free TDS software like JS@eTDS. For the last two financial years I have been using the JS@eTDS Software & found it extremely simple & easy to use. It is one of the most convenient software .....

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