Inquisitive Mind

The taxpayers can claim certain deduction from their total income before arriving at the taxable income for calculating the tax. From the financial year 2020-21, these deductions are available to taxpayers who opt for the Old Tax Regime. The deduction which can be claimed by an individual taxpayer from Gross Total Income under the various sections of the Income Tax Act, 1961 are listed below. Section 80 C Premium paid on life insurance policy Employee’s contribution to employee provident fund (PF/EPF) Deposit in public provident fund (PPF) National savings certificate (NSC) Savings in senior citizen savings scheme Investment in equity linked savings scheme (ELSS) mutual funds Repayment of housing loan (principal component) Fixed deposit for 5 years or more Tuition fees to school/college/institution in India for full time education of up to 2 children Deduction up to Rs.1,50,000/- Section 80 CCC Investment in annuity plans for pension scheme Section 80 CCD (1) Employee’s contribution to...

Filing an income tax return and its showing ‘Tax payable’? You need to pay the self-assessment tax.  How to pay self-assessment tax? Go to NSDL portal https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp Choose CHALLAN NO./ITNS 280 Tax Applicable – (0021) Income Tax (Other than Companies) Type of Payment – (300) Self-Assessment Tax Mode Of Payment – Choose your desired mode of payment Permanent Account No – Enter your PAN Assessment Year – select the assessment year Enter your address and captcha code Click on ‘Proceed’ You can see the preview of your challan. Tick the box ‘I agree’ You will be redirected to the Bank’s site. Complete your transaction. Download and save the receipt / challan for future reference. Go back to ITR filing portal and enter the challan details of self-assessment tax. Submit and e-verify your income tax return. Related Articles Filing your ITR? Have you checked AIS and TIS? How to file Income Tax Return (ITR–1)? Got salary arrears? Have you claim...

Want to close your Demat account but unable to do so because of shareholdings in the account? Or want to transfer shares from one Demat account to another without selling? Let’s see how to execute an off-market transfer of shares from one Demat to another. What is Depository and Depository Participant? A depository keeps the records of ownership of financial securities and facilitates trading of securities. A depository participant (DP) is an agent of the depository who offer depository related services to the investors through Demat accounts. There are two depositories in India –  National Securities Depository Ltd (NSDL)  Central Securities Depository Ltd (CDSL) The DPs can be banks or brokering firms. The DPs are linked to either NSDL or CDSL. The list of DPs registered with NSDL can be checked at https://www.sebi.gov.in/sebiweb/other/OtherAction.do?doRecognisedFpi=yes&intmId=19 and the list of DPs registered with CDSL can be checked at https://www.sebi.gov.in/sebiweb/...

A person earning income more than the basic exemption limit as given in the income tax slabs , needs to file income tax return. Depending on the residential status of the taxpayer and sources of income there are different forms of Income Tax Returns (ITR-1 to ITR-7).  Individual who is a resident (other than not ordinarily resident) having income from salaries, one house property and other sources aggregating up to Rs.50 lakh, shall file ITR-1. What details to be collected before starting to file ITR-1? Form 16 – from your employer Bank statements for savings accounts, Fixed Deposits (FDs) and Recurring Deposits (RDs) Interest received during the financial year (April 1st to March 31st) on savings bank deposits, FDs and RDs is taxable. Savings bank accounts – Interest is credited to savings account on quarterly basis. Take the total of 4 interest credit entries appearing in passbook / bank statements. In case of multiple savings bank accounts, take total of interest credited to al...

Have you received salary arrears due to delayed pay revision? And paying tax at higher tax slab because of the bulk amount being received in one go? Or would have paid tax at lower tax slab (5% or 20%), had the amount been received in the respective years? If yes, then you need to file Form 10E to claim a relief u/s 89 of Income Tax Act, 1961 at the time of filing Income Tax Return (ITR). The relief u/s 89 can be calculated as – A = Tax paid on Total Income (from all sources, including arrears) for the year in which arrears are received (-) Tax on Total Income (from all sources, excluding arrears) for the year in which arrears are received B = Tax on Total Income (from all sources, including arrears) for the year to which arrears pertain to (-) Tax paid on Total Income (from all sources, excluding arrears) for the year to which arrears pertain to Relief u/s 89 = A (-) B To claim this relief, you need to submit Form 10E along with your Income Tax Return (ITR) for the year during which ...

Seen advertisements promising easy loan for borrowers with higher credit score? Or heard about denial of credit card due to a low credit score? But what is credit score and why is it so important? What is credit score? Like we get grades in schools for academic performance, the credit score represents our credit behavior and ability to pay back. It is a 3 digit score which ranges from 300 to 900, where 900 is the highest score. How is credit score calculated? The banks and financial institutions send the details of the credit accounts with them to the Credit Information Companies (CICs), who processes the collected information and calculates the credit score. This credit score along with details of credit accounts are made available to the borrowers in the form of a credit report, through online / offline mode. CICs generally consider following factors for arriving at a credit score – Length of credit history Recent defaults in the credit accounts Repayment patterns Credit score enquir...

UPI, which is one of the popular methods of payments through smartphones, has now been made available for feature phones users by way of UPI123Pay. But what is UPI and UPI123Pay? What is UPI? UPI (Unified Payment Interface) is an initiative by National Payments Corporation of India (NPCI) together with Reserve Bank of India (RBI) and Indian Banks Association (IBA). UPI allows linking of multiple bank accounts in a single mobile application for real-time bank-to-bank payments using mobile number, virtual payment address (UPI ID) or by scanning a QR code. What are the benefits of UPI? Single application for accessing different bank accounts. Offers peer-to-peer fund transfer, merchant payments and utility bill payments. Allows payments using mobile number, virtual payment address (UPI ID) or scanning QR code, without having to share the account number or card details. Secured payment with Two Factor authentication. Available round the clock i.e. 24*365. Available to customers without cre...

Many of us have additional sources of income other than salary like income from interest, dividend, rental income, capital gains, etc. Where TDS is deducted by the employer from the Salary every month, we often forget to account for the tax on other additional incomes. And due to this, we may end up paying interest on the unpaid tax at the time of filing the income tax return. So, let's avoid paying interest by paying our advance tax.  What is Advance Tax? Sometimes, we are required to pay the tax during the financial year itself. This tax is called Advance Tax. Who should pay Advance Tax? After accounting for the TDS deducted from the salary, if the tax payable (i.e. tax still to be paid) at the end of the financial year is expected to be more than Rs.10,000, the individual shall pay the Advance Tax. How to calculate Advance Tax? Calculate total income for the year from all the sources including salary. Calculate the Tax Liability on total income as per the applicable tax slabs . ...

The Union Budget is announced by the Government of India in the month of February every year. Apart from providing report of incomes and expenditures of the Government, announcing future projects and allocating funds to various sectors, the budget statement also talks about the changes in tax laws. Here, we will see the income tax rates applicable to individuals for the assessment years 2022-23 and 2023-24, under both old and new regime.  Previous Year and Assessment Year Previous year is the financial year in which we earn income. Assessment year is the financial year in which we file income tax return for the income earned in the previous year. Income tax rates for individual up to the age of 60 years (old tax regime) Income Tax rate Up to Rs.2,50,000 Nil Rs.2,50,001 to Rs.5,00,000 5% Rs.5,00,001 to Rs.10,00,000 20% Above Rs.10,00,000 30% Income tax rates for individual more tha...