M O N E Y H A B I T S

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NRIs should obtain TDS certificate in advance for lower deduction at source

It will lower the tax deducted at source and they won't have to wait a long time for refunds.


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Write a will to safeguard your child's future, choose the guardian wisely

Appoint a personal guardian, someone to look after the child's financial affairs, and someone to manage any real estate you may bequeath to the child.


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How to minimise your tax liability on the sale of your bonus shares

Investors can use the grandfathering clause and set-off provisions to reduce the tax payable on sale of bonus shares.


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Review insurance portfolio every year

Raise the amount of life cover you own if your liabilities and responsibilities have increased during the year.


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Register the property as soon as you book

You can get indexation benefit on each instalment paid at the time of selling.


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Claim tax benefit for purchase and renovation

A recent judgement suggests that money spent on making a house "habitable" also qualifies for benefit under Section 54.


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No penalty for changing income head

A recent court ruling says that penalty can't be imposed on income whose classification has been changed during the course of assessment.


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Gift a house on which capital gains benefit has been claimed

If a close relative who gets the property sells it within 3 years of purchase, the original owner will lose the tax break.


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High life cover alone is not enough

Prioritise how to utilise insurance money to pay off liabilities and invest for future use.


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Do you have enough insurance cover?

Review the amount every 3 to 5 years to ensure that it is not short in the event of an unfortunate death.


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Tax-saving investment can be done within calendar month

Taxpayers need not invest proceeds from sale of property strictly within 180 days from date of sale to get exemption under Section 54EC.


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Is your I-T return being reassessed?

The income-tax officer can ask for details despite giving you a clean chit in the initial assessment.


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Ensure that your will is watertight

A recent judgement says the beneficiaries should prove the will is correct


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Build a corpus soon after buying a house

This should be around 25 per cent of the outstanding loan amount and could take two to three years


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Keep records of transactions or face penalty

If a taxpayer fails to explain the sources of payments, the tax department could levy a penalty


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Ensure your TDS gets credited

Since TDS details are available online, I-T department must compute the income and give credit instantly


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Tax liability of Esops

Don't sell the shares immediately after you get possession. It might translate into tax liability, if not held for one year or more


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Have your own medical corpus

Invest in recurring deposits or other tax-effective instruments, in addition to your health cover


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Save taxes on property sale

Get a tax deduction on sale of commercial property. Heres how


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Changing jobs? Declare past income to new employer

Ensure you don't get benefits that get reversed, while filing returns


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Reinvesting capital gains for tax breaks

Hyderabad Tax Tribunal has given important pointers for treatment of proceeds from sale of assets


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Cheaper to lease than buy a car

Compare interest paid on car loan and tax benefit on rentals before deciding


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Court makes life less taxing

Delhi High Court has issued directives to help tax payers with refunds


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You should pay for advice, says Sebi

The market regulator is trying to ensure that wrong products aren’t promoted


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Bitten by the entrepreneurial bug?

Remember, the road is full of challenges. Before taking the plunge, be financially stable


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Taxpayer can change property offered as deemed let-out

A house can either be used by an individual for his own occupation or let out on rent.


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PERSONAL TAX: Intention of investment important for capital gains benefit

Section 54 of the Income Tax Act (‘the Act’) provides exemption of capital gains resulting from the sale of a house property, if the same is invested in purchasing a house property within two years from the date of sale.


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In revised ITRs, you can claim benefit

The Income Tax Act (‘the Act) allows a taxpayer to correct any omissions or wrong statements in their returns by filing a revised return, provided they have filed the original return within the prescribed due date.


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Can a deceased be served I-T notice?

In a case that came up before the Delhi High Court, a notice dated March 27, 2015 under the Income Tax Act (‘the Act’) towards the reopening of scrutiny assessment proceedings (‘reassessment’) for Assessment Year (AY) 2008-09 was issued to a taxpayer.


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Tax deduction allowed on damages paid to previous buyer

A taxpayer had declared long-term capital gains from sale of Rs 5,42,000 from sale of an immovable property in Delhi.


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PERSONAL TAX: Full ITR gains for one in joint house

A taxpayer sold his property in Mumbai that was jointly owned with his wife.


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PERSONAL TAX: No tax exemption on PMS fees

A taxpayer had filed his return of income declaring total income of Rs 1.05 crore, which included income by way of capital gains on sale of shares and mutual funds.


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INSURANCE: Flat's LTCG tax counts final payment date

A taxpayer booked a flat for a total consideration of Rs 83,30,000 by paying Rs 11 lakh on March 10, 2008 and received allotment on the same date.


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PERSONAL TAX: Pay LTCG tax if new flat buy goes in vain

A taxpayer sold his residential flat in Ahmedabad in the financial year 2008-09 for Rs 13.50 lakh.


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PERSONAL TAX: There is no fine on genuine cash transactions

A taxpayer had duly filed his return of income within the due date for assessment year 2010-11.


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PERSONAL TAX: Vacancy allowance even if flat not let

An individual had filed his return of income for assessment year 2012-13. During assessment, it was observed that the taxpayer owned two properties in Pune.


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PERSONAL TAX: No tax on NRI's salary paid in India

A taxpayer, who moved to Korea for employment during financial year 2012-13.


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No reopening tax case on opinion change

The Income Tax Act, 1961 ('the Act') empowers the tax officer to re-open and re-assess a taxpayer's case.


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PERSONAL TAX: No fine on cash use in business deals

During tax proceedings of a taxpayer who was engaged in the transportation business, the tax officer observed a discrepancy in the gross receipts.


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CG tax benefit sans sale deed registration

A taxpayer sold his flat vide registered deed of conveyance dated December 27, 2011.


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PERSONAL TAX: Count holding period from agreement date

A taxpayer filed his return of income for the year ended March 2012 declaring income from other sources and capital gains totaling to Rs 6,84,760 and within the prescribed due date.


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PERSONAL TAX: Prove gift is from kin for tax exemption

A taxpayer's return was selected for scrutiny by the tax officer for investigating the increase in his capital account, as declared in the return of income.


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PERSONAL TAX: ITR error must be backed by evidence

A taxpayer had filed his return for assessment year 2006-07 and declared the loss from business for the year at Rs 3.26 lakh. His return was selected for detailed assessment.


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PERSONAL TAX: No worry if TDS cut but not paid to govt

A taxpayer whose company went bankrupt, filed his return of income for assessment year 2012-13 on July 31, 2012, that is, within the applicable due date.


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PERSONAL TAX: I-T notice must be given to taxpayer

A taxpayer had filed his return of income, which was processed by the tax officer under the ordinary procedure.


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Why Hindu Undivided Family must file tax returns on time

A Hindu Undivided Family (HUF) taxpayer filed its original return of income for Assessing Year 2010-11 on October 1, 2010.


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PERSONAL TAX: No inquiry if no notice on returns

A taxpayer filed his return of income for the financial year 2009-10 on August 31, 2010, i.e. within the prescribed due to date.


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PERSONAL TAX: Computation doesn't alter Section 54F benefits

This week's case is about a doctor taxpayer who had filed his return of income offering income from salaries, profession and income from other sources.


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PERSONAL TAX: Home loan can get Section 54 benefit

A taxpayer filed her return of income for assessment year 2011-12 on September 30, 2011 and declared a total income of Rs 9.62 lakh.


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PERSONAL TAX: Possession date key for capital gains tax

A taxpayer had filed her e-return for assessment year 2013-14 on August 1, 2013 and had declared total income of Rs 4.65 lakh.


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PERSONAL TAX: Possession date key for capital gains tax

A taxpayer had filed her e-return for assessment year 2013-14 on August 1, 2013 and had declared total income of Rs 4.65 lakh.


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PERSONAL TAX: No penalty on loan between spouses

A taxpayer filed his return of income for assessment year 2013-14 on 25 September 2013 and declared his net taxable income of Rs 5.82 lakh.


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PERSONAL TAX: Esops taxed from day they were granted

An employee of Infosys BPO filed his return of income for assessment year 2007-08 within the prescribed due date.


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PERSONAL TAX: Capital gains liable on accrued income

This week's case is a recent ruling by the Mumbai Tax Tribunal in the case of a taxpayer who had filed his return of income for assessment year 2010-11 on October 15, 2010 and offered income to the tune of Rs 10.19 lakh.


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PERSONAL TAX: TDS on property is applied per taxpayer

June 1, 2013 saw a new provision in the Income Tax Act ('the Act') coming into effect mandating Tax Deduction at Source (TDS) deduction by the property buyer.


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PERSONAL TAX: Tax deposit in own accounts is not illegal

Taxpayers are generally weary when it comes to depositing cash in their own bank accounts as it may have repercussions when it comes to tax assessments.


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PERSONAL TAX: Get Section 54F benefit on same flat twice

A taxpayer filed his return of income for assessment year 2012-13 declaring a total income of Rs 1.17 crore from capital gains and other sources.


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PERSONAL TAX: Tax deduction benefit allowed during assessment

The Income Tax Act, 1961 ('the Act') allows many deductions for taxpayers to save taxes and almost each of such provisions are worded to say that the deduction needs to be claimed by the taxpayer in order to be granted the benefit.


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