Income Taxpayer in India is a typical salaried class individual who does not have any choice but to pay income tax :). Only 5 Crore people in India are Income Taxpayer rather who file Income Tax Return. Max concentration is in the Income bracket of 5L to 9L per annum. This also explains the reason for the high-income tax rate in India. It is important to bring more and more people under tax net to reduce the income tax rate. I discussed it in detail in my post, Income Tax - A myopic view. Besides high-income tax rate, the income tax refund is another major issue/pain area for income taxpayer. ... Read More
Demonetisation – Beware of 7 Most Common MYTHS and Misconceptions
Post Demonetisation, i received numerous queries on how it will impact the property and other investment options. I discussed it in brief in my earlier posts. Besides genuine concerns, there is a lot of confusion, doubts, myths, rumors, and misconceptions among people with large cash holding. Though it is not possible to cover all these points in a single post. I will try to cover 7 most common myths and misconceptions about demonetisation. Demonetisation - Beware of 7 Most Common MYTHS and Misconceptions 1. Demonetisation is Black Money Amnesty Scheme: This is most common misconception ... Read More
Demonetisation Scheme – How It Will Impact Your Money Matters
Demonetisation Scheme is a sort of surgical strike on the black money. As a taxpayer, i can say that people should not complain short term pain for the long term gain. There is a lot of uncertainty on how the things will shape up. Let me assure that if you have nothing to hide from income tax department then you need not worry at all. Just relax, take a deep breath and chill. You can deposit cash in hand i.e. currency notes of Rs 500 and Rs 1000 once the initial knee-jerk reaction is over. Don't forget to quote your permanent account number. One of my clients called me from Lucknow. He ... Read More
Impact Of Demonetisation On The Property Market – 5 Points to Consider
In the last couple of days, i received loads of queries on "What will be the impact of demonetisation on the property market?". The reason for this panic is news reports on "collapse" or "Free Fall" of the property market. Many of my clients who are in a process of buying a property asked me whether to cancel the deal and should they wait for prices to fall. Quite interestingly, they are "Happily" willing to bear the loss of up to Rs 5L. On the other hand, rumor mongering is at its peak in the property market. In city A there are rumors that builders have slashed property prices by 40% in a ... Read More
Benami Property Holders – Beware You May Lose Your Property
Benami Property is one of the first real estate jargon i learned in my childhood. Unfortunately, even after 25 years, the benami property still exists. In my childhood, i used to wonder what is meant by benami property. I concluded, a property that is not in anyone's name is benami property :). One fine day, i asked my father and he shared real life example to explain the concept in easy to understand language. Let's check out with the same example What is Benami Property? In my hometown, there was a very big single screen theater. My father knew it's owner i.e. Person A. One fine day, ... Read More
Cash Payment in Property Deal – Beware of Black Money
Builder is asking for a Cash Payment in a Property Deal. One of the clients told me recently. I suggested against cash payment; he said that he will never be able to close a property deal. From this interaction, you can gauge the menace of black money in Indian Economy. Sometimes knowingly or unknowingly a buyer generate black money through cash payment. Another primary concern of my blog readers in small towns/semi-urban/rural areas is a lack of trust factor between buyer and the seller. In large no of cases, the cheque bounce after the property deal is completed. In this scenario, it becomes ... Read More