Demonetization proved to be a boom for mobile wallets. Cashless is the new buzzword in India. It will not be an exaggeration that mobile wallets are one of the synonyms to become Cashless. In my post, Cashless Payments - 15 ways to become a cashless person i shared that mobile wallets are one of the convenient ways to go cashless. To be very honest with the readers, till date i have not come across a single post discussing mobile wallets and income tax angle. Though it might not be relevant in all the cases that we will discuss later in the post. I thought of sharing my views on the same ... Read More
Why Demonetization Is A Good News for Income Taxpayer
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
Gift Tax – What Is The Tax Implication For An Individual And HUF
Everyone loves to receive gifts but hates to pay gift tax or tax on gifts. The basic definition of gift is an asset received by you without consideration. The definition of asset covers both productive and non-productive asset. Productive assets are those which fundamentally appreciates in value and provide returns like property or flat. A non-productive asset is depreciating in nature like a car. Today a car bought for 6L will be worth only 4L after 1 year. In my opinion, idle cash lying in the locker is also a non-productive asset as inflation depreciates the value of cash. All the assets ... Read More
Under-Construction Property – How To Calculate and SAVE Capital Gain
One of the million dollar questions is today's topic i.e. How to calculate capital gain for Under-Construction Property :). Lack of clarity in income tax act is responsible for numerous interpretations available online. The seller gets confused and left high & dry. In my post, Register under-construction property for a home loan, i shared my opinion as a buyer. In other words, i shared negatives of registering under-construction property. If i consider myself as a seller, the biggest advantage is that i can save on capital gain if i register under-construction property. The seller can ... Read More
4 Major Income Tax Return Assessment Under Income Tax Act 1961
Recently, Prime Minister Sh. Narendra Modi said that "Indian Taxpayers are Honest". I completely agree with him. My conviction is based on the queries posted by the readers of this blog. The intent of most of the income taxpayers is not to hide any information or underpay tax. Any discrepancy observed during the Income Tax Return Assessment is mostly because of mistake or oversight from the taxpayer. In some cases, taxpayer realizes the mistake after filing ITR. To avoid any adverse observation in Income Tax Return Assessment, he/she is willing to correct the same through revised ITR. Large no ... Read More
7 Types of Income Tax Notice – Understand the Reason Before You Reply
Income tax notice is a very loosely defined term in India. The taxpayer gets scared without understanding the type of income tax notice and reason/s for the same. The readers of this blog keep sharing their queries related to Income Tax Notice under my posts on the similar topic. Trust me from quite long i was planning to write a dedicated post on Income Tax Notice but somehow it never made to my calendar. Recently, i myself received Income Tax Notice :) . Therefore, i thought it's high time to share a post on Income Tax Notice. In past also, i received Income Tax Notice but every time i ... Read More