5 Important information about Income Tax

   What is Incometax

It is a tax imposed by government of India on anybody who earns income in India. This tax is imposed through Income Tax Act.

   Income earned in India?

Income earned in India is not limited to income earned within the geographical limits or boundaries of the country. Certain incomes are also deemed to have been earned in India although they may have been earned outside the country.

   What isassessment year?

It is the twelve-month period 1st April to 31st March immediately following the previous year. In the Assessment year a person files his return for the income earned in the previous year. For example for FY:2013-14 the AY is 2014-15.

   What are all the incomes are comes under taxable income?

The word Income has a very broad and inclusive meaning. In case of a salaried person, all that is received from an employer in cash, kind or as a facility is considered as income. For a businessman, his net profits will constitute income. Income may also flow from investments in the form of Interest, Dividend, and Commission etc. Infect the Income Tax Act does not differentiate between legal and illegal income for purpose of taxation. Under the Act, all incomes earned by persons are classified into 5 different heads, such as:

1. Income from Salary
2. Income from House property
3. Income from Business or Profession
4. Income from capital gains
5. Income from other sources

   How Government will collect the tax

Taxes are collected by three means: a) voluntary payment by persons into various designated Banks. For example Advance Tax and Self Assessment Tax b) Taxes deducted at source [TDS] on your behalf from the payments receivable by you. c) Taxes collected at source [TCS] on your behalf at the time of spending. It is the constitutional obligation of every person earning income to compute his income and pay taxes correctly.

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You want to become your own boss

If you really want to become your own boss, you can start your own business. 

You have to be prepared for become your own boss.

Prepare your family by speaking with everyone in your family

Analysis you financial situation 

Wait for the perfect opportunity or go for it

Finally take off 

It’s not compulsory you need to follow all the above steps,

You have to do only one thing attend Bangalore’s Biggest Franchise Show FRO 2014 

Bangalore, NIMHANS Convention Centre August 16 - 17

For Investment | Retirement Plans | Savings | Mutual Funds & Bonds | related questions |please visit   http://way-2-invest.blogspot.in/|

Retirement plan for Indians

Why retirement plan is very important for Indians, all the statistical data shows India is young country with major population are below age 25. In other words after 30 years India & China will have the elderly citizen in the world.

So planning your retirement in young age will be better option for you and for the nation. Else one day the same young citizen will be the burden for the nation.

Retirement Options available for Indians

Post office Monthly Income Scheme: 

This scheme allows you to invest any amount between Rs 1,500 and Rs 4.5 lakh per year in case of individuals and Rs 9 lakh per year in case of a joint account. It offers a return of 8.40% per annul, which is payable monthly and has a maturity period of five years.

Monthly Income Monthly Insurance plans:

There are lot of monthly income schemes available in the market with lot of smart saving options. You need put in additional effort on research the plans and start your investment.

Mutual Funds:

When it comes to mutual fund you’re taking little or more risk on your investment, if you’re investing MF take time and research before investing. SIP is good option for your regular investment.

Govt. Security Bonds

You are not taking any risk but your returns will be limited. With  fixed percentage, but you will get your returns for sure.

PPF:

Public Provident Fund is another option and very famous among the salaried population. Recently government also increased the slab from 100,000 to 150,000 per year.

So plan your retirement before it’s getting late.  Sit back and relax and do the things they never got a chance.

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12 Budget Highlights – For your personal Finance

Overall budget is satisfying low & Middle class citizen of India. and how its going to benefited for middle class and low income group.

 

12 Budget Highlights – For your personal Finance

 

 

1)   Income Tax exemption limit raised from Rs.200,000 to Rs.250,000

2)   Senior Citizen Income Tax exemption limit raised from Rs.250,000 to Rs.300,000

3)   Section 80C investment limit increased to 150,000 from 100,000

4)   Tax exemption on interest component on housing loan raised to 200,000 from 150,000

5)   Most popular Public Provident Fund (PPF) ceiling will be increased to 150,000 from 100,000

6)   A Special saving scheme will be introduced to encourage savings towards education & marriage of a girl child

7)   One more popular investment among public, Kisan Vikas Patra to be reintroduce for planned and unplanned savings under small savings scheme

8)   Proposal to introduce single demat account for all type of financial transactions

9)   Proposal to introduce standardized KYC norms and single KYC across financial sector

10)                EPFO to launch unified account scheme to ensure provident fund portability

11)                Cheap housing loan & Tax incentive for Low Income Group (LIG), and government allocated 4000 cr for the same

12)                Insurance sector FDI to be hiked to 49% from 26% .

 

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