#deduction under section 80
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Donation For NGO Organization For Tax Benefits
Happy Soul World - This Charity is the best charity in India. It’s Help Those who Have No Hope. Happy Soul Charity Gives Tax Benefits to Donors. Donations and Income Tax Deduction Under Section 80 G. Donation For NGO Organization For Tax Benefit
https://happysoul.world
#Donation For NGO Organization For Tax Benefits#Tax Exemption by Donating#How to Get Tax Exemption#How to Achieve Tax Exemption#charity Organization#Tax Benefits#80g Tax Benefits#Indian Charity#Tax Deduction Under Section 80#Income Tax
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stat and appearance and vices refresh for Memento Mori, oh my! 𓍢ִ໋🌷͙֒
Hi lovebugs!
I wanted to introduce the changes I'll be making to the Stat page, a peak into some of the vices I'll be adding, and the additional appearance options I'll be giving MC!
Now that I'm more comfortable coding in Twine, I feel like I can implement these changes that many have been requesting!
This refresh won't be implemented until I post Chapter 2 and the updates to Chapter 1 and the prologue. But! That doesn't mean I can't show y'all what I've cooked up!
I wanted to 1) simplify the stats so I can have an easier time writing flavor texts depending on different MC's 2) have a stat dedicated to the MC's emotional arc.
So, stat changes?
There will now be two additional stats. The SANITY stat, and the HEALTH stat. Both are on a scale from 0-100. The HEALTH stat is pretty self explanatory. The more banged-up your MC gets, the lower the stat goes. Don't let it get to 0...we only have one doctor around here.
The SANITY stat is MC's attunement to their emotions, the quality of their coping mechanisms, the emotional wear and tear they've encountered, and their reactions to these events. This singular stat will replace the traits section. A higher SANITY will mean that MC is more merciful, level-headed, emotionally mature, and optimistic about their future. They think with their head, and can set their emotions aside when it comes down to difficult decisions. A lower SANITY will mean MC has a tendency to be violent, impulsive, selfish, and cynical. They are much more volatile and prone to explosive outbursts. This MC is more likely to let their emotions influence their decisions, for better and for worse.
You begin the Prologue with a SANITY stat of 80. Those dreams....
If we're being real, this SANITY stat will have a great impact on the kinds of decisions your MC makes under high stress. Oh, you thought you as a reader would be able to have your low SANITY MC react logically when they're in a life or death situation? Think again, my friend. When tensions are high and emotions boil over, I will be using SANITY stat checks to determine how a MC reacts, and how successful they are achieving their goal. So, keep an eye on that SANITY stat. The choices you make throughout the story can be the difference between life or death when it matters most.
That isn't to say that higher SANITY MC's will always make good decisions. You might think that you've considered every variable and the logical answer is the best one. That isn't always the case. You might lose the people you care about, in more ways than one. You can't always live cautiously. To live a fulfilling life, you must take risks and put your heart on the line. No choice can be worse than the wrong choice.
In addition to these two stats, there will still be the Personality stat section and the skills section. These are mostly unchanged, save for some wording.
Personality
Stoic or Friendly
Intimidating or Charming
Stubborn or Compliant
Insincere or Genuine
Skills
Combat
Science/Technology
Charisma/People
Deduction/Perception
Medical
Alien Knowledge
There are many flavor texts I'm adding, as well as changes to dialogue or character interactions depending on your MC's skillset or personality!
There will also be some fun "hidden" dialogues or interactions for those of you that max out on a skill. Fortune favors the bold!
For MC appearance updates, what's tea?
Firstly, please note that not all of these changes will be set one after the other. I will do my best to integrate them as seamlessly as possible into the chapters. Having multiple customization choices back to back feels clunky to me while I'm writing. So if some choices don't show up immediately, don't worry!
I'll be adding 6 clothing options in total and letting MC be super fly so fresh so clean if they want to be (3 more masculine outfits, 3 more feminine although clothing is genderless you know the vibes)
Along with the already-present eye color and hair color, MC will also be able to set their skin color.
Tattoos, piercings, and details such as freckles, dimples, stretch marks, and the presence/absence of glasses.
Top surgery scars will be available!
MC can set their body types/physique. (and how they feel about it)
Determine whether MC wears makeup or not, and which style of makeup.
Now, these vices...sit down let's discuss
Taking from my own experiences as well as research, MC will be able to partake in drug use, alcohol use, and sexual activity as a way of coping with the trauma they've experienced. They will not start indulging in this vice before chapter 1, so we can see the slow progression/descent and get the full range of repercussions.
If any of you have any suggestions to any of the three sections above, I'm all ears! I cannot promise I can accommodate any or all of the recommendations, but I will note them down! Just please be respectful, or the ask will be deleted ✧˖° (i'm putting a lil cute emoji here but y'all please do not piss me awfffff)
Anyways, I hope y'all like the changes I'll be implementing! I'm happy that I'm getting used to the different coding and variations; now I get to add more customization!
Happy Sunday, everyone!! Be sure to laugh today!!
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How to Invest in ELSS Tax Saver Fund: A Comprehensive Guide
Investing in Equity Linked Savings Schemes (ELSS) tax saver funds is an excellent way to grow your wealth while saving on taxes. This article delves into the key aspects of ELSS funds, their benefits, and how to invest in them effectively.
What is an ELSS Tax Saver Fund?
An Equity Linked Savings Scheme (ELSS) is a type of mutual fund that primarily invests in equity and equity-related instruments. These funds come with a lock-in period of three years, which is the shortest among all tax-saving instruments under Section 80C of the Income Tax Act.
Key Features of ELSS
Equity Exposure: At least 80% of the corpus is invested in equities.
Lock-in Period: A mandatory lock-in period of three years.
Tax Benefits: Investments up to ₹1.5 lakh per annum qualify for tax deductions under Section 80C.
Potential for High Returns: Due to equity exposure, ELSS funds have the potential for higher returns compared to traditional tax-saving instruments.
Benefits of Investing in ELSS Tax Saver Funds
Invest in ELSS tax saver funds offers several advantages:
Tax Savings
Investments in ELSS are eligible for tax deductions under Section 80C of the Income Tax Act, up to a limit of ₹1.5 lakh per financial year. This can result in significant tax savings, depending on your income tax bracket.
Shortest Lock-in Period
ELSS funds have the shortest lock-in period of three years among all 80C investment options, such as Public Provident Fund (PPF) and National Savings Certificate (NSC), which have longer lock-in periods.
Potential for High Returns
Being equity-oriented, ELSS funds have the potential to generate higher returns compared to other tax-saving instruments. While this comes with higher risk, historical data shows that ELSS funds have often outperformed other tax-saving options over the long term.
Diversification
ELSS funds invest across a diversified portfolio of stocks from various sectors, which helps in spreading risk. This diversification can potentially enhance returns while reducing the impact of volatility.
How to Invest in ELSS Tax Saver Funds
Investing in ELSS tax saver funds is straightforward. Here are the steps to get started:
Determine Your Investment Goals
Before investing, assess your financial goals, risk tolerance, and investment horizon. ELSS funds are suitable for those who are comfortable with short-term market volatility and are looking to invest for a period of at least three years.
Choose the Right ELSS Fund
Research various ELSS funds and compare their performance, expense ratios, and portfolio holdings. Look for funds with a consistent track record of performance and a reputable fund manager.
Start with SIP or Lump Sum Investment
You can invest in ELSS funds either through a Systematic Investment Plan (SIP) or a lump sum investment. SIPs allow you to invest a fixed amount regularly, which can average out market volatility. Lump sum investments can be considered if you have a large corpus to invest at once.
Complete the KYC Process
Complete the Know Your Customer (KYC) process, which is mandatory for investing in mutual funds. This involves submitting identity and address proof documents.
Monitor Your Investment
Regularly monitor the performance of your ELSS fund to ensure it aligns with your investment goals. While the lock-in period is three years, staying invested for a longer duration can help in achieving better returns.
Risks Associated with ELSS Funds
Market Risk
Since ELSS funds invest in equities, they are subject to market risk. The value of your investment can fluctuate based on market conditions.
Lock-in Period
While the three-year lock-in period is relatively short, it still means you cannot redeem your investment before this period.
Performance Variation
The performance of ELSS funds can vary based on market conditions and the fund manager's strategies. Past performance is not indicative of future results.
Conclusion
Investing in ELSS tax saver funds can be a smart choice for individuals looking to save taxes while potentially earning higher returns. With benefits like tax savings, a short lock-in period, and diversification, ELSS funds offer a compelling investment opportunity. However, it is crucial to assess your risk tolerance and investment goals before making any investment decisions. By choosing the right fund and staying invested for the long term, you can maximize the benefits of investing in ELSS tax saver funds.
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Form 16 In SAP HR
Understanding Form 16 in SAP HR
Form 16 is a crucial document generated by employers in India. It serves as a certificate verifying an employee’s salary details and the Tax Deducted at Source (TDS) by the employer throughout a financial year. If you work with SAP’s Human Resources (HR) module, having a grasp of Form 16 configuration and generation is essential for accurate tax reporting and employee compliance.
What is Form 16?
Form 16 has two main parts:
Part A: This section contains details of the employer (name, address, TAN, PAN), the employee (name, PAN), the assessment year, and the period of employment. It also summarizes the salary paid, other income sources, deductions claimed, and the total TDS.
Part B: A detailed breakdown of the employee’s gross salary, exemptions and deductions allowed under various sections of the Income Tax (IT) Act, and total taxable income.
Why is a Form 16 Important
Form 16 is indispensable for employees when filing income tax returns. It acts as proof of income earned and helps individuals correctly calculate their tax liability and claim eligible deductions.
Configuring Form 16 in SAP HR
Proper configuration for Form 16 generation within SAP HR is vital. Here are the key steps:
Maintain Tax-Related Infotypes: Carefully input data in Infotypes like IT0008 (Basic Pay), IT0582 (House Rent Allowance), and IT0589 (Section 80 Deductions). Accuracy in these info types directly affects Form 16’s contents.
Tax Configuration: The Payroll India (PY-IN) component of SAP HR allows for customizing tax codes, rules, and wage types. This step defines the deductions and calculations based on the IT Act.
Form 16 Schema and Feature: The standard SAP schema (HINCALC0) and feature (INCTX) handle Form 16’s structure and logic. These might need adjustments to match any specific company requirements.
Generating Form 16 in SAP HR
Once the configuration is complete, you can use the following transaction code to generate Form 16s:
PC00_M40_F16: This is the standard transaction code used for generating Form 16. You’ll need to provide details like employee numbers, payroll area, company code, and the assessment year (financial year) for which you need the forms.
Additional Considerations
Off-Cycle Payments: If you’ve processed off-cycle payments, especially those related to corrections in March (the end of the financial year), you may need to use transaction code ZHR_FORM16 to generate accurate Form 16s.
Continuous Updates: Stay abreast of changes to the IT Act, as these might require adjustments in SAP HR’s tax configurations to ensure ongoing compliance.
Helping Your Employees
Beyond technical generation, a good HR team should guide employees in understanding their Form 16. A brief explanation or workshop can enhance their understanding of their income, deductions, and tax filing process.
In Conclusion
Form 16 is a significant aspect of tax management within SAP HR. By following the steps outlined above, you can streamline Form 16 generation, aid your organization’s financial accuracy, and empower your employees with clear tax knowledge.
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How does ELSS help with retirement goals?
The goal of every investment you choose is to earn enough money to make sure you can take advantage of a secure financial future. This includes planning for retirement, which is best done early in life. Today, you can choose from many schemes when planning your retirement. For example, you can invest money in traditional plans and Pension Schemes.
Alternatively, you can also allocate money regularly to an Equity-Linked Savings Scheme or ELSS Fund. This lets you save on taxes. It also builds a corpus that will pay for your requirements when you retire. Here are the various advantages of ELSS in retirement planning.
Overview of ELSS
ELSS is an Open-Ended Equity Fund which invests mainly in Equities and Equity-related products. It is a Tax-Saving Mutual Fund that combines the advantages of investing in Equity while letting you enjoy tax deductions under Section 80C. The essential features of this Mutual Fund include:
At least 80% of its total investible corpus gets invested in Equity and Equity-related instruments. Returns are usually directly linked to the performance of the stock market. Hence, they could be a good option for long-term investment goals, like building a retirement corpus.
ELSS Funds have a lock-in period of three years. Compared to other tax-saving investments, ELSS has the lowest lock-in period.
Investments of up to Rs. 1.5 lakh in ELSS are eligible for tax deduction under section 80C.
Benefits
To know how much you need to save every month to retire with the required sum at the end of your career, you can efficiently use an online retirement calculator. Such a calculator is easy to use. It is also reliable and keeps you from the hassle of unnecessary manual calculations. Besides this, to know the investment scheme, you should choose to plan your retirement and consider factors like risk appetite, investment horizon, and daily expenses.
While there are multiple schemes for retirement planning, choosing ELSS can offer the following benefits:
Hassle-free investments
Investing in ELSS is easy. You can link your account with a Mutual Fund house and invest a lump sum. You could also invest at periodic intervals. Your Mutual Fund house may also offer the option of increasing or decreasing your investment amount over time. This helps you decide your investment as per your retirement goals.
Offers diversification
ELSS Funds usually invest in diverse Equities across various themes, sectors, and market capitalisations. This reduces the risks associated with concentration and lets you diversify your portfolio.
Access higher returns
ELSS Funds offer higher returns than other tax-saving investment instruments like Fixed Deposits or Public Provident Funds. This is because the returns from ELSS are directly linked to the stock market.
Handled by professionals
Since ELSS Funds are managed by fund managers, you need not worry about tracking the market regularly.
Conclusion
Now that you know the various benefits of ELSS Funds, you can conveniently consider them when planning for your retirement.
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Beyond 80C and 80D: Tax Saving for Long-term Saving
Tax planning and saving is a critical element of financial planning. It helps you maximise your savings, reduce your annual tax liability and utilise the money for other important financial goals you may have in life. Under the Indian Income Tax Act of 1969, you can use different sections to save your taxes.
Section 80 C and Section 80 D are the most popular sections under which people avail tax benefits. But the tax deduction you can avail under sections are capped to a certain limit. For example, the tax benefit available under Section 80C is limited to Rs. 1.5 lakhs in a financial year.
As a smart investor, you would know the importance of tax planning, and therefore, you must look to explore the different tax-saving opportunities. The good news is that there are different sections other than Section 80C and 80D. In this blog, we look at these sections:
Section 80 TTA
Under Section 80 TTA of the Indian Income Tax Act, you can claim a deduction of up to Rs. 10,000 on the interest earned from the savings account you maintain with any bank, post office or cooperative society.
Section 80GG
If you are a salaried individual and do not receive HRA (Housing Rent Allowance) from your employer, you can claim a deduction on the house rent under this section under certain conditions. The maximum tax benefit you can get under this section can be lesser of the following:
Rent minus 10% of the adjusted gross total income
A fixed amount of Rs. 5000 per month
25% of the adjusted total income
Section 80 EE
As a first-time homeowner, you can save your taxes on the home loan interest payment under Section 80EE. You can claim a maximum deduction of Rs. 50,000 in a financial year. This deduction you get is over and above the tax benefit under Section 80C on repaying the principal amount of the home loan.
Section 80CCG
If you are an Indian resident, and your total annual income is less than Rs. 12 Lakh, you can claim a deduction on 50% of the investment in the shares of Rajiv Gandhi Equity Savings Scheme (RGESS) or a fixed amount of Rs. 25,000 for three successive assessment years under this section. However, to claim the tax benefit, you must meet the following conditions:
You are a retail investor as per the notified scheme requirements.
The investment is listed as per the notified scheme requirements.
You must invest in the scheme with a minimum lock-in period of three years as per the notified scheme.
Section 80U
Section 80U of the Indian Income Tax Act is related to the physical disabilities. It allows you to claim a tax benefit of up to Rs. 75,000 and if you have a severe disability, you can claim a deduction of up to Rs. 1.25 Lakh. Please note that this deduction is available only for resident Indian citizens.
Section 80G
Under this section, you can enjoy tax benefits on the donations you make to different social causes. You can get a deduction of up to 50% or even up to 100% based on the list of the charitable institutions you are donating to.
Some of the popular non-profit organisations that are eligible for tax deductions, include: Prime Minister’s National Relief Fund, National Children’s Fund, Jawaharlal Nehru Memorial Fund, Swachh Bharat Kosh, etc.
Section 80TTB
This section of the Indian Income Tax Act is specifically meant for senior citizens only. If you are a senior citizen, you can claim a deduction of up to Rs. 50,000 on the interest earned from the deposits.
Section 80GGC
As an individual, you may support certain political ideologies or parties. If you truly believe in the party’s cause, you can make a financial contribution to the political party or electoral trust through any mode other than cash payments. You can claim tax benefits on the contributions you make under this section.
Conclusion
Now that you know the different tax benefits available to you under different sections of the Income Tax Act, the tax advantage of these benefits available to you. This will help you reduce your overall tax liability and maximise your savings.
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Section 234F of the Income Tax Act - Penalty for Late Filling
What is Section 234F of the Income Tax Act?
The Finance Act of 2017 introduced Section 234F of the Income Tax Act, which deals with the problem of late income tax return filing. Encouraging timely filing and streamlining the tax administration are the main goals. This section pertains to all individuals who must file income tax returns in India.
The Income Tax Act penalizes individuals for filing income tax returns (ITRs) after the deadline, as stated in Section 234F. This section came into effect for the 2018–19 assessment year.
Who is required to file an Income Tax Return?
Filing an Income Tax Return (ITR) is mandatory under the following circumstances:
1. Exceeding Basic Exemption Limit: Filing an ITR is required if an individual's total income exceeds the basic exemption limit.
2. Age-specific Income Criteria: When an individual's income surpasses Rs. 2.5 lakhs, they are required to file a return, regardless of age. The threshold is Rs. 3 lakhs for senior citizens (60 years or older) and Rs. 5 lakhs for super senior citizens (80 years or older). Notably, this cap was raised to Rs. 5,000,000 for extremely senior citizens and Rs. 3 lakhs for individuals under the new tax regime that was unveiled in the Budget 2023.
Under the old tax regime, the Basic exemption limit is calculated without considering any deductions from capital gains under sections 54, 54B, 54D, 54EC, 54F, 54G, 54GA, or 54GB, or deductions under Section 80C to 80U.
Important Note: Assessee Opting for the new tax regime will not be allowed to avail the above-mentioned deductions.
3. Assets Abroad and Foreign Accounts: If they have signing authority over foreign accounts or own assets or financial interests in entities outside of India, citizens and regular residents of India are required to file a return.
4. Bank Deposits: An ITR must be filed if you deposit Rs. 1 crore or more in one or more bank current accounts.
5. International Travel Expenses: Individuals spending more than Rs. 2 lakhs on international travel during the previous year are required to file a return.
6. Substantial Power Consumption: Filing an ITR becomes mandatory for those spending more than Rs. 1 lakh on power consumption in the preceding year.
7. Profession Gross Receipts: If the total gross receipts from a profession exceed Rs. 10 lakhs in the previous year, filing an ITR is necessary.
8. TDS and TCS Threshold: If the total TDS and TCS amount for the prior year was Rs. 25,000 or more, individuals under the age of 60 are required to file a return. The threshold is raised to Rs. 50,000 for senior citizens.
9. Business Turnover Requirement: Individuals with business turnovers exceeding Rs. 60 lakhs in the preceding year are required to file a tax return.
10. High Savings Bank Deposits: Filing an ITR is necessary if an individual's total deposit in one or more savings bank accounts during the previous year is Rs. 50 lakhs or more.
What is the last date to file ITR?
The due date for filing Income Tax Returns (ITR) in India can vary based on the type of taxpayer and the applicable audit provisions.
Individuals, Hindu Undivided Families (HUFs), and taxpayers whose accounts are not required to be audited: Usually, the deadline is July 31st of the assessment year. For the fiscal year 2021–2022, for instance, the deadline would be July 31, 2022.
Taxpayers whose accounts are required to be audited (including companies):
September 30th of the assessment year is the deadline. For instance, September 30, 2022 would be the deadline for the fiscal year 2021–2022.
Nonetheless, the deadline for filing an ITR is November 30 of the assessment year if the company has any foreign transactions or specified domestic transactions for which it must provide a report in Form No. 3CEB u/s section 92E.
How to file Challan No. 280 to pay the 234F Fees?
Challan No. 280 is the form for remitting penalties related to the non-filing or late filing of Income Tax Returns (ITR). To make a payment through Challan No. 280, the assessee must complete the following steps:
1. Assessment Year and Tax Type: Indicate the relevant Assessment Year and choose the applicable tax type, distinguishing between corporate tax and others.
2. PAN (Permanent Account Number): Enter the PAN or Permanent Account Number in the provided space on the challan.
3. Name and Residential Address: Provide the full name and complete residential address of the assessee.
4. Contact Details: State a phone number along with the STD code for communication purposes.
5. Select Tax Type: Choose the appropriate type of tax from the following options:
Advance Tax
Surcharge
Self-Assessment Tax
Tax on Regular Assessment
Tax on Distributed Profits of Domestic Companies
Tax on Distributed Income to Unit Holders
6. Payment Details: Fill in the payment details, ensuring accuracy in the entered information.
7. Bank Information: Specify the precise date of payment, the name of the bank, and the branch where the payment is being made.
8. Signature: Affix the signature of the individual making the payment.
9. Counterfoil Details: In the counterfoil section, provide the details as shown in the form, including PAN, name of the bank and branch, assessment year, etc.
Accurately completing these steps guarantees a seamless and error-free Challan No. 280 payment process. It's also advised to keep a copy of the counterfoil for documentation's sake. It is advisable to consult the most recent guidelines provided by the tax authorities or seek advice from a tax professional if any doubts or inquiries arise during the process.
Loss Carry Forward Restriction:
Failure to file by the deadline limits the amount of losses in your business or under the head capital gains that can be carried forward, which could have an impact on future tax benefits.
Delayed Refund Processing: In order to guarantee that people receive their overpaid taxes as soon as possible, timely filing is crucial to accelerating the processing of refunds.
How can you avoid giving the Income Tax Department the money due under section 234F?
It is imperative that you file your Income Tax Return (ITR) by the specified deadline in order to avoid having to pay the late filing penalties under Section 234F of the Income Tax Act. The following crucial actions can help you avoid paying late filing fees:
1. File Your ITR on Time: The most straightforward way to avoid late filing fees is to file your ITR on or before the specified due date. For individual taxpayers, the due date is typically July 31 of the assessment year.
2. Be Aware of Due Dates: Remain aware of the ITR filing deadlines. Depending on the type of taxpayer, audit requirements, and other variables, the deadline may change. Look for any updates or extensions from the Department of Income Taxation.
3. Keep Track of Changes in Regulations: Keep an eye out for updates to late filing penalties, deadlines, and other relevant provisions when it comes to tax regulations. You can prepare and file your returns on time if you keep yourself informed.
4. Use Electronic Filing (e-filing): Make use of the Income Tax Department's electronic filing (e-filing) option. E-filing typically saves time and improves convenience, so there's less chance that your ITR submission will be delayed.
5. Organize Your Financial Documents: Make sure you have all the required financial information and documentation well in advance. Maintaining organisation will make filing easier and ensure that your ITR is submitted on time.
6. Seek Professional Assistance: Seek advice from a tax expert if you find the tax filing process difficult or if your financial situation is more complicated. They can help you file on time and walk you through the procedure.
7. Make Use of Reminder Tools: Set up reminders on your calendar or use digital tools to receive notifications about upcoming tax deadlines. This will help you stay proactive and avoid unintentional delays.
8. Consider Advance Tax Payments: Consider paying your taxes in advance if you have a sizable income that isn't subject to tax deduction at source (TDS). By doing this, you can pay your taxes throughout the year rather than all at once when you file.
9. Plan for Contingencies: Be prepared for obstacles that might cause your filing to be delayed, such as unforeseen events or technical problems. Make the necessary plans to submit your ITR well in advance of the deadline.
By following these procedures, you can reduce the possibility that you won't make the filing deadline and, as a result, stay out of trouble with Section 234F's late filing fees. Maintaining awareness, organisation, and initiative in meeting your tax responsibilities is essential.
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What is the Public Provident Fund Scheme?
All people can invest tax-free through the Public Provident Fund (PPF) savings plans. The government launched the program to promote people's investing and saving behaviours. The system was first announced on June 15, 1968, via GSR 1136. Since then, numerous changes have been made. A new scheme has now been announced by the government, according G.S.R. 915(E), dated December 12, 2019.
A ₹1,50,000 maximum deposit is allowed in a fiscal year, with a ₹500 minimum requirement.
From the third to the sixth fiscal year, a lending facility is offered.
Annual withdrawals are allowed starting with the seventh fiscal year.
After fifteen complete financial years have passed since the account's opening, it matures.
With new deposits, the account can be extended after maturity for an unlimited number of 5-year blocks.
Following maturity, interest can be accumulated at the current rate on an ongoing basis, provided no additional deposits are made.
There is no court ruling or decree that could lead to the attachment of the funds in the PPF account.
Under Income Tax Act Section 80-C, deposits are deductible.
Section 10 of the Income Tax Act exempts the interest earned in the account from income tax.
Overview of Public Provident Funds
Eligibility for Public Provident Funds
Any authorized bank, post office, or nationalized bank may open PPF accounts. Form 1 must be submitted along with the necessary paperwork and the required minimum deposit in order to start a PPF account.
Can I open two PPF accounts?
Under the PPF plan, a person is only allowed to register one account in his name. Furthermore, a person may register a single PPF account in the name of each juvenile or mentally ill person for whom he is the legal or natural guardian. It should be mentioned that any guardian of a kid or someone mentally ill may only open one account in their name. It is not possible to open joint accounts under this scheme
Repercussions for not making the required minimum payment into the account
The account will be deemed cancelled if the depositor does not make the required number of deposits in the subsequent years. However, if the minimum yearly deposit of Rs. 500 is paid for each year of default, together with a penalty of Rs. 50 for each year of default, the account can be reopened during its maturity period. The amount that the investor deposits in the account will not be increased by the amount of the fee.
The account holder will only be permitted to open a new account following the account's closure upon maturity if their PPF account is deemed abandoned. Additionally, the facility for loans and partial withdrawals shall not be available.
The amount in the closed account will still accrue interest at the rate that is periodically relevant to the scheme, even if it is not reopened.
PPF Withdrawal Guidelines
When is it possible to withdraw money?
Only five years from the end of the year the account was opened may money be taken out of the PPF account prior to maturity. If a juvenile or someone mentally incompetent opens the account, withdrawals can be made whenever it's convenient for them, as long as they're still alive.
Maximum amount that can be taken out
A maximum of 50% of the balance in the account's credit at the end of the year immediately prior to the withdrawal or at the end of the previous year, whichever is smaller, may be taken from the PPF account.
If the account has received deposits after maturing, the total amount of withdrawals made throughout the five-year block period cannot exceed 60% of the credit balance at the beginning of the block period. One may choose to make this withdrawal in one lump sum payment or in yearly installments. However, no more withdrawals will be permitted if the account user decides to keep the account open without making any more deposits.
How Can I Take Out My PPF Amount?
The Form 2 application must be submitted. On the other hand, the guardian must provide a certificate if the withdrawal is made from the account on behalf of a minor or someone who is not of sound mind.
Additional circumstances
Before submitting an application for such a withdrawal, the account holder must refund any outstanding debt, including interest, if any has been acquired against the account;
The withdrawal option is only accessible once a year; withdrawals cannot be performed from accounts that have been closed or from account extensions in which the account holder chooses not to make any more deposits.
Is it possible for a Non-Resident to open a PPF account?
It was forbidden for non-residents to invest in the PPF under the prior structure. Nothing in the new plan forbids non-residents from doing anything. Therefore, anyone can choose to use this program, resident or not.
However, in order to open an account under the plan, the applicant needs to submit Form 1, which certifies that they are an Indian citizen living in the country. It is uncertain if Section 2(v)/2(w) of the FEMA Act or Section 6 of the Income-tax Act will be used to determine this residential status.
Therefore, the applicant will not be permitted to sign such a declaration if he is a foreign national or a non-resident of India (as defined by both Acts). Therefore, Form 1 will prevent a non-resident citizen from signing and submitting the application in Form 1, even when the scheme's limitation has been removed. Unlike the previous scheme, if the account holder becomes a non-resident at any point after choosing it, he will not have to cancel the accounts and only need to submit a declaration to an accounts officer stating his change in residency.
#ppf scheme#public provident fund#PPF Amount#PPF Withdrawal Guidelines#bricksnwall#real estate#property
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Tax Benefit on Home Loan
The government has provided numerous benefits to home buyers to make the dream of home ownership available to as many citizens as possible. One of the most significant advantages of owning a home is the tax benefits on the home loan that come with it.
You can benefit from tax breaks by making several wise investments over the years. Among them, tax breaks on home loans are a long-term investment that will provide you with tax breaks for a longer period. A home loan qualifies for a tax deduction under Section 80C. If you want to buy your dream home, home loans offer numerous benefits in terms of housing loan tax benefits.
Continue reading to learn more about income tax benefits on home loans and how to take advantage of them.
Everything You Need to Know About Home Loan Tax Breaks
To begin understanding the income tax benefit on home loans, we must first understand the home loan process.
What Exactly is a Home Loan?
A home loan is a large amount of financial assistance that lenders provide to help you purchase your dream home. Depending on loan eligibility and funding norms, lenders can pay between 75 and 90 percent of the cost of the home you purchased.
You can use the home loan eligibility calculator to determine your eligibility for a home loan. Following your initial down payment, lenders will disburse the loan amount in installments or in full, depending on the stage of construction of the property. In the event of partial loan disbursement, the financial institution will only charge interest on the amount disbursed. In the case of a fully disbursed loan, EMI will begin. The repayment of principal and interest is included in the EMI.
Tax Breaks on Home Loans
The table below summarizes the tax benefits available under the corresponding sections of the Income Tax Act of 1961.
Interest Deduction on Principal Repayment
The principal amount and interest amount are two components of the EMI that you pay. You can deduct the amount you repaid on account of principal in the EMI for a self-occupied property under section 80 C of the Income Tax Act of 1961. If you have a second home where your parents live or it is empty, it is also considered self-occupied property.
You will be able to claim a tax deduction of up to 1.5 lakh on the principal amount paid in EMIs for both houses purchased with home loans. If you rent out the second house, it is considered a let-out property, and you are still eligible for the home loan tax credit. You can also claim the registration and stamp duty fees you paid when you bought your home.
Deduction on the Payment of Interest
The interest paid on a home loan is also deductible as a tax deduction. You are eligible for a home loan tax benefit of up to 2 lakhs for a self-occupied home under section 24 of the Income Tax Act. If you have a second home, the total tax deduction on a home loan for two homes in a fiscal year should not exceed 2 lakhs.
If it is a rented property, there is no maximum limit for claiming interest. The loss you can claim under Income from House Property, however, is limited to Rs. 2 lakhs. The remaining loss can be carried forward for an additional eight years for use in adjusting the Income from House Property.
Additional Deduction Under Section 80EE
If you took out a home loan during the fiscal year 2016-17, you are eligible for this tax break. If you meet the following conditions, you are eligible for an additional deduction of Rs. 50,000 in addition to the deduction of Rs. 2 lakhs on interest paid under section 80EE.
The loan amount should not exceed Rs. 35 lakhs, and the property against which the loan is taken should be worth Rs. 50 lakhs.
You should have received the sanction between April 1st, 2016, and March 31st, 2017.
This deduction only applies to residential property and first-time home buyers.
#home#homeloan#homefirstindia#welcome home#dream#financial planning#loan against property#construction#family#tax benefits#top up loan
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Donations and Income Tax Deduction Under Section 80 G
Happy Soul World - This Charity is the best charity in India. It’s Help Those who Have No Hope. Happy Soul Charity Gives Tax Benefits to Donors. Donations and Income Tax Deduction Under Section 80 G
#Income Tax#Tax Deduction Under Section 80 G#80g Tax Benefits#Indian Charity#Tax Benefit#charity Organization#How to Achieve Tax Exemption#How to Get Tax Exemption
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Tax-saving health insurance
Health insurance plans are a crucial investment in the modern world because they combine the components of safety and savings.
Nowadays, with the prevalence of lifestyle disorders and the skyrocketing expenses of medical care, health insurance is a need. By enrolling in a tax-saving health insurance plan, you can avoid the headache of having to withdraw money from your investments and savings to cover a future medical emergency. It offers immediate access to timely, high-quality treatment while safeguarding you and your loved ones from the exorbitant expenditures of care and hospitalization.
If you haven't done so previously, take into account some of the advantages of purchasing a health insurance plan:
You can purchase health insurance plans that save you money on taxes while still providing protection.
Today's top health insurance plans also include riders or standalone critical illness plans for people with critical illnesses. These programs aid in the treatment of critical conditions that are typically very expensive to treat, such as cancer, cardiac problems, etc. When the indicated serious illness is diagnosed, the promised amount is paid ahead.
You can investigate additional benefits, such as cashless hospitalization, cashless day care treatments (for instance, retina or lens correction surgery), domiciliary treatment charges, etc., in addition to tax-saving health insurance policies.
The present income tax regulations provide a number of sections that can help you save money on health insurance in a variety of ways. Take into account the following strategies to reduce your tax burden while obtaining health insurance for you and your family:
Deduction in the cost of health insurance for very elderly people.
Uninsured super senior citizens (80 years of age or older) can deduct up to Rs. 30,000 every fiscal year for medical examinations and treatments.
Treatment of a dependent with a handicap under Section 80DD
A resident of India may be eligible for payments up to Rs. 75,000 depending on the costs of caring for, educating, treating, preserving, and rehabilitating a dependent who has a disability (Rs. 1.25 lakh for an extreme and serious disability). Dependent could be any of your parents, kids, spouses, or siblings. A supporting medical certificate must be submitted under this clause.
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Key 2024 inflation-adjusted tax parameters for small businesses and their owners
The IRS recently announced various inflation-adjusted federal income tax amounts. Here’s a rundown of the amounts that are most likely to affect small businesses and their owners.
Rates and brackets
If you run your business as a sole proprietorship or pass-through business entity (LLC, partnership or S corporation), the business’s net ordinary income from operations is passed through to you and reported on your personal Form 1040. You then pay the individual federal income tax rates on that income.
10% tax bracket: $0 to $11,600 for singles, $0 to $23,200 for married joint filers, $0 to $16,550 for heads of household;
Beginning of 12% bracket: $11,601 for singles, $23,201 for married joint filers, $16,551 for heads of household;
Beginning of 22% bracket: $47,151 for singles, $94,301 for married joint filers, $63,101 for heads of household;
Beginning of 24% bracket: $100,526 for singles, $201,051 for married joint filers, $100,501 for heads of household;
Beginning of 32% bracket: $191,951 for singles, $383,901 for married joint filers, $191,951 for heads of household;
Beginning of 35% bracket: $243,726 for singles, $487,451 for married joint filers and $243,701 for heads of household; and
Beginning of 37% bracket: $609,351 for singles, $731,201 for married joint filers and $609,351 for heads of household.
Key Point: These thresholds are about 5.4% higher than for 2023. That means that, other things being equal, you can have about 5.4% more ordinary business income next year without owing more to Uncle Sam.
Section 1231 gains and qualified dividends If you run your business as a sole proprietorship or a pass-through entity, and the business sells assets, you may have Section 1231 gains that passed through to you to be included on your personal Form 1040. Sec. 1231 gains are long-term gains from selling business assets that were held for more than one year, and they’re generally taxed at the same lower federal rates that apply to garden-variety long-term capital gains (LTCGs), such as stock sale gains. Here are the 2024 inflation-adjusted bracket thresholds that will generally apply to Sec. 1231 gains recognized by individual taxpayers.
0% tax bracket: $0 to $47,025 for singles, $0 to $94,050 for married joint filers and $0 to $63,000 for heads of household;
Beginning of 15% bracket: $47,026 for singles, $94,051 for joint filers, $63,001 for heads of household; and
Beginning of 20% bracket: $518,901 for singles, $583,751 for married joint filers and $551,351 for heads of household.
If you run your business as a C corporation, and the company pays you qualified dividends, they’re taxed at the lower LTCG rates. So, the 2024 rate brackets for qualified dividends paid to individual taxpayers will be the same as above.
Self-employment tax
If you operate your business as a sole proprietorship or as a pass-through entity, you probably have net self-employment (SE) income that must be reported on your personal Form 1040 to calculate your SE tax liability. For 2024, the maximum 15.3% SE tax rate will apply to the first $166,800 of net SE income (up from $160,200 for 2023).
Section 179 deductions
For tax years beginning in 2024, small businesses can potentially write off up to $1,220,000 of qualified asset additions in year one (up from $1,160,000 for 2023). However, the maximum deduction amount begins to be phased out once qualified asset additions exceed $3,050,000 (up from $2,890,000 for 2023). Various limitations apply to Sec. 179 deductions.
Side Note: Under the first-year bonus depreciation break, you can deduct up to 60% of the cost of qualified asset additions placed in service in calendar year 2024. For 2023, you could deduct up to 80%.
Just the beginning
These are only the 2024 inflation-adjusted amounts that are most likely to affect small businesses and their owners. There are others that may potentially apply, including: limits on qualified business income deductions and business loss deductions, income limits on various favorable exceptions such as the right to use cash-method accounting, limits on how much you can contribute to your self-employed or company-sponsored tax-favored retirement account, limits on tax-free transportation allowances for employees, and limits on tax-free adoption assistance for employees. Contact us with questions about your situation.
© 2023
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Maximizing Tax Benefits with Mutual Funds: A Guide to Tax Saver Funds
For those aiming to save on taxes while potentially growing their wealth, tax-saving mutual funds, also known as Equity Linked Savings Schemes (ELSS), stand out as an increasingly popular choice. These funds offer an enticing combination of tax advantages and market exposure, making them a favoured option for investors seeking to optimize their tax obligations. In this blog post, we'll delve into the realm of tax-saving mutual funds, exploring their characteristics, advantages, and considerations.
Understanding Tax Saving Mutual Funds (ELSS):
Tax Saving Mutual Funds, or ELSS, represent a category of mutual funds that extend tax benefits to investors under Section 80C of the Indian Income Tax Act. These funds primarily channel investments into equity shares across diverse sectors, with the dual objective of long-term capital appreciation and tax deductions on invested amounts.
Key Features of Tax-Saving Mutual Funds:
Tax Benefits: Tax-saving mutual funds provide deductions under Section 80C of the Income Tax Act, 1961, allowing investors to claim deductions up to ₹1.5 lakhs on their investments in these funds under the old tax regime.
Diverse Investment Options: These funds offer a range of investment options, enabling investors to align their choices with their financial goals and risk tolerance.
Professional Management: Tax-saving mutual funds are skillfully managed by experienced fund managers. This means that investors' funds are prudently invested across different sectors, with regular monitoring.
How Do They Operate?
ELSS funds operate by pooling funds from a broad base of investors and directing them into a diversified portfolio consisting of equity and equity-related instruments. Fund managers typically allocate resources across large-cap, mid-cap, and small-cap stocks, along with other equity-related instruments like equity-linked debt funds and exchange-traded funds (ETFs).
The performance of ELSS funds is closely tied to the ups and downs of the underlying equity market. Historically, equity markets have delivered superior returns compared to other asset classes over the long term, but they also come with heightened volatility, translating into a potential risk of capital loss for ELSS investors.
Benefits of Investing in Tax-Saving Mutual Funds:
Investing in tax-saving mutual funds (ELSS) brings several advantages, including:
Tax Benefits: ELSS mutual funds are categorized under Section 80C of the Income Tax Act, 1961, offering tax advantages that enable deductions of up to ₹1.5 lakhs from taxable income in the old tax regime.
Potential for High Returns: ELSS funds invest in equity markets, which historically offer the potential for higher returns compared to asset classes like fixed deposits or bonds. Over the long term, ELSS funds can potentially generate returns which can easily beat inflation.
Low Lock in: With a lock-in period of only three years, ELSS funds provide flexibility in accessing funds when needed as compared to other investment avenues under 80 C.
Convenience: These mutual funds can be conveniently purchased and sold through various channels, including online portals, mutual fund houses, and banks, making ELSS investments accessible even to those with limited time or expertise.
Conclusion:
Tax Saving Mutual Funds (ELSS) present a compelling investment avenue for individuals keen on tax savings while aiming for potential wealth accumulation. These funds not only offer tax deductions under Section 80C but also leverage the advantages of equity investments.
Through investments in Tax Saving Mutual Funds, investors gain advantages from the expertise of seasoned fund managers who meticulously choose and oversee diversified equity portfolios. The mandatory three-year lock-in period encourages a long-term investment perspective that aligns with the objective of wealth creation.
Nevertheless, it's crucial to bear in mind that investing in Tax Saving Mutual Funds entails market risks. Before making any investment decisions, it's crucial for investors to evaluate their risk tolerance, investment objectives, and financial goals.
#mutual fund#mutual fund investment#mutual funds#elss#elss mutual funds#asset allocation#nifty 50 etf#sip#equity mutual funds#tax saver mutual fund
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Income Tax Slab for the Financial Year 2023-2024: A Comprehensive Guide
Income tax is a significant part of every citizen's financial responsibility, and understanding the income tax slab for the financial year 2023-2024 is crucial to manage your finances efficiently. In this blog, we will provide you with a comprehensive guide to the income tax slab for the upcoming financial year, helping you navigate your tax obligations effectively.
Income Tax Slab for Individuals Below 60 Years of Age
For individuals below the age of 60, the income tax slabs for the financial year 2023-2024 are as follows:
Income up to Rs. 2.5 lakhs: No tax payable.
Income between Rs. 2.5 lakhs and Rs. 5 lakhs: 5% of the income exceeding Rs. 2.5 lakhs.
Income between Rs. 5 lakhs and Rs. 10 lakhs: 20% of the income exceeding Rs. 5 lakhs, plus a cess of 4%.
Income above Rs. 10 lakhs: 30% of the income exceeding Rs. 10 lakhs, plus a cess of 4%.
Income Tax Slab for Individuals Aged 60 and Above (Senior Citizens).
For individuals aged 60 and above but below 80, the income tax slabs for the financial year 2023-2024 remain the same as for individuals below 60.
Income Tax Slab for Individuals Aged 80 and Above (Super Senior Citizens)
Super senior citizens, aged 80 and above, enjoy a higher exemption limit:
Income up to Rs. 5 lakhs: No tax payable.
Income between Rs. 5 lakhs and Rs. 10 lakhs: 20% of the income exceeding Rs. 5 lakhs, plus a cess of 4%.
Income above Rs. 10 lakhs: 30% of the income exceeding Rs. 10 lakhs, plus a cess of 4%.
Income Tax Rebates and Deductions.
The government provides certain rebates and deductions to help individuals save on their tax liability:
Standard Deduction: A standard deduction of Rs. 50,000 is available for salaried and pensioned individuals.
Section 80C: You can claim deductions up to Rs. 1.5 lakhs under Section 80C for investments in instruments like Employee Provident Fund (EPF), Public Provident Fund (PPF), and Life Insurance Premiums.
Section 80D: Deductions for health insurance premiums under Section 80D.
Section 24(b): Deductions for home loan interest up to Rs. 2 lakhs per annum.
Section 80E: Deductions for education loans.
Section 10(14): House Rent Allowance (HRA) exemption for salaried individuals.
For more information visit → https://commerceplanet.in/
#IncomeTax#TaxSlabs#TaxPlanning#FinancialYear#Deductions#Exemptions#SeniorCitizens#SuperSeniors#StandardDeduction#Section80C#Section80D#Section24b#Section80E#Cess#TaxBenefits#FinancialManagement#FY2023_24
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It looks like you've provided a list of documents that are commonly required for filing an income tax return online. These documents are essential to accurately report your income, deductions, and other financial details to the tax authorities. Let's go over each of these documents and their significance in the income tax return filing process.
Form 16 (conditional)
PAN Card/Aadhar Card
Bank Account Statements
Investments under section 80
Tax Audit Report (if applicable)
Income tax e-filing payment proof
Receipts required to claim expenses
Consolidated credit statement (Form 26AS)
#gst registration#online ca#e filing income tax#roc filing#income tax return#tax audit#itr filing#income tax consultants#company registration#make in india registration
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SIP Tax Savings Planner in Delhi NCR - Prahim Investments
Are you looking for a smart and easy way to save tax and grow your wealth? If yes, then you should consider investing in a Systematic Investment Plan (SIP) with Prahim Investments, the best SIP advisor in Delhi NCR.
What is SIP?
SIP is a method of investing in mutual funds, where you invest a fixed amount of money every month or quarter in a scheme of your choice. SIP helps you to build a habit of saving and investing regularly and also benefits from the power of compounding and rupee cost averaging.
How does SIP help you save tax?
SIP can help you save tax in two ways:
By making an investment in an equity-linked savings scheme (ELSS), a form of mutual fund that places at least 80% of its assets in stocks and other securities that connect to stocks. ELSS has a lock-in period of 3 years, which means you cannot withdraw your money before that. ELSS offers tax deduction under Section 80C of the Income Tax Act, up to Rs. 1.5 lakh per year.
By investing in any other mutual fund scheme, which is subject to long-term capital gains tax (LTCG) of 10% on gains above Rs. 1 lakh per year. This is lower than the short-term capital gains tax (STCG) of 15% on gains within one year.
Why choose Prahim Investments as your SIP advisor in Delhi NCR?
Prahim Investments is a leading financial advisory firm that offers customized and unbiased solutions for your financial goals. We have a team of experienced and qualified professionals who can help you choose the best SIP plan for your needs and risk profile. We also provide regular updates and reviews on your portfolio performance and suggest changes if required.
Some of the benefits of choosing Prahim Investments as your SIP advisor in Delhi NCR are:
We have access to a wide range of mutual fund schemes from various fund houses, so you can diversify your portfolio and reduce risk.
We offer online and offline services, so you can invest and track your SIPs anytime, anywhere.
We charge reasonable fees and commissions, so you can save more on your investments.
We have a loyal and satisfied customer base, who trust us for our expertise and transparency.
How to start SIP with Prahim Investments?
Starting SIP with Prahim Investments is very simple and hassle-free. All you need to do is:
Contact us through our website, phone, email, or visit our office.
Fill up a KYC form and provide your PAN card, Aadhaar card, bank details and other documents as required.
Choose a SIP plan that suits your goals, budget and risk appetite.
Set up an auto-debit mandate with your bank to transfer the SIP amount every month or quarter.
Watch your money grow over time while you relax.
So what are you waiting for? Contact Prahim Investments today and start your SIP journey with the best SIP tax saving planner in Delhi NCR.
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