Investments in real estate have just got a bit costlier. Since April 2010, an additional amount in the form of service tax is being collected from buyers, on under construction properties.  So what is this service tax and who is deemed to pay it? Investment Yogi explores the applicability and impact of this new tax, being levied on property buyers.

Service Tax on Property Purchase- What is it?
In the Union Budget of 2010, the Finance Minister introduced a service tax of 10.3% on all under construction property purchases from a builder or developer.  The government has stipulated that construction of a house by a builder in a complex, in any form, whether it is an apartment, row house, flat or a duplex is deemed as a “service” and therefore taxable. This service tax is to be paid by property buyers, to the builders, who would in turn deposit the amount to the tax authorities. For a buyer, thus, the additional service tax would push the cost of his home by a few more lakhs.

                                               
Key Points – What you actually need to pay for
The following points briefly describe the applicability of the service tax and what investors actually need to pay for.

1)  Tax on Under Construction Properties Only - Service tax is applicable only on purchase of under construction properties. A property is deemed to be under construction, till the builder receives a completion certificate from the local municipal authorities for the same. Therefore, if a buyer pays the complete amount for the property, after the builder has received the completion certificate for his complex, no service tax would be applicable for the buyer.

2)  Abatement Allowed- Tax Applicable only on 25% of the Construction Value – Abatement, in tax parlance, refers to a portion of the value of the taxable service, which would be exempt, as per a government notification.

                         
As per the Government Abatement scheme, under notification 1/2006 dated 01 Mar 2006, a contractor is entitled to claim abatement to the extent of 67 per cent of the value of services rendered by him, which would be exempt from tax. This amount quoted by developers is towards cost of land and materials. The balance 33% amount is considered as “service” provided, hence taxed.

                        
However, the Finance Minister has recently increased the abatement from 67 per cent to 75 per cent.

               
Service Tax, therefore, would be on 25% of the value of the property and not on the entire cost. Tax would be applicable only on the cost of labour or services of the builder or developer. All costs of land and construction material of the property would not fall under the purview of service tax.

Use the following InvestmentYogi’s Financial Calculators to help determine the home loan that is right for your budget:

Home Loan EMI - Equated Monthly Installment

Home Loan Affordability – How much home loan can you afford?

Home Loan Refinance - Should you refinance your existing home loan?

3)  Resale Properties - There would be no service tax on resale properties. As service tax is applicable only on under construction properties which has not yet received a completion certificate, resale properties do not attract any service tax as they already would have obtained a completion certificate.

               
4)  Parking Slots  or Garage of Properties - Along with the apartment or flat, builders also sell parking slots to buyers. No service tax would be applicable for the amount paid for such parking slots.

                  
5)  Preferential Location Services - Builders many times will build internal roads, pavements, or maintain gardens for the development of the property complex. Such services would attract a service tax. Also any additional amount paid for a floor rise, an apartment with a specific number or a specific direction, apartment facing either a park, pool or sea , would cost the buyer a service tax.

                  
6) Low Cost Housing Segment - In recent months, the real estate industry has developed various affordable properties worth less than Rs 20 Lakhs for the lower and middle income group. Properties belonging to this low cost housing segment would be exempt from service tax.

                
A Final Word ….
Most individuals buy properties before they are near completion, primarily because payments would be required on the basis of the stages completion, thus reducing any liquidity woes. Since most property buyers consider buying a property which is still under construction or in the final stages, this service tax is surely to burden them. Another point to be noted is the fact that the division of construction costs versus labour costs is undertaken by the builder on his own accord and is subject to being under his terms. The ultimate burden, thus, is on the buyer in the form of higher costs for his new home.

Use InvestmentYogi’s How To Guide for information on how to get a home loan and find the right property.

Written for InvestmentYogi by Ramya Ramachandran

RELATED STORIES:

BPLR to Base Rate

Home Refinance- A Smart Financial Tool for Borrowers

7 Financial Planning Goals You May Want to Save For

5 ways to make your children financially smart

Do you have the right Financial Advisor?

The Direct Tax Code (or DTC) has recently been proposed by the Government of India, to bring about a change in the whole taxation system of the country. The new tax code aims to make the system more efficient and easy for tax payers, with simplified rules and regulations. It is a step towards replacing the four decade old Income Tax Act of India.

                                   
The new Direct Tax Code would impact both individuals as well as corporate with changes in Taxation Slabs, Public Provident Funds, Insurance Policies, Home Loans, Mutual Funds and Shares.

                                
Drafts of the Direct Tax Code

                               
The First Draft - The Finance Minister floated the first draft of the DTC in August 2009 and kept it open for public comments. Here is a peek on a few of the proposals made in the first draft.

• Proposal to exempt tax if income is Rs 1.6 lakhs in a year. The tax slabs further would be 10% from Rs 1.6 lakhs to Rs 10 lakhs, 20% between Rs 10 lakhs and Rs 25 lakhs, and 30% above Rs 25 lakhs.
• Deduction levels for savings raised to Rs 3,00,000.
• Wealth Tax to be levied on wealth over Rs 50 crore.
• Proposal of a uniform corporate tax rate of 25%.
• Securities Transaction Tax abolished.

                                 
The Revised Draft of the DTC - Further to the 1600 comments received, the second draft of the DTC was floated recently. It brought certain changes in retirement schemes, home loans and capital gains, to name a few.

                               
Direct Tax Code Revised Draft– What it Offers Investors

                  
The second draft of the DTC is much simpler and offers investors a whole deal of exemptions, unlike the first draft. The revised draft was aimed towards promoting long term savings. Here are a few of the proposals for investors.

1) Capital Gains Tax

                                        
Equity - Investments in Shares and Equity based Mutual Funds would now be taxed using a new concept of “Deduction” instead of the earlier Indexation method.

                      
Certain deductions will be applied to long term capital gains of one year and above. This would be a percentage of the profits earned.  After the deductions are made, the balance amount would be added to the income and then taxed at applicable rates. Currently there is not much clarity on the percentage of deduction. Also, the holding period of shares, as of now, will be 1 year, from the end of the financial year, when the shares were bought.

                              
For short term capital gains of less than one year, the entire amount will be included as a part of the income and taxed at applicable rates.

                                 
Debt, Gold and Real Estate - Capital gains of less than a year, from gold, gold ETFs, debt and real estate investments would be added to the  taxable income, and normal slabs would apply. For all capital gains of more than a year old, gains will be added to the taxable income after adjusting for indexation benefit. The base date for indexation values would however now be shifted to April 1, 2000 instead of the earlier April 1, 1981.

                        
2) Life Insurance Policy, Pension or Annuity Plans and Provident Funds: All pure Life Insurance policies, Pension or Annuity Plans, PPF and EPF would come under “EEE” and not “EET” structure. This means that it would be completely tax free.

                     
Understanding “EEE” and “EET”

                             
EEE - Amount invested or contributed would be “Exempt”, the returns or the interest generated would be “Exempt” and lastly the final maturity amount would also be “Exempt” from tax.

                             
EET - Amount invested or contributed would be “Exempt”, the returns or interest would be “Exempt”, but the final maturity amount would be “Taxed”.

                            
This proposal of EEE status for all retirement products would prove beneficial to pensioners and senior citizens. The first draft of the DTC included such schemes under “EET” Status.

                                      
3)    ULIP’s and Endowment Plans: The Direct Tax Code includes ULIPs and Endowment Plans under EET. The money received on maturity from such plans would now be taxed.

                     
4)    Tax on Rental Income: Tax would be applicable only on the actual rent received for the house. So, if there is no rental income earned, no tax is to be paid.

                     
Earlier, it was proposed that tax was to be paid even if your house was not rented, by considering a notional rental amount.

                               
5)    Home Loans: The interest on home loans would be exempt up to 1.5 lakhs. However, the principal portion would now not be covered under section 80C. The first draft had proposed to remove all tax benefits on home loans, both on the principal and the interest. This has now been changed, bringing a relief for all home loan borrowers.

The crux of the DTC is to introduce moderate levels of taxation, expand the tax base and check tax evasion. There is however some areas which still require clarity. The actual bill is still to be introduced in the parliament, and by this time we may probably see further amendments. It is expected to come into being by April 2011.

You may use a tax calculator to estimate your taxes.

Written for InvestmentYogi by Ramya Ramachandran

RELATED STORIES:

Tax Planning

Investing in Long Term Infrastructure Funds for tax saving

Best ELSS Schemes

Tax Saving through section 80C 

Did you miss filing your tax return by the due date 31st July (which was subsequently extended to August 4th)? You need not worry as you can still e-file your return effortlessly through TaxYogi.

As an income tax assessee you fall into one of these 2 categories:

You don’t owe any tax to the IT department: If all your taxes have been deducted at source (applicable to most salaried employees with no other source of income) then you can file your return by 31^st March 2011 without any penalty. After that, a penalty of Rs 5,000 may be imposed, As per u/s 271F:"if a person fails to furnish return of income as required by section 139 before the end of relevant assessment year, the assessing officer may impose a penalty of Rs 5,000/- “

You owe taxes: If you owe taxes then you can still file up to 31^st March but with a penalty of 1% per month of delay on the taxes due. You can calculate the interest owed using our tax interest calculator.   You can pay the due taxes as well as penalty online from the convenience of your home and office. Find out more in “Procedure for e-payment taxes”

Example: Suppose you have to pay a tax of Rs 10,000 on your income from rent you earned and haven’t paid by the due date; you will be charged a penalty of Rs 100 per month of delay after July.

Some disadvantages to filing late (so be on time next year!):

• A late return cannot be revised
• You cannot carry forward a loss to next year if you have missed the due date.

It’s not too late! Just login to Taxyogi and file your tax return now.  Online return filing is better, faster, cheaper, transparent and saves paper.

The Central Board of Direct Taxes (CBDT) has decided to extend the due date of filing of income tax returns to 4th August 2010 for taxpayers for whom the due date ends today, which is 31st  July 2010. All paper returns or e-returns filed on or before 4th August 2010 will be considered as filed within the due date.

 
The decision was taken in view of some technical snags in the e-filing computer system, and inclement weather at various locations, due to which taxpayers have reported difficulties in filing or uploading income tax returns. 

Logon to www.taxyogi.com and e-file your tax returns Now!

In the Union Budget 2010, Finance Minister, Pranab Mukherjee proposed a new section 80CCF under the Income Tax Act of 1961. From April 1, 2010, section 80CCF would provide an additional tax deduction, over and above the existing 80C deduction, in respect to investments made in long term infrastructure bonds.

                      
Background on Infrastructure Bonds

                               
Infrastructure Bonds are not new to the country. They have been used by the government in the past years, for infrastructure projects. These bonds were earlier offered by financial institutions such as ICICI and IDBI, and had a lock in period of 3 years. Section 88 of the Income Tax Act offered tax deductions on investments of up to Rs 30,000, in these infrastructure bonds. However, with the 2005-2006 union budget, section 88 was scrapped.

                                    
So What Does Section 80 CCF Offer Tax Payers?

                                       
Section 80C currently offers a maximum deduction of Rs 1 lakh, for investments in National Savings Certificate (NSC), Public Provident Fund (PPF), Life Insurance premiums and Pension Plans.

                                 
The new section 80CCF, will offer a deduction of Rs 20,000, in addition to the deduction of Rs 1 lakh under sections 80C, provided the investments are in notified long term infrastructure bonds. The government has proposed this section to promote investments in infrastructure projects in the country.

Key Features of 80 CCF and Infrastructure Bonds

• Section applicable from start of April 2010 and would be issued in the financial year 2010-11.
• Deduction limit of Rs 20,000 in addition to the 1 lakh limit under sections 80C.
• Investments to be in long term infrastructure bonds as specified by the government.
• The long term infrastructure bonds will have tenure of 10 years.
• Minimum lock in period of 5 years.
• Exit from the infrastructure bond, after the lock in period, will be either through the secondary market or through buyback option, as specified by issuer.
• The infrastructure bonds could be pledged for loans from specified banks after the lock in period.
• Investments in infrastructure bonds would require PAN to be mandatorily furnished.

                              
Who can claim this additional deduction?

                                          
Section 80CCF is applicable to Individuals and to Hindu Undivided Family (HUF) only. Deductions could be up to a maximum amount of Rs 20,000 from the taxable income, for any amount invested in long term infrastructure bonds from financial year 2010-11.

                                         
Specified Long Term Bonds that Qualify under this Section

                                 
Bonds issued by the following agencies would qualify for tax benefit under section 80CCF.

• Industrial Finance Corporation of India
• Life Insurance Corporation of India
• Infrastructure Development Finance Company
• Any non-banking finance company which has been classified as an infrastructure finance company by the Reserve Bank of India.

Currently IFCI has come out with its first issue of long term infrastructure bonds. The issue opened on 9th August 2010 and closes on 31st August 2010. The bonds with a tenor of 10 years have a buy back option after 5 years. The yield on redemption offered by these bonds is between 7.85%-7.95% p.a., depending on the option chosen by the investor.

                                         
Infrastructure Bonds – Benefit

                         
Investment in long term infrastructure bonds would give you the following benefits:

Tax Saving - A long term infrastructure bond offers a tax benefit in the form of a deduction. The amount of tax saved would depend on the tax bracket one would fall under. To illustrate this benefit :

                                  
For a person in the highest tax bracket, a Rs 20,000 investment in long term infrastructure bonds could save a tax of around Rs 6,000 (Rs 20,000 X 30%)

                                      
For a person in the 20% tax bracket, an investment of Rs 20,000 in long term infrastructure bonds could give him a saving of around Rs 4,000 (20,000 X 20%).

                                                  
(Education cess ignored in illustration to keep it simple)

                                               
Assured Returns - An investment in infrastructure bond assures you a reasonable rate of return. So as an investor you are guaranteed peace of mind over your investment!!!!

                                
Concluding Thoughts

                              
InvestmentYogi wants you to keep in mind the following while investing in long term infrastructure bonds.

• A long term investment with a period of 10 years and a lock in feature could block your money. So take a call after considering your financial situation.
• Infrastructure bonds offer pre-determined interest rates, which may be lower than other investment options; hence they may not offer much protection against inflation.
• Borrowing money by pledging infrastructure bonds with banks would fetch you an amount, which would depend on the market value of the bond. Banks also take into account the creditability of the underlying issuer, in their loan evaluation process.
• The yield of the bond along with its terms and conditions will be specified by its issuer. However it must be understood that the yield of the long term infrastructure bond will not be higher than the yield of other government securities or corresponding residual maturity schemes.      

Use InvestmentYogi’s Tax Calculator to help you estimate your taxes.

Written for InvestmentYogi by Ramya Ramachandran

Income Tax department has introduced a new facility this financial year 2009-10 (AY 2010-11) for viewing your tax payments made – it is called ‘Tax Credit Statement’ or PAN LEDGER or Form 26AS.

                         
The Tax Credit Statement (Form 26AS) helps taxpayers in -

                                               
1. Preparing income tax returns
2. Verifying details of tax deducted at source (TDS)
3. Verifying details of tax collected at source (TCS)
4. Verifying details of tax payment made by the taxpayer (advance tax, self-assessment tax, regular assessment tax, etc.)
5. Viewing details of tax refunds (if any)

                                               
The form helps you to verify if the tax payments made by you (such as, TDS deducted from salary, TDS deducted from interest on deposits, etc.) are correctly reported to the IT Department. This is important to confirm that you receive complete and accurate acknowledgement for tax payments and TDS reported by them in their IT Returns.

                                       
This facility is available only to e-filers registered at Department of Income Tax’s (DIT)  e-filing site or www.tin-nsdl.com - the Tax Information Network (TIN) maintained by National Securities Depository Limited (NSDL). The facility provided by both websites is totally free.

Below are the 3 simple steps to view and download one’s Form 26AS through ‘DIT e-filing website’ –

STEP-1: Register at DIT e-filing website. Login and click on "My Account". Under ‘My Account’, select “View Tax Credit Statement (Form 26AS)”.       

                                    
STEP-2: Once you click on the above link, you will be asked to provide your DOB (Date of Birth) for verification purposes.
                                         

STEP-3: You will be redirected to the NSDL website to view/download Form 26AS (Tax Credit Statement).

Form 26AS has 4 parts –

                         
PART A - Details of Tax Deducted at Source (TDS)
PART B - Details of Tax Collected at Source (TCS)
PART C - Details of Tax Paid by the tax payer (Other than TDS and TCS)
PART D - Details of Paid Refund

Note: 
a) You can view the above information from AY 2006-07 to AY 2011-12.

b) In case of any mistake/error with regards to tax deposited by the tax payer through the bank (advance tax or self-assessment tax) - one should contact the branch/bank where the advance tax or self-assessment tax was paid. In case of any mistake/error with regards to tax deducted/collected by the bank and others - one should contact the bank/other person who has deducted/collected such tax.

c) Online tax credit statement can also be viewed in ‘Hindi’ language through registration with www.tin-nsdl.com.
                                 

d) Online view of Tax Credit Statement (Form 26AS) of taxpayer is also available to net banking account holders of registered banks for the benefits of the tax payer at www.tin-nsdl.com.

                                   
To provide this facility to net banking account holder, the bank should be registered with National Securities Depository Limited (NSDL).

                                                                 
Note: Below is the list of banks registered with NSDL for providing the view facility of Tax Credit Statement (Form 26AS):

              
1.    Citibank N.A.
2.    Corporation Bank
3.    IDBI Bank Limited
4.    Indian Overseas Bank
5.    State Bank of India
6.    Union Bank of India

In case of specific queries, you may write to ask@incometaxindia.gov.in

TaxYogi Helpline number - 040-23000291

TaxYogi Email Address - taxyogi@investmentyogi.com

TaxYogi e-filing and Tax Planning - http://www.investmentyogi.com/Taxes/home.aspx

                                                                       
Written for InvestmentYogi by Priya Rao, CFP Certified Financial Planner

We have heard many a times that every individual whose total income exceeds the maximum exemption limit is obligated to furnish his/her Income Tax Return or ITR.

But what is the benefit of filing ITR – especially for those below 30 years of age or those not in the higher tax bracket? Why should any person voluntarily go and submit his income details to the tax authority? Isn’t it more logical not to disclose income details and avoid paying tax altogether?

TaxYogi believes that there are some solid reasons (listed below) for acquiring a PAN card (if you don’t have one) and filing your ITR within the due date, i.e 31^st July every year:

• Standard Income Proof – ITR is considered a customary income proof not only in India but also globally. If you are looking for higher education or employment abroad, ITR is the largely accepted income proof.
• Speeds your loan application process - Apart from a good credit history (or past repayment track), the fact that you are filing your ITR regularly gives you speedier access to credit and at better terms – although not necessarily a larger line of credit, but surely a better rate. It also provides the impression to the financier that you are a law abiding citizen and will repay the loan within time.
• Power of PAN – Permanent Account Number or PAN issued by the IT authority is not only a prerequisite for filing ITR but is also now mandatory for all financial transactions – from opening a bank account, or purchasing mutual funds to real estate for investment. So it makes sense to get yourself one even if you don’t have much income to boast of.
• Claim your Tax refund – Filing ITR is not always about paying tax. It can be used as a means to reduce your tax liability! Yes, you heard us right. Take for instance, salaried employees for whom TDS has been cut during the financial year can claim refund if the tax outgo has been more than the actual tax payable.

Note:

1. Every person with taxable income (over and above the tax exemption limit) should file an income return, even if his tax liabilities have been taken care of by the employer through tax deducted at source (TDS); persons whose salaries have been subjected to TDS are also required to file return because they may have earned from sources other than salary (house property income, capital gains, etc.).
2. The entire tax payable on your income has to be paid before filing the return of income either by way of tax-deducted at source (TDS), advance tax or self-assessment tax. Ensure that it is done before the ITR is filed.
3. Not only for refund, you also need to file your income return if you are claiming carry forward of loss (say, from long term capital asset or from any other source of income). In such cases, filing returns within the due date is a must.
4. Avoid wilful tax evasion - In certain cases, you may even be liable for prosecution for intentional avoidance of tax payments. "Better late than never" is the best policy when it comes to income tax payment.

Popular FAQs of Income Tax Return filing –

Q. What is financial year, previous year and assessment year?

Answer: For the purpose of calculating income tax, financial year (FY) is the period during which the income has been earned. The income earned in a FY is assessed to tax in the following year, that is, the assessment year (AY). For example, income earned in FY 2009-10 (1 April 2009 to 31 March 2010) will be assessed for tax in the year 2010-11. FY and previous year are the same; they are used interchangeably.

Q. Tax gets deducted from my salary every month (by way of TDS). Do I still need to file ITR?

Answer: Yes. Filing of tax is compulsory for every person whose gross total income, i.e., the income under the five heads (salary, house property, capital gains, business income, and other sources) before allowing for any deductions (under chapter VI A of Income Tax Act, 1961), exceeds the basic income tax exemption limit (IT Rate slab given at the end of the article).

Q. What if I miss the deadline of July 31^st?

Answer: If there are no balance taxes to be paid, no interest or penalty will be levied if you file your return < 1 year from the end of the relevant assessment year (AY). However, there is a penalty of Rs 5,000 if you fail to file by that date. In case there are tax arrears, a penalty of 1 % per month will be charged as interest on such taxes due.

Q. TDS is NIL on my income. Do I have to file return?

Answer: It is not mandatory to file your IT return if your taxable income is below the maximum exempted limit. However, if your gross total income exceeds the basic exemption limit, then you have to file a tax return even if no tax was deducted at source.

Q. I don't have a PAN card. Can I file my Income return?

Answer: The Permanent Account Number (PAN) is a compulsory for filing your ITR. If you have not obtained a PAN card till now, you should immediately apply for one.

Q. What is advance tax? How is it different from ITR filing? Is there a penalty if I don't pay this tax?

Answer: Advance tax means ‘payment of tax in advance’. Payment of advance tax is compulsory on the income earned during the financial year for every person liable to pay tax in India. Non-payment or short payment of advance tax will attract penal interest.

However, there is no need to pay advance tax if:

i) The total tax liability for the financial year is < Rs 5,000; or

ii) If the employer has deducted TDS from the salary.

Q. Where do I file my return?

Answer: Filing of ITR can be done in 2 ways –    

i) Offline/Traditional paper filing – Traditional filing involves hiring a CA or a tax consultant to file tax returns, or personal submission of forms by visiting the nearest Income Tax Office (ITO).

ii) Online filing – Online or E-filing was enabled by the Income Tax Department a couple of years back. It is an improved and hassle-free method of tax filing; here, filing is done through the Internet. E-filing of IT Returns can be done with or without a digital signature. Logon to www.TaxYogi.com for filing your tax returns online.

Income Tax slabs/Basic Exemption limits for Individuals for FY 2009-10 (AY 2010-11):

(a) Male Assessees (< 65 years of age):

(b) Female Assessees (< 65 years of age):

(c) Senior Citizens (> 65 years of age):

The author, Priya Rao is a CFP certified financial planner.

E-Payment or Online Payment of tax through the internet facilitates payment of direct taxes online for the taxpayers. To avail of this facility the taxpayer is required to have a net-banking account with any of the Authorized Banks. If you have a bank account and your bank provides the facility of e-payment of income tax, then you can make use of it without incurring any additional charge.

As of now, it is mandatory for corporate to make tax payments (including TDS/TCS) online.

Procedure for e-payment of Income Tax:

What is the procedure for online payment of tax? Follow the below simple steps to pay tax online:-

Step 1 - Log in to NSDL-TIN website (www.tin-nsdl.com) and select the required challan*.

Step 2 - After selecting the required challan*, you will be directed to the screen for entering the following information. Enter the relevant information:

a) PAN for non-TDS payments and TAN for TDS payments
b) Name and address of the taxpayer
c) Assessment Year
d) Major Head Code
e) Minor Head Code
f) Type of payment
g) Select the bank name from the drop down provided

  
Note:

Ø In case of challan no. 280, 282 and 283 the Permanent Account Number (PAN) needs to be entered. In case of challan no. 281 Tax Deduction/Collection Account Number (TAN) needs to be entered.

Ø Please ensure that you enter PAN/TAN correctly, as this is extremely important for further processing. The system will check the validity of PAN/TAN. In case PAN/TAN is not available in the database of the Income Tax Department then you cannot proceed with the payment of online tax.

Step 3 - After entering all the above information, you can re-check, edit and then click the submit button. You will be directed to your bank’s net-banking site.

Step 4 - Your bank will process the transaction online by debiting your bank account and generate a printable acknowledgment indicating the Challan Identification Number (CIN). Your e-payment of tax procedure is now complete.

Important points to note:

• You can verify the status of your challan in the “Challan Status Inquiry” at NSDL-TIN website (www.tin-nsdl.com) using the CIN after a week of making e-payment. Apart from verification at the NSDL website, you can also check your online bank account to verify whether the tax payment is made.
• You can quote your CIN in the counterfoil in your ITR. This is considered to be sufficient proof of payment of tax.
• In case of any issues/problems encountered at the NSDL website while entering data, then you may write to e-tax@nsdl.co.in. If the issue/problem pertains to entering the details at the net-banking webpage of your bank, then you should contact your bank for assistance.
• In case you have misplaced your challan counterfoil, you can contact your bank and request them for the same.

*How to choose the challan?

TDS Based Payments

1. Challan No./ITNS 281 - Tax Deducted at Source for depositing TDS by company or non-company deductee.

Non-TDS Based Payments

1. Challan no./ITNS 280 - For depositing Advance tax, Self- Assessment tax, Tax on Regular Assessment, Surtax, Tax on Distributed Profits of Domestic Company and Tax on Distributed income to unit holders.
2. Challan no./ITNS 282 - payment of Security Transaction Tax, Hotel Receipts Tax, Estate Duty, Interest Tax, Wealth Tax, Expenditure Tax /Other direct taxes & Gift tax) - For depositing Securities transaction tax, Estate duty, Wealth-tax, Gift-tax, Interest-tax, Expenditure/other tax and Hotel Receipt tax.
3. Challan no./ITNS 283 - For depositing Banking Cash Transaction Tax and FBT.

Conclusion: This system of e-payment of tax is beneficial as one does not have to personally visit the bank to make the tax payments. The Challan Identification Number (CIN) is received online, which is required by you when you file your return, and payment of tax can be made electronically at the comfort of your home or office.

Filing of Income Tax Returns (ITR) is mandatory for every individual whose total income for the previous year has exceeded the maximum exemption limit. The last date of filing income tax returns for individuals is 31^st July each year.

Filing of ITR can be done in 2 ways –

1. Offline/Traditional paper filing – Traditional filing involves hiring a CA or a tax consultant to file tax returns, or personal submission of forms by visiting the nearest Income Tax Office (ITO).

2. Online filing – Online or E-filing was enabled by the Income Tax Department a couple of years back. It is an improved and hassle-free method of tax filing.

E-filing of IT Returns can be done with or without a digital signature. Here, we will find out how to e-file tax returns without a digital signature.

What is Online/E-Tax Filing?

E-Filing simply means filing your returns electronically on the website. ITR documents are prepared in a pre-defined format and then uploaded on the web portal.

The filing is done through the comfort of one’s home or office via internet websites to help you file taxes. It is mandatory for companies to file tax returns electronically; for individuals it is presently optional. However, it may well become compulsory for individuals in times to come. So, it may not be a bad idea to familiarise yourself with this process. Using the e-filing process is simple and easy for all those who have access to internet. In fact, e-filing has been accepted by the IT department as a trusted means of filing IT returns.

The process of e-Tax filing requires the following simple steps -

STEP-1 - Register and complete filling up your income particulars in TaxYogi’s easy-to-use ITR software tool and generate ITR form in electronic format (XML file) of the same - this format is a largely standardized one and helps in sharing of structured data across different information systems.

Tax websites differ in the way they allow you to input figures and information. TaxYogi has a step-by-step guide and takes one piece of information on one page. A copy of your XML file is sent to your email address. Save the XML file to your desktop

STEP-2 - Visit the official website of the Income Tax Department of the Government of India. Register/create an account using your PAN card; login to your account and click on the option of E-Filing.

STEP-3 - Upload the already generated ITR XML file on the website.

STEP-4 - An acknowledgement receipt called ITR Form-V would be generated; Download and print ITR-V; sign it at specified places; and mandatorily mail it to “Income Tax Department – CPC, Post Box No.1, Electronic City Post Office, Bangalore – 560100, Karnataka” within 120 days of e-filing.

STEP-5 - Receive confirmation from the IT Department, acknowledging the receipt of ITR-V. This is your final acknowledgement that concludes your e-tax filing.

Note:

i) Before you start e-fling your returns, ensure site is a secured site. Also, check the trust worthiness of the site you choose to prepare your income tax return.

ii) If you miss submitting your ITR-V within 120 days, your e-filing will be considered as null and void; it means that it will be considered that you have not yet filed your return. In such a case you will have to file revised return, get a new ITR-V and submit the same within 120 days.

iii) Digital Signature – It is an ‘electronic signature’ that is used to authenticate the identity of the sender of the e-tax document (to the IT Department). However, tax returns can be filed online without digital signature. In such a case, since the e-return one files is not signed, a unique form called ITR-V is to be additionally submitted to the IT department along with your e-filed returns.

iv) ITR-V – It stands for ‘Income Tax Return – Verification’ form. This form is received when you e-tax file without using a digital signature; Income Tax Department needs to verify the legitimacy of the ITR when filed online without using a digital signature. On receipt of ITR-V you have to sign the copy (at specified places) and mandatorily submit to the IT Department to complete the e-filing process (as explained above).

v) E-Refund – It is refund process carried out electronically. The details of refund (if any) are filled up online in a prescribed form. After approval of refund request by the concern authority, the refund amount will credited to your bank account. Refunds are only allowed if you file your return on time.

Dos and Dont's for printing and submitting of ITR-Vs to ITD-CPC Bangalore

1. Please use Ink Jet /Laser printer to print the ITR-V Form.
2. Avoid printing on Dot Matrix printer.
3. The ITR-V Form should be printed only in black ink.
4. Do not use any other ink option to print ITR V.
5. Ensure that print out is clear and not light print/faded copy.
6. Please do not print any water marks on ITR-V. The only permissible watermark is that of "Income tax Department" which is printed automatically on each ITR-V.
7. The document that is mailed to CPC should be signed in original in BLUE INK.
8. Photocopy of ITR-V will not be accepted; Photocopy of signatures will not be accepted.
9. The signatures or any handwritten text should not be written on Bar code.
10. Bar code and numbers below barcode should be clearly visible.
11. Only A4 size white paper should be used.
12. Avoid typing anything at the back of the paper.
13. Perforated paper or any other size paper should be avoided.
14. Do not use stapler on ITR V acknowledgement.
15. In case you are submitting original and revised returns, do not print them back to back. Use two separate papers for printing ITR-Vs separately.
16. More than one ITR-V can be sent in the same envelope.
17. Please do not submit any annexures, covering letter, pre stamped envelopes etc. along with ITR-V.
18. The ITR-V form is required to be sent to Post Bag No.1, Electronic City Post Office, Bengaluru, Karnataka-560100, by ordinary post or speed-post within 120 days of e-filing on the Income Tax Department website

ITR-Vs that do not conform to the above specifications may get rejected or acknowledgement of receipt may get delayed.

Filing your income tax return will be easier this financial year (FY) 2009-10. Want to know how? Read on.

Union Finance Minister Pranab Mukherjee on 26^th Feb, 2010 presented the Annual Budget, proposing simplifying the task of filing IT returns for individuals. Following which, Central Board of Direct Taxes (CBDT) has notified the New ITR-1 form applicable for FY 2009-10 (Assessment Year 2010-11).  The format is easier, reader-friendly and is in itself a do-it-yourself guide for taxpayers. Let’s take a look at the amended changes and what it means to individuals:

1. Who it affects and who doesn’t

• Who can use ITR-1. Individuals whose total income includes:
  • Income from Salary/Pension;
  • Income from One House Property (excluding cases where loss is brought forward from previous years);
  • Income from Other Sources (Excluding Winning from Lottery and Income from Race Horses);
  • Cases where the income of spouse, minor child, etc. is to be clubbed with the income of the assessee, SARAL-II form can be used – but only if the income being clubbed falls into the above income categories.

• Who can not use ITR-1. Individuals whose total income includes
  • Income under the head “Capital Gains” not exempted from tax, such as short-term capital gains or long-term capital gains from sale of house, plot, etc.;
  • Income from more than one house property;
  • Income/Winnings from Lottery and Income from Race Horses;
  • Income from agriculture in excess of Rs. 5,000;
  • Income from Business or Profession.

2.    Income from one House Property has now been included into ITR-1 (the new form), which was not the case earlier. In the previous form, an individual having income under the head ‘House Property’, was required to fill in a different form (ITR-II), which required more information and details to be filled in.

3.    Incomes from Other Sources has now been covered under the new ITR-1 – which includes interest income and family pension.

4.    No document needs to be attached to the new ITR-1 form, making it less-paperwork.

5.    Manner of filing this Return Form – TT has notified that the return form can be filed with the IT department in any of the following ways:

(i)    By furnishing the return in a paper form;
(ii)    By furnishing the return electronically under digital signature;
(iii)    By transmitting the data in the return (as II above) and thereafter submitting the verification of the return in Return Form ITR-V (released along with SARAL-II form).
(iv)    By furnishing a Bar-coded return.

For further details, you may visit www.incometaxindiaefiling.gov.in.

Conclusion: At the outset, the new ITR-1 form is chiefly useful for individuals having income from salary, one house property (excluding loss brought forward from previous years), and income from other sources (excluding winning from lottery and race horses). The form also allows filling in details regarding Advance Tax and Self-Assessment Tax transactions reported through Annual Information Return (AIR). It is less-cumbersome in the sense that there are fewer details that need to be filled (unlike past forms).

Choosing the right ITR form for your Income Tax return filing can be quite confusing. We demystify the ITR forms and all the jargon associated with it. Keep it handy for your returns in 2010.

Every individual whose total income before allowing deductions under Chapter VI-A of the Income-tax Act, 1961 exceeds the maximum exemption limit, is obligated to furnish his return of income. 

All sources of income are categorised into 5 heads under the IT Act –

I) Income from Salary;

II) Income from House Property;

III) Income from Capital Gains;

IV) Profits or Gains of Business of Profession; and

V) Income from Other Sources.

The source(s) of income will decide the type of ITR form to be used by the assessee.

Earlier this month, the government has released improved ITR forms that need to be used for filing one’s tax returns. Let’s understand the types of ITR forms available -

[A] On the basis of source(s) of income:

ITR-1: Recently upgraded as SARAL-II, it is to be used by an individual having –

i) Income from Salary/Pension; and/or

ii) Income from ‘only 1’ House Property (Excluding - cases where loss is brought forward from previous years); and/or

iii) Income from Other Sources (Excluding – Winnings from lotteries and horse races).

Note: In case income from the above sources (of the individual’s spouse, minor child) needs to be clubbed, the same can be done in ITR-1 itself.   

The new ITR-1 (SARAL-II) requires minimal paperwork as no document needs to be attached with the form.

ITR-2: It is to be used by an individual and HUF having –

i) Income from Salary/Pension; and/or

ii) Income from ‘more than 1’ House Property; and/or

iii) Income from Other Sources; and/or

iv) Income from Capital Gains

ITR-3: It is to be used by an individual and HUF who is a partner in a firm.

ITR-4: It is to be used by an individual and HUF having profits/gains from business/profession.

ITR-5: It is to be used by a partnership firm, Assocation of Persons (AOP), Body of Individuals (BOI), Artificial Judicial Person (AJP), Co-operative Society or local authority.

ITR-6: It is to be used by a company.

ITR-7: It is to be used by Trusts and Non-Profit Organizations.

Other Returns

• ITR V: Where the data of the Return of Income in Forms Saral-II (ITR-1), ITR-2, ITR-3, ITR-4, ITR-5 & ITR-6 is transmitted electronically without digital signature.
• Acknowledgement Form: It is issued by Income Tax Department as acknowledgement copy for filing return (s).

[B] Types of Income Tax Returns (on the basis of time of filing):

• Loss Return: A loss return is filed in case of loss from business/profession and/or capital gains. A loss return must be filed within the due date of filing tax return, otherwise it is not allowed.
• Belated Return: An IT return not filed within the relevant due date is called a ‘belated return’. A belated return can be filed earlier of the below 2 –

a) Within 1 year from the end of the relevant Assessment Year (AY); or

b) On completion of assessment

• Revised Return: A ‘revised return’ is one which has been rectified of errors/mistakes made while filing the original IT return. Any mistake/error is the original return must be rectified and submitted by the earlier of the below 2 –

c) Within 1 year from the end of the relevant Assessment Year (AY); or

d) On completion of assessment

• Defective Return: A defective return is one in which there are mistakes, errors and/or incomplete filing.

If the AO (Assessing Officer) feels that there are mistakes, omissions and other defects in the original return filed, he may send back such a return to the assessee (tax payer) to rectify the defects. The assessee needs to make the necessary updates and re-file the same within 15 days of receipt of defective return. Else, it will be deemed to be not submitted at all by the AO.

Note: If the assessee re-files the defective return after the stipulated time of 15 days but before the completion of assessment, the AO can treat the amended return as a valid one.

   

The author Priya Rao is a CFP certified financial planner

Gratuity is one of the least understood components of salary. InvestmentYogi explains everything about Gratuity and the tax implications for you.

Gratuity is a part of salary that is received by an employee from his/her employer in gratitude for the services offered by the employee in the company. Gratuity is a defined benefit plan and is one of the many retirement benefits offered by the employer to the employee upon leaving his job. An employee may leave his job for various reasons, such as - retirement/superannuation, for a better job elsewhere, on being retrenched or by way of voluntary retirement.

Eligibility

As per Sec 10 (10) of Income Tax Act, gratuity is paid when an employee completes 5 or more years of full time service with the employer.

How does it work?

An employer may offer gratuity out of his own funds or may approach a life insurer in order to purchase a group gratuity plan. In case the employer chooses a life insurer, he has to pay annual contributions as decided by the insurer. The employee is also free to make contributions to his gratuity fund. The gratuity will be paid by the insurer based upon the terms of the group gratuity scheme.

Tax treatment of gratuity

The gratuity so received by the employee is taxable under the head ‘Income from salary’. In case gratuity is received by the nominee/legal heirs of the employee, the same is taxable in their hands under the head ‘Income from other sources’. This tax treatment varies for different categories of individual assessees. We shall discuss the tax treatment of gratuity for each assessee in detail.

For the purpose of calculation of exempt gratuity, employees may be divided into 3 categories –

(a) Government employees and

(b) Non-government employees covered under the Payment of Gratuity Act, 1972

(c) Non-government employees not covered under the Payment of Gratuity Act, 1972

In case of government employees – they are fully exempt from receipt of gratuity.

In case of non-government employees covered under the Payment of Gratuity Act, 1972 – Maximum exemption from tax is least of the 3 below:

(i) Actual gratuity received;

(ii) Rs 350,000;

(iii) 15 days’ salary for each completed year of service or part thereof

Note:

• Here, salary = basic + DA + commission (if it’s a fixed % of sales turnover).
• ‘Completed year of service or part thereof’ means: full time service of > 6 months is considered as 1 completed year of service; < 6 months is ignored.
• Here, number of days in a month is considered as 26. Therefore, 15 days’ salary is arrived as = salary * 15/26

In case of non-government employees not covered under the Payment of Gratuity Act, 1972 – Maximum exemption from tax is least of the 3 below:

(i) Actual gratuity received;

(ii) Rs 350,000;

(iii) Half-month’s average salary for each completed year of service (no part thereof)

Note:

• Here, salary = basic + DA + commission (if it’s a fixed % of sales turnover).
• Completed year of service (no part thereof) means: full time service of > 1 year is considered as 1 completed year of service. < 1 year is ignored.
• Average salary =10 months’ salary (immediately preceding the month of leaving the job)/10

Illustration

Let’s understand the above math clearly with an example:

Varun had been working with an IT company since past 10 years, 7 months. He is retiring on 15^th April, 2010. His current Basic = Rs 40,000 pm, DA = Rs 5,000 pm. He is going to receive a gratuity amount of Rs 3 lakhs on retirement. Note: Varun’s basic and DA have been the same since past 1 year.

Lets consider 2 situations here – (a) Varun’s employer is covered under Payment of Gratuity Act, 1972; and (b) Varun’s employer is not covered under Payment of Gratuity Act, 1972.

• Salary = Basic + DA = Rs 40,000 pm + Rs 5,000 pm = Rs 45,000 pm
• Average salary = 10 months’ salary (immediately preceding the month of leaving the job)/10 = (Rs 45,000 pm * 10)/10 = Rs 45,000 pm. Therefore, half-month’s average salary is = Rs 45,000/2

Important points to remember

• Generally, only government employers give DA to their employees. Above example is only for illustrative purpose.
• The salary of the employee may differ over a period of time on account of change in basic, DA and/or other factors.
• In case gratuity is received from more than one employer during the previous year, maximum exemption allowed is up to Rs 350,000.
• Where employee has already claimed gratuity exemption in any previous year (s), the maximum exemption amount allowed for the current previous year i.e. Rs 350,000 will be reduced by the amount of deduction already claimed in the previous years.
• In case of an employee who is employed in a seasonal establishment ( not employed throughout the year), the gratuity exemption shall be for seven days wages for each season.

The author, Priya Rao, CFP^CM, is a financial planner

Relates articles

Best Tax Saver Mutual Funds

Tax Planning

Section 80C

Financial Planning    

Useful financial calculators

Retirement Corpus Calculator

Home Loan Affordability Calculator

Doubling of Money Calculator

Below are the income tax slab rates for FY 2009-10 (corresponding to Assessment Year 2010-2011):

(a) Male assessees (< 65 years of age):

(b) Female Assessees (< 65 years of age):

(c) Senior Citizens (> 65 years of age):

Let’s take an example to clearly understand the tax calculation. – Vikky, 30, is a Marketing Manager employed at XYZ with taxable income of Rs. 9,90,000. As per the tax slab, his tax liability (including education cess of 3%) would come to Rs. 2,07,030 for FY 09-10.

Instead of paying such high amounts in tax, one can claim various deductions under Chapter VI A and reduce the net taxable amount. This way one can invest as per his/her financial goals and save on taxes too.

Let’s continue the same example to see how much amount can be saved in taxes by investing in tax saving instruments under Chapter VIA.

Let’s assume Vikky had bought a mediclaim insurance policy in FY 2009-10 (insurance premium Rs 10,000 p.a). He has also invested in PPF for Rs 40,000, term life insurance policy (insurance premium Rs 25,000; annual), ULIP (premium Rs 26,000; annual), tax saving mutual fund (amount invested in FY 2009-10 is Rs 50,000), pension plan of mutual fund PQR (contribution for FY 2009-10 is Rs 25,000).

From the above, you can see that Vikky has invested a total of Rs 1,66,000 in various tax saving products for FY 2009-10 apart from the contribution to mediclaim insurance policy. As per the tax slabs for FY 2009-10, he can claim a maximum of Rs 1 lakh tax deduction with Sec 80C, Sec 80CCC (contribution to pension funds) put together and up to Rs 15,000 p.a. for payment towards medical insurance premium paid towards policy for self. Therefore, under Sec 80C and Sec 80CCC he gets a deduction of Rs 1 lakh and under Sec 80D he gets a deduction of Rs 10,000. Claiming the total tax deduction of Rs 1,10,000, his net taxable income reduces to Rs 8,80,000. Hence, his tax liability is reduced to Rs 1,73,040 – a saving of Rs. 33,990, which can be directed towards other investments/financial commitments.

The above is a simple example of saving in taxes through investments in government approved schemes. You can click here to know more about the tax saving options available for FY 2009-10.

Note:

1. Surcharge of 10 % on income tax is not applicable from FY 2009-10.

2. Below is the brief list of documents required for filing IT returns -

Documents Required for Salaried individuals with/without interest income:

1. Form 16, salary certificate

2. Receipt of investments made

Documents Required for House Property Income:

1. Rental income details (rental receipts, bank statements)

2. Municipal tax/property tax payment receipts

3. Interest certificate for loans

Income from capital gains:

1. Proof of sale

2. Proof for ‘cost of acquisition’ and ‘cost of improvement’

3. proof of purchase of original asset

Income from Business/profession

1. Financial statements

2. Audit report/certificate (if required)

3. In case of salaried class, you may consider availing reimbursements from your employer and take maximum advantage of the same. A person in lower tax slabs can reduce his tax liability with exemptions alone.

Click here for the tax calculator

Calculate your taxes for the return to be filed this year as per the existing income tax slabs

We all know the numbers on the CTC (Cost To Company)but the take home is vastly different. This is mostly due to one single component- Taxes. Taxes are applicable on most aspects of our salary. There are limited ways we can save on taxes by way of deductions- Most used sections under the IT Act, 1961 are- 80C, 80D, 80G and Sec 24.

But, did you know we can save much more on taxes by structuring our salary better? 

Let us consider a few components which can be used to reduce the tax liability on our salary income:-

1. Allowances/ Reimbursements- Allowances are normally paid irrespective of the employee actually incurring them. These are fully taxable if no bills are provided. However, if the expenses are incurred actually and bills provided, they are not taxable up to a specified limit under each head.
2. Conveyance: For conveyance, up to Rs.800 per month is allowed as deduction without providing any bills.
3. Medical Allowance: Bills have to be provided; up to Rs.15,000 per annum is allowed as deduction. This can be claimed for self, spouse, children, parents and siblings who are dependent on the assessee.
4. Leave and Travel Allowance:2 trips in a block of 4 years is allowed and only travel within India can be claimed as deduction. It can be claimed for self, spouse, children, parents but only if the employee (assessee) is travelling along with them. There is no maximum limit on this, but the unutilized amount will be paid once the block is completed (after deducting taxes).
5. Education Allowance: An amount of up to Rs.2,400 per annum is tax-free.
6. Qualification Allowance: An amount of Rs.24,000 per annum is tax-free.
7. Training Allowance: An amount of up to Rs.14,000 per annum is tax-free if the employee provides relevant bills.
8. Telephone Allowance: An amount of Rs.12,000 per annum is tax free if the phone is used for official purposes and bills submitted.
9. HRA: House Rent Allowance can be claimed if one lives in a rented premises and the rent exceeds 10% of the salary. The actual HRA exempted from tax is least of the following:

• The actual amount of HRA received.
• 40% of salary. This increases to 50% if you are renting out the house in Delhi, Mumbai, Chennai or Kolkata
• Rent paid minus 10% of salary (basic component + dearness allowance)
• Salary for the purpose of HRA means: Basic + D.A (only if it is forming part of salary for retirement benefits) + commission (if it’s a fixed % of sales turnover).

Example: Mr.Raj is an employee with a CTC of Rs.8 lakhs p.a. for FY (Financial Year) 2009-10. The difference in his tax liability is illustrated below:

Salary structure 1:

Tax calculation  1:

Existing tax slab for Assessment Year 2010-11:

Salary Structure 2

Tax calculation 2

So next time you are changing your job or negotiating salary with HR please keep the salary structure in mind and try to get it optimized. Right salary structure can save a lot of tax in addition to the deductions available.

The author Lovaii Navlakhi is a Certified Financial Planner, Managing Director of International Money Matters Pvt. Ltd.

InvestmentYogi: Tells you all about Income Tax section 80C and various investment options and deductions available in easy to understand graphical format

As the end of financial year approaches investors are suddenly woken up to the existence of Income Tax department. If you haven’t done the tax planning in advance then this is the time to carefully select the investment products under section 80C. A wise investment will not only lessen the tax burden but also give some good returns.

What is Section 80C?

Under section 80C of the Income Tax Act, certain investments are deductible (up to a maximum of Rs 1 lakh) from gross total income. This tax exemption is available across individual tax slabs. If you earn Rs 4 lakhs per annum and make investments of Rs 1 lakh in 80c instruments then the taxable amount will be Rs 3 lakhs. It is not at all complicated and the following chart simplifies even more.

Fixed Income instruments, which offer fixed returns, are suitable for risk averse investors who want to protect their investment from the uncertainties of the market. All these instruments are backed by the Government and hence they are risk free. But the returns may just  beat the inflation and you should not expect any meaningful appreciation in investments. Per annum returns will vary from 6% to 10% depending upon the instrument you choose.

Market Linked: Market linked products are ELSS (Equity Linked Saving Scheme) and ULIPs (Unit Linked Insurance Plan). These instruments invest the money in equities (Except some debt based ULIPs) and hence there is an inherent market risk. However it has been seen that over a long period return from equities beat inflation by a comfortable margin and create wealth for the investor.

ELSS is similar to mutual fund except that it has a lock in period of 3 years. The money is invested into diversified stocks by a fund manager/AMC. On the other hand ULIPs are a form of life insurance where a part of the premia is invested into equity or debt market (or combination of two). ULIPs usually have longer lock-in periods.

ELSS: ELSS has some advantages over other investments and people with moderate to high risk appetite should consider them seriously. Some key features of ELSS are:

· Lock-in period of 3 years.

· SIP (Systematic Investment Planning) available

· Diversified equity investments

· Different funds for different risk profiles in terms of exposure to large cap, mid cap and small cap

· Dividend paid out is tax exempt

· At maturity the proceeds are exempt from long term capital gains tax

Here is the list of best ELSS (Tax Saving Mutual Funds)  to invest this financial year.

To sum up

Section 80C benefit has been provided to encourage long term savings and investments. You should choose a combination of fixed income and market linked investments depending on your age and risk profile. For example if you are in your 20s, give a higher allocation to ELSS whereas if you are nearing retirement, concentrate more on fixed income investments.

But remember that Investment is to be done keeping your overall financial situation and future goals. Tax advantage is just an add-on benefit. Never make investments just for saving tax.

InvestmentYogi: Offers complete financial planning, tax planning and online tax filing services.

Related Articles

Investing in Infrastructure Bonds (section 80CCF)

Investment Planning

National Saving Certificates (NSC)

Insurance Planning

Useful Financial Calculators

Tax Calculator

Retirement Corpus Calculator

Insurance Calculator

SIP Calculator