Capital Gains Tax

At the time of Sale of any Asset, tax is liable to be paidon the gains earned on the sale of Asset. Such Gains could either be Short Term or Long Term. The Clssification for the same for Assets other than Shares and Mutual Funds are as follows,

1. Short Term Capital Gain (STCG): If the Asset is held for less than 36 Months
2. Long Term Capital Gain (LTCG): If the Asset is held for more than 36 Months

Classification for Sell of Shares or Mutual Funds:

1. Short Term Capital Gain (STCG): If the Asset is held for less than 12 Months
2. Long Term Capital Gain (LTCG): If the Asset is held for more than 12 Months

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Income Tax Slab for year 2013-14

This is an easy to use table of the latest income tax slab rate for individuals for year 2013-2014. It is per union budget 2013-2014 presented on 28 February 2013.

India Income tax slabs 2013-2014 for General tax payers and Women

Income tax slab (in Rs.)	Tax
0 to 2,00,000	No tax
2,00,001 to 5,00,000	10%
5,00,001 to 10,00,000	20%
Above 10,00,000	30%

India Income tax slabs 2013-2014 for Senior citizens (Aged 60 years but less than 80 years)

Income tax slab (in Rs.)	Tax
0 to 2,50,000	No tax
2,50,001 to 5,00,000	10%
5,00,001 to 10,00,000	20%
Above 10,00,000	30%

India Income tax slabs 2013-2014 for very senior citizens (Aged 80 and above)

Income tax slab (in Rs.)	Tax
0 to 5,00,000	No tax
5,00,001 to 10,00,000	20%
Above 10,00,000	30%

- In addition an rebate of Rs 2000 will be available for income less than Rs 5 lakhs.
- Income above 1 crore to attract 10% tax surcharge.

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Section 80c of Income Tax

Section 80C of the Income Tax Act allows certain investments and expenditure to be deducted from total income up to the maximum of Rs 1,00,000.

• Contribution to approved superannuation fund/public provident fund/recognized provident fund/statutory provident fund. Provident fund contribution should not exceed 1/5th of salary & public provident fund.
• Payment of life insurance premium. It is allowed on premium paid on self, spouse and children even if they are not dependent on father or mother subject to a maximum of 20% of sum assured.
• Payment in respect of non-commutable deferred annuity.
• Unit linked Insurance policy of UTI/LIC.
• Subscriptions to National Savings Certificates VIII issues.
• Deposits with National Housing Bank.
• Principal part of loan taken for acquiring Residential House Property; provided that the house should not be transferred within 5 years. Loan for land cost for residential house is also qualified.
• Subscriptions to schemes of PSU's providing long term finance for housing, or of housing boards constituted in India for infrastructural development of cities/towns.
• Notified annuity plan of LIC or of any other approved insurer.
• Units of Mutual Fund or UTI.
• Notified pension fund by UTI or approved mutual fund.
• Tuition fees (not including donation or development fees) towards full-time education including play-school activities, pre-nursery & nursery classes, of any 2 children of an individual, paid to University, College or School in India.
• Investments in shares or debentures with a lock-in-period of 3 years, of approved public company exclusively engaged in infrastructure facility or power sector.
• Subscription to the bonds issued by NABARD as specified by Central Government.
• Any sum deposited as 5 years time deposit under Post Office Term Deposit.
• Any sum deposited in Senior Citizen Savings Scheme.
• Any sum deducted from salary of Government employee (subject to maximum 20% of salary) towards deferred annuity plan for benefit of self, spouse or any children.
• Term deposit with scheduled bank for a period of not less than 5 years as per scheme notified by Central Government.
• Investing in units of notified mutual fund investing in approved public companies engaged in infrastructure facility or power sector.

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Income Tax Return in 16 Simple Steps

1. Access the income tax website http://www.incometax-india.gov.in/ and click on ‘File Returns Online’ and then ‘Income Tax Return' 
2. Download the preparation software for the relevant return form under ‘Downloads’. You can save the zipped file and extract the return file.
3. Fill out all the particulars in the downloaded software and validate entries by clicking on ‘Validate’ on the last sheet. Access the ‘Generate XML’ link; save the generated XML file. 
4. Register on the IT Department website (mentioned above). 
5. Enter your PAN, name, father’s name, date of birth, e-mail address and contact number.
6. You will receive an automated link on your registered e-mail ID. Click on it to activate your account. 
7. Your PAN is the user ID to access the link. Choose your password as per the specifications. 
8. Save the password for your future reference. In case of lost password, reset it with the help of your PAN and the secret question chosen during registration. 
9. If already registered, click on ‘Existing User’ login and keep your PAN and password handy. 
10. After logging into your account, select the relevant Assessment Year (2012-13) under the ‘Submit Return’ tab and upload the generated XML file (refer to Step 3) 
11. Acknowledgment in the form ITR-V is generated. The password to open it is your PAN followed by your date of birth. Save a copy. 
12. If your return was digitally signed, the process is over.
13. If your return was not digitally signed then, Take a printout of the generated ITR-V. 
14. Sign it in blue ink in the space provided. Send the signed acknowledgment via post within 120 days to the IT Dept - CPC, P.B. No. - 1, Electronic City Post office, Bengaluru - 560100.
15. Keep checking the receipt status on the site using the acknowledgment number on ITR-V. 
16. Once the ITR-V is received, check if the return has been processed by logging into your account.

This completes your return filing process....

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Tax Structure in India

Qus. : What are you doing?
Ans. : Business.
Tax : PAY PROFESSIONAL TAX!

2) Qus. : What are you doing in Business?
Ans. : Selling the Goods.
Tax : PAY SALES TAX!!

3) Qus. : From where are you getting Goods?
Ans. : From other State/Abroad
Tax : PAY CENTRAL SALES TAX, CUSTOM DUTY & OCTROI!

4) Qus. : What are you getting in Selling Goods?
Ans. : Profit.
Tax : PAY INCOME TAX!

Qus. : How do you distribute profit ?
Ans : By way of dividend
Tax : Pay dividend distribution Tax

5) Qus... : Where you Manufacturing the Goods?
Ans. : Factory.
Tax : PAY EXCISE DUTY!

6) Qus. : Do you have Office / Warehouse/ Factory?
Ans. : Yes
Tax : PAY MUNICIPAL & FIRE TAX!

7) Qus. : Do you have Staff?
Ans. : Yes
Tax : PAY STAFF PROFESSIONAL TAX!

8) Qus. : Doing business in Millions?
Ans. : Yes
Tax : PAY TURNOVER TAX!
Ans : No
Tax : Then pay Minimum Alternate Tax

9) Qus. : Are you taking out over 25,000 Cash from Bank?
Ans. : Yes, for Salary.
Tax : PAY CASH HANDLING TAX!

10) Qus.: Where are you taking your client for Lunch & Dinner?
Ans. : Hotel
Tax : PAY FOOD & ENTERTAINMENT TAX!

11) Qus.: Are you going Out of Station for Business?
Ans. : Yes
Tax : PAY FRINGE BENEFIT TAX!

12) Qus.: Have you taken or given any Service/s?
Ans. : Yes
Tax : PAY SERVICE TAX!

13) Qus.: How come you got such a Big Amount?
Ans. : Gift on birthday.
Tax : PAY GIFT TAX!

14) Qus.: Do you have any Wealth?
Ans. : Yes
Tax : PAY WEALTH TAX!

15) Qus.: To reduce Tension, for entertainment, where are you going?
Ans. : Cinema or Resort.
Tax : PAY ENTERTAINMENT TAX!

16) Qus.: Have you purchased House?
Ans. : Yes
Tax : PAY STAMP DUTY & REGISTRATION FEE !

17) Qus.: How you Travel?
Ans. : Bus
Tax : PAY SURCHARGE!

18) Qus.: Any Additional Tax?
Ans. : Yes
Tax : PAY EDUCATIONAL, ADDITIONAL EDUCATIONAL & SURCHARGE ON ALL THE CENTRAL GOVT.'s TAX !!!


19) Qus.: Delayed any time Paying Any Tax?
Ans. : Yes
Tax : PAY INTEREST & PENALTY!

20) INDIAN :: can I die now ??
Ans :: Wait, we are about to launch the funeral tax!!! 

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