Invest Smartly, Save Tax

Income tax return needs to be filed for the income earned by the person during the financial year. But, if case the person is deceased, the income tax needs to be filed by the legal heir/representative. What is the process for legal hair registration under Income Tax? How to file ITR of deceased individual? Get all answers here. Who is Legal Heir? Legal heir will be considered as assessee and is required to obtain legal heir certificate. Parents, spouse, siblings and children of the deceased person are considered as legal heirs. What are the documents required for registering as legal heir? Death certificate PAN card of deceased Pan card of legal heir Legal heir certificate An affidavit in presence of Notary public What can be considered as Legal Heir Certificate? Legal heir certificate issued by Court of Law and Local Revenue Authorities Certificate of existing family members issued by Local Revenue Authorities Registered W...

Loans and tax deductions go hand by hand. Loans are a liability for any consumer but at the same time, some tax rebates are available for some loans. These range from education loans to car loans to home loans and personal loans. Today, we discuss about tax exemption available for car loan interest paid by you. Tax Exemption for Car or Auto Loans As cars come under luxury items and as such no tax benefits are available to the consumers who have purchased car or auto on loan. Thus, car loans availed by individual consumers do not get any tax benefit. However for commercial car, vehicle and equipment loans, tax deduction is available. Tax Exemption for Cars used for Business When you take out loan on a vehicle for use in your business, the interest you pay is considered as a business expense. This implies that you can claim tax deduction for the proportion of business use of the vehicle. When the vehicle is used only for business, the calculation is very easy. For exampl...

What is Standard Deduction? Standard Deduction is the deduction allowed in income tax where no investment proofs or expense bills are required. It is given irrespective of expenses incurred. Standard Deduction from Salary The Interim Budget presented on February 2019 and included various tax benefits for salaried and middle class. The standard deduction has been raised to Rs. 50000, an additional amount of Rs. 10000. The taxable salary comes down thanks to the standard deduction. Let’s understand this with the help of an example: Particulars AY 2019-2020 AY 2020-2021 Gross Salary Rs. 600000 Rs. 600000 Transport allowance Nil Nil Medical allowance Nil Nil Standard Deduction Rs. 40000 Rs. 50000 Net Salary Rs. 560000 Rs. 550000 Benefits The standard deduction favors salaried individuals in two ways. First, the income tax liability is reduced and second, p...

There are many times when one feels the need for money for personal reasons. Personal Loan is availed by users for any purpose. Though it is an unsecured loan where no asset is mortgaged but still many banks and lenders give you the loan. Here, we discuss about the various factors that determine the eligibility for personal loan: Income The first thing that is considered by the bank is your income level. Most banks ask for income of upwards of Rs. 18000 per month while some consider only above Rs. 25000 per month. Professional Whether you are a salaried employee or are a business, your loan eligibility differs. Salaried income is considered as safest while self employed professionals like doctors, CA, CS, architects are also safe. You should also need to have ITR of at least two years. Credit Score Your credit score is an important parameter for personal loan eligibility. Where the CIBIL score is above 600, the person is considered as sufficient to qualify for per...

Mutual funds are one of the popular types of investment options available. Traditionally, Indians have the tendency to invest in such schemes that offer a guaranteed rate of returns such as fixed deposits, PPF and SCSS . They are considered as the safest investment but at the same time, they reap a lower rate of return as compared to other investments. Investment in Mutual Funds requires you to ascertain the safety of money. The company or institution where you invest money is the key factor. Here, we discuss about the key factors that you need to consider when it comes to mutual fund investment: Are all Mutual Funds Same? No, there are more than 7000 mutual funds being offered by different institutions and they come with different objectives. Some invest in stocks, some in bonds and some in other investments. The pool savings by a number of investors are managed by Asset Management Company and this money is then invested in securities according to the investment objective. ...

Education Loan is a popular type of loan that helps to finance higher studies and at the same time, it can also save a lot of tax. Education loan includes loan taken for higher education including tuition fees for the course, expenses towards travel, lodging and other expenses towards study material as well. Here’s an overview of deduction for repayment of Interest on education loan. Who can Claim Deduction? Deduction under Section 80E of Income Tax Act can be claimed for loans taken by: For self Spouse Children of assessee including adopted children For student of whom assessee is the legal guardian The deduction can be claimed by individual who has availed the loan and is responsible for repaying the same out of his income. What is the Deduction Amount that can be claimed under Section 80E? The deduction amount that can be claimed under Section 80E is equal to the interest amount paid of loan taken for higher education. There’s no upper lim...

Here, we try to answer all your queries related to the very popular retirement scheme, National Pension System or NPS. How Can I Open NPS? One can open an NPS account with entities called Point of Presence (POP). Most of the banks and some financial institutions are enrolled as POPs. You can access them via PFRDA website. https://www.npscra.nsdl.co.in/pop-sp.php What is the minimum and maximum age for opening NPS? One who ages between 18 to 65 years is eligible to reap its benefits. What are the documents required? Subscriber registration form Proof of identity Proof of address Can I open more than one account? No. What are Tier I and Tier II Accounts? Tier I is the primary account where no withdrawal is permitted till the age of 60 years while the Tier II gives you the flexibility to withdraw funds at any point of time. Is it mandatory to open Tier II NPS account? No. What is the minimum contribution required? Rs. 6000/- in ...

For retirement planning, one of the best and safe options is to invest in National Pension System. It provides reasonable market returns and is a good choice for securing your hard-earned money for later years of your life. NPS is based on unique Permanent Retirement Account Number (PRAN) and is allotted to every subscriber to NPS. Who Can Open An NPS Account? Any citizen of India between the ages of 18 years to 65 years can open an NPS account. The applicant needs to be KYC compliant and should have an existing NPS account. You need to have an active mobile number, email ID and bank account. What are the Different Types of NPS accounts? Tier I: Contributions made in this account are eligible for additional tax benefit of up to Rs. 50000/- under Section 80CCD. This is in addition to the standard deduction available under Section 80C of Rs. 150000/-. Tier II: One can also choose to invest additional amount in Tier II of NPA account. The benefit of this investmen...