Union Budget 2014 updates :-
- No changes in income tax rates.
- Increase personal tax exemption limit by Rs 50,000 i.e Rs 3,00,000 for senior citizens and Rs 2,50,000 for other than senior citizens.
- Increase limit of 80C from Rs 1,00,000 to Rs 1,50,000. Also increased the limit of PFF to Rs 1,50,000.
- House Loan interest limit for self occupied is increased from Rs 1,50,000 to Rs 2,00,000.
- Long term capital gain tax on debt fund increased to 20%.
- Fiscal deficit 4.3% and revenue deficit 2.9%
- No change in Service tax rate.
Some important points regarding Income tax:-
1. PRBS arrears received will be entitled for REFUND, as it is an arrear of previous year resulting a huge refund, even if your taxable income is in the previous year in highest slab.
2.Leave travel allowance is available for two journeys in a every block of four calendar years (like 2006-09, 2010-13) for self and family ( includes spouse, children and mainly dependent brother, sister, parents) permissible only if in the India. One unavail journey can be carry forward to next block.
3. House rent allowance is available, if you are staying in a rented house and actually expended & paid for it.
4. If you have more than one residential house, you can only show one house as a self-occupied house. The other houses will be deemed to be rented house.The annual value of the house will be let-out value.
5. Capital gain in respect of shares, mutual funds is exempt if STT is paid on it (already paid in mostly cases), If it is more than one year, otherwise short term gain.
6.House, land (agriculture/non-agriculture), building etc. is liable for capital gain tax. There are lot of exemption and tax planning is available for pre and post transactions.
7. Fixed deposit, RD, bonds, saving bank interest is liable for tax.
8. Show your exempt PPF interest, share dividend and other exempt income.
9. Spouse income is clubbed with transferor's income if directly transfer by assessee. E.g. If you transfer FD in your spouse name, the interest of the same is included in transferor's income.
10. Use judicial tax planning with the help of expert's advice. Use H.U.F., company, firm, spouse and children as a legitimate tax planning.
11. If income is above taxable limit you cannot submit Form 15G or 15H to bank, otherwise you may be penalise for wrong statement.
For further details visit our blog @
canitinmpathak.blogspot.in or call us on 9825804094
Regards,
CA Nitin M.Pathak
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