Saturday, August 1, 2015

[aaykarbhavan] Judgments and Infomration [1 Attachment]







Why exhausting Rs 1,50,000 under Section 80C makes for a good idea

ClearTaxBy ClearTax Team | ClearTax – Thu 23 Jul, 2015 6:51 PM IST
How much income taxes you pay to the government depends on the income you have earned throughout the year. Your income is not only limited to your salary, but could also earn from several other sources, like say — a house property, profit or loss from selling stocks or from interest on a savings account or on fixed deposits.
Investments and expenses made under Section 80C can bring down your gross income by Rs 1,50,000. This, in turn, can lower your taxes considerably — so much that it could move you down one income tax slab.  This means that you may have to pay only 10% tax instead of 20%.
Here's an example:  Radha makes about Rs 5,50,000 per annum and has invested Rs 20,000 in ELSS and Rs 36,000 in PPF.  She also contributes to the provident fund.
Let's calculate her taxes without taking Section 80C deductions into consideration. Her taxable income is Rs 5,50,000. Her gross tax comes up to Rs 36,050.
Now, let's take her Section 80C investments into consideration – Rs 36,000 in PF and PPF and Rs  20,000 in ELSS. A total of Rs 92,000 has to be deducted from Radha's gross income under section 80C. Her taxable income now is Rs 4,58,000 and gross tax is little under Rs  20,000.
Radha has almost halved her taxes with investments under Section 80C. Find out how the Section 80C deductions can change your income taxes with our income tax calculator.
Thinking of ways to exhaust the Rs 1,50,000 under Section 80C? Start with the expenses that can be claimed as a deduction. Section 80C not only encourages investments in savings schemes but also offers tax relief on some of your expenses.
  1. Check your PF balance. Your provident fund contribution accumulated over the years itself might add up to a sizeable amount. This is covered under the Rs 1,50,000 limit.
  2. Are you paying off home loan? Your principal repayment for this year can be claimed as a deduction.
  3. Do you have children who go to school or college? Get their fee receipts and add it. (This also includes play school, preschool)
  4. Are you planning to buy a house this year? Expenses related to stamp duty and registration charges can be deducted under Section 80C.
  5. Are you making life insurance premium payments? Claim the premium payments too. The only condition is the premium must be less than 10% of the sum assured.
Add them up. Rs 1,50,000 – (1+2+3+4+5) = Amount left for investments under Section 80C.
Now you may begin thinking about tax-saving investments with what's left of the remaining amount.
This article is by ClearTax (www.cleartax.in), where Individuals and Businesses can e-File their I-T Returns online.

The same thing applies to Shareholder case .

What to do if a company FD holder dies?

Apr 2, 2015, 01.48PM IST
( To avoid uncomfortable…)
By Anil Chopra - Group CEO & Director, Bajaj Capital
Death is a certainty. If a company fixed deposit holder dies before the maturity of the FD, it becomes the duty of his survivors to claim the money. Here is how you can overcome that situation:
Fixed deposits are a popular investment option, especially among the retired citizens who live on regular income. To avoid uncomfortable situations and running around, investors and their family members should be aware of the claim process in case of death of the deposit holder.
Death is a certainty and to avoid inconvenience of the cumbersome process of claiming maturity proceeds of a fixed deposit, it is advisable to take care of this aspect right at the time of investing in a fixed deposit. But before that, let's understand the different options and the consequences, in which a fixed deposit investment can be held.
MODE OF HOLDING
Joint holding with 'Anyone or Survivor' option
This is the most preferred and convenient option for ensuring that survivors do not have to face any problem in claiming the deposit amount on maturity. If the first holder or the joint holder dies, the surviving holder has to inform the company about the same and submit a copy of death certificate. On receipt of the same, the company will delete the name of the deceased deposit holder and the surviving person shall receive the proceeds on maturity. Please note that deposit does not become payable to the surviving depositor on the date of death itself.
Joint holding with 'Either or Survivor' option
Under this option, if the first holder dies, then the survivor can claim the deposit amount on maturity by following the same procedure as explained above. However, if the second holder dies, the first holder can request the company to delete the name of the deceased joint holder and replace it with another name of his choice.
Joint holding with 'Joint Holding' option
Under this option, deposit proceeds will be paid to the first holder only when both the joint depositors sign on the FDR as discharge of the same. However, in case of death of one of the joint depositors, the surviving depositor will be entitled to receive the proceeds by following the same procedure as explained above.
Singleholding with 'Nomination' option
In case the deposit is held in a single name and one or more persons are nominated to receive the proceeds in unfortunate event of death of single depositor, the maturity proceeds will be paid to the nominee(s) as a Trustee(s) of the depositor. In case the single depositor has made a separate Will for settlement of his assets, the nominee(s) will be bound to honour that.
Single holding without 'Nomination' option
This is the most risky and avoidable option as in case of unfortunate death, the survivors or the heirs of the deceased investor will have to complete several cumbersome formalities, like producing a Will or a Succession Certificate to claim the deposit amount.
Taxation
The maturity proceeds will not be taxed in the hands of the final recipient as there is no estate duty in our country as per the current tax laws in force. However, the interest amount if any will be added to the recipient's income and will be taxed accordingly.


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Posted by: Dipak Shah <djshah1944@yahoo.com>


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