Can you tell me how I should bifercate my salary so that I can get maximum tax benefit. My Salary is 30000/- pm please me bifercation i.e. basic, D.A. Travelling Allowance. etc. and plese give me tax plannking, my LTA is 20000/- and Medical is Rs. 15000/-.
RE:Salary tax planning
by Amitabh on Jun 12, 2007 02:17 PM
Medical re-imbursement upto Rs 15000 is exempt.LTA,once in two years will be exempt if you travel to any place within India.The amount exempt will be the shortest route economy class airfare or the amount spent,whichever is less.Travelling allowance for travelling to office and back to residence is exxempt upto Rs 800 per month.Conveyance allownace to the extent used for official purposes is exempt from tax.Basic and DA are fully taxable.If you pay rent,plz also try to get a reasonable amount of HRA.
Sir,we are three brothers & after the death of our father in 1995,our ancestral agriculture land in Rural village in Delhi was transferred in our joint names in revenue records.Now we have sold the said land in October 2006 @ Rs50 lacs per acre & received Rs 60 lacs perhead by a/c payee cheques in our respective names.The rates of agriculture land in Delhi was Rs4.65 lacs per acre in 1995 as per govt notification which is increased to more than Rs 30 lacs presently.We could not purchase any suitable land till date & most of our sale proceeds are lying in our saving accounts.Kindly guide us about the best option we have for investment for tax saving purpose.Is there any capital gain burdon on us from the said sale proceeds & if yes how to tacle this problem.Thanks
I bought 100 units @ 10/- of a MF on 27/09/2005. The first dividend received on 28/09/2005 was reinvested 6 units@ 9.0/-. I sold the total 106 units @ 12.5/- on 18/10/2006. What would be the capital gain/ tax liability.
In the same example if it was a growth fund and the qty sold was 100 only @ say 13.5/-, what would be the capital gain/loss?
RE:Capital gain MF Div reinvest
by Amitabh on May 25, 2007 10:08 AM
There will be no capital gain tax liability in either case.The dividend is tax free in the hands of investor and the units have been sold more than a year after they were bought.Long term capital again on sale of equity shares/equity oriented units is exempt from tax.
I bought 100 units @ 10/- of a MF on 27/09/2005. The first dividend received on 28/09/2005 was reinvested 6 units@ 9.0/-. I sold the total 106 units @ 12.5/- on 18/10/2006. What would be the capital gain/ tax liability.
In the same example if it was a growth fund and the qty sold was 100 only @ say 13.5/-, what would be the capital gain/loss? A
To avail 80C deduction specifc amoun is invested in NSC. Accrued interest is taxed and deuction is further availed u/s 80C. Is the maturity amount(amount invested interest) taxfree or is to be taxed on maturity?
RE:NSC
by Amitabh on May 20, 2007 11:03 PM
Well right now,we are not into EET method of taxation.So at the time of maturity,the entire amount of principal is exempt from tax.Only that part of interest will be taxed which you have already not taken into account on accrual basis in the previous years.And as you are getting the money at the time of maturity,so there is no question of any deduction under sec 80C either.But there will be no tax on the principal amount received on maturity.But things may change in future if the government switches to EET(exempt-exempt-taxed)method whereby deduction will be allowed on investment and the amount will be taxed on maturity.
A director of company who is also director of foreign company, which has foreign equity with indian company, gets remuneration from indian company. He takes care of export of company in US. He is paid salary in US> His visit in India is less than 60 days. Should tax be deducted from salary in India
RE:tds on salary of director who is foreign national
by Amitabh on May 19, 2007 08:05 PM
The remuneration is being given by Indian company and that too for export of the products of this very company to the US.This is what I understand by your statement that he takes care of export of company in US.There seems a clear nexus of the operations in India with the salary of the director.So in my view it is income accrued in India and so should be taxed in india.However,if the salary does not pertain to operations in India,the same will not be taxed in director's hands even if he gets it from an Indian company.
RE:tds on salary of director who is foreign national
by Amitabh on May 19, 2007 11:50 PM
I 'll also like to add one more thing here.I said in the last sentence that if the salary does not pertain to indian operations,it will not be taxed in the hands of non resident director.however,if that salary is received in India,it will be taxable.Any income,if accrued or received in India by a non resident,will be taxable in India.
I got and agreement done for buying a plot of land in 7 months time by paying 25 % of the amount. As per the agreement I can buy the land or name someone who can buy it. If I name someone who wants to buy it how will the profit I receive from him be termed...capital gains or unaccounted money because I did not own the land and the profit is just for transferring the option to buy it to some one who is giving me a decent profit. Please help. I am an NRI and do not have any taxable income. Thanks.
RE:Capital gains on land.
by Amitabh on May 18, 2007 06:31 PM
Please remember that a right is also a capital asset.If you have purchase a right by paying some amount and later sell the right to someone and make a profit,it will constitute taxable capital gain.There is no question of unaccounted money.As the land is in India,so you will be taxed on this capital gain even if you are an NRI,but if you have no taxable income other than this,the basic exemption of rs 1,00,000 (Rs 1,10,000 from current financial year) may be deducted from the gain and you have to pay the tax on the balance.
RE:Capital gains on land.
by s s on May 18, 2007 08:28 PM
Thanks Amitabh. Well How much percent of the profit do I pay as capital gain tax by selling the right to some one. All this is within last three months. Thanks.
RE:Capital gains on land.
by Amitabh on May 19, 2007 08:55 AM
If all this has happend in the last three years,it will be treated as short term capital gain and sale proceeds of right less the cost of acuisition will be treated as your income and taxed at the normal rates applicable to any individual.
RE:Capital gains on land.
by s s on May 19, 2007 12:31 PM
Thank you Amitabh. Can you recommend someone through whom I can get Tax related advice and to file my Income tax returns as I have not filed them ever. I live in North kerala near Kannur and Mangalore. I am a Merchant Navy officer and most people are not familiar with filing returns for Merchant navy guys. Is a CA good or Income tax practioner better for the job. Thanks. Can you tell me something about yourself in an email to me. email. m34dashing@rediffmail.com Thanks.
Gift from a non relative to an individual, or HUF up to Rs. 50000/- during financial year is tax free in the hands of the recepient. However if the amount of gift exceeds this limit, the entire amount of the gift is added to the income for tax purpose. However, there is no limit for tax-free gift in cash from a relative of the individual - Not HUF; as HUF can not have a relative.
RE:Gift in cash exceeding 50000/- from a non relative
by Amitabh on May 13, 2007 11:13 AM
You are right.The concession of relative in case of gifts is meant only for individuals.However,if a gift is received by will or inheritence,it will be exepmt from tax without any limit even for an HUF.In this case,it is not necessary that gift should come from a relative.
Hi I am a NRI and I would like to buy a land in India. What about tax on it? I guess I don't need to pay any tax. Also, shall I put my name or my mom who lives in India? If I have to put her name then is it taxable or quetionable by Inland Revenue?
RE:RE:Buying Land
by mayur gondhalekar on May 09, 2007 04:30 PM
there is no question of paying tax for buying a land in india.. only when u will sell it , tax liability will arise.. as far as ownership is concerned , your name or MOm's name will not make a difference. only thing is it will attract wealth tax ocne acquired. You need to check the details..
RE:Buying Land
by raj kumar on May 11, 2007 10:02 PM
it is because of u NRI people the real estate has gone up like anything in india. normal people are not able to afford land. if u people have left india and gone abroad in search of green pastures why dont you hang out there itself. why think of coming back or purchase land in india and in the process make poor in india poorer. above all, u people will behave as though u were born to foriegn parents when u come to india for a visit. if i had authority i will bring in a law where no NRI buys land in india.
RE:Buying Land
by SUVOBRATA GHOSH on May 13, 2007 03:17 PM
You are of a very sick mentality. Do you think all NRIs are earning millions??? Do you know that so many labours come to gulf to earn some money for their families back home. Their family depends on the sole income of such "NRI" They are not rich at all & they live in labour camps in a very bad condition just to save money for their family back home. What is the harm if they can buy a piece of land from the money they have earned from their hard work?Moreover the price level goes up in India due to high purchasing power of certain individuals living in India & not due to NRIs. PLease think before giving some idotic comments.
RE:RE:Buying Land
by raj kumar on May 14, 2007 02:26 PM
u may be right if u only take into account who do labour work in gulf. But, think of software engineers who are working in US and other european countries. They just dont mind paying watever price the real estate people tell them. they just want to invest and multiply their money. Even people employed in government services, working for their motherland is not able to buy a piece of land. I really feel their shd be some check on NRIs buying land. Do u really think when the NRIs dispose their land they pay tax????????????? Do they really behave like Indians in heart and soul????????? shame shame
RE:Buying Land
by atul puntambekar on May 12, 2007 07:00 PM
We too could not afford land when in India....So we went OUT. But we still are "Indians" by heart and soul. Aur India main property kharidne ki "khujli" hai humko....what is ur problem? Challenge your guts and earn money...don't cry...
RE:Buying Land
by raj kumar on May 14, 2007 02:11 PM
"indians" by heart and soul. This is just a face mask. If at all u r thrown out of the foreign country u can always have a chance to come back ........ how much did u donate to Tsunami victims????????
The Company has a car lease agreement with my wife for lease of the car that I am using. My wife gets a cheque of Rs.15,000/- pm from the company. In April 2007, according to the new finance bill, a deduction of Rs.2600/- was made from this amount as lease tax, which is applicable as per the new budget? Can you please throw some light on this...is there such a thing called lease tax?
