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WHAT IS FORM 26AS AND ITS COMPONENTS

It is income tax filing season and Kunal needs to know what his income tax contribution, for the year, is. His friend suggests downloading Form 26AS from the Indian Income Tax website. Kunal is confused about how this form is different from the one he files each year. Let us explain it to him. This form should ideally be verified before Kunal files his annual returns. It is considered a consolidated tax statement for any individual with a Permanent Account Number (PAN). These are 5 main things Kunal will get from his Form 26AS: • Details of Annual Tax Deducted...more
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WHAT IS FORM 16 FOR INCOME TAX

Sia was excited, it had been 6 months into her first job and she finally had a chance to make her own investments. She also knew that she had to keep her salary slips ready for filing her income tax return. One day she got a call from her C.A. asking about a ‘Form-16’, she had no idea what it was. Let’s explain to Sia what this form is. Form-16 is essentially an income tax form, now Sia might think it’s the same as a salary slip; it’s not. Under the Indian Income Tax Act (1961), employers must mandatorily provide...more
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WAYS TO SAVE TAX IF YOU ARE SELF-EMPLOYED

Manmeet Bajwa worked at a firm that demanded more hours than she was willing to devote. Tired of the monotony of her corporate life, Manmeet decided to be her own boss. Having saved enough money, and armed with a smart business plan, Manmeet set out to live her dream of becoming a business owner. She now went from being a salaried employee to a self-employed individual and so she had to prepare for the tax responsibilities as a self-employed tax filer. Here are the tricks she found helpful while filing her income tax. She deducts tax at source: The Income...more
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Know What Is TDS and When TDS Is Deducted

Kunal Mandke is a professional working with MDK Corp. The company has agreed to pay him ₹50,000/- in exchange for his services. MDK Corp deducts a tax of ₹5,000/- from his salary and Kunal receives a net payment of ₹45,000/-. The ₹5000/- deduction is directly deposited by MDK Corp to the credit to the government. But why can’t Kunal himself credit the ₹5000 to the government? For this, we need to understand how TDS works. What is TDS? Tax Deducted at Source, known commonly as TDS refers to the system launched by the Income Tax Department. It is one of...more
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TDS DEDUCTIONS – WHAT IS TDS & WHEN TDS IS DEDUCTED

Kunal Mandke is a professional working with MDK Corp. The company has agreed to pay him ₹50,000/- in exchange for his services. MDK Corp deducts a tax of ₹5,000/- from his salary and Kunal receives a net payment of ₹45,000/-. The ₹5000/- deduction is directly deposited by MDK Corp to the credit to the government. But why can’t Kunal himself credit the ₹5000 to the government? For this, we need to understand how TDS works. What is TDS? Tax Deducted at Source, known commonly as TDS refers to the system launched by the Income Tax Department. It is one of...more
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TAX EXEMPTIONS – UNDERSTAND EEE, EET, & ETE TAX INVESTMENTS

Tax Season is around the corner and Mr. Sharma is looking to maximise saving his tax payments. The Government of India offers relief from tax payments on certain amounts and certain investments, so that Mr. Sharma can create wealth over a period of time. He can choose from a wide range of various tax-free instruments up to a specified limit. Most of these tax-saving instruments are typically divided into three categories viz. EEE, EET and ETE investments, all of which work towards two goals; growing the capital and saving taxes. Since money is generally taxed at various investment stages, Mr....more
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WHAT IS NPS – KNOW ABOUT NPS TAX BENEFITS

One of the most important life goals everyone has is the creation of wealth. This is only possible when one is young and employed. Post retirement, one has to typically live on the savings put away during the years of employment. These savings could be in the form of provident fund, pension and other investments, be it share market investments, fixed deposits, recurring deposits and so on. One such investment vehicle, which is also a great tax saver, is the National Pension Scheme. But what exactly is it? What is NPS? The National Pension Scheme or NPS is a social...more
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HOW TO SAVE TAX WITH HEALTH INSURANCE

The importance of buying health insurance cannot be understated. Your health insurance bails you out during medical emergencies. With a small annual premium, you end up saving lakhs of rupees that you would otherwise pay on hospitalization, surgeries, and medical reports and so on, if you did not have health insurance. Not only can you breathe a sigh of relief due to the insurance cover, you can also avail various concessions and tax benefits from investing in health insurance policies. Let’s find out how you can save on health insurance. Tax deductions Section 80 C of the Income Tax Act...more
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7 WAYS TO SAVE TAX IF YOU ARE A SENIOR CITIZEN

59-year-old Mr. Batra is just a few short months away from retirement. He is looking forward to a time when he can relax and enjoy the fruits of his labour. An astute investor, Mr. Batra has religiously put away money in various investments. He has some mutual funds, fixed deposits, life and health insurance policies among other investments. As he is on the brink of retirement and entering the “senior citizen” category officially, he is determined to find out how he can save taxes as he enters this new tax bracket. He’s how Mr. Batra can save taxes as a...more
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TAX BENEFITS FROM MUTUAL FUND INVESTMENTS

Apeksha was looking at investing in the stock market to grow a corpus for retirement. As tax season was approaching, she was looking at investing in a tax saving instrument as well. However, since most of her funds were earmarked for mutual funds, she did not have a lot of money to invest in other instruments. On reading about tax saving instruments online, she found out that there was a special category of mutual funds that provide a deduction under Income Tax. Apeksha is not alone. Not many people have clarity about tax saving instruments and when tax season approaches,...more
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