Make sure not to make charitable donations exceeding Rs.2000 in cash Verify if Donee is registered under Sec. 80G at Income Tax Department Portal Collect proof of donation in Form no. 10BE Not to fall prey to unscrupulous tax evasion strategies. Remember it is us who are responsible for our tax return (not our tax … Continue reading Checklist for donations under 80G
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How Interest Rate Cap Works: An Intro for Floating Rate Borrowers
If you are considering taking out a variable-rate loan, you may be wondering how to protect yourself from the risk of rising interest rates. One possible solution is to buy an interest rate cap, which is a type of interest rate derivative (IRD) contract that limits the maximum interest rate you have to pay on … Continue reading How Interest Rate Cap Works: An Intro for Floating Rate Borrowers
Why one need to check AIS
Annual Information Statement (AIS), developed by Income Tax Department, tracks 50+ types of income/transactions (eg. Salary, Rent, Dividend, Interest, Property transactions, Sale/purchase of securities, Cash deposits/withdrawals, Insurance policy proceeds, GST Sales & Purchases etc.) using our PAN. One can check all incomes & transactions (from FY 2020-21) which are being tracked under our PAN either … Continue reading Why one need to check AIS
Compliances & options to be made during March 2023
Updates March 31 is also last date for investments in Non-equity oriented Mutual funds (i.e. where <=35% of a MF proceeds are invested in Indian equity shares) who want to avail concessional tax treatment on LTCG. June 30 is last date for PAN-Aadhaar linking September 30 is last date for Nomination for Demat and trading … Continue reading Compliances & options to be made during March 2023
Bonus Stripping vs Bond Washing
Bonus Stripping Bonus Stripping is practice of buying securities in advance of bonus securities record date (i.e. usually buying happens after bonus announcement but before record date) and selling original securities after ex-date thereby booking short term capital loss on original securities. Under Sec. 94(8) of Income tax act, this short-term capital loss will be … Continue reading Bonus Stripping vs Bond Washing
Will India introduce Water Derivatives?
As per today's ET edition (Sep 23, 2022), Niti Aayog is working on draft recommendations for introduction of water futures in India among others. Water futures, part of commodity derivatives, helps water users such as agriculturists, governments, water intensive sector players etc. in water price discovery and hedging price risk arising from climate change. Btw, Water … Continue reading Will India introduce Water Derivatives?
FEMA rules on transactions in Agricultural land by NRI/OCI
Acquisition- With respect to agricultural land/plantation property/farm house in India, NRI or OCI can neither acquire from anyone (even jointly or in the name of other person by transferring money to him) nor receive by way of gift. However, he can acquire by inheritance from a) Indian resident or b) resident outside India who acquired … Continue reading FEMA rules on transactions in Agricultural land by NRI/OCI
When a Senion Citizen need not file ITR?
Section 194P: Any resident senior citizen (aged =>75 years) having pension income and interest income only. The bank in which you are receiving your pension income should be the same from which you receive interest income too. In this scenario, one can choose not to file ITR by submitting Form 12BBA with the bank so … Continue reading When a Senion Citizen need not file ITR?
Income tax deduction for medical expenses incurred for specified diseases or disabilities
Section 80DDB (Deduction basis actual payment in case of Specified Diseases, to the extent not reimbursed under insurance policy) If you incur any medical expenditure in respect of specified diseases on behalf of self or your dependent family members (i.e. spouse/children/parents/brother/sister), you can avail deduction upto 40K per FY (100K in case of Senior citizen). … Continue reading Income tax deduction for medical expenses incurred for specified diseases or disabilities
All about Sovereign Gold Bonds
SGBs are bonds issued by RBI on behalf of GOI. Here are few key features of SGBs: Who can Invest: Resident individuals, HUFs, Trusts, Universities and Charitable Institutions (max limit is up to 4 kgs per financial year in case of Individuals/HUFs and 20kg per FY in case of others). SGBs will be issued in … Continue reading All about Sovereign Gold Bonds