Introduction: The National Pension Scheme (NPS) and Public Provident Fund (PPF) stand as pillars of government-backed retirement saving, each advocating disciplined savings to fortify your post-retirement years. Despite sharing similar objectives, their coexistence raises questions: why two schemes with akin goals? What sets them apart? And crucially, which one suits you better? If you find […]
Introduction: Any individual income exceeding the basic exemption limit for the financial year(s) is required to file an Income Tax Return (ITR) detailing his income, deductions and related particulars. When a claim is filed, the Income Tax Department processes the claim. Sometimes, some refunds are selected for consideration based on norms laid down by the […]
Introduction: Income-tax laws in India include provisions for various profit-linked deductions aimed at incentivizing investments in specific industries. These deductions are outlined in the Income Tax Act, 1961, within Chapter VI-A They are accessible under Sections 80H to 80RRB, pertaining to profits and gains from designated industries like hotel businesses, small-scale industrial undertakings, housing projects, […]
Introduction: A partnership deed, which is a detailed legal document, describes all the necessary terms and conditions and is signed by all the partnerships Without such an agreement, a benefit may not be readily available to the partners. The Partnership Act of 1932 mandates that any interest on capital paid to partners from earnings must […]
Introduction: Public sector employers compensate their employees with basic salaries determined by their respective pay scales, upon which various additional components are calculated and subsequently added to determine the final take-home amount. Notably, one significant component in this calculation is the Dearness Allowance (DA). Dearness Allowance: Dearness Allowance (DA) is an essential living modification distributed […]
Introduction: Section 80EE of the Taxation Act provides a useful scheme aimed at reducing the burden on taxpayers through home loans. This section facilitates the deduction of mortgage interest payments, thereby providing relief to eligible individuals. The section was first introduced in the Union Budget of FY 2013–2014 in support of tax relief for first-time […]
Introduction: Employees’ Provident Fund (EPF), commonly referred to as PF (Provident Fund), acts as a compulsory savings and retirement scheme for employees of eligible organizations After retirement, employees can rely on the cumulative corpus of this bank as financial results. As per EPF rules, employees are required to contribute 12% of their basic salary to […]
Introduction: The Indian Income Tax Act provides a tax deduction of up to Rs. 1.5 lakh per financial year to pay interest on home loan for purchase or construction of affordable house. This deduction, provided under Section 80EEA of the Income Tax Act, supplements the existing tax benefits outlined in Sections 80C and 24. Let’s […]
Introduction: Form 24Q is a platform where taxpayers can file TDS returns for the public. It includes important information about wages and tax deductions. Companies are required to file declarations and make quarterly payments in the state. Form 24Q : While allocating salary to an employee, the employer is required to deduct TDS under Section […]
Introduction: Investors should align their investment choices with their individual financial objectives. As an investor, you can opt for high returns with high risks or opt for fixed-return schemes that provide superior risk-adjusted returns. Various government-backed fixed-income schemes, including National Savings Certificates , offer both guaranteed returns and advantageous income tax deductions under Section 80(C) […]