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- You have to e-File Returns If salary is more than Rs 10 Lakh
- Minimising TDS on your Bank Fixed Deposit
- Estate planning for everyone
- Baroda Pioneer Mutual Fund - Baroda Pioneer fixed maturity plan
- Bharti AXA Mutual Fund is now BOI AXA Mutual Fund
| You have to e-File Returns If salary is more than Rs 10 Lakh Posted: 18 May 2012 04:01 AM PDT Download Mutual Fund Application Forms
You will soon get the Form 16 with details of your income and taxes paid from your employer. Then you have a couple of months to file your tax returns. However, the Central Board of Direct Taxes (CBDT) has issued a notification which has made it mandatory for individuals earning an annual income in excess of . 10 lakh to file their returns online from the current financial year. Until now, an individual with income above . 10 lakh had the choice of filing income-tax returns either online or through an auditor/chartered accountant.
a) Total income does not exceed . 500,000.
Also, the employer should provide the tax withholding certificate (Form 16) to the employee which mentions the PAN, details of income and taxes withheld. Moreover, there should be no further tax payable by employee by way of advance tax or self-assessment tax, no refund claim for the relevant tax year and the employee should receive salary from only one employer for the tax year.
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| Minimising TDS on your Bank Fixed Deposit Posted: 18 May 2012 12:58 AM PDT Download Mutual Fund Application Forms Tax deduction at source (TDS) could have a significant impact on the maturity amount of your bank fixed deposits. It assumes greater importance especially for those who are conservative in their investments and rely heavily on bank fixed deposits for generating income. In case of senior citizens, whose only source of income is the interest earned on fixed deposits, any leakage could lead to some discomfort.
According to present income tax guidelines, banks are required to levy 10 per cent TDS on deposits if the total interest earned on your fixed deposits in a bank branch is more than Rs10,000 in a fiscal. At the end of every fiscal, i.e., 31 March, tax is deducted on the basis of interest accrued on the fixed deposit(s), even if this interest has not been credited. Every time interest is paid on your fixed deposits, banks check whether it is subject to TDS and, if it is the case, tax is deducted.
One of easiest way adopted by many depositors is to spread their investments across various branches so that the interest earned in a particular branch is below Rs10,000 in a financial year. However, do remember that you will still need to account for the interest earned while filing your income tax returns for the year. So, if your income is taxable, then you will need to pay taxes according to your income bracket. If you are below 60 years and your tax liability after all deductions and exemption is expected to be nil, then you can avoid TDS by submitting Form 15G. If your interest income is expected to be Rs10,000, by presenting the Form 15G what you are saying is that your income will not be taxable on this income even if you include it to your total income. You need to fill this form while booking your fixed deposit and at the beginning of each financial year, thereafter, till the maturity of your fixed deposit.
Investors often book fixed deposits in the name of non-earning family members such as spouse and minor children. However, Tax liability is calculated on the first applicant's name. In case of a minor, the interest income will be clubbed under the income of the guardian and, accordingly, tax liability will be assessed. Therefore, in case the deposit is in the name of a minor, the bank would still levy TDS. In case the deposit is in the name of a non-earning family member, he or she will have to submit From 15G. "If the money is gifted to a non-earning member and the deposit is booked in his or her name, then the person has to submit a declaration saying his or her income is not taxable. However, when income tax is calculated, it will have to paid by the donor or earning member.
For senior citizens aged between 60 years and 80 years and whose only source of income is from fixed deposits totalling less than Rs2.5 lakh, after all the deductions and exemptions, they can avoid TDS by submitting Form 15H. Senior citizens above 80 years enjoy tax exemption on taxable income of up to Rs5 lakh in a financial year. Therefore, for those of you who are 80 years or older, you may submit Form 15H if your taxable income is below Rs5 lakh.
If your tax liability is nil, but the bank has levied TDS on the interest earned on your fixed deposit then you can claim refund by filing your income tax return. Customers can take their TDS certificates (Form 16A) from banks and also check the amount deposited to the Income Tax Depart-ment based on their PAN number on the Income Tax website under certificate AS26. Based on the same, customers can apply to get the refund from the IT department.
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| Posted: 17 May 2012 08:51 PM PDT Download Mutual Fund Application Forms
The term 'estate' immediately brings to mind the image of a rich and wealthy individual.
And 'estate planning' makes most relate to preparing a will when they are old. However, everyone has an estate, regardless of its size and worth. It is nothing but the difference between your assets and liabilities at the time of your death, which will be inherited by your legal heir(s).
The purpose of estate planning is simply to ensure that at the time of your death, your estate is distributed to the people of your choice or for certain purposes (that you want) in the same way you want it to be passed on / distributed / used, of course in the most cost-effective and tax-efficient way possible. Many individuals shun the mere idea of estate planning since the value of their assets put together may not sum up to a sizeable amount (or to their satisfaction). In fact, estate planning involves very basic issues and having the right documents in place, and not necessarily something complex or pertaining only to the wealthy.
If you are one of such individuals who have been postponing planning your estate, you should keep in mind that if an estate plan is not in place, then the estate would be passed on in accordance with the succession laws and regulations, as applicable. Depending on your religion, these laws could vary and may lead to the estate being passed on to people, merely because of their relationship with you and much against your desire.
No doubt estate planning involves property matters, but it could also include decisions regarding donations to charitable institutions that you want to make, taking care of specially abled children /disabled relatives, your own medical costs in case of any disabilities, taxes, and so on. Making adequate provision for these is imperative and the same can be achieved with proper planning. This process is a continuous one and should be treated as an integral part of financial planning.
Here we will talk about a situation where sound estate planning helped an individual complete his responsibilities towards his family.
Akash Kumar and his family spent the last ten years living abroad due to his work commitments. The Kumar's came back to India two years ago. Given his experience, Kumar managed to bag a well paying job here with an accommodation from his employer. With age and increasing stress, Kumar decided to quit the job in no time and look out for an assignment that would be less strenuous.
Kumar's parents lived in one of the suburbs in Mumbai in their own apartment (registered in Kumar's father's name). While he was staying abroad, Kumar had bought a bigger flat adjacent to his parents' for the purpose of investment.
As Kumar quit his job, he had to vacate the employer-provided accommodation, as well. He preferred to have an accommodation in the outskirts of Mumbai to enjoy a bigger place and lesser crowd. While he did manage to locate one, the cost of the same was higher than Kumar had expected it to be. He had decent savings to his name, but he neither wanted to use all his savings for the new house nor did he not want to take a home loan as he was yet to find a job and hence repayment would have been an issue.
To his relief, Kumar's father offered to sell his own flat and help Kumar with the proceeds to fund the shortfall needed for the new house. The estimated sale proceeds from his father's house was equal to the gap in funding that Kumar faced.
Kumar accepted the offer and for the purpose of tax optimisation included his father as a co-owner in the new flat.
Meanwhile, his parents shifted to Kumar's flat in the same housing society, without any inconvenience. With all the affection they had for their son and vice versa, they had very little reason to worry about their future without a house of their own.
While all of this got over and everyone lived happily, Kumar was very worried. It stemmed from the fact that his father that sold off his own house and if something had to happen to Kumar, where would the parents go as the flat they occupied was Kumar's and after him, his family could decide against letting his parents live there. As for the new flat, his father was just a co-owner and there was nothing preventing Kumar's legal heir(s) to pay off his father's share in the flat and ask them to fend for himself. Although nothing was wrong within the family at that point in time, Kumar was still bothered. He wanted to ensure his parents are allowed to continue staying in his flat for their respective life times and at any cost.
Kumar decided to talk it out with his financial planner, just in case he was offered some help.
During his discussion with his planner, a mutually agreeable solution was derived. As a part of his estate plan, his planner advised Kumar to have a 'family arrangement' with his parents, granting them the right to stay in his flat till the time they would want to or till both / any one of them is alive. The arrangement being a legal document would be legally enforceable, if the need arises in future or in the absence of Kumar .This relieved him.
One should keep in mind that estate planning is all about taking care of the complications involved with the unfortunate event of one's death. It is all about anticipating the worst situations that could come up and taking steps to prevent it. In the above case, Kumar was not a wealthy individual, but anticipated a situation that could create complications when he dies. Everyone should have at least a basic estate plan and the basic legal documents like wills, power of attorney and so on ready. ------------------------------------------ Invest Mutual Funds Online
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| Baroda Pioneer Mutual Fund - Baroda Pioneer fixed maturity plan Posted: 17 May 2012 08:50 PM PDT Download Mutual Fund Application Forms
Baroda Pioneer Mutual Fund has launched a new fund named as Baroda Pioneer 367 day fixed maturity plan series 4. The new fund offer (NFO) will close for subscription on May 16. -------------------------------------------- Invest Mutual Funds Online
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| Bharti AXA Mutual Fund is now BOI AXA Mutual Fund Posted: 17 May 2012 08:52 AM PDT Download Mutual Fund Application Forms
Bharti AXA Mutual Fund will become BOI AXA Mutual Fund with effect from May 23, 2012. Bank of India will acquire 51% stake in the joint venture - 25% stake from Bharti Ventures Ltd. and 26% from AXA Investment Managers Asia Holdings Pvt. Ltd.
Now, Bank of India (BOI) will become the Co-sponsor along with the current sponsor - AXA Investment Managers. In effect of this transaction, Bharti Ventures Ltd., the current co-sponsor of Bharti AXA Mutual Fund will exit from the joint venture.
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