Prajna Capital

Gift and reduce Your Tax Liabilities
New India Assurance two wheeler motor insurance policy
Tax filing is easy with Aadhar

Posted: 07 May 2015 05:05 AM PDT

GIVE AND RECEIVE Gifts are not taxed, but income from them is. And who pays the tax? Giver or the receiver?

Any transfer of assets to close relatives--parents, spouse, siblings, children--is not taxed. And there is no cap on it. Many , especially those in the higher tax brackets, use this rule to cut their tax bill by investing in the name of their relatives who are either out of the tax net or in the lower slabs. Although the `gift' transferred is not taxable, any in come arising from that asset is fully taxable in the hands of the transferor.

If you invest the gifted money, Section 64 of the Income Tax Act, a provision for clubbing income, kicks in.

Meaning, when you open a fixed de posit with money received from your spouse or buy a house, income earned from this asset is added to the taxable income of your spouse. If you have opened a savings account or a Bank FD in the name of your minor child, you can claim an exemption of up to `1,500 per child in a year (for two children only).

Any income generated from gifted money has to be shown in the `income from other sources' sheet (Schedule OS) and also in the `income from specified persons' sheet (Schedule SPI) of ITR of the transferor.

Remember to make both en tries, as Schedule SPI is only a declaration schedule.

Nowhere in the total income sheet is there a link for adding the clubbed income from SPI.

Therefore, the clubbed income needs to be declared under specific schedule of income also such as in come from house property, capital gains or professional gains or business income.

Investments details will still be shown under the income tax return of receiver as, legally, he / she is the owner of the particular asset. You are eligible to set off a short-term capital loss as well.

In case of deposits, a declaration should be submitted to the bank stating that although the amount is invested in the wife's name, TDS should be deducted in the husband's PAN. If you have informed the bank, this income shall be the income of the husband and TDS shall be deducted in his PAN.

The situation becomes complicated if TDS is already deducted and it shows in your spouse's Form 26AS. In that case the income must be declared by them in their ITR under the head income from other sources and also as an expense specifying that the entire interest has been paid to you. In the ITR, under income from other sources there is Section 57, which allows for such deductions. You can show the entire interest income under this section as being paid back to your spouse. Once transferred, you will have to declare this interest income in your ITR as income from other sources (received from your spouse) and pay tax on it.

Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015

1.ICICI Prudential Tax Plan

2.Reliance Tax Saver (ELSS) Fund

3.HDFC TaxSaver

4.DSP BlackRock Tax Saver Fund

5.Religare Tax Plan

6.Franklin India TaxShield

7.Canara Robeco Equity Tax Saver

8.IDFC Tax Advantage (ELSS) Fund

9.Axis Tax Saver Fund

10.BNP Paribas Long Term Equity Fund

You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds

Invest in Tax Saver Mutual Funds Online -

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

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Leave your comment with mail ID and we will answer them

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

Leave a missed Call on 94 8300 8300

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Invest Any Mutual Fund Online

Download Mutual Fund Application Forms from all AMCs

Download Mutual Any Fund Application Forms

New India Assurance two wheeler motor insurance policy

Posted: 07 May 2015 02:15 AM PDT

New India Assurance has launched first long-term two-wheeler motor insurance policy. Policyholders can choose from one, two and three year tenures. Those buying a three-year policy are entitled to a 30% discount. Since the premium for the entire period is paid up front, it will be immune to hikes due to claims or changes in the insurance regulator's third-party liability tariff. Around 55% of two-wheelers on the roads are uninsured.

Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015

1.ICICI Prudential Tax Plan

2.Reliance Tax Saver (ELSS) Fund

3.HDFC TaxSaver

4.DSP BlackRock Tax Saver Fund

5.Religare Tax Plan

6.Franklin India TaxShield

7.Canara Robeco Equity Tax Saver

8.IDFC Tax Advantage (ELSS) Fund

9.Axis Tax Saver Fund

10.BNP Paribas Long Term Equity Fund

You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds

Invest in Tax Saver Mutual Funds Online -

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

---------------------------------------------

Leave your comment with mail ID and we will answer them

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

Leave a missed Call on 94 8300 8300

---------------------------------------------

Invest Mutual Funds Online

Invest Any Mutual Fund Online

Download Mutual Fund Application Forms from all AMCs

Download Mutual Any Fund Application Forms

Tax filing is easy with Aadhar

Posted: 06 May 2015 10:30 AM PDT

With Aadhar Cards Income Tax filing is easy

No need to submit ITR-V after e-filing as IT department set to link Aadhar to ITR form.

In a major change, the new tax forms released on Thursday have exempted taxpayers with Aadhar cards from submitting their ITR-V by post after filing their returns online. This will make the online filing process truly paperless even for those who don't have digital signatures.

Till now, online filing was paperless only if you had a digital signature. Taxpayers who did not had to post a physical copy of the ITR-V to the Central Processing Centre in Bengaluru within 120 days of filing returns online.

A large number of e-filers skipped this very important process, assuming the job was done once their return was e-filed. Whereas the IT Department doesn't consider a return filed unless the ITR-V reaches them on time.

Moreover, ITR-V had to be signed and printed properly so that the bar code was clearly visible. ITR-Vs that did not conform to these specifications got rejected. There have been complaints of postal delays and loss as well. Now the refund process is expected to get faster.

The new forms also seek more detailed declaration from the taxpayers. ITR-1 now requires details of bank accounts held at any time during the year, including accounts which have been closed. Taxpayers will also have to provide all account numbers, name of the bank, IFSC code and name of any joint holder along with closing balance as on 31 March.

ITR-2 seeks particulars of foreign bank accounts and assets, full details of foreign travel undertaken and expenses thereon and details of utilisation of amount deposited in capital gain account scheme for the year.