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| Posted: 26 Sep 2016 03:33 AM PDT 1 When a business entity incurs an expense on an asset, it uses depreciation to allocate the cost to each year of business. Expenses that are similarly apportioned are called deferred expenditure. 2 Expenses on research and development of a new model, or advertisement and promotion of a product are examples of deferred expenditure. 3 Accounting standards require that the expense incurred is carried on the balance sheet as an asset, until it is written down over the years. 4 Normal business practice is to write off the expenses over a few years, rather than over a longer period of time.However, since expenses impact cost and profits, write-down are subject to rules and procedures. 5 If a large expense is incurred and charged to the profits in a single year, it is called an extraordinary expense, or non-recurring expense. ------------------------------ Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds Top 10 Tax Saver Mutual Funds to invest in India for 2016Best 10 ELSS Mutual Funds in india for 2016
1. BNP Paribas Long Term Equity Fund 2. Axis Tax Saver Fund 3. Franklin India TaxShield 4. ICICI Prudential Long Term Equity Fund 5. IDFC Tax Advantage (ELSS) Fund 6. Birla Sun Life Tax Relief 96 7. DSP BlackRock Tax Saver Fund 8. Reliance Tax Saver (ELSS) Fund 9. Religare Tax Plan 10. Birla Sun Life Tax Plan
Invest in Best Performing 2016 Tax Saver Mutual Funds Online 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 OR You can write to us at PrajnaCapital [at] Gmail [dot] Com OR Leave a missed Call on 94 8300 8300 ------------------------------ |
| Medical Allowance vs Medical Reimbursement Posted: 26 Sep 2016 02:15 AM PDT Medical reimbursement up to Rs 15,000 a year is tax exempt whilst this is not the case for medical allowance Many employees do not clearly understand the components of their salary structure and the tax implications of each. Typically, salary is the combination of basic pay along with various allowances such as house rent, medical, leave travel and others. Different tax rules apply to each component. Not all allowances qualify for tax exemption. And those that do may have an upper limit till which tax exemption is allowed. The tax implication can also differ based on the nature of payment to the employee. For instance, both medical allowance and medical reimbursement are meant to be paid against the medical expenses incurred by an employee. However, the two are treated differently when it comes to taxation. Here is how.
What is the difference? What are the different tax rules?
Let's take an example. If A incurs R25,000 as medical expenses, which her employer reimburses against bills, she will still only be able to claim R15,000 of the total amount as exempt from tax. The remaining R10,000 will get added to her salary and taxed according to the applicable income tax slab. Similarly, if she is entitled to claim R25,000 as medical reimbursement but claims only up toR5,000 during the year, she can get tax exemption only on theR5,000; the remaining R20,000 will be taxed.
An employee can claim the reimbursement not only for medical expenses incurred for herself but also for spouse, and dependent children and parents. Bills related to purchase of medicines, medical checkups, doctors' fees or medical procedures can be submitted to claim the tax exemption. Moreover, there are no restrictions in terms of the medical system used; it can be allopathy, homeopathy or any other form of treatment. However, there is no upper limit for exemption in the case of reimbursements for medical expenditure incurred at a hospital or clinic maintained by the employer itself, or maintained by the government, local authority or a hospital approved by the government for its employees. Further, reimbursements of medical expenditure incurred at a hospital approved by the chief commissioner of income tax is entirely tax exempt. ------------------------------ Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds Top 10 Tax Saver Mutual Funds to invest in India for 2016Best 10 ELSS Mutual Funds in india for 2016
1. BNP Paribas Long Term Equity Fund 2. Axis Tax Saver Fund 3. Franklin India TaxShield 4. ICICI Prudential Long Term Equity Fund 5. IDFC Tax Advantage (ELSS) Fund 6. Birla Sun Life Tax Relief 96 7. DSP BlackRock Tax Saver Fund 8. Reliance Tax Saver (ELSS) Fund 9. Religare Tax Plan 10. Birla Sun Life Tax Plan
Invest in Best Performing 2016 Tax Saver Mutual Funds Online 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 OR You can write to us at PrajnaCapital [at] Gmail [dot] Com OR Leave a missed Call on 94 8300 8300 ------------------------------ |
| Posted: 25 Sep 2016 09:43 PM PDT Invest Kotak 50 Regular Plan Online The scheme seeks capital appreciation, through investments in equities. The fund portfolio would generally comprise of around 50 companies which may go upto 59 companies. A fund which has managed a strong climb in the rankings since 2013, Kotak 50 has improved its performance sharply in this bull market. This has earned it a four-star rating, up from two stars in 2013. The fund owns a portfolio of less than 50 stocks, drawn mainly from the large-cap basket. It invests 80 per cent of its portfolio in the top 100 stocks by market cap, with the rest parked in smaller bets. The investment philosophy is to seek both growth and quality at a reasonable price. This is again a fund that focuses on sector leaders but with a twist. In the downturn of the past few years, the fund has either bet on companies that have invested in assets which could pay off in an economic revival or on companies that have managed costs well and can expand margins when the upturn arrives. The fund's three-year returns place it good 5.5 percentage points ahead of the benchmark and about 1.8 percentage points ahead of the peers, but its longer record shows a thinner margin of outperformance. The fund's ten-year returns are a shade below 13 per cent, mainly because of the patchy show in the big bull years of 2009, 2012 and 2013. But returns in the last three years have been quite strong. The fund has seen a fair degree of manager shuffle in the last ten years, with the current fund manager at the helm since January 2014. ------------------------------ Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds Top 10 Tax Saver Mutual Funds to invest in India for 2016Best 10 ELSS Mutual Funds in india for 2016
1. BNP Paribas Long Term Equity Fund 2. Axis Tax Saver Fund 3. Religare Tax Plan 4. DSP BlackRock Tax Saver Fund 5. Franklin India TaxShield 6. ICICI Prudential Long Term Equity Fund 7. IDFC Tax Advantage (ELSS) Fund 8. Birla Sun Life Tax Relief 96 9. Reliance Tax Saver (ELSS) Fund 10. Birla Sun Life Tax Plan
Invest in Best Performing 2016 Tax Saver Mutual Funds Online 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 OR You can write to us at PrajnaCapital [at] Gmail [dot] Com OR Leave a missed Call on 94 8300 8300 ------------------------------ |
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