Taxation Queries

What would be the post tax return on different investments

Please what will be ascending order of post tax return for a person in 30% tax slab, 1) PPF, 2) Arbitrage Fund, 3) Debt Fund, 4) Liquid Fund, for more than 3 years duration of investment?

Aug 18, 2019 by Sundeep, Haridwar | Taxation

Please note that excepting PPF, none of the MF scheme categories mentioned by you offer assured return, Therefore, telling the post tax return is difficult. However, we are giving below the taxation of each... Read More

How can I invest in the best tax saving schemes

Thanks for your time and awesome work that you are putting for helping all of us, I am 25 year old sole bread earner for my family looking to invest 2 lakhs in lump sum and also want to start a sip to maintain a regular practice of investing, please suggest me the portfolio which will help me save taxes on lump sum and will give me good returns. I met a advisor who suggested me to invest lump sum in life time classic fund of ICICI Prudential for tax savings, is it a good option? And is there any loss investing through advisors compare to buying the funds directly on company websites?

Mar 8, 2018 by Saurabh Pandey, | Taxation

Thanks for the kind words about our work ! First, let me tell you that the advisor you met has suggested you NOT a mutual fund but a ULIP (unit linked insurance plan) plan. Though it will give you tax rebate upto... Read More

How to show my interest income which I received in cash

I my relative borrow 20lakh from me with the interest rate of 1% per month. So every year he gave me 240000 as interest. I paid via cheque as all my money is in bank. After this demonetization and knowing about the black money problem I get to know the money he was giving me considered as black money as he was giving me by cash. Now I have taken my money back and total interest I got is is 450000. So my question is: 1) how much can I pay tax on this and make it white money, 2) I got 240000 each year and if I deposit 450000 at once how the tax is calculated? My only purpose is to very less cash or no cash at home because I don't want any problem in future?

Jul 7, 2017 by Dipa A, Gujrat | Taxation

Any income that you receive in form of cash or cheque is taxable and you must show it in your income tax return (ITR). In this case the interest income received is taxable and will be taxed according to the tax... Read More

How Mutual Fund ELSS investment is better than PPF

ELSS vs PPF which is better and why? Also suggest some of the best performing ELSS schemes?

May 21, 2017 by Amit Bokade, Bhilai | Taxation

Among tax saving schemes under Section 80C of the Income Tax Act 1961, ELSS is the best... Read More

Can co-applicants avail home loan tax benefits separately

This is Bala from Chennai. I have a plot in my father's name. Decided to build individual house. Since we are going to avail home loan, myself and my brother is co-applicant and EMI payers. Is there is any possibility for avail tax benefits for both EMI payers?

May 3, 2017 by Bala Subramaniam, | Taxation

Yes, as co-applicants you can avail tax benefits on the EMIs payable, provided you are co-owners too! For example - you are the owner and your brother is the co-applicant. In this case your brother cannot... Read More

Can I claim tax deduction on NPS investment by my spouse or child

I have a doubt. If my wife or child opens NPS account and I will pay premium as they are housewife/ child, is it possible to get deduction / rebate of 50,000 from my taxable income?

Apr 19, 2017 by Arun Kumar, | Taxation

No, you cannot claim income tax deduction of Rs 50,000 under Section 80CCC if the investment is in the name of your spouse or children. Even though you may pay the contribution, you are not eligible to claim... Read More

How to redeem LNT Infrastructure Bonds

I would like to inform you that I am a regular reader of your messages sent to me through mail and I feel these are very informative and educative and also very helpful in deciding funds selection. Sir, one more thing I want to know my friend has invested some amount in LNT Infra Bond for tax saving in 2011 and now he desires to encash the bond. I have tried to contact on phone line but phones are not working (may be out of service). Emails sent are bounced back. Kindly advise if you have any information regarding their contact number/address/mail id etc. to enable me to contact LNT Infra?

Jan 9, 2017 by Kailash Chandra Mohanty, | Taxation

Thanks for writing to us and the kind words about Advisorkhoj. Glad to note that you are one of our regular readers and found our blog informative and useful. With regards to your above query, please note the... Read More

Can I off set the capital gain tax if I buy the new property in the name of my spouse

I sold a residential plot in FEB 2015. It was registered with my name. Now I want to purchase a Flat costing more than selling price of plot. But I want to purchase on my spouse name. Can I exempted from capital gain on purchasing on my spouse name?

Dec 12, 2016 by Chander Shekhar, | Taxation

Please note the following points in context to your query – You sold a residential property in February 2015, but we do not know when you bought it. If you have bought it more than 3 years ago then long term capital... Read More

How to save additional Rs 50,000 for tax benefit

My investments are already up to Rs. 1.50 lacs including investment in EPF, can get benefits of 80CCD by investing additional in PPF A/C. What are other options to avail tax benefit by investing additional Rs.50000?

Dec 4, 2016 by Amrish Se, Ahmedabad | Taxation

You can save only upto Rs.150,000 under Section 80C of the Income tax Act 1961. For availing additional tax rebate of Rs. 50,000 you may invest in National Pension Scheme (NPS). We have replied to a... Read More

Do I need to pay service tax even if my income is less than 10 Lakhs

My Gross income from all mutual funds is below rupees ten lac, So I have not registered with Service Tax Department, I want to know whether I will have to include my commission from Life Insurnace & General Insurance for calculating 10lac limit?

Nov 1, 2016 by Deepak K Khurana, Pulgaon | Taxation

You need not register with Service Tax department as your total mutual fund income is less than... Read More