Non Resident Indian as per Income Tax Act of India

July 24, 2013

Income Tax

 

Many  a times, people remain confused about the residency rules to decide the Residence in India & the taxability of the income thereon. Below is the official version of the residency rules as described in Section 6 of Income Tax of India, 1961.

6. For the purposes of this Act,—

(1)  An individual is said to be resident in India in any previous year, if he—

(a)  is in India in that year for a period or periods amounting in all to one hundred and eighty-two days or more ; or

(b) [* * *]

(c)  having within the four years preceding that year been in India for a period or periods amounting in all to three hundred and sixty-five days or more, is in India for a period or periods amounting in all to sixty days or more in that year.

[Explanation.—In the case of an individual,—

(a)  being a citizen of India, who leaves India in any previous year [as a member of the crew of an Indian ship as defined in clause (18) of section 3 of the Merchant Shipping Act, 1958 (44 of 1958), or] for the purposes of employment outside India, the provisions of sub-clause (c) shall apply in relation to that year as if for the words “sixty days”, occurring therein, the words “one hundred and eighty-two days” had been substituted ;

(b)  being a citizen of India, or a person of Indian origin within the meaning of Explanation to clause (e) of section 115C, who, being outside India, comes on a visit to India in any previous year, the provisions of sub-clause (c) shall apply in relation to that year as if for the words “sixty days”, occurring therein, the words “one hundred and [eighty-two] days” had been substituted.]

(2)  A Hindu undivided family, firm or other association of persons is said to be resident in India in any previous year in every case except where during that year the control and management of its affairs is situated wholly outside India.

(3)  A company is said to be resident in India in any previous year, if—

(i)  it is an Indian company ; or

(ii)  during that year, the control and management of its affairs is situated wholly in India.

(4)  Every other person is said to be resident in India in any previous year in every case, except where during that year the control and management of his affairs is situated wholly outside India.

(5)  If a person is resident in India in a previous year relevant to an assessment year in respect of any source of income, he shall be deemed to be resident in India in the previous year relevant to the assessment year in respect of each of his other sources of income.

[(6)  A person is said to be “not ordinarily resident” in India in any previous year if such person is—

(a)  an individual who has been a non-resident in India in nine out of the ten previous years preceding that year, or has during the seven previous years preceding that year been in India for a period of, or periods amounting in all to, seven hundred and twenty-nine days or less; or

(b)  a Hindu undivided family whose manager has been a non-resident in India in nine out of the ten previous years preceding that year, or has during the seven previous years preceding that year been in India for a period of, or periods amounting in all to, seven hundred and twenty-nine days or less.]

Source

 

Please feel free to post your queries if any on this subject.

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Income Tax Return – The E-book

May 29, 2013

ITR E-Book

ITR E-Book

Dear Friends, we had conducted a survey few days back for Income Tax Return filing. Based on the common issues faced by general public during Income Tax Return filing, we have created an E-book. To download the same please join our facebook group.

https://www.facebook.com/groups/asanideasforwealth/

Please feel free to ask for any queries either here in the comments section or in the Facebook group.


Tax on Short Term Capital Gains from Shares & Eq. MFs

April 29, 2013

I thank Nikhil for giving the Idea for this article. (Here is the background). How the STCG tax liability ‘ll be decided if the income source for the person in question is only interest + STCG?

If a person has only interest income + Short Term Capital Gain income, First we should check the gross income figure before deciding the tax liability. To understand the concept better, I’m providing the different cases. (Tax slabs are considered for FY 2013-2014). It’s assumed that Securities Transaction Tax is paid for both shares & Eq. MFs to keep the tax calculation simple.

Case – 1 –  age less than 60Y, interest income 125000 Rs. & STCG 55000 Rs. No investment in section 80c.

Here Gross income = 125000+55000 = 180000 which is less than taxable income limit of 200000.

So even after earning 55000 Rs. STCG amount, the tax liability is zero.

Case – 2a –  age less than 60Y, interest income 175000 Rs. & STCG 55000 Rs. No investment in section 80c.

Here Gross income = 175000+55000 = 230000 which is more than taxable income limit of 200000. Now what ‘ll be tax rate here for excess amount of 30000 Rs? it ‘ll be same 15.45% as applicable for STCG from shares or Eq. MFs.

So tax payable = 30000*15.45% = 4635 Rs.

Case – 2b –  age less than 60Y, interest income 175000 Rs. & STCG 55000 Rs. 50000 Rs. nvestment in section 80c.

Here Gross income = 125000 (adjusted for section 80C 50000 Rs. benefit)+55000 = 180000 which is less than taxable income limit of 200000. So even after earning 55000 Rs. STCG amount, the tax liability is zero due to benefit of section 80c on interest income.

Case – 3 –  age more than 60Y, interest income 175000 Rs. & STCG 55000 Rs. No investment in section 80c.

Here Gross income = 175000+55000 = 230000 which is less than taxable income limit of 250000. (applicable for Sr. Citizen)

So even after earning 55000 Rs. STCG amount, the tax liability is zero.

Case – 4a –  age more than 60Y, interest income 225000 Rs. & STCG 55000 Rs. No investment in section 80c.

Here Gross income = 225000+55000 = 280000 which is more than taxable income limit of 250000. Now what ‘ll be tax rate here for excess amount of 30000 Rs? it ‘ll be same 15.45% as applicable for STCG from shares or Eq. MFs.

So tax payable = 30000*15.45% = 4635 Rs.

Case – 4b –  age more than 60Y, interest income 225000 Rs. & STCG 55000 Rs. 50000 Rs. nvestment in section 80c.

Here Gross income = 175000 (adjusted for section 80C 50000 Rs. benefit)+55000 = 230000 which is less than taxable income limit of 250000. So even after earning 55000 Rs. STCG amount, the tax liability is zero due to benefit of section 80c on interest income.

Case – 5 –  age more than 80Y, interest income 375000 Rs. & STCG 55000 Rs. No investment in section 80c.

Here Gross income = 375000+55000 = 430000 which is less than taxable income limit of 500000. (applicable for Very Sr. Citizen)

So even after earning 55000 Rs. STCG amount, the tax liability is zero.

Case – 6a –  age more than 80Y, interest income 475000 Rs. & STCG 55000 Rs. No investment in section 80c.

Here Gross income = 475000+55000 = 530000 which is more than taxable income limit of 500000. Now what ‘ll be tax rate here for excess amount of 30000 Rs? it ‘ll be same 15.45% as applicable for STCG from shares or Eq. MFs.

So tax payable = 30000*15.45% = 4635 Rs.

Case – 6b –  age more than 80Y, interest income 475000 Rs. & STCG 55000 Rs. 50000 Rs. nvestment in section 80c.

Here Gross income = 425000 (adjusted for section 80C 50000 Rs. benefit)+55000 = 480000 which is less than taxable income limit of 500000. So even after earning 55000 Rs. STCG amount, the tax liability is zero due to benefit of section 80c on interest income.

Please feel free to discuss the related issues on the basis of info provided above.


TAN – Tax deduction account number

April 23, 2013

Income Tax

TAN

TAN or Tax Deduction and Collection Account Number is a 10 digit alpha numeric number required to be obtained by all persons who are responsible for deducting or collecting tax. It is compulsory to quote TAN in TDS/TCS return (including any e-TDS/TCS return), any TDS/TCS payment challan and TDS/TCS certificates.

Format of TAN:

Procedure for getting TAN :

It can be obtained by filing an application in form no. 49B to any of the TIN facilitation Centres (TIN-FC) namely NSDL. Addresses of the TIN-FC as well as the forms can be downloaded from the website www.incometaxindia.gov.in or http://tin-nsdl.com. The fee for processing TAN application is Rs.  60/-. This can be paid by:

?   Cash at TIN-FC counter

?   Demand draft or

?   Cheque or

?   Credit card

The demand draft/ cheque shall be in favour of ‘NSDL-TIN’.

TAN number will be communicated to the deductor by NSDL.

 

What is the importance of TAN for a common tax payer having PAN?

The Tax deducted against each PAN has to be reflected under the deductee’s TAN in the National Data of Income Tax deduction & collection. Also Known as Form 26AS. In case your Tax was deducted by your employer or bank against FD interest or anywhere else but the same is not available in Form 26 AS or there is a mismatch of TAN in your Form 26AS, the Income Tax department ‘ll treat it as non payment of Tax & ‘ll issue demand notice for collection of Tax.

 To know the impact of wrong TAN, please read this.

Please feel free to discuss your queries on TAN as well as PAN.


Understanding PAN

April 22, 2013

Income Tax

1. What Is PAN?

Permanent Account Number (PAN) is a ten-digit alphanumeric number, issued in the form of a laminated card, by the Income Tax Department, to any “person” who applies for it or to whom the department allots the number without an application.

PAN enables the department to link all transactions of the “person” with the department. These transactions include tax payments, TDS/TCS credits, returns of income/wealth/gift/FBT, specified transactions, correspondence, and so on. PAN, thus, acts as an identifier for the “person” with the tax department.

PAN was introduced to facilitates linking of various documents, including payment of taxes, assessment, tax demand, tax arrears etc. relating to an assessee, to facilitate easy retrieval of information and to facilitate matching of information relating to investment, raising of loans and other business activities of taxpayers collected through various sources, both internal as well as external, for detecting and combating tax evasion and widening of tax base.

.

Structure of a PAN Number

A typical PAN is AFZPK7190K.

  • First three characters i.e. “AFZ” in the above PAN are alphabetic series running from AAA to ZZZ
  • Fourth character of PAN i.e. “P” in the above PAN represents the status of the PAN holder. “P” stands for Individual, “F” stands for
  • Firm, “C” stands for Company, “H” stands for HUF, “A” stands for AOP, “T” stands for TRUST etc.
  • Fifth character i.e. “K” in the above PAN represents first character of the PAN holder’s last name/surname.
  • Next four characters i.e. “7190” in the above PAN are sequential number running from 0001 to 9999.
  • Last character i.e. “K” in the above PAN is an alphabetic check digit.

2. Why Is It Necessary To Have PAN?

It is mandatory to quote PAN on return of income, all correspondence with any income tax authority. From 1 January 2005 it will

be mandatory to quote PAN on challans for any payments due to Income Tax Department.

It is also compulsory to quote PAN in all documents pertaining to the following financial transactions :-

(a) sale or purchase of any immovable property valued at five lakh rupees or more;

(b) sale or purchase of a motor vehicle or vehicle, [the sale or purchase of a motor vehicle or vehicle does not include two

wheeled vehicles, inclusive of any detachable side-car having an extra wheel, attached to the motor vehicle;]

(c) a time deposit, exceeding fifty thousand rupees, with a banking company ;

(d) a deposit, exceeding fifty thousand rupees, in any account with Post Office Savings Bank;

(e) a contract of a value exceeding one lakh rupees for sale or purchase of securities;

(f) opening a bank account;

(g) making an application for installation of a telephone connection (including a cellular telephone connection);

(h) payment to hotels and restaurants against their bills for an amount exceeding twenty-five thousand rupees at any one time ; (i) payment in cash for purchase of bank drafts or pay orders or banker’s cheques for an amount aggregating fifty thousand

rupees or more during any one day;

(j) deposit in cash aggregating fifty thousand rupees or more with a bank during any one day;

(k) payment in cash in connection with travel to any foreign country of an amount exceeding twenty-five thousand rupees at any

one time.

{Kindly refer Section 139A (5) (c) read with Rule 114B for more details}

3. How does Income Tax Department ensure that PAN is quoted on transactions mentioned above?

It is statutory responsibility of a person receiving document relating to economic or financial transactions notified by the CBDT to

ensure that PAN has been duly quoted in the document.

{Kindly refer Section139A (6)}

4. Is it compulsory to quote PAN on return of income?

Yes, it is compulsory to quote PAN on return of income. A penalty of Rs.10,000/- is leviable in case of any default.

{Kindly refer Section 272B}

5. How will these authorities verify PAN?

A facility for verifying PAN is available on the website of the Income Tax department. Kindly click

https://incometaxindiaefiling.gov.in/portal/knowpan.do

6. Who must have a PAN?

i. All existing assesses or taxpayers or persons who are required to furnish a return of income, even on behalf of others, must

obtain PAN.

ii. Any person carrying on any business or profession whose total sales, turnover or gross receipts are or is likely to exceed five

lakh rupees in any previous year;

iii. Any person, who intends to enter into financial transaction where quoting PAN is mandatory, must also obtain PAN.

iv. The Assessing Officer may allot PAN to any person either on his own or on a specific request from such person.

7. Can a person obtain or use more than one PAN?

Obtaining or possessing more than one PAN is against the law, for which penalty of Rs.10,000/- may be imposed

{Section 139A (7) read with Section 272B }

8. Where to apply for PAN?

In order to improve PAN related services, the Income Tax department has authorized UTI Investor Services Ltd (UTIISL) to set up

and manage IT PAN Service Centers in all cities or towns where there is an Income Tax office and National Securities Depository

Limited (NSDL) to dispense PAN services from TIN Facilitation Centers. For convenience of PAN applicants in big cities, UTIISL has

set up more than one IT PAN Service Center and likewise there are more than one TIN Facilitation Centers.

9. How to apply for a PAN? Can an application for PAN be made on plain paper?

PAN application should be made only on Form 49A. A PAN application (Form 49A) can be downloaded from the website of Income Tax department or UTIISL or NSDL  (www.incometaxindia.gov.in,www.utiisl.co.in or www.tin-nsdl.com) or printed by local printers or photocopied (on A4 size 70 GSM paper) or obtained from any other source. The form is also available at IT PAN Service centers and TIN Facilitation centers.

10. Can an application for PAN be made in Form 49A obtained from anywhere?

Yes, PAN application may be made on Form 49A obtained from any source other than IT PAN Service Centers or TIN Facilitation

Centers. For instance, a PAN application may be made on form downloaded from the website of Income Tax department or UTIISL

or NSDL; or on form printed by local printers or a photocopy of downloaded or printed form.

11. Can an application for PAN be made through Internet?

Yes, application for fresh allotment of PAN can be made through Internet. Further, requests for changes or correction in PAN data or request for reprint of PAN card (for an existing PAN) may also be made through Internet. Online application can be made either through the portal of NSDL (https://tin.tin.nsdl.com/pan/index.html) or portal of UTITSL (http://www.utitsl.co.in/utitsl/uti/newapp/new-pan-application.jsp). The charges for applying for PAN online are the same i.e. Rs. 94 (including service tax) for Indian communication address and Rs.744 (including service tax) for foreign communication address, i.e. there are no additional charges. Payment of application fee can be made through credit/debit card or net-banking. Once the application and payment is accepted, the applicant is required to send the supporting documents through courier/post to NSDL/UTITSL.

12. Is there any TATKAL facility for allotment of PAN?

No.

13. How to find an IT PAN Service Center or TIN Facilitation Center?

Location of IT PAN Service Centers or TIN Facilitation Centers in any city may be obtained from local Income Tax Office or any

office of UTI/UTIISL or NSDL in that city or from websites of the Income Tax department (www.incometaxindia.gov.in or UTIISL(www.utiisl.co.in) or NSDL (http://tin.nsdl.com)

14. What services are provided by these IT PAN Service Centers or TIN Facilitation Centers?

IT PAN Service Centers or TIN Facilitation Centers will supply PAN application forms (Form 49A) and forms for ‘Request For New PAN Card Or/ And Changes In PAN Data’, assist the applicant in filling up the form, collect filled form and issue acknowledgement slip. After obtaining PAN from the Income Tax department, UTIISL or NSDL as the case may be, will print the PAN card and deliver it to the applicant.

15. What if I submit incomplete Form 49A?

IT PAN Service Centers or TIN Facilitation Centers shall not receive any incomplete and deficient PAN application. However, these centers will assist applicants to correctly fill up form 49A or ‘Request For New PAN Card Or/ And Changes In PAN Data’, as the case may be.

 

16. What documents and information have to be submitted along with the application for Form 49A?

a. Individual applicants will have to affix one recent, coloured photograph (Stamp Size: 3.5 cms x 2.5 cms) on Form 49A;

b. Any one document listed in Rule 114 must be supplied as proof of ‘Identity’ and ‘Address’; and

c. Designation and code of the concerned Assessing Officer of Income Tax department will have to be mentioned in Form 49A.

17. Which documents will serve as proof of ‘Identity’ in case of Individual applicants, including minors and HUF applicants?

Copy of school leaving certificate or matriculation certificate or degree of a recognized educational institution or depository

account or credit card or bank account or water bill or ration card or property tax assessment order or passport or voter identity

card or driving license or certificate of identity signed by a MP or an MLA or a Municipal Councilor or a Gazetted Officer;

In case the PAN applicant is a minor, any of above documents of any of the parents or guardian of such minor shall serve as proof

of Identity;

In case PAN application is made on behalf of a HUF, any of above documents in respect of Karta of the HUF will serve as proof of

Identity.

18. What is proof of ‘Address’ for Individual applicants, including minors and HUF applicants?

Copy of electricity bill or telephone bill or depository account or credit card or bank account or ration card or employer certificate

or passport or voter identity card or property tax assessment order or driving license or rent receipt or certificate of address

signed by a MP/ MLA/Municipal Councilor / a Gazetted Officer;

In case the PAN applicant is a minor, any of above documents of any of the parents or guardian of such minor shall serve as proof

of Address;

In case PAN application is made on behalf of a HUF, any of above documents in respect of Karta of the HUF will serve as proof of

Address.

19. What documents will serve as proof of Identity and Address for other applicants?

IT PAN Service Centers or TIN Facilitation Centers will supply PAN application forms (Form 49A) and forms for’Request For New

PAN Card Or/ And Changes In PAN Data’, assist the applicant in filling up the form, collect filled form and issue acknowledgement

centers will assist applicants to correctly fill up form 49A or ‘Request For New PAN Card Or/ And Changes In PAN Data’, as the Copy of Certificate of Registration issued by the Registrar of Companies or Copy of Certificate of Registration issued by the

Registrar of Firms or Copy of Partnership Deed or Copy of Trust deed or Copy of Certificate of Registration Number issued by

Charity Commissioner or Copy of Agreement or Copy of Certificate of Registration Number issued by Charity Commissioner or

Registrar of Co-operative Society or any other Competent Authority or any other document originating from any Central or State

Government Department establishing Identity and Address of such person.

20. How to find ‘Assessing Officer code’?

Assessing Officer code may be obtained from Income Tax Office where you submit your return of income. Applicants who have

never filed return of income may find out Assessing Officer code with the help of IT PAN Service Center or TIN Facilitation Center

or jurisdictional Income Tax Office.

21. Is a photograph compulsory for making an application for PAN?

A photograph is compulsory only in case of ‘Individual’ applicants.

22. What is the procedure for applicants who cannot sign?

In such cases, Left Hand Thumb impression of the applicant should be affixed on Form 49A or ‘Request For New PAN Card Or/ And Changes In PAN Data’ at the place meant for signatures and got attested by a Magistrate or a Notary Public or a Gazetted Officer, under official seal and stamp.

23. Is father’s name compulsory for female (including married/divorced/widow) applicants?

Only father’s name is required to be filled in the PAN application (Form 49A). Female applicants, irrespective of marital status,

should write only father’s name in the PAN application

24. Is it compulsory to mention telephone numbers on Form 49A?

Telephone number is not compulsory, but if provided it may help in faster communication.

25. Who can apply on behalf of non-resident, minor, lunatic, idiot, and court of wards?

Section 160 of IT Act, 1961 provides that a non-resident, a minor, lunatic, idiot, and court of wards and such other persons may

be represented through a Representative Assessee. In such cases, application for PAN will be made by the Representative

Assessee.

26. I had applied to the department but I do not know my PAN?

Please contact the Aaykar Sampark Kendra (ASK) at 0124-2438000 (or 95124-2438000 from NCR) or visit the www.incometaxindia.gov.in and go to ‘know your PAN‘.

 

27. Are there any charges to be paid at IT PAN Service Centers or TIN Facilitation Centers?

UTIISL and NSDL have been authorized to collect Rs.85 + Service Tax as applicable, per PAN application and this includes cost of

a tamper proof PAN card. This amount will have to be paid in cash at IT PAN Service Center or the TIN Facilitation Center.

28. Do you need to apply for a PAN when you move or transfer from one city to another?

Permanent Account Number (PAN), as the name suggests, is a permanent number and does not change during lifetime of PAN

holder. Changing the address or city, though, may change the Assessing Officer. Such changes must, therefore, be intimated to

nearest IT PAN Service Center or TIN Facilitation Center for required correction in PAN databases of the Income Tax department.

These requests will have to be made in a form for ‘Request For New PAN Card Or/ And Changes In PAN Data’

29. I had applied to UTITSL/ NSDL a month ago but I have not received my PAN card and I have to file my return of income.

Please contact Aaykar Sampark Kendra (0124-2438000 or 95124-2438000 from NCR) or www.incometaxindia.gov.in or send an email to pan@incometaxindia.gov.in.

30. Will the existing PAN cards issued by the Department remain valid?

All PAN allotted and PAN card issued by the Department will remain valid. All persons who have been allotted a PAN need not apply again.

31. Income Tax Department has issued me a PAN card; can I obtain a new tamper proof PAN card?

For obtaining the tamper proof PAN card an application will have to be made in the form for ‘Request For New PAN Card Or/ And Changes In PAN Data’ to IT PAN Service Center or TIN Facilitation Center, in which existing PAN will have to be indicated and old PAN card surrendered. The payment of Rs.60 + Service Tax as applicable, will also have to be made.

32. I had applied for PAN and received PAN number but have not received the PAN Card?

Apply in the form for ‘Request For New PAN Card Or/ And Changes In PAN Data’ at any IT PAN Service Center or TIN Facilitation Center quoting the PAN allotted to you.

33. How will the new PAN card be delivered to me?

The UTIISL or NSDL, as the case may be, will ensure delivery of new PAN card at the address indicated by you in the PAN application form or form for ‘Request For New PAN Card Or/ And Changes In PAN Data’

34. I want to pay taxes today but I do not have a PAN?

It takes about 15 days to get a new PAN allotted. However, PAN can be obtained in around 5 days if application is made through

Internet and processing fee paid through credit card. It is advisable to initiate action for obtaining PAN will in time.

35. Who should be contacted for inquiries regarding PAN applications?

All such inquiries should be addressed to:

 

For UTIISL

For NSDL

The Vice President

IT PAN Processing Centre,

UTI Investor Services Ltd

Plot No. 3, Sector – 11

CBD_ Belapur

Navi Mumbai-400 614

e-mail.- utiislgsd@mail.utiisl.co.in

Tel No. 022-27561690

Fax No. 022-27561706

The Vice President

Income Tax PAN Services Unit,

NSDL

4th Floor, Trade World, A Wing

Kamala Mills Compound,

S. B. Marg, Lower Parel,

Mumbai-400 013

e-mail.- tininfo@nsdl.co.in

Tel No. 022-2499 4650

Fax No. 022-2495 0664

 

Coupon number or Acknowledgement number, as the case may be, should be mentioned in all communications. (Source)

Was this article helpful to understand PAN? If you do have any query, please feel free to post here in the comments section.


Should I redeem my MFs before DTC

June 20, 2010

Sir,
In DTC,LTCG is likely to be taxable,may be @5% or 10%.I have investments in funds like R.Growth,H Top200,D Top100etc for last, say about five years.Should I redeem & then reinvest to avoid tax.Should I switch from R.Growth to RSF Equity?Kindly reply in detail.Thanks,urs sincerely

Lcbansal

Dear Dr. Lal, First of all. Plz. note these are mere proposals not the act as of now for DTC. The final picture may be different from what we are seeing today.

Regarding your query for redemption – Sample this –
Say you have total basic investment of 5L Rs. as on date where the with profit value is say 8L Rs. It means 3L Rs. is your profit. Now if you redeem these 8L Rs. in full & reinvest the same in same funds. your holding period ‘ll be counted from the reinvestment date. So in case in future, just after implementation of DTC, you require money due to any reason, the gains if any ‘ll be STCG & these STCG ‘ll be taxable at your marginal slab rate. Now If we consider that you are going to hold these units for a long term & ‘ll redeem after 4-5 more years in DTC, the LTCG ‘ll be discounted based upon your holding period. In the example given in the new proposals, it seems, higher the holding period, higher ‘ll be the discount for calculation of LTCG.
Now interestingly If you don’t take any action, the holding period is already eligible for LTCG & as the period is already more than 5Y (by the time, DTC is implemented), the resultant Tax liability ‘ll be very low. As now after 8-10 years (5Y current holding + 3-5 year more in DTC), your total holding period ‘ll invite a high %age discount & thus lower tax outgo.
One more Question I want to ask – Due to these DTC proposals, ‘ll you stop investing from now onwards? In any case, the future is EET.
Your query is similar to public behavior – Fill the fuel tank of vehicle just b4 the hike in fuel prices. “ll this tank fill last for life long? NO. In any case we ‘ll continue to use now so called high priced fuel. Same is here in your query.
Plz. don’t worry for now & future. Keep Investing. Yes redemption due to under performance should always be done.
Bye Bye & happy investing.
Thanks

Ashal


Revised proposals of Direct Tax Code

June 16, 2010

Income Tax

Dear Friends, here is a quick view of the new proposals of Direct Tax code.

1. PF, PPF, GPF, EPF, NPS & Annuity Plans as well as proceeds from Term plans (Pure Life insurance) ‘ll be Tax free as per E – E – E. So no Tax at withdraw from these instruments.

2. Home loan Interest benefit on 1.5L Rs. for self occupied property, is retained.

3. The list of permitted savings intermediaries now includes most of the current saving instruments lile – apart from the instruments listed in point 1 above, NSC, ULIPs & Traditional Plans,  ELSS, Bnak Tax saver FDs, Bonds (Possibly Infrastruture bonds)  etc.

4. Long Term capital Gains from shares & Eq. MFs ‘ll become taxable.

5. No clarity as of now for the earlier proposed Tax slab rates.

This Revised Discussion Paper is available on the following websites:
finmin.nic.in and incometaxindia.gov.in
Responses to the Revised Discussion Paper should be sent online through the link provided at these websites or at the following e-mail address: directtaxescode-rev@nic.in. Responses are solicited upto 30th June, 2010.

Thanks

Ashal