About Form 15G When your total income is less than Rs 2,50,000, no tax is payable by you. In such a case, no TDS should be deducted on your income. With the help of Form 15G and Form 15H you can inform your banker that your income is less than the minimum exempt income and […]
Archive | Clubbing of Income
Do remember to include these ‘income from other sources’ in your income tax return
Do you have any income from other sources. Any residual income which is not included in the other 4 heads (Salary, House Property, Capital Gains, Business & Profession) is included under the head income from other sources. Here are some examples of incomes that tax payers may skip. Do make sure you include the […]
Save tax by gifting money to your Adult Child
Your adult children can help you save tax. Gifts (including money) to an adult child are exempt from tax. And if your adult child invests this money in assets (such as fixed deposits, PPF investments or purchasing any other asset) any income from these is taxable in the hands of the adult child. Clubbing provisions […]
Sukanya Samridhi Account : Deduction under section 80C
The Prime Minister recently launched the Sukanya Samridhi account scheme under his ‘beti bachao beti padhao campaign’ for the benefit of the minor girl child. Deduction under section 80C – A minimum amount of Rs 1,000 must be deposited each year in this account. A maximum Rs 1,50,000 can be invested in each financial year. The […]
Do Minors have to pay Income Tax?
A child who is less than 18 years old is a minor. Do minors have to pay Tax on their Income? Lets take a look. Minors can earn an income from bank accounts, fixed deposits or other investments made in their name by the parents. Any Income that accrues or is paid to a minor […]
Can you save tax by transferring money to wife’s account?
Do you transfer money to your spouse’s account so he/she can meet personal expenses, does that money earn an income. Or do you consider it loaned. Let’s understand, how is the income from such transfer treated from income tax standpoint. Money is Invested in Shares or Fixed Deposits or other Assets– The shares may have […]
Clubbing of Income Under Income Tax Act
‘Its all in the family’ It may seem ordinary to invest money for a non earning spouse by way of fixed deposits, or other income earning assets or to set up bank accounts, mutual funds or other investments for children to provide for their needs in future. Usually, you are only taxed for your own […]