Tax Planning

Tax is the amount of money that is paid to the government by individuals as per their income. By law, businesses and individuals must file an income tax return every year to determine whether they owe any taxes or are eligible for a tax refund.
The Income Tax Department is the biggest revenue mobilizer for the Government. Income tax is a key source of funds that the government uses to fund its activities and serve the public.

India Income tax slabs FY 2018-2019 for Individual Tax Payers & HUF
(Aged less than 60 years)

Income tax slab (in Rs.) Tax
0 to 2,50,000 No tax
2,50,000 to 5,00,000 5%
5,00,000 to 10,00,000 20%
Above 10,00,000 30%

India Income tax slabs FY 2018-2019 for Individual Tax Payers & HUF
(Aged 60 years but less than 80 years)

Income tax slab (in Rs.) Tax
0 to 3,00,000 No tax
3,00,000 to 5,00,000 5%
5,00,000 to 10,00,000 20%
Above 10,00,000 30%

India Income tax slabs FY 2018-2019 for Super Senior Citizens
(Aged 80 and above)

Income tax slab (in Rs.) Tax
0 to 5,00,000 No tax
5,00,000 to 10,00,000 20%
Above 10,00,000 30%

Income Tax Rules

The government of India imposes an Income tax on taxable Income of all persons including individuals, Hindu Undivided Families (HUFs), companies, firms, association of persons, body of individuals, local authority and any other artificial judicial person.
Many jurisdictions tax the Income of individuals and business entities, including corporations. Generally the tax is imposed on net profits from business, net gains, and other Income.

Tax Calculator

The Indian Annual Tax Calculator is updated for the 2016 / 2017 assessment year. You can calculate your Annual take home pay based of your Annual gross income, Education Tax, NIS and income tax for 2016 / 2017. Use the simple annual tax calculator or switch to the advanced annual tax calculator to review NIS payments and income tax deductions for 2016.

Tax Saving Schemes

How to make your Tax-Saving Investments
Equity Linked Saving Schemes (ELSS) provide a good avenue for capital appreciation and tax benefit under section 80C of the Income-Tax Act, 1961.

Benefits of ELSS

How to make your Tax-Saving Investments
• Deduction under section 80C
• No tax on Capital gains
• Dividends are tax free in the hands of investor
Better Return
• Compared to all tax saving instruments under sec 80C
Lock in period (3 years)
• Lowest among all tax saving instruments under section 80C
• Long enough to minimize market volatility

NRI Taxation

An Indian Citizen who stays abroad for employment/ carrying on business or vacation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a non-resident.
Liability to pay tax in India does not depend on the nationality or domicile of the Tax payer but on his residential status. Residential Status is determined on the basis of physical presence i.e. the number of days of stay in India in any year.

File Your Returns Online

Every person having taxable income and whose accounts are not liable to audit must file an Income Tax Return. If total income exceeds Rs. 5 lakh, it is mandatory to file the return online.

ABOUT THE AUTHOR

Biju Chakraborty

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