Now that the present economical
season/financial year is fast approaching to its end, there is an imperative
need to evaluate the tax structure and as such everybody would be eager to know
where his/her tax problem take a position at. When we discuss of tax
responsibility, concerns occur about tax evasions. It may very well be the
situation that you would end-up evading tax and experience repercussions of
evasion even if you have had no such objective to do so. You need to be
conscious of the tax responsibilities as a tax payer and need to know what your
tax obligations are.
The most typical tax stumbling blocks that
you should avoid from possible temptation for avoidance are:
1.If you are a salaried employee, then
evaluate all your earnings from other sources. Income from other sources mainly
comprise of earnings from financial institution benefits and other benefit
remains.Further, you have to pay attention on the various
facilities/perquisites,NSCs, set remains and persistent remains as earnings
from other resources while processing your tax structure.
2.Any deliberate attempt to cut down your
tax pressure could very well end-up as tax evasion. When you buy anything in
the name of your spouse or children, you should keep in mind the point that
although the cash obtained from your spouse is totally tax free, if the cash is
spent then earnings gained through such financial commitment strategies will
attract tax.
Hence, if you buy a home in your spouse’s
name, any earnings from the home – be it lease or financial commitment
benefits, it will be accounted for as your earnings. Similar is the situation
with any set down payment you make in your spouse’s name. Excepting a certain
amount (about Rs.2,000/- a season per child for maximum 2 children) is allowed
in situation of set down payment made in the name of your children.
You can consider making financial
commitment in total tax free choices such as PPF, Tax Saving Deposit Bonds
(with lock-in period), Infrastructure Bonds, or in value equipment to combine
the barrier of conditions of clubbing of earnings from such financial
commitments.
3.It is always advisable better not to stop
your insurance coverage before three decades.If you stop your insurance
coverage within three decades of commencement, along with dropping top quality
compensated in the first season,you will also reduce out the tax advantages
obtained under 80C.
4.Properly go through the earning tax
advantage on real estate financial loan. If you avail a home on financial loan
within five decades of buying it, you have to part with the tax advantages
obtained under Area 80C. Please note that the Tax advantage for the pay back of
the major would be missing when a home is marketed within five decades of
buying it.
5.You have to pay prosperity tax on certain
resources if their mixed value surpasses the ceiling limit (say Rs. 30 lakhs).
If you own a second home which even can be found vacant, then you are
responsible to pay prosperity tax on the value of such second home, even if
such second home is lying vacant, and you have to pay tax on notional lease
earnings from such second home, which would be calculated depending on market
lease/rentals of the area.
6.Wealth tax is the other factor, which
will fall due on resources like vehicles,
jewelry etc., Wealth comprises the resources you buy with your earnings
after you pay earnings tax. Even if you declare that you have obtained a
certain amount of silver through bequest, the Income Tax authorities could
always increase concerns about the resource of obtaining them.Cash on hand in
surplus of Rs.50,000 is also may cause a topic to prosperity tax.
More,
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