XA

Saturday 16 May 2015

EVALUATION OF PROPERTY TAX

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.


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