Tax planning is the analysis of a financial situation or plan to ensure that all elements work together to allow you to pay the lowest taxes possible. A plan that minimizes how much you pay in taxes is referred to as tax efficient. Tax planning should be an essential part of an individual investor's financial plan.
Section 80D provides taxpayers with tax deductions on the premium paid towards health insurance policies for self, parents, spouse, and children. The taxpayers are can claim the following amounts as deductions under Section 80D: i) Up to Rs 25,000 on the premium for health insurance availed for self, spouse, and children. ii) If your parents are covered under the insurance policy, then a maximum deduction of Rs 50,000 is allowed. iii) If either of your parents is a senior citizen, then the maximum deduction allowed is Rs 75,000.
Now, let’s see how Akash can utilise the provisions of Section 80D to save taxes. He buys a health policy for himself by paying a premium of Rs 20,000. He later decides to cover his parents as well under the policy. He spends an additional Rs 53,000 to do so. Akash’s father is aged 61 years. Hence, he can avail an additional deduction of up to Rs 50,000 towards the premium paid to cover his father. Thus, Akash can claim Rs 70,000 paid by him (Rs 20,000 for covering self and Rs 50,000 for covering parents, one of whom is a senior citizen) under Section 80D this year. He saves Rs 21,840 in taxes under this Section.
Tax planning for setting up of a new businessAjit Majumder
Tax planning:
OBJECTIVES:
Reduction of tax liability
Minimisation litigation
Productive investment
Healthy growth of economy
Economic stability
Benefit accrued from “MAKE IN INDIA”:
Facilitating USD 55 Billion investments to create 1.6 million jobs
FDI flow USD 130 Billion [2014-16]
Enabling startups with the INR 10,000 crore “Fund of Funds”
Provisions made for startups to get tax exemption for 3 years
3,43,311 youth trained with 81% placement[2014-16]
Presentation on the Indirect Tax system in India, the need for tax reforms, the journey to GST, basic understanding and features of GST and the benefits of GST.
Best Guide For Tax-Savings | Canara HSBC Life InsuranceSamJackson99
Know More About Tax-Savings With This Guide Provided By Canara HSBC Life Insurance. Learn How To Get The Maximum Benefits For A Better Financial Planning
Tax planning for setting up of a new businessAjit Majumder
Tax planning:
OBJECTIVES:
Reduction of tax liability
Minimisation litigation
Productive investment
Healthy growth of economy
Economic stability
Benefit accrued from “MAKE IN INDIA”:
Facilitating USD 55 Billion investments to create 1.6 million jobs
FDI flow USD 130 Billion [2014-16]
Enabling startups with the INR 10,000 crore “Fund of Funds”
Provisions made for startups to get tax exemption for 3 years
3,43,311 youth trained with 81% placement[2014-16]
Presentation on the Indirect Tax system in India, the need for tax reforms, the journey to GST, basic understanding and features of GST and the benefits of GST.
Best Guide For Tax-Savings | Canara HSBC Life InsuranceSamJackson99
Know More About Tax-Savings With This Guide Provided By Canara HSBC Life Insurance. Learn How To Get The Maximum Benefits For A Better Financial Planning
Ultimate Guide For Tax-Savings | Canara HSBC Life InsuranceSamJackson99
Learn How To Get The Maximum Benefits For A Better Financial Planning. Know More About Tax-Savings With This Guide Provided By Canara HSBC Life Insurance.
Tax Planning Concept and tax planning with specific managerial decisionsSundar B N
In this ppt most of the tax planning concepts are covered. Tax planning, Tax evasion, tax avoidance, tax planning with inter corporate dividend and Bonus share. Tax Planning with specific managerial decisions are covered.
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· Tax Planning,
· Direct Tax Structure in India,
· Restriction for Tax Avoidance and Tax Evasion,
· Residential Status and Tax Planning
· Corporate Taxation and Dividend Tax
Unit II Tax Planning and Company PromotionDayanand Huded
The chapter comprises of Meaning of Tax Planning, Tax Avoidance, Tax Evasion and Tax Management; Features and Scope for Tax Planning; Business Location and Tax Planning; Nature of Business and Tax Planning: FTZ, Units in SEZ, 100% EOU and Infrastructure Development.
Tax planning is a focal part of financial planning. It ensures savings on taxes while simultaneously conforming to the legal obligations and requirements of the Income Tax Act, 1961. The primary concept of tax planning is to save money and mitigate one's tax burden.
Tax Planning is the arrangement of financial activities in such a way that maximum tax benefits are enjoyed by making use of all beneficial provisions in the tax laws. It entitles the assessee to avail certain exemptions, deductions, rebates and reliefs, so as to minimise its tax liability.
(i) Reduction of tax liability: One of the supreme objectives of tax planning is the reduction of the tax liability of the payer and the resultant saving of the earnings for a better enjoyment of the fruits of hard labour.
(ii) Minimization of litigation and the tax payer may be saved from the hardships and inconveniences caused by unnecessary litigations.
(iii) Productive investment: Tax planning is a measure of awareness of the taxpayer to the intricacies of the taxation laws and it is the economic consciousness of the income earner to find out the ways and means of productive investment of the earnings which would go a long way to minimize its tax burden.
(iv) Healthy growth of economy: The saving of earnings is the only basement upon which the economic structure of human life is founded.
(v) Economic stability: Productive investment increase contours of the national economy embracing in itself the economic prosperity of not only the tax payers but also of those who earn the income not chargeable to tax. The planning thus creates economic stability of the nation and its people by even distribution of economic resources.
(i) Residential status and citizenship of the assessee: We know that a non-resident in India is not liable to pay income-tax on incomes which accrue or arise and are also received outside India, whereas a resident in India is liable to pay income-tax on such incomes.
(ii) Heads of income/assets to be included in computing net wealth: Before the Tax-planner goes in for his task; he has to have a full picture of the sources of Income of the tax payer and the members of his family
Tax planning is the analysis of a financial situation or plan from a tax perspective. The purpose of tax planning is to ensure tax efficiency, with the elements of the financial plan working together in the most tax- efficient manner possible. Tax planning is an important part of a financial plan, as reducing tax liability and maximizing eligibility to contribute to retirement plans are both crucial for success.
UTI Long Term Equity Fund (Tax Saving) | Invest in ELSS | UTI Mutual FundRinkuMishra13
UTI Long Term Equity Fund is an Equity Linked Savings Scheme (ELSS) that aims to generate long term capital growth and enables saving taxes. Invest in UTI Long Term Equity Fund now!
•What is income tax –Best income tax lawyer in lucknow.pptxGabrielLechner1
Income tax is a tax that governments impose on individuals' earnings or income, including wages, salaries, dividends, interest, rental income, and other sources of income. The purpose of income tax is to generate revenue for the government to fund public services, infrastructure, and other expenditures.
Income tax is usually progressive, meaning that higher-income individuals are taxed at higher rates. Tax rates and brackets can vary significantly between countries, and some countries may also have different tax rates for different types of income (e.g., earned income vs. investment income).
Taxpayers are typically required to file tax returns annually, reporting their income and calculating the amount of tax they owe based on the applicable tax rates and deductions. Taxpayers may also be eligible for various tax credits and deductions that can reduce their taxable income or the amount of tax they owe.
Governments use various methods to collect income tax, such as withholding taxes from paychecks (pay-as-you-earn or PAYE system), estimated tax payments for self-employed individuals, and annual tax return filings for individuals and businesses.
Overall, income tax is a crucial component of a country's tax system, providing essential revenue for government operations and public services while also influencing economic behavior and wealth distribution.
There are several reasons why taxes are necessary. First and foremost, taxes provide the government with the funds needed to finance essential public services and projects that benefit society as a whole. These services include maintaining roads and bridges, funding public schools and universities, providing healthcare services, and ensuring public safety through law enforcement and emergency services.
Additionally, taxes play a crucial role in redistributing wealth and reducing economic inequality. Progressive tax systems, for instance, require higher-income individuals to pay a larger percentage of their income in taxes, while lower-income individuals pay a lower percentage. This helps ensure that wealthier individuals contribute proportionally more to society's needs and helps fund social welfare programs that support disadvantaged populations.
Furthermore, taxes can be used as a tool to influence economic behavior and achieve policy objectives. For example, governments may use tax incentives or penalties to encourage environmentally friendly practices, promote investment in specific industries or regions, or discourage harmful activities such as smoking or excessive consumption of sugary drinks.
In summary, taxes are necessary for funding public services, reducing economic inequality, and achieving various policy goals that benefit society as a whole. While they may be a source of contention for some, they are a fundamental aspect of modern governance and play a vital role in shaping the economic and social landscape of a country.
WINDING UP of COMPANY, Modes of DissolutionKHURRAMWALI
Winding up, also known as liquidation, refers to the legal and financial process of dissolving a company. It involves ceasing operations, selling assets, settling debts, and ultimately removing the company from the official business registry.
Here's a breakdown of the key aspects of winding up:
Reasons for Winding Up:
Insolvency: This is the most common reason, where the company cannot pay its debts. Creditors may initiate a compulsory winding up to recover their dues.
Voluntary Closure: The owners may decide to close the company due to reasons like reaching business goals, facing losses, or merging with another company.
Deadlock: If shareholders or directors cannot agree on how to run the company, a court may order a winding up.
Types of Winding Up:
Voluntary Winding Up: This is initiated by the company's shareholders through a resolution passed by a majority vote. There are two main types:
Members' Voluntary Winding Up: The company is solvent (has enough assets to pay off its debts) and shareholders will receive any remaining assets after debts are settled.
Creditors' Voluntary Winding Up: The company is insolvent and creditors will be prioritized in receiving payment from the sale of assets.
Compulsory Winding Up: This is initiated by a court order, typically at the request of creditors, government agencies, or even by the company itself if it's insolvent.
Process of Winding Up:
Appointment of Liquidator: A qualified professional is appointed to oversee the winding-up process. They are responsible for selling assets, paying off debts, and distributing any remaining funds.
Cease Trading: The company stops its regular business operations.
Notification of Creditors: Creditors are informed about the winding up and invited to submit their claims.
Sale of Assets: The company's assets are sold to generate cash to pay off creditors.
Payment of Debts: Creditors are paid according to a set order of priority, with secured creditors receiving payment before unsecured creditors.
Distribution to Shareholders: If there are any remaining funds after all debts are settled, they are distributed to shareholders according to their ownership stake.
Dissolution: Once all claims are settled and distributions made, the company is officially dissolved and removed from the business register.
Impact of Winding Up:
Employees: Employees will likely lose their jobs during the winding-up process.
Creditors: Creditors may not recover their debts in full, especially if the company is insolvent.
Shareholders: Shareholders may not receive any payout if the company's debts exceed its assets.
Winding up is a complex legal and financial process that can have significant consequences for all parties involved. It's important to seek professional legal and financial advice when considering winding up a company.
NATURE, ORIGIN AND DEVELOPMENT OF INTERNATIONAL LAW.pptxanvithaav
These slides helps the student of international law to understand what is the nature of international law? and how international law was originated and developed?.
The slides was well structured along with the highlighted points for better understanding .
In 2020, the Ministry of Home Affairs established a committee led by Prof. (Dr.) Ranbir Singh, former Vice Chancellor of National Law University (NLU), Delhi. This committee was tasked with reviewing the three codes of criminal law. The primary objective of the committee was to propose comprehensive reforms to the country’s criminal laws in a manner that is both principled and effective.
The committee’s focus was on ensuring the safety and security of individuals, communities, and the nation as a whole. Throughout its deliberations, the committee aimed to uphold constitutional values such as justice, dignity, and the intrinsic value of each individual. Their goal was to recommend amendments to the criminal laws that align with these values and priorities.
Subsequently, in February, the committee successfully submitted its recommendations regarding amendments to the criminal law. These recommendations are intended to serve as a foundation for enhancing the current legal framework, promoting safety and security, and upholding the constitutional principles of justice, dignity, and the inherent worth of every individual.
A "File Trademark" is a legal term referring to the registration of a unique symbol, logo, or name used to identify and distinguish products or services. This process provides legal protection, granting exclusive rights to the trademark owner, and helps prevent unauthorized use by competitors.
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Car Accident Injury Do I Have a Case....Knowyourright
Every year, thousands of Minnesotans are injured in car accidents. These injuries can be severe – even life-changing. Under Minnesota law, you can pursue compensation through a personal injury lawsuit.
Military Commissions details LtCol Thomas Jasper as Detailed Defense CounselThomas (Tom) Jasper
Military Commissions Trial Judiciary, Guantanamo Bay, Cuba. Notice of the Chief Defense Counsel's detailing of LtCol Thomas F. Jasper, Jr. USMC, as Detailed Defense Counsel for Abd Al Hadi Al-Iraqi on 6 August 2014 in the case of United States v. Hadi al Iraqi (10026)
2. Tax planning is a process of analyzing one’s financial situation
logically with a view to reducing tax liability. Tax planning
involves planning your income in a legal manner so to avail
various exemptions and deductions.
For Eg: Under Section 80C, you can avail tax deduction if specific
investments are made for a specific period up to a limit of Rs 1,
50,000. The most popular methods for saving tax are investing
in PPF accounts, National Saving Certificate, Fixed Deposit,
Mutual Funds and Provident Funds.
Tax planning involves applying various advantageous provisions
which are legal and entitles the assesse to avail the benefit of
deductions, credits, concessions, rebates and exemptions.
Or we can say that, Tax planning is an art in which there is a logical
planning of one’s financial affairs in such a manner that benefits
the assesse with all the eligible provisions of the taxation law.
Tax planning is an honest approach of applying the provisions
which comes within the framework of taxation law.
3. First-time taxpayers must understand the
fundamental objectives of planning their
taxes. They are as under:
To reduce tax liability:
To minimise litigation:
To stabilise the economy of the country:
To leverage productivity and financial
growth:
4. There are the three types of tax planning:
Purposive tax planning: Planning taxes with a
particular objective in mind.
Permissive tax planning: Tax planning that is
under the framework of law.
Long range and Short range tax
planning: Planning done at the start and end
of a fiscal year respectively.
5. Permissive tax planning refers to the plans
which are permissible under various
provisions of the law, for example planning of
earning income covered by Section 10,
Section 10(1), planning of taking advantage
of various deductions, incentives for getting
benefit of different tax concessions etc. In
other words, it means planning made as per
provision of the taxation laws.
6. Taxpayers are provided with several options to reduce
their tax liabilities. Various sections of the Indian income
tax law offer tax deductions and exemptions, of
which, Section 80C is the most popular tax-saving avenue.
For e.g., Deposits in Public Provident Fund , Five Year Bank
Deposits, National Savings Certificate , Investment in ELSS
schemes.
The best and the most optimum way to save taxes is by
laying out a financial plan whenever there is a revision in
your income and sticking to it. Also, it is a good habit to
make tax-saving investments at the beginning of the year
rather than making hasty and often incorrect investment
decisions at the last moment. To do this, it is crucial to be
aware of all the exemptions and deductions available to
you.
7. Section 10(1) simply states that any agricultural income earned
by the person is exempted from income tax. Now, in order to
understand the full coverage of exemption provided to
agricultural income under section 10(1) of the Income Tax Act, it
is important to under the definition / coverage of the term
‘Agricultural Income’.
Section 2(1A) of the Income Tax Act defines the term
‘Agricultural Income’. As per the definition, the agricultural
income means as under –
1. The revenue earned in the form of rent or lease generated
from the land if –
a. The land is situated in India; and
b. The land is used for agricultural purpose.
2. The income derived from the land by agriculture
operations (such operations include both basic and subsequent
operations).
3. The income derived from the processing of the
agricultural produce so as to render it fit for the market or sale
of the agricultural produce.
4. The income derived from any building owned and
occupied in and around the agricultural land.
8. Section 80C, one of the most prevalent sections in
the Income Tax Act, 1961, provides provisions to
save up to Rs46,800 (assuming the highest slab of
income tax i.e. @30% plus education cess 4%) on tax
liabilities each year. One of the best tax-saving
avenues under Section 80C is investing in an equity-
linked savings scheme, more commonly known
as ELSS.
Such tax planning mutual funds offer the dual benefit
of potential capital appreciation and tax-saving.
Apart from ELSS funds, you can choose to invest in
government schemes such as National Savings
Certificate (NSC), Public Provident Funds (PPF), tax-
saving FDs, etc. Cumulative investments under these
securities can offer deductions up to Rs1.5 lakh.
9. Under this section, taxpayers are offered
deductions on the premium paid towards health
insurance policies. Under Section 80D, a taxpayer
can claim the following amounts as deductions:
Avail up to Rs25,000 on the premium paid
towards health insurance for self, children, or
spouse
Avail up to Rs50,000 if your parents are also
covered under your health insurance plan
If either of your parents belongs to the senior
citizen bracket, then a maximum deduction of
Rs75,000 is allowed
10. Section 80E offers tax deductions on the
interest paid for an education loan. These
deductions can be claimed for eight years
starting from the date of repayment. There is
no upper limit on the deductible amount.
This means that an assessee can claim the
entire amount paid as interest from the
taxable income.
11. Under HRA, taxpayers can avail exemption on the
cost incurred to stay in a rented accommodation.
The taxpayer is mandated to furnish the rent
receipts provided by the landlord. The deduction
available is the least of the following amounts:
Actual HRA received; or
50% of basic salary + DA (dearness allowance) for
taxpayers living in metro cities; & 40% of (basic
salary + DA) for taxpayers residing in non-metro
cities; or
Total rent paid less 10% of basic salary + DA
12. Apart from the deductions and the
exemptions mentioned above, you can save
taxes in several different ways. Donations
towards charities and qualified organisations
are also eligible for tax exemptions.
Under the new tax regime announced with
the Union Budget 2020, individuals can opt to
pay taxes at reduced rates and redefined
income tax slabs by forgoing the various
deductions and exemptions.
13. Tax planning is the analysis of a financial situation
or plan to ensure that all elements work together to allow
you to pay the lowest taxes possible. A plan that
minimizes how much you pay in taxes is referred to
as tax efficient. Tax planning should be an essential part
of an individual investor's financial plan.
Permissive Tax planning, if performed under the
framework defined by the respective authorities, is an
entirely legal and a smart decision. However, you might
land yourself in trouble for adopting shady techniques to
save taxes. It is the duty and responsibility of every citizen
to carry out prudent tax planning. Based on your tax slab,
personal choices, and social liabilities, you can choose
from distinct tax saver mutual funds and investment
avenues offered to you.