Wealth tax is a direct tax (that is, the tax is paid by the person on who it is levied), just like Income Tax. In India, wealth tax is managed and regulated under the Wealth Tax Act, 1957. Similar to income tax, the wealth tax is also assessed on an annual basis. As the name very well indicates, wealth tax is a tax levied on the net wealth (that is, wealth excluding debts) of an assessee. The income producing potential, or whether the asset is actually producing an income or not, is not relevant for the purpose of wealth tax assessment. In other words, if an ownership is established, then the owner of the asset is liable to pay wealth...
Real estate investment is one of the most popular investment avenues all over the world. Real estate investment – whether for a residential home, or simply as an investment option – continues to retain its charm despite periodic setbacks to...
Financial capital is one of the most important components of a business. The need for financial capital grows with a growth in the business. At a certain stage, it becomes imperative to raise a large amount of financial capital to expand and sustain...
Income tax incidence is a major factor that affects the financial aspects of retirement planning. Financial security and stability is a chief concern post retirement, and the income taxes have a major impact on these aspects. Fortunately, the government...
The Government’s annual budget is always a much awaited report for the common man, the entrepreneurs andthe politicians alike. Household budget, industrial productivity, business, even the future of the political parties are affected by the budget....
In simple terms inflation or price rise is caused by too much money chasing too few goods, or , demand being more than supply. The free play of the twin market forces of demand and supply determine the price of any commodity or service. In a mixed economy...
The Background
Securities and Exchange Board of India, popularly called SEBI, is a quasi government body that was initially formed in 1988 by an administrative order. The Indian capital market had started developing very fast during the 1980s. The...
The Income Tax Act specifies that gains/profits that result from the transfer of capital assets are liable to be taxed as income. To understand the concept of tax on capital gains, it would be better to look at the very definition of capital gains...
Gold vs mutual funds as investment options – it is a debate that is slowly gaining denomination. While gold represents the ‘old school’ of investment thoughts, mutual funds find favor with the modern generation. However, with the stock...
Personal finances and investments, like any other field of human activity, are also marred by a number of myths. Though the situation is gradually changing with greater investor education and better availability of information and resources, many...
Allowance is defined as a fixed quantity of money or other substance given regularly in addition to salary for meeting specific requirements of the employees. As a general rule, all allowances are to be included in the total taxable income unless specifically...
Now it is almost the end of Financial year 2009-10 and we are loaded with the tension of investments and tax saving.
Have we invested enough to save tax?? Where to invest to save more tax?? How much to invest?? Is the investment in this particular instrument...
Well, it’s that time of the year again! When you start things with a clean slate, and resolve to make a new beginning. A lot of us make resolutions for the upcoming year. Most of them are forgotten in the first week, and by the time January is...
Income Tax Calculation
To calculate the tax to paid for a Financial year, the steps included are :
1) Add all the incomes from different sources to find the Total income.
2) Subtract the annual professional tax from the total income to get...
Under Income tax Act, the total income of any individual Indian resident is subject to tax. To calculate the taxable income,the steps are as follows :
1) Determine the Total Income by adding all the sources of income.
2) Determine the Total Deductions...
As the financial year 2009-10 is approaching its end, we are loaded with the pressure of investments and reduce the Income tax liability. Income tax in India comprises of all income other than agricultural income.
According to Income Tax Act of 1961,...
What are the qualities that distinguish a successful investor from a not-so-successful investor? Is it education? Do you really need to be a high-flying graduate from the ivy-league management colleges to become a successful investor? Well, in that...
Saving does not come easily for most of us, and for few people, it is a positive pain (yes, that includes me, too!). However, as I pointed out in my previous articles, saving is an absolute necessity, if you want to start investments, and move ahead...
Now that we have understood the concepts behind the processes of savings and investments, it would be pertinent to discuss the major points of difference between the two. As we discussed in my previous article, investment and saving often used as synonyms,...
Most of us use the words ’saving’ and ‘investment’ as synonyms. Yet there is a substantial difference between the two. On the other hand, there are indeed a number of similarities too. I hope I have not managed to confuse you...
