Retirement planning is an integral part of the financial planning process. A proper approach to retirement planning becomes all the more imperative, when we consider that post retirement, a person is left without a source of income, while the expenses remain constant. This is likely to produce a disjoint between expenses and income. Thus, it makes sense to plan your retirement while you are still working and employed.
In the Indian context, the importance of proper planning for retirement can be understood from the simple fact that less than 4% of Indian residents over 60 years of age receive some form of pension from their former employers....
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...
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...
Bombay Stock Exchange – Origins
Bombay Stock Exchange, originally named as “The Native Share & Stock Brokers’ Association”, was established in 1875. This makes BSE the oldest stock exchange in the Asian economic region. It is also...
Financial scams have a habit of cropping up with an alarming regularity in the Indian financial system. We have reconciled to financial irregularities to such an extent that we simply do not pay heed to smaller scams that take place around us on...
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...
Assessee (Section 2(7)): An assessee is a person by whom any tax or any other sum of money is payable under the Income Tax Act.
Assessment Year (Section 2(9)): Assessment year means the period of 12 months starting from 1st April of every year and...
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...
There has been debate over decades whether investing in GOLD is a good option or not. Whether buying gold was a judicial investment or not. Even during the global meltdown, gold had made an excellent hedge against inflation. Over the past 20 years,...
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...
