PAN Card Importance.

http://www.rbi.org.in/commonman/english/scripts/Notification.aspx?Id=117
http://www.iba.org.in/listfaq.asp

http://stepupmoney.com/why-is-pan-card-important-in-india/

 

7 tax exemptions that can land you with a penalty

http://www.business-standard.com/article/pf/7-tax-exemptions-that-can-land-you-with-a-penalty-113090200022_1.html

 "You could be levied a penalty which can be 100-300 per cent of the amount evaded. Even if you say you were not aware of the exemption being reversed, it will not be accepted. Ignorance of law is not a justification for tax evasion."

1) Selling your house bought on loan within five years of buying it

2) Surrendering a life insurance policy within two years

3) Withdrawing provident fund amount before five years

4) Selling of property, which is exempt from capital gains, within three years of purchase

5) Delay in construction of house for which loan is taken

6) Cash donation made for an amount above Rs 10,000

7) For business purposes:
Businessmen or self-employed persons are allowed deduction for various kinds of expenditure incurred as part of their business. For instance, money paid to a vendor or contractor or salary paid to staff, and so on. In case the tax deducted at source (TDS) is not deducted before making the payment, then the taxpayer is required to pay tax on the entire expense incurred. This rule was introduced from 2005, says Gokhale.

For instance, if you incur an expense of Rs 1 lakh as part of your business, then you are liable to deduct Rs 2,000 as TDS, following which you can claim tax exemption on the Rs 1 lakh. But if you forget to deduct the TDS, then the Rs 1 lakh is added to your income and taxed according to your tax bracket.



"Though the responsibility of disclosing withdrawal of exemption in the tax return and paying taxes on the same rests with the taxpayer, in case he or she fails to report the same, then the tax authorities may seek information for the past six years under section 148 of the I-T Act," says Agarwal.


http://www.business-standard.com/article/pf/7-tax-exemptions-that-can-land-you-with-a-penalty-113090200022_1.html

Capital Gain

http://www.moneycontrol.com/master_your_money/stocks_news_consumption.php?autono=672736

http://www.tflguide.com/2011/12/mutual-fund-taxation-in-india.html


“I know that some short term as well as long term tax need to paid on redemption of mutual fund, but I don’t know where to pay and how much to pay.



Can you please take following scenario and help me out to calculate tax?

Suppose my salary income is Rs. 8,50,000 per annum, I am in 20% tax slab. Apart from that only mutual fund income is there.



1. I have purchased Equity mutual fund Rs. 10000 on 20-04-2010 and sold it on 20-10-2011 and Redemption money is Rs.11000. How much long term capital tax I need to pay in this year?



Ans. Here Long Term Capital Gain on Equity is applied – So NIL tax.



2. I have purchased Equity mutual fund Rs. 10000 on 20-04-2011 and sold it on 20-10-2011 and Redemption money is Rs.11000. How much short term capital tax I need to pay in this year?



Ans. Here Short Term Capital Gain on Equity is applied – So 15% tax on gains or Rs 150.



3. I have purchased Debt mutual fund Rs. 10000 on 20-04-2010 and sold it on 20-10-2011 and Redemption money is Rs.11000. How much long term capital tax I need to pay in this year?



Ans. Here Long Term Capital Gain on Debt is applied – So 10% tax or Rs 100 (I am assuming that Indexation is not used).



4. I have purchased Debt mutual fund Rs. 10000 on 20-04-2011 and sold it on 20-10-2011 and Redemption money is Rs.11000. How much short term capital tax I need to pay in this year?



Ans. Here Short Term Capital Gain on Debt is applied – so appreciation of Rs 1000 will be added to your income tax & taxed according to your slab.



5. I have purchased hybrid mutual fund(say HDFC Balanced) Rs. 10000 on 20-04-2010 and sold it on 20-10-2011 and Redemption money is Rs.11000. How much long term capital tax I need to pay in this year?



Ans. As I told you earlier that balanced funds or funds with more than 65% in equities are qualified as Equity Funds – so answer will be same as question 1.



6. I have purchased hybrid mutual fund(say HDFC Balanced) Rs. 10000 on 20-04-2011 and sold it on 20-10-2011 and Redemption money is Rs.11000. How much short term capital tax I need to pay in this year?



Ans. Same as Question 2”



Hope now you have clear idea about capital gains. Let’s see second part of income from mutual fund – that is Dividend Income.

EEE - ETE-TEE-EET

http://www.bemoneyaware.com/blog/eee-ete-tee/