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INCOME TAX, NO LONGER AS TAXING!

You can plan to pay tax of Rs.4,01,700 on family income of Rs.33 lakhs, at an average tax rate of just 12.17%!         Just consider some tax facts of the past eight years as highlighted hereunder: In FY 2004-05, the basic Income-tax exemption limit was Rs.50,000 and taxable income exceeding Rs.1,50,000 attracted the maximum tax rate of 30%. Today in FY 2012-13, the basic Income-tax exemption limit is Rs.2,00,000...

MAD MONSTER OF TAX AMENDMENTS!

Low arousal Indians endure injustice & unfairness with feudalistic servility & fatalistic resignation said Palkhiwala              The record number of 113 clauses of the Finance Bill, 2012, proposing a plethora of amendments in Direct Taxes and so many of them even with retrospective effect, reminds me of the unforgettable words of my Budget Guru and India’s legendary jurist and tax expert the Late Nani...

MAJOR TAX SAVING FOR MINOR’S INCOME

Using the medium of a discretionary trust, you can plan to save a decent tax of Rs.2,06,000 on income of Rs.10,00,000!               Section 64(1A) of the Income-tax Act provides that “in computing the total income of any individual, there shall be included all such income as arises or accrues to his minor child.” With a view to ensure building up income for minors without attracting the above provisions relating...

PAVING FOR DOUBLE TAX SAVING!

ITAT Ahmedabad holds capital gains of Rs.1 crore exempt u/s.54EC, where investment is split in two financial years              Section 54EC of the Income-tax Act provides for exemption of taxable long term capital gains (LTCG) arising from the transfer of an asset, to the extent the amount of such gains are invested in notified bonds within a period of six months from the date of transfer. Notified for this...

CALL FOR CRUSADE AGAINST GAAR!

Even as Parliamentary Panel frowns on the notorious DTC provisions, Budget gives it a mischievous back-door entry!              While presenting his Budget 2012, the Union Finance Minister referred to the ‘Report on the Direct Taxes Code (DTC) Proposals’ received from the Parliament’s Standing Committee on Finance and observed that, “we will examine the Report expeditiously and take steps for the enactment of DTC...

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