practical tax & investment planning online
international tax expert / colunmist / author / speaker

HEDGING AGAINST INFLATION

Some smart strategies for preserving and enhancing the all-important purchasing power of your Rupee! HOW 7% ANNUAL INFLATION CAN IMPACT YOU? After   Number of Years 5 10 15 20 25 30 Effective Value of   Present Rs.100 71 51 36 26 18 13 Earnings Required   for Present Rs.100 140 197 276 387 543 761 As someone once rightly remarked, “Inflation is when you pay fifty rupees for the twenty rupees haircut you used...

EVALUATING TAX WORTH OF YOUR INVESTMENTS!

As a prudent investor compare your effective post-tax return while making your final choice of investment! The most common mistake an ordinary investor makes in the choice of his investment is in jumping for a higher rate of interest, without taking into consideration the effective after tax return keeping in view the marginal rate of income-tax on his total income. Similarly, it is not uncommon to see an investor...

ENJOY COCKTAIL OF EXEMPTIONS!

ITAT holds that taxpayer can claim simultaneous LTCG exemption for investment in house & bonds! A taxpayer derived long-term capital gains of Rs. 3.40 crores from sale of his ancestral property. Out of the same, he invested Rs. 2.60 crores in a new house for which he claimed exemption under Section 54F of the Income-tax Act. He also invested Rs. 50 lakhs in the specified REC bonds for which he claimed exemption...

HOUSING INTEREST, HOW INTERESTING?

Deduction for interest on housing loan being allowable on ‘payable basis’ can be claimed, though actually not paid! Today’s Tax Clues deals with some very interesting issues raised by readers in relation to deduction for interest and repayment of housing loan. Query:  I am desirous of investing in a house and need a Housing Loan of Rs.20,00,000.  An institutional loan would mean adhering to a strict schedule of...

TUITION FEES ELIGIBLE FOR TAX DEDUCTION

On a rational interpretation, tuition fees paid to your child’s coaching class should also qualify for deduction u/s. 80C! So your children are back to school and college after the summer break? As you pay their tuition fees for the new term, do keep in mind that Section 80C of the Income-tax Act offers some attractive tax breaks for your children’s education too! The Q & A presentation hereunder discusses some...

Powered by HADNow.com