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STAR TAX BENEFITS OF FMPs!

Multiple indexation under Fixed Maturity Plans (FMPs) offer tax free return on investment plus future tax cuts!  Saraswat had invested Rs.40,00,000 in March, 2012 in a 13 months Fixed Maturity Plan (FMP) offered by a leading Mutual Fund. The return on investment upon maturity of this FMP in April, 2013 works out to 11% per annum and accordingly Saraswat is fortunate to earn Rs.4,40,000. The real icing on the cake...

GIFT OF BMW NOT TAXABLE?

With only nine gifts in kind covered in the specified list, you can still enjoy receiving many more tax-free gifts! Two interesting readers’ queries relating to taxability of gifts as income have been discussed in the write-up today. TAXABILITY OF GIFTS IN KIND Query:  I am expecting to receive a BMW car worth Rs.50 lakhs from a dear friend of mine. Would this attract any income-tax liability in my hands? Reply:...

NO TAX TENSION FOR PENSION!

U.K. Govt. pension & U.S. social security tax exempt, family pension of widows earns standard deduction!         Some interesting issues relating to taxability of receipt of commuted pension by specified employees, leave salary and family pension etc. received by legal heirs of a deceased employee and Public Pensions/Social Security payments received from abroad by Indian Residents, covered in the write up...

DOUBLE HOUSING BONANZA!

How to avail tax benefit for housing loan interest on your second house, while also enjoying it for your first?              The tax benefits that can be availed of in respect of a housing loan can be broadly categorized under two heads.  Firstly, interest paid on the housing loan, borrowed from any agency including a private source, is deductible under Sec.24(b) while  computing  the  income under  the  head ...

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