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INTERESTING ISSUE ON COST OF ACQUISITION

Cost Inflation Index for FY 2011-12 notified at 785 reflects a rise of 10.4% over last year’s 711              Readers are aware that for purposes of computation of long term capital gains, a taxpayer is entitled to compute Indexed Cost of Acquisition, which is determined with reference to the Cost Inflation Index (CII) notified by the Government for the relevant financial year.              Vide its Notification...

GLOBALISE YOUR INVESTMENTS!

Sell a Land in Ahmedabad & Enjoy Tax Exemption Via Investment of an Apartment in London! It may appear too good to be believed, but it is true! With the Foreign Exchange Management Act (FEMA) having liberalized remittances by resident Indians for their annual overseas investments upto US $ 2,00,000 and with the Income-tax Act enabling tax exemption of long term capital gains (LTCG) in case of an investment made...

KEEP IT IN THE FAMILY AS YOU SAVE TAX!

Payment of House Rent & Interest on Housing Loan to Family Members can prove a Win-Win Situation ! Replies to the following two readers’ queries provide an interesting insight into some imaginative tax planning. HRA Exemption for Rent Paid within Family Query: My family is living jointly with my parents in a residential bungalow owned by my father at Ahmedabad.  My company pays me, annually a Basic Salary and...

Roti, Kapda but No Makaan!

Analyzing Tax Gain & Pain In The New EET Regime Tax Incentives for Housing Scrapped: Current deductions in respect of interest & repayment of housing loan abolished under the new Code. Higher Deduction For Savings & Children’s Education: Individual & HUF entitled to an aggregate deduction of upto Rs.3 lakhs in respect of permitted savings & children’s tuition fees payment, as compared to current...

Not the Common Man’s Tax Code!

Small Salaried & Investors To Feel Soar!   Amar Bhatt, a middle class employee earning monthly salary of Rs 40,000 (annual Rs 4,80,000), currently manages to maintain a zero tax status by availing tax-free LTC & medical perks of Rs 70,000, deduction of interest on housing loan of Rs 1,50,000 and repayment of such loan of Rs 1,00,000 eligible for deduction u/s.80C.He is bound to be shocked when he gets...

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