Source: https://www.plannprogress.com/tax-planning-1819.html
Timestamp: 2020-05-30 08:33:25
Document Index: 343367862

Matched Legal Cases: ['ART 2', 'ART 3', 'ART 4', 'ART 1', 'ART 2', 'ART 3', 'ART 4']

TAX PLANNING FOR FY 18-19
PART I :HIGHLIGHTS OF CHANGES IN TAX RULES FOR
FY 2018-19 : READ THIS PART BELOW
PART 2:TAX RATES / SLABS FOR FY 2018-19 CLICK HERE
PART 3:REBATES / POPULAR TAX SAVING SCHEMES FOR
FY 18-19 CLICK HERE
PART 4:ESTIMATE YOUR INCOME TAX / ADVANCE TAX FOR
FY 2018-19 CLICK HERE
FOR TAX PLANNING FY 2019-20 , CLICK HERE
ONE NATION ONE CARD / RUPAY CONTACTLESS CARD CLICK HERE
BUDGET HIGHLIGHTS FOR 2019-20 , CLICK HERE
Go to Section " All about TDS and Form 15G / 15 H and find out whether you are eligible to submit the forms to avoid Tax Deduction at source.If you are eligible Download the forms and submit to your bank immediately.As year end is approaching Banks will deduct tax on their interest payment before the year end if you have not submitted the forms . Act earliest to avoid TDS .
Keep the records of all your financial transactions. Money borrowed from friends , Jewelry inherited / purchased ,Gifts received ,wedding expenditures cash remitted to your account etc can be questioned by IT officers and can be taxed up to 83 % of the value if IT Officer is not satisfied about your explanation . As per amended section 115BBE , an assessing officer can invoke 60 % tax , 15 % surcharge , 3 % cess with an added penalty of 10 % .To avoid such hefty payment of tax , keep records of your transactions to enable yourself to explain sources of funds .
The circular gives exhaustive guidelines to help the banks to understand various clauses of income tax rules.The para regarding pension reads :
​​To print Form 12BB , CLICK HERE ​
AMAZON INDIA :SHOP for Today's DEALS
HIGHLIGHTS OF CHANGES IN INCOME TAX RULES FROM FY 2017-18 TO FY 18-19
1. There is no change in Tax rates for the financial year 2018-19 . However cess on income tax increased to 4 % from existing 3 % .
2. Standard Deduction of Rs 40,000 allowed for salaried persons / pensioners . However transport allowance of Rs 19,200 and medical allowance of Rs 15,000 will not be available for FY 18-19 . Hence net difference is only Rs 5,800 for those who are already availaing transport allowance and medical reimbursement .
3. Tax exemption limit is enhanced to Rs 50,000 for interest on bank deposits / postal deposits for senior citizens
4. No TDS for senior citizens for interest up to Rs 50,000
5. Deduction limit increased to Rs 50,000 under 80D for medical insurance for senior citizens
6. Increase in deduction limit up to Rs 1.00 lakh for medical expenses to certain critical illness for senior citizens
7. Long Term Capital Gain ( LTCG ) is taxed at 10 % beyond Rs 1.00 lakh
Long Term Capital Gain Tax on sale of equity shares and equity oriented mutual funds is introduced at 10 % flat and uniform rate for gains more than Rs 100,000 in the financial year . Further no indexation is allowed for calculating the gain . However gains earned up to January 31,2018 will be allowed to be grandfathered . grandfathering is allowing existing benefits for the previous period . Hence Long term Profits earned after February 1 , 2018 will only be taxed if profits are booked in the financial year 2018-19 i.e from 01.04.2018 to 31.03.2019 . The higher of the purchase price of share or mutual fund or the price as on 31.01.2018 for equity and NAV for mutual fund as on 31.01.2018 will be taken as investment cost for arriving the long term gain .
​8. Dividend Distribution tax of 10 % to be paid on equity mutual funds . The tax at
10 % will be deducted from the dividend to be paid by the AMC of mutual fund before giving credit to investors .
9. For single premium health insurance policies purchased covering more than one year , proportionate deduction can be taken each year for the payment at a single time , subject to limit available . Earlier maximum proportional limit was Rs 25,000 . Health insurers typically provide some discount if you premium for few years upfront . But earlier , an individual could claim deduction only up to Rs 25,000
FOR FY 2017-18 CLICK HERE FOR FY 2016-17 , CLICK HERE
FOR FY 2015-16 , CLICK HERE FOR FY 2014-15 , CLICK HERE
In view of the above circular ,many employers / bankers are allowing their employees / pensioners to upload the tax rebate claim details on-line also . However in such cases also , proof of evidence for claiming rebate is to be given by the employees / pensioners .
4. Interest paid certificate on houing loans
7. National Savings Certificates Purchased during the current yera
Please verify each of the claim you make is eligible for rebate and enter in the appropriate column showing section under which it is eligible . You may fill form 12BBand submit to the relevany authority along with copies of proof so that they will recognise the rebates you have availed . Obtain an acknowledgement from them on submission of 12BB To print Form 12BB , CLICK HERE
for all the tax deducted at source while disbursing salaries .The certificate can be used for computing actual income and tax deducted at source . Format of Form 16 can be downloaded here DOWNLOAD FORM 16
You have gone through PART 1 OF The Article on " TAX PLANNING FOR FY 2018-19 which contains 5 PARTS
PART 2 :TAX RATES / SLABS FOR FY 2018-19 CLICK HERE
PART 3 :TAX REBATES FOR FY 2018-19 AND POPULAR TAX SAVING SCHEMES CLICK HERE
PART 4 :ESTIMATE YOUR INCOME TAX / ADVANCE TAX FOR FY 2018-19 CLICK HERE
FOR DETAILS ON AAYKAR SETHU , NEW MOBILE APPLICATION FROM INCOME TAX DEPT , CLICK HERE
Further there are practical tips for computing tax which can be read and used . For example ,the link how to compute other income. One can make use of the portal in understanding law, making payment and also to file returns .