About skins...

May 12th, 2012

By default, b2evolution blogs are displayed using an evoskin.

You can change the skin used by any blog by editing the blog settings in the admin interface.

You can download additional skins from the skin site. To install them, unzip them in the /blogs/skins directory, then go to General Settings > Skins in the admin interface and click on "Install new".

You can also create your own skins by duplicating, renaming and customizing any existing skin folder from the /blogs/skins directory.

To start customizing a skin, open its "index.main.php" file in an editor and read the comments in there. Note: you can also edit skins in the "Files" tab of the admin interface.

And, of course, read the manual on skins!

DEDUCTIONS FOR HUF ON PAYMENT OF MEMBER MEDICLAIM POLICY

May 30th, 2012

For HUF

  • Mediclaim premium paid for any member of the HUF. Maximum deduction Rs 15,000. In case any member of the HUF covered by the Mediclaim policy is a senior citizen, deduction amount is enhanced to Rs. 20,000.

80C DEDUCTIONS

May 30th, 2012

SEC 80C DEDUCTIONS TOO COME WITH RESTRICTIONS

 

While you are grappling the sky-high prices of onions, petrol and vegetables, the circular of tax-deduction claims submission in your mail box must have come as another jolt.

 

This is a fact of life with which we have to deal with and deal smartly. As you are aware, Section 80C of Income Tax Act allows deduction up to Rs1 lakh from your total income in respect of some of the items of investment and expenses.

 

But what you may not know is that these items of deductions are also subject to some restrictions with regard to persons in respect of whom you are claiming these deductions.

 

Also, there is a requirement with regard to the period of holding of the investment/asset acquired. In this article 1 intend to discuss these restrictions in respect to some major deductions.

 

Life insurance premium
An individual or a Hindu Undivided Family (HUF) can claim deduction for life insurance premium paid. An individual can claim this deduction in respect of life insurance policy taken on life of the person himself, his spouse or any of his children.

 

As a parent, you can pay and claim tax benefits for life insurance of your children whether dependent or independent, but children cannot pay and claim the tax benefits in respect of life insurance premium paid in respect of their parents.

 

The HUF can claim deduction on the premium paid on the insurance policy taken on the life of any of its members.

 

In addition to the person in respect of whom the insurance premium can be paid, there is also a lock-in period of two years, till then you cannot terminate or let the policy lapse. In case this happens, the deductions allowed in earlier years are added to your income of the current year.

 

Education expenses
Your children’s tuition fees are also covered under Section 80C, but with some conditions. It is restricted to two children only and the institution should be in India only. In case you have more than two children, the deduction in respect of other children can be claimed by your spouse.

 

Home loan repayment
One can claim deduction in respect of repayment of home loan, but this too is not without some restrictions.

 

First, the deduction can be claimed only if the loan has been taken from specified financial institutions or entities like your employer which is a public limited company, central government or state government or board, corporation, university.

 

Then there is another restriction with respect to ownership status of the property. You can claim this deduction only if you are owner of the property. The claim for deduction can only be made after you have obtained possession of the house property though the repayment might have begun while the property is still under construction.

 

The third restriction is about holding of the property which is acquired through loan and on which deduction under Section 80C is claimed.

 

In case you sell the property within five years beginning the end of financial year in which possession of the property was taken, all the deductions in respect of this property shall be treated as income of the year in which you transferred the property.
PPF contributions

 

In respect of the PPF contributions, there is no ceiling on the deduction under the Income Tax Act; however, there is a ceiling as per PPF rules. You cannot contribute more than `70,000 in a single account in a financial year. Moreover, you cannot open a PPF account in the name of HUF after May 2005.

 

However, as per the provisions of the I-T Act, the HUF can still claim deduction in respect of contributions made to the accounts maintained in the name of any member of the HUF.

 

You can claim deductions in respect of PPF contributions made towards your spouse as well as for your child. Let me bring to your notice that only PPF contribution is the item of pure investment where a parent can claim deductions in respect of money deposited in the PFF account of the child and spouse.

 

Since gift to your child is exempt, the clubbing provisions will not have impact as the interest on PPF account is exempt. By contributing to PPF account of your child you can help him build a corpus and save taxes at the same time.

 

Deposits under senior citizen scheme
Those who have completed 60 years of age can claim deduction under 80C under Senior Citizen Deposit Scheme. Moreover, these deposits have to be maintained for a period of five years.

 

But if you withdraw the deposit before this period, the amount withdrawn shall become taxable in the year of withdrawal in case deduction in respect of same has been claimed earlier.

 

However, any money received by the nominees or legal heirs on closure of the account due to death of the account holder shall not be taxed when received.

 

ELSS contributions
Contribution of ELSS (equity linked saving schemes) of mutual funds, popularly known as tax-saving schemes, have gained popularity since these have given better returns in line with the overall returns on investments in equity. In case you sell the units acquired under ELSS before completion of three years, the deduction claimed earlier will become taxable in the year of withdrawal. In case the investment was made through systematic investment plan, this limit of three years will apply to each contribution.

 

 

 

Education loan

May 29th, 2012

Eligbility for tax deduction: The interest is avail for deduction in income tax under section 80E only if loan is taken for yourself ,spouse , chlideren

collateral requirement: if the loan is  above 3-4 lakh the lender may insist on a collateral security EG;- immovable property

specified lenders: the tax deduction is only available for those who have taken a loan from bank or financial institution or some chariable institute included in approved list

Courses Covered:Full time graduate,or post graduate courses in engineering , medicine , management , applied science, vocational studies secondary are eligible for educational loans this can be form any school, board or university recognised by the centeral or state goverment

Interest Deductible For eight years:Eg If you take a loan for education in 2011 and start repaying in 2013 the deduction will not be allowed after 2021

Benefits Of educational Loan:

1) Tax Saving= Tax Rate Applicable*Interest Amount

Example: The Higher Taxable Income of a Individual the Bigger the Tax Benefit For someone in the Highest 30.9% Tax Bracket , a Loan is Taken at 12% P.A. the effectively cost is 8.71% a Year

2) No Security is Required upto Certain Amount.

3) Repayment only after Moratorium Period ( a legally binding halt of the right to collect debt )

 

 

BASIC INFORMATION REGARDING WEALTH TAX

May 29th, 2012

Purview of wealth tax:

Wealth tax is payable on personal assets such as :

Residential property

Jewellery

Yachts

Boats

Aircraft (used for personal use)

 Cash in excess of Rs 50,000.

Vacant urban land is also liable yo be taxed.

If assets used for bussiness or commercial ventures,such as merchandise and equipment and rented property is excluded from the scope of wealth tax

Motors cars used for bussiness needs are an exception.

 

Don't forget this :

Valution date :31 march

Excemption limit :Rs 30 lakh

Rate of tax : 1%

Payment of tax : before filling of tax return

Tax return : 31 July

Refund

May 29th, 2012

Instruction No. 4/2012 [F. No. 225/34/2011-ITA.II], dated 25-5-2012

 

The Board has decided to withdraw Instruction no. 01/2012 issued on 2nd February, 2012 on the subject above with immediate effect. The following decisions have been taken in this regard:

 

 

(i) In all returns (ITR-1 to ITR-6), where the difference between the TDS claim and matching TDS amount reported in AS-26 data does not exceed Rs. Five thousands, the TDS claim may be accepted without verification.

 

(ii) Where there is zero TDS matching, TDS credit shall be allowed only after due verification.

 

 

(iii) Where there are TDS claims with invalid TAN, the TDS credit for such claims is not to be allowed.

 

(iv) In all other cases TDS credit shall be allowed after due verification.