Money Excel - Personal Finance Blog

Menu
MENUMENU
MENUMENU
  • Home
  • Business Ideas
    • 225 Small Business Ideas
    • 40 Online Business Ideas
    • 20 Business Ideas for Beginners
    • 20 small manufacturing business
    • 30 Food Business Ideas
    • 100 Business Ideas low investment
  • Stock Market
    • Best Demat & Trading Accounts 2020
    • Best Stocks 2020 by Experts
    • Best Virtual Trading Apps
    • Best Stock Screener
    • Best Discount Brokers in India
    • Multibagger Stocks of LockDown
    • Rakesh Jhunjhunwala Portfolio
  • Mutual Funds
    • Best Mutual Funds 2020-21
    • Best Direct Mutual Fund Platform
    • Best Mutual Fund Mobile Apps
  • Incometax
    • Income Tax Slab FY 2020-21
    • Income Tax Calculator FY 2020-21
    • Income Tax Refund Request
    • Pay Advance Tax Online
    • Download New 15G -15 H Forms
  • Investment
    • Best Investment Ideas 2020
    • Long Term Investment Options
    • Best Investment Regular Income
    • Best Investment Options NRI
  • Credit Card
    • Best Credit Cards 2020-21
    • Best credit card for online shopping
    • Best Forex Card in India
    • Best Business Credit Cards
    • Credit Cards against Fixed Deposit
  • Insurance
    • Best Term Insurance Plans 2020
    • Best Health Insurance 2020
    • Best LIC Policy 2020
    • Best Car Insurance Companies
    • Best Mobile Insurance Companies
  • Downloads
Home
Incometax
New Tax twist you must know!

New Tax twist you must know!

Raviraj Parekh August 2, 2020

Tax Save

2012 is about to end, its time for doing celebration and you might have started preparation of New year party or Christmas.   It is certainly not the time of year when you would pay attention on Tax saving or planning. But typically, organizations ask their employees to submit their investment declaration between December and early-to-mid January. This is because most of the organizations deduct tax from salaries in January, February and March.

Based on deadline set by your employer you have to submit your declaration form. This year you need to keep in mind some new tax twist before handing over your declaration form. We are here with new developments that you need to be aware of this year to save on tax.

 PREVENTIVE HEALTHCARE

Do not miss below posts -
  • GST Rate Card – How it will impact on your …
  • How to Pay Advance Tax Online? – Step by Step …
  • 13 Income tax related tips for 2013

This year if you have spend on preventive health check-up for self or for your spouse, kids or parents, then the cost of this check-up will qualify for a tax deduction up to Rs 5,000 under section 80D. However, this Rs 5,000 is a part of the overall Rs 15,000 deduction that you are entitled to under section 80D. So if you have spent say Rs 8,000 in medical check-up and Rs 11,000 as health insurance premiums, you can claim only up to Rs 5,000 of medical check-up bill and Rs 10,000 of health insurance premiums under section 80D.

You can submit the bills of preventive medical tests undergone at pathology labs or hospitals along with your investment declaration.

RAJIV GANDHI EQUITY SAVINGS SCHEME

This year retail investor has new tax-saving instrument “Rajiv Gandhi Equity Saving Scheme”.

This scheme is only for first time retail investor with annual income below Rs 10 lakh. Maximum saving permissible under this scheme will be Rs.50,000 and investor will get 50% deduction on amount invested from taxable income for that year.

Initially scheme was only for equity investment but now government has opened door for Mutual Funds and ETF under this scheme.

The scheme will be only open to new retail investors, new investor will be traced on basis of PAN number. First-time investors who have opened their demat accounts but have not made any trasaction will be eligible for this scheme.

Similar to ELSS this scheme will have a three year lock in period but investor will be able to trade in securities after 1 year. However investor has to maintain their level of investment during next two years at the amount for which they have claimed income tax benefit.

Do not miss below posts -
  • Before filing Income Tax Return – 25 important points
  • Online Incometax Calculator
  • Income Tax Search survey and raid – What to do?

So, You have the option of designating your existing account as a Rajiv Gandhi Equity Savings Scheme-eligible account, provided you have never transacted in this account. You can invest in eligible stocks, exchange-traded funds and mutual fund schemes.

TDS ON LEAVE TRAVEL ALLOWANCE

Till now, several employers did not deduct TDS (tax deducted at source) on your leave travel allowance as long as you submitted the required declaration. Now, however, claiming the benefit could get a bit more taxing.

Earlier, your employers may have extended the LTA exemption on the basis of declaration provided by you. This year onwards, your employer may ask you to submit documentary evidence (air or rail tickets) before allowing the exemption. This is a major point salaried individuals will have to take into account this year.

So you have to compulsory use LTA amount for vacation/travel in order to save TDS. If you are failed to produced relevant proof train/airline ticket employer may deduct tax.

HOME LOAN REPAYMENT/HRA

Section 80C allows deductions on housing loan principal repayment and Section 24 on interest paid on the loan. This year, your employer may ask you to produce the possession certificate before allowing these deductions.

If you pay annual rent amount more than Rs 2 lakh, you will have to furnish your landlord’s Permanent Account Number (PAN) details in the investment declaration form while claiming house rent allowance (HRA). In case the landlord does not have a PAN card, you will have to submit a declaration from him mentioning his full name and address.

Prev Article
Next Article
Tags:Home loan incometax investment declaration lta rajiv gandhi equity tax tax rule tax save TDS

About The Author

Raviraj Parekh

Raviraj is the man behind moneyexcel.com. He is PGDBA, engaged in blogging for 10 years. Moneyexcel blog is ranked as one of the Top 10 Personal Finance Blog in India. He is not affiliated with any financial product, service provider, agent or broker. The purpose of this blog is to spread financial awareness and help people in achieving excellence for money. Please note that the views expressed on this Blog/Comments are clarifications meant for reference and guidance of the readers to explore further on the topics. These should not be construed as investment advice or legal opinion.

Leave a Reply

Cancel reply

IIFL Demat Account

Search

Top Posts & Pages

  • Income Tax Calculator FY 2020-21 (AY 2021-22) – Excel Download
  • How to check Property Records and Land Records online in India?
  • Rakesh Jhunjhunwala Portfolio Holdings - January 2021
  • 20 small manufacturing business ideas with low cost
  • LIC Premium Paid Certificate Download For Income Tax Purpose - Online
  • 225 Small Business Ideas with Low Investment in 2021-22
  • Cash Deposit Machine Locator – How to find CDM Near You?
  • 30 Food Business Ideas with low investment
  • Top 60 Manufacturing Business Ideas
  • Income Tax Calculator FY 2019-20 (AY 2020-21) - Excel Download

Subscribe to Blog via Email

Join 5,474 other subscribers

Follow MoneyExcel

Money Excel – Personal Finance Blog

Personal Finance Blog
Copyright © 2021 Money Excel - Personal Finance Blog
| About |Downloads | Contact Us | Sitemap | Disclaimer | Privacy Policy |