at Elims

Flair 2014

Book Profit

A gain on an investment that has not yet been realized. That is, book profit occurs when the current price of a security is higher than the price the holder paid for it, but the holder still owns the security. As a result, there is the possibility that the book profit might be erased if the price goes back down. A book profit represents an increase in one's net worth, but it may or may not affect one's lifestyle. Under most circumstances, one is not taxed for book profit; the government waits until gains and losses are realized.

Govt web sites...for public

🔘 GOVERNMENT INTRODUCED ONLINE SERVICES 🔘  

*Obtain:

1.  Birth Certificate
http://www.india.gov.in/howdo/howdoi.php?service=1

2.  Caste Certificate
http://www.india.gov.in/howdo/howdoi.php?service=4

3.  Tribe Certificate
http://www.india.gov.in/howdo/otherservice_details.php?service=8

4.  Domicile Certificate
http://www.india.gov.in/howdo/howdoi.php?service=5

5.  Driving Licence
http://www.india.gov.in/howdo/howdoi.php?service=6

6.  Marriage Certificate
http://www.india.gov.in/howdo/howdoi.php?service=3

7.  Death Certificate
http://www.india.gov.in/howdo/howdoi.php?service=2

Apply for:
1.    PAN Card
http://www.india.gov.in/howdo/otherservice_details.php?service=15

2.     TAN Card
http://www.india.gov.in/howdo/otherservice_details.php?service=3

3.     Ration Card
http://www.india.gov.in/howdo/howdoi.php?service=7

4.     Passport
http://www.india.gov.in/howdo/otherservice_details.php?service=2

5.     Inclusion of name in the Electoral Rolls
http://www.india.gov.in/howdo/howdoi.php?service=10

Register:   
1.    Land/Property
http://www.india.gov.in/howdo/howdoi.php?service=9

2.    Vehicle
http://www.india.gov.in/howdo/howdoi.php?service=13

3.    With State Employment Exchange
http://www.india.gov.in/howdo/howdoi.php?service=12

4.    As Employer
http://www.india.gov.in/howdo/otherservice_details.php?service=17

5.    Company
http://www.india.gov.in/howdo/otherservice_details.php?service=19

6.    .IN Domain
http://www.india.gov.in/howdo/otherservice_details.php?service=18

7.    GOV.IN Domain
http://www.india.gov.in/howdo/otherservice_details.php?service=25


Check/Track: 
1.    Waiting list status for Central Government Housing
http://www.india.gov.in/howdo/otherservice_details.php?service=9

2.     Status of Stolen Vehicles
http://www.india.gov.in/howdo/otherservice_details.php?service=1

3.    Land Records
http://www.india.gov.in/landrecords/index.php

4.    Cause list of Indian Courts
http://www.india.gov.in/howdo/otherservice_details.php?service=7

5.    Court Judgments (JUDIS )
http://www.india.gov.in/howdo/otherservice_details.php?service=24

6.    Daily Court Orders/Case Status
http://www.india.gov.in/howdo/otherservice_details.php?service=21

7.    Acts of Indian Parliament
http://www.india.gov.in/howdo/otherservice_details.php?service=13

8.    Exam Results
http://www.india.gov.in/howdo/otherservice_details.php?service=16

9.    Speed Post Status
http://www.india.gov.in/howdo/otherservice_details.php?service=10

10. Agricultural Market Prices Online
http://www.india.gov.in/howdo/otherservice_details.php?service=6

Book/File/Lodge: 
1.     Train Tickets Online
http://www.india.gov.in/howdo/otherservice_details.php?service=5

2.     Air Tickets Online
http://www.india.gov.in/howdo/otherservice_details.php?service=4

3.     Income Tax Returns
http://www.india.gov.in/howdo/otherservice_details.php?service=12

4.     Complaint with Central Vigilance Commission (CVC)
http://www.india.gov.in/howdo/otherservice_details.php?service=14

Contribute to: 
1.      Prime Minister's Relief Fund
http://www.india.gov.in/howdo/otherservice_details.php?service=11

Others: 
1.      Send Letters Electronically
http://www.india.gov.in/howdo/otherservice_details.php?service=20

Global Navigation   
1.     Citizens
http://www.india.gov.in/citizen.php

2.     Business (External website that opens in a new window)
http://business.gov.in/

3.     Overseas
http://www.india.gov.in/overseas.php

4.     Government
http://www.india.gov.in/govtphp

5.     Know India
http://www.india.gov.in/knowindia.php

6.     Sectors
http://www.india.gov.in/sector.php

7.     Directories
http://www.india.gov.in/directories.php

8.     Documents
http://www.india.gov.in/documents.php

9.     Forms
http://www.india.gov.in/forms/forms.php

10.    Acts
http://www.india.gov.in/govt/acts.php

11.  Rules
http://www.india.gov.in/govt/rules.php

VARIOUS TAX SAVING OPTIONS

VARIOUS TAX SAVING OPTIONS India has got several government as well as private sector organizations offering numerous tax saving options to the residents of this country. Some of them are as follows:
1. Public Provident Fund: Commonly known as P. P. F., this tax saving option falls within the Section 80 C of the Income Tax Act in India. Public Provident Fund allows a maximum contribution of INR. 100, 000 per year. The return in this scheme is compounded annually at the rate of 8.5%. It is one of the long term ventures that do not allow complete withdrawal before 15 years. Post 5 years of investment, withdrawal is possible though. No tax is levied on the earned interest. Besides these, it even forms a retirement-planning tool. One can have such an account in either the State Bank of India or some of the nationalized banks or at some of the designated post office branches.
2. Unit Linked Insurance Plans: Covered by the Income Tax Act's Section 80 C, U. L. I. P. is a unique blend of investment and insurance that gives a tax exemption of INR. 1,00,000 per year. Here, the premium, which is being paid by a customer, gets deducted with initial charges while the rest of the amount is invested. Such a plan can be of the following three kinds: Aggressive ULIPs where one can invest 80 % to 100 % in equities. The rest can be invested in debt instruments though and Balanced ULIPs where an individual can invest 40 % to 60 % in equities. Conservative ULIPs, which allows one to invest up to 20 % in equities
3. Equity Linked Saving Scheme: Popularly called E. L. S. S., this is a kind of mutual fund that comes within the Income Tax Act Section 80 C. With a minimum investment period of 3 years, this investment option helps one get exempted from income tax payment and offers an exemption of maximum INR. 1,00,000 in a financial year as well. The interest rate depends on the performance of this scheme in a given year. However, if it does well, then it is more likely to increase even the interest rate of P. P. F
. 4. Fixed Deposits: Fixed Deposits (FDs) are another popular tax saving option covered by the Section 80 C of the Income Tax Act. With a maximum exemption of INR 100000 annually, the rate of interest varies from one bank or post office to another. However, the tax saving can only be done of FDs once you have invested for a minimum duration of 5 years. This scheme neither allows the encashment of the money prior to completion of the 5 years term nor can this be used as the security against any loan.
5. Employee Provident Fund: Famously called E. P. F., this scheme offers a total yearly exemption of INR 100000 as mentioned in the Income Tax Act Section 80 C. In this fund, 10 % to 12 % of a person's basic salary gets deducted and the other 12 % is contributed by the employer. One can withdraw the entire amount in instances of leaving job, retirement after 58 years of age or taking V. R. S. Partial withdrawal can be done for home, medical or marriage related expenses though.
6. National Saving Certificate: This tax saving scheme known as N. S. C. helps one get exempted from tax by an investment of up to INR 100000 per year under the Section 80 C of the I. T Act of India. The interest rate is compounded half-yearly at the rate of 8 % and reinvested every year from the last year's N. S. C. The minimum period for this investment scheme is 6 years post which, one is provided with the entire interest along with the initial capital. The major benefit of this is that one can earn a maximum tax saving interest of INR 100000.
 7. Infrastructure Bonds: Over and above the deduction allowed by the Section 80 C, one can save income tax on a maximum amount of INR 20000 by investing in different infrastructure bonds. Covered by the Section 80 CCF of the Indian I. T. Act, this bond has got a lock-in period of 5 to 10 years. The rate of interest even varies from 8 % to 8.3 %.
8. Insurance: Life insurance is among the best and authentic tax saving options covered within the Section 80 C of India's Income Tax Act. Though the policy allows a maximum deduction of INR 100, 000 in a given financial year, but in case anyone surrenders the plan before paying two year's premium, then it will have reverse effect of tax benefit. However, the tax benefit for the premium is restricted to 20 % of the initial amount of the capital invested. Apart from that, this helps one plan for the unforeseen events in his or her life.
 9. Health Premiums: Popular as Medi-claim Policies, which are a form of health insurance, comes within the Section 80 D of the country's Income Tax Act. Applicable even on the proprietor firm's cheques, these policies offers a maximum deduction of INR. 35,000. This deduction is calculated in addition to any other tax saving done as per the Section 80 C. The total amount of INR 35, 000 can be divided as follows: • INR 15000: Premium for policies on spouse, children or self • INR 15000: Premium towards policies for dependent parents, who are non-senior citizens • INR 15000: Premium for dependent senior citizens • Besides saving your income tax, these policies even help you deal with your or your family's health related problems with ease during any emergency situation. 10. Tuition Fee: Covered under the Indian I. T. Act Section 80 C, payment made towards the education of children is even exempted from one's yearly income tax. Being a part of Section 80 C, one can get a maximum exemption of up to INR. 100,000 per financial year. Tuition fee for school, college and university as well as coaching fee for varied competitive exams are considered under this policy. However, just 2 children are considered for such a kind of tax exemption.
11. Post Office Saving Options: Under the Section 80 C of the I. T. Act of the nation, one can invest in any of the different tax saving options provided by the post offices. Though, along with the terms and conditions, the interest rate as well as the tenure of the investment varies from one scheme to another, they provide a maximum deduction of INR. 100000. To name a few of such schemes offered by India Post are: • Recurring Deposit Account (5 Year) • Time Deposit Account • Public Provident Fund Account (15 year) • National Savings Certificate (VIII issue) • Senior Citizen Savings Scheme
12. Mutual Fund: Being covered under the Section 80 C of the I. T. Act of India, this type of investment plan helps in a total exemption of INR. 1,00,000. the entire tenure of such a scheme varies from 3 years to 5 years. Equity Linked Saving Scheme is considered to be one of the best tax saving mutual funds.

Tax Planning vs. Tax Management

Tax planning primarily aims at adopting an arrangement so as to bring about the least incidence of tax under the four corners of law. On the other hand, tax management comprises a wider field like compliance with statutory provisions of law, prospective planning so as to case the financial constraints if any, that would arise when discharging the commitments through payment of tax, keeping close watch and monitoring the statutory requirements of other laws, claiming unilateral reliefs etc. thus whilst tax planning is the pivot which enables the drawing up of different incentives and keep the incidence of tax low, the tax management is the revolving wheel, which translates the policy in terms of results.

TAX PLANNING

Tax planning may be defined as an arrangement of one’s financial affairs in such a way that without violating in any way the legal provisions of an Act, full advantage is taken of all exemptions, deductions, rebates and reliefs permitted under the Act, so that the burden of the taxation on an assessee, as far as possible, the least. Actually the exemptions, deductions, rebates and reliefs have been provided by the legislature to achieve certain social and economic goals. For example section 80IB of the Income Tax Act, 1961 provides deduction from gross total income in respect of profits from newly established industrial undertakings in industrially backward State or industrially backward district as may be notified in this behalf. The object of the tax concession is clear, i.e. economic development of industrially backward district or state. Section 80C provides deduction from gross total income, if an individual or HUF saves the amount and invests or deposits it in the prescribed schemes. The deduction has been provided to encourage savings and investments for economic development of the country. Thus if a person takes advantage of the aforesaid deduction, he not only reduces his tax liability but also helps in achieving the objective of the legislature, which is lawful, social and ethical. Thus tax planning is an act within the four corners of the Act and it’s not a colorable device to avoid the tax.

DEDUCTION OF INCOME TAX ACT ( U/S 80C TO 80U)

DEDUCTIONS U/S 80C TO 80U
 1. Sec 80C- For individuals and H.U.F (i) Regarding payment of LIP; contribution to PF, PPF, etc (ii) Deduction up to Rs. 100000
2. Sec 80CCC- for individual (i) Regarding contribution to Pension Fund. (ii) Deductions; Rs 100000 maximum
3. Sec 80CCD- for individual (i) Regarding contribution to pension scheme of central government. (ii) Deduction: up to 10% of salary contributed by employee = up to 10% of salary contributed by the employer
4. Sec 80CCE- for individual (i) Regarding deductions u/s 80C, 80CCC and 80CCD, (ii) Deduction; up to Rs 1,00,000
5. Sec 80D: for individual and H.U.F Medical insurance premium paid by any mode of payment other than cash for insurance of his health or health of his spouse or dependent children up to Rs 15000+ parent(s) up to Rs 15000, member of H.U.F up to 15000, in case of senior citizen deductable up to Rs 20000.

6. Sec 80DD: for individuals and H.U.F resident in India (i) Regarding (a) expenditure on medical treatment, training and rehabilitation of a disable dependent or/and (b) Amount paid under any scheme framed by the LIC or other insurer etc. (ii) Deduction: Disability Rs 50,000, (b) severe disability Rs 75,000. 7. Sec 80DDB- for individual and H.U.F resident in India (i) Regarding medical treatment. (ii) Deduction; (a) Amount paid or Rs 40,000, whichever is less; (b) For senior citizen- amount paid or Rs 60000, whichever is less. From the aforesaid amount, the amount received from an insurer or reimbursed by employer shall be deducted and the balance shall be allowed.
 8. Sec 80E; for individual (i) Regarding payment of interest on loan taken for higher studies of self, spouse or children. (ii) Deduction; amount paid.
9. Sec 80G: for all assesses (i) Regarding donation to approved funds or institutions in the form of a sum of money. (ii) Deduction: 50% and in certain cases 100% of the qualifying amount of donation.
10. Sec 80GG; for individuals (i) Regarding expenditure on house rent in excess of 10% of T.I, by self employed persons and salaried persons not getting H.R.A. (ii) Deduction; maximum 25% of total income or Rs 2000 pm., whichever is less.
11. Sec 80GGA: for all assesses (i) Regarding payment made to a Scientific Research Association or to a University or College etc. for scientific research or social or statistical research or to an association or institution engaged in any program or rural development or of training persons for such program (ii) Deduction: 100% of the amount paid.
 12. Sec 80GB: for Indian companies (i) Regarding contribution to political parties (ii) Deduction: 100% of sum paid
13. Sec 80GGC: for all assessee except local authority, juridical person and Indian company. (i) Regarding contribution to political parties. (ii) Deduction: 100% of sum paid.
14. Sec 80-1A (i) Regarding infrastructural facility. (ii) Deduction: 100% of profits up to first five assessment years and 305 of profits for the next five assessment years in case of telecommunication services, other 100% of profits for ten assessment years.
15. Sec 80IAB (i) Regarding profits from development of Special Economic Zone. (ii) Deduction: 100% of profits for ten consecutive assessment years.
 16. Sec 80-TB (i) Regarding profits of new industrial undertaking, ship or hotel business etc.
 17. Sec 80-IC (i) Regarding profits from enterprise in special category States. (ii) Deduction: in certain cases 100% of profits for initial ten assessment years:; (iii) In other cases: 100% of profits for initial five assessment years and next five assessment years- company @ 30% and other @ 25%.
18. Sec 80(II). (i) Regarding business of hotels and convention centres in specified area. (ii) Deduction: 100% of profits for five consecutive assessment years.
19. Sec-TE (i) Undertakings in North-Eastern States. (ii) Deduction: 100% of profits for ten consecutive assessment years.
20. Sec 80JJA : for any assessee (i) Regarding profits from business of collecting and processing of bio degradable waste etc. (ii) Deduction: 100% of such profits for initial five assessment years.
 21. Sec 80JJAA: for an Indian Company engaged in the manufacture or production of article or thing (i) Regarding employment of new workmen. (ii) Deduction: 30% of additional wages paid to the new regular workmen employed by the assessee during the previous year.
22. Sec 80LA: For a scheduled Bank etc. (i) Regarding income of offshore banking unit etc. (ii) Deduction: 100% of such income for five assessment years and thereafter 50% of such profits for five assessment years.
23. Sec 80QQB: individual (author) resident in India (i) Regarding royalty in respect of books. Deduction: Up to Rs 3,00,000
24. Sec 80RRB: Individual(patentee) resident in India (i) Regarding royalty in respect of patent. Deduction: up to 3,00,000
25. Sec 80U; for Resident individuals (i) From income of disable person (ii) Deduction: (a) Disability Rs. 50,000 (b) Severe disability Rs. 100000