If you have ever heard the term PAYE income tax, you may be curious about what it entails, particularly if you are an Indian expatriate working overseas, say in the UK or another country. Although Indian tax terminology does not use PAYE, it is rather crucial for those who work abroad. Let us clarify PAYE income tax in plain terms. FOR What Does PAYE Stand? Pay As You Earn is abbreviated PAYE. Countries including the United Kingdom, Ireland, and New Zealand have this mechanism in place to gather income tax from salaried workers. Under this arrangement, your company automatically deducts…
Author: Anurag Singh
Every earning person in India must pay personal tax should their income exceed a specific level. Although the word “tax” sounds frightening, paying your income tax is not as difficult as it first seems. You can legally save money and file and pay your taxes on time with correct knowledge and a few easy actions. Personal Tax: Defined Here Personal tax is income tax paid personally on earnings. This includes: Who Has Personal Tax Payment Due? Personal Tax Calculating Methodologies Taxes Slabs: Old Regime for FY 2024–25 Income RangeTax RatesUp to ₹2.5 lakh0%₹2.5 lakh – ₹5 lakh5%₹5 lakh – ₹10…
Within the GST (Goods and Services Tax) framework, the term option to tax can be perplexing. Still, don’t panic; the idea is really rather straightforward. Knowing this will enable you, whether you run a business, rent a property, or offer services, to make better tax decisions. In the context of India, let’s define what “option to tax” means. Meaning of Option to Tax Under GST, some items or services are either automatically exempt from taxes or not. Sometimes, however, the government lets you decide whether or not to pay taxes—even if it is not required. We call this decision the…
Want to lower your tax payment without violating any laws? After that, you must comprehend non-taxable deductions. These are the legal methods to reduce your taxable income by applying the Income Tax Act’s offered benefits. These deductions will save a lot regardless of your position—salaried, business owner, or investor.Let’s examine the most prevalent non-taxable deductions in India. What are deductions from non-taxable sources? Amounts you could deduct from your overall income before computing your tax are non-taxable deductions. The government provides these totally legal incentives to support savings, investments, health care, and education. Most Often Used Non-Taxable Deductions Available in…
Should you be an NRI (Non-Resident Indian), you could question whether you should pay taxes in India. The response relies on your income from India, either earned or received. Not only for compliance but also for claiming refunds, avoiding penalties, and preserving your financial records, filing a non-resident Indian income tax return is vital.Let’s simplify it for you. An Indian Who is Not a Resident (NRI)? According to Indian tax rules, you are an NRI if you spend less than 182 days in India within a financial year or: Only residents pay taxes on world income. Only income generated or…
Should you be an NRI (Non-Resident Indian) making investments in Indian stocks or mutual funds, you may find yourself wondering about your tax obligations on gains. Non-resident capital gains tax on shares is subject to slightly different regulations than those for residents. Still, don’t panic; here’s a basic guide to make sense of things. Capital Gain: What Is It? Selling a share or mutual fund unit for more than you paid for results in a profit known as capital gain. Your tax paid relies on: Short Term vs Long Term: Holding Period Investment TypeTermShort Term (STCG)Long Term (LTCG)Equity Mutual Funds…
Should you make investments in mutual funds or shares, you could get dividends. Do you, however, know how these are taxed? Between capital gains and dividend income, many investors find themselves perplexed. Let’s simplify today by discussing the long-term dividend tax rate and its relevance to Indian taxpayers. Definition of Dividend Income Dividends are profits turned back by businesses to their owners. Should you own mutual fund units or stocks, this income could show up straight into your bank account. Exists a Long Term Dividend Tax Rate in India? The basic response is India does not have a separate long-term…
Along with providing financial security for your family, life insurance lets you save taxes. Many Indians purchase insurance essentially for this purpose. You’ve come to the right place if you’re trying to figure out which life insurance income tax section applies to you. How One Uses Life Insurance to Save Taxes Tax advantages could come from the premium you pay for a life insurance policy as well as from the money your family gets should death or maturity strike. Particular Income Tax Act sections let this be done. Let’s examine the primary life insurance income tax sections. Section 80C: Deduction…
Nobody likes paying more taxes than they absolutely must. The good news is that you can legally cut your tax load. Legal tax avoidance refers to this. It entails making use of Income Tax Act rules without violating any legislation. What is Legal Tax Avoidance? Legal tax avoidance is the arrangement of your income and investments such that your legally lowest tax pay-off is achieved. It is not like illegal and punished tax evasion. Avoidance of taxes is wise. Ignoring taxes is dangerous. Why It Matters Specifically for Indians Taxes in India offer many rebates, exemptions, and deductions. Correct use…
Knowing the IRS capital gains tax is quite crucial whether you are an Indian living or working in the United States. This tax is due when you profitably sell an asset—such as mutual funds, shares, or real estate. The US’s Internal Revenue Service, or IRS, is the tax agency with unambiguous policies regarding capital gains taxation. Capital Gains Tax is What? Profit you get when you sell something for more than what you paid for it is known as capital gain. Charged on this profit is the IRS capital gains tax. For instance, you pay $1,000 for shares then sell…
