Investing your money in bonds goes beyond only returns. The operation of investment bond taxation is another thing you must comprehend. This can have a significant impact on what Indian investors really gain. What are Investing Bonds? Investment bonds are financial instruments whereby you provide money to a government or company and are promised to be repaid with interest over a predetermined period. Typical varieties comprise: Though they offer fixed income and are safer than stocks, knowledge of investment bond taxation rules is crucial. How Are Taxes Paid on Investment Bonds? Let us dissect it just for clarity. TDS on…
Author: Anurag Singh
Although paying taxes is inevitable, what would happen if you had to pay tax twice on the same income? That is the situation where international double taxation becomes relevant. This is a relevant subject particularly for Indians with foreign investments or income earned outside of India. Intensive Double Taxation: When someone or a company pays tax on the same income in two different countries, international double taxation results. An Indian employed in the USA, for instance, would be taxed there on their pay. They might also have to pay tax on that income in India concurrently. This can feel costly…
Among the most often used investment choices in India are fixed deposits, or FDs. They promise assured returns, are safe, simple to open. Many people, meanwhile, are not sure whether or not interest from FD taxable income counts. Let us grasp everything in straightforward language. Is FD Taxable’s interest taxable? Indeed, FD’s interest qualifies as taxable in India. Fixed deposit interest adds to your overall income and is taxed based on your income slab.For instance, if your income falls in the 20% tax slab and you get ₹30,000 as interest from FD in a year, ₹6,000 (20%) will be deducted…
Would you like to pay less income taxes? The next step is to comprehend what individual tax exemption entails and how you can effectively use it. These exemptions legally keep more money in your hands and help lower your taxable income. Let us dissect it in plain terms. Individual Tax Exemptions: An individual tax exemption is a non-taxed sum you can deduct from your overall income. The Income Tax Department lets these go under encouragement of savings and support of basic needs including housing, travel, and medical treatment. Typical Categories of Individual Tax Exemptions The most often used exemptions available…
Every salaried person or self-employed individual wants to save taxes. The good news is that there are multiple options for individual tax deduction under the Income Tax Act. Smart use of them will reduce your taxable income and legally pay less taxes. Let’s examine available deductions and how individual tax deductions work. An individual tax deduction is what? Your taxable income is lower after an individual tax deduction. You will thus be taxed just on ₹8.5 lakh if you earn ₹10 lakh in a year and claim ₹1.5 lakh as deductions.The Income Tax Act provides several areas where one may…
Many people find great interest in how government officials—especially IAS officials—pay taxes. Does their pay come tax-free? Are exemptions from particular rules applied here? We will cover all you need to know about IAS income tax in India in this blog. IAS Officer: Who are they? Indian Administrative Service is IAS. Selected by the UPSC test, IAS officials serve the Indian government in an important administrative capacity. They earn pay, allowances, and other perks. Is the IAS salary taxable? Sure. Under the Income Tax Act, an IAS officer’s entire pay is taxable, much as any other regular citizen. Regarding IAS…
Should you be a Non-Resident Indian (NRI) making income in India, you could find that your payments are reduced by a significant TDS (Tax Deducted at Source). The good news is that you may lower this by using Form 13 income tax for NRI. Let us clarify this in plain English. Form 13 is: To seek reduced or nil TDS deduction on your income earned in India, Form 13 is an application you can send to the Indian Income Tax Department. This is quite helpful should your TDS rate be more than your actual tax due. Who among NRI can…
Should you invest overseas or have a foreign bank account, you have probably heard of the FATCA Act. Many Indian taxpayers are not clear about how this law will impact them or what it implies. We shall easily explain the FATCA Act in this blog. What is the FATCA Act? Foreign Account Tax Compliance Act stands as FATCA Act. Passed by the United States, this law seeks to ascertain whether its people are stashing money abroad. India agreed to follow FATCA guidelines in tandem with the US. If you fall under this act, then Indian banks, mutual funds, and financial…
Should you be paid income from overseas while living in India, you could worry about paying taxes in both nations. In these kinds of circumstances, double tax relief can be beneficial. It gets you out of paying taxes twice on the same income. Let us easily break it apart. Double Taxes: What are they? Income obtained elsewhere causes double taxation. You could find yourself paying taxes twice without double tax relief. Double Tax Relief: Defined here Double tax relief is one benefit provided by the Indian government to help stop double taxation. It allows you to credit another country for…
From mutual funds or shares, are you getting money? Then you must be aware of dividends tax rates. Dividend income tax in India has undergone some significant changes following 2020. Here in simple language is all you need to know. Dividend Income: What is it? Dividend income is what you get when a company distributes part of its profit to its owners. Should you own mutual funds or stocks, you could get dividends straight into your bank account. How are Dividends Tax Rates Calculated? Dividend income taxes the investor rather than the company since April 1, 2020. Your whole income…
