With the stock market nearing its all-time high, the best way out is to sell them in tranches. Employee stock option plans, or Esops, are touted as one of the best tools to create long-term wealth. These are the shares an employee gets of his/her employer at a discounted rate to the current market price. [...]
Archive for the ‘Tax Planning’ Category
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To save taxes rent a house
Posted by admin on August 29th, 2010
With the cascading cost of living, renting an accommodation is a major financial outflow for an individual. However, the same rented accommodation can help save some tax for salaried employees. In current salary packages, employees receive house rent allowance (HRA) to meet the cost of renting an accommodation. A salaried employee staying in a rented [...]
Tax relief for arrears or advance salaries in Income tax
Posted by admin on May 27th, 2010
Any income due or received by an employee from his employer or former employer is taxable under the head ‘salaries’ as per the provisions of the Income Tax Act, 1961.
There are occasions when an employee may receive income, which relates to earlier financial years, i.e., as arrears of salary or he may receive certain payments in advance for future financial years, i.e., as advance salary.
House Rent allowance under the Income Tax Act
Posted by admin on May 27th, 2010
House rent allowance, or HRA, is a major component of your salary. As a salaried employee you can claim a tax exemption on such an amount. But there are certain conditions that you need to understand to claim such exemptions.
How is the exemption on HRA calculated?
When can you claim exemption on HRA?
Is your landlord an NRI?
When can you enjoy the twin benefits of home loan and HRA?
Pension regulator seeks tax relief on investments in the New Pension Scheme
Posted by admin on May 27th, 2010
The interim pension regulator has sought tax relief on investments in the NPS to make it more attractive to employees of private sector firms.
NPS is currently under the Exempt-Exempt-Tax system, which means investment will be taxed when it is withdrawn. Provident fund and many of the small savings schemes are under the Exempt-Exempt-Exempt (EEE) regime, and are not taxed at any point.
Tax-Saver Schemes lag Diversified Funds
Posted by admin on March 17th, 2010
Mutual fund advisers hardsell these schemes to prospective investors claiming that they have the potential to outperform other category of equity schemes — especially diversified schemes.
Advisers are unlikely to make such claim this financial year-end , as an analysis of data shows that tax-saving schemes from leading mutual fund houses have been lagging their diversified counterparts in onethree- and five-year periods.
