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
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 [...]
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, 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?
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.