Last month’s post on calculation of income from house property evoked a few queries/doubts on what are the allowable deductions/tax exempt income under this head.
The following property incomes are totally exempt from tax
This article is meant for people who are not liable to pay income tax but have fixed deposits or investments on which TDS is likely to get deducted.
What is TDS?
TDS stands for Tax Deducted at Source .It is an advanced tax deducted on earnings and is aimed at providing regular revenue to the government. The common investment avenues where TDS is deducted are-
- Interest on term/fixed deposits exceeding Rs 10,000/- an year
- Commission income earned by mutual fund/insurance agents exceeding Rs 5000/- per annum
This makes perfect sense. But the problem arises when TDS is deducted on the fixed deposit interest or commission income earned by individuals who do not have a tax liability –either because they do not have a salary income or their total income is within the exemption limit or in some cases the rate of tax is lesser than TDS rate. And the only way these people can get a TDS refund is that they have to necessarily file their returns, specify the excess tax paid and ask for a refund. And wait for getting the elusive refund which could take months.
It is time again for the annual filing of income taxes for the previous financial year 2011-2012 (Assessment year 2012-2013) with 31stJuly 2012 being the last date to do so. But gone the days when filing returns meant lot of paper work, looking for tax filing agents and waiting in queues outside the income tax office; thanks to the e-filing facility by the Income Tax Dept.
Here is a step by step guide for a new user
Further to the previous article on the importance of owning a personal health policy, let us look at a few things to consider to ensure that you buy a customized comprehensive health cover which takes care of all your needs.
Employers in both the private and public sector organizations in India seek to attract the best human resources in the industry and offer various attractive group health insurance covers to their employees with facilities like lumpsum payments, reimbursement of hospitalization expenses, fixed medical allowance etc. Group health insurance policies have a lot of advantages over individual mediclaim policies like lower costs, most of them have no waiting period for claims, even employees in a high risk category health wise with a not so good health profile are covered.