tax exempt - Rightsofemployees.com https://www.rightsofemployees.com Know Your Rights Sat, 17 Dec 2022 06:27:31 +0000 en-US hourly 1 https://wordpress.org/?v=7.0.2 https://www.rightsofemployees.com/wp-content/uploads/2018/01/cropped-emp1-32x32.png tax exempt - Rightsofemployees.com https://www.rightsofemployees.com 32 32 PPF Investment: Invest in the wonderful scheme of the Modi government before the budget, you will get the benefit of lakhs in tax https://www.rightsofemployees.com/ppf-investment-invest-in-the-wonderful-scheme-of-the-modi-government-before-the-budget-you-will-get-the-benefit-of-lakhs-in-tax/ Sat, 17 Dec 2022 07:05:37 +0000 https://www.rightsofemployees.com/?p=8575 Income Tax: Many wonderful schemes are being run by the government for the people. People are also being encouraged to invest and save through these schemes. At the same time, the budget 2023 is also going to be presented by the central government soon. The government can make many announcements in this budget. Meanwhile, a […]

The post PPF Investment: Invest in the wonderful scheme of the Modi government before the budget, you will get the benefit of lakhs in tax first appeared on Rightsofemployees.com.

]]> Income Tax: Many wonderful schemes are being run by the government for the people. People are also being encouraged to invest and save through these schemes.

At the same time, the budget 2023 is also going to be presented by the central government soon. The government can make many announcements in this budget. Meanwhile, a scheme of the government is quite popular, in which tax exemption is also available. Investors can invest in this scheme of the government annually and get better returns. At the same time, tax exemption is also available in this scheme.

Long term planning We are talking about Public Provident Fund (PPF). Public Provident Fund (PPF) scheme is a very popular long term savings scheme in India due to its combination of tax savings, returns and safety. The PPF scheme was launched in 1968 through the National Savings Institute of the Ministry of Finance. The objective of this scheme is to help people to make small savings and give good returns on savings.

Tax exempt

PPF plans offer attractive interest rates and no tax is to be paid on the returns generated from the interest rates. Which saves a lot. On the other hand, when a person withdraws money from the PPF account, then the amount saved as well as the interest generated is exempt from tax.

Can’t close before time

Invest in this scheme for 15 years and after that tenure can be extended for 5-5 years. At the same time, a minimum of Rs 500 and a maximum of Rs 1.5 lakh can be invested annually in this scheme. Whereas the maturity amount depends on the investment tenure. However, you cannot close the Public Provident Fund account prematurely.

Tax Benefits

Public Provident Fund is one such investment which comes under the Exempt-Exempt-Exempt (EEE) category. This means that the amount you deposit in the Public Provident Fund will be deductible under section 80C of the Income Tax Act. When you withdraw the money, the amount deposited and interest will be exempt from tax. It should be noted that you cannot close the Public Provident Fund account before maturity.

The post PPF Investment: Invest in the wonderful scheme of the Modi government before the budget, you will get the benefit of lakhs in tax first appeared on Rightsofemployees.com.

]]> ITR Alert: Know Here are your 10 incomes on which income tax is not to be paid, see the complete list https://www.rightsofemployees.com/itr-alert-know-here-are-your-10-incomes-on-which-income-tax-is-not-to-be-paid-see-the-complete-list/ Thu, 28 Jul 2022 06:25:52 +0000 https://www.rightsofemployees.com/?p=1546 New Delhi. The higher the income, the higher the income tax liability. To save tax, we invest in a variety of tax exempt instruments. At the same time, there are some sources of income from which income tax is not payable on income. Let us have a look at these sources of income- Allowance for foreign services If, you […]

The post ITR Alert: Know Here are your 10 incomes on which income tax is not to be paid, see the complete list first appeared on Rightsofemployees.com.

]]> New Delhi. The higher the income, the higher the income tax liability. To save tax, we invest in a variety of tax exempt instruments. At the same time, there are some sources of income from which income tax is not payable on income. Let us have a look at these sources of income-

Allowance for foreign services

If, you are in a government job and your appointment is outside the country and any allowance is received in lieu of it, then income tax will not be levied on it. In section 10(7) of Income Tax, it has been provided that the employees working in government service who are rendering their services abroad and are getting allowances in return for them, then they will be tax free.

Income from gratuity

A part of the salary of salaried employees is deducted as gratuity. The company pays gratuity to the employee after working for a specified period. Gratuity income is completely tax free.

Income from voluntary retirement

Income from voluntary retirement up to Rs 5 lakh is tax free. According to section 2BA of Income Tax, if a person takes voluntary retirement from any company or local authority, then the income from this will get tax exemption up to Rs 5 lakh.

Income from agriculture

The government does not charge tax on income from agriculture. Income from agriculture is exempted from tax under section 1961 of Income Tax. Tax exemption is available on income from agriculture. Taxpayer can get tax exemption by showing income from agriculture in his return.

Income from savings account

If the interest earned from the savings account is less than Rs 10,000, then there is no tax to be paid on it. This exemption is also available on interest earned from more than one account. If, you have more than one bank account and they get interest of Rs 10000 and Rs 5000 respectively, then your taxable income will be Rs 5000.

Share of partnership firm

If, you are a partner in a partnership firm and you own its shares, then as per section 10(2) of the Income Tax, the partner is not liable to pay income tax for the income earned in the firm. Apart from shares, if you take remuneration or other benefits, then this income will come under the purview of taxable income.

Long term capital gain

Tax exemption is available on long-term capital gains made on investments made in equity or mutual funds. According to section 10(36) of Income Tax, if capital gains are made by selling shares or mutual funds for a period of more than one year, then it is eligible for income tax exemption. However, this is not applicable to debt mutual funds and the income generated from it is taxable.

Scholarship or award

There is no income tax on any kind of scholarship or award. Income tax is not charged on the amount received under the scholarship or award under the Income Tax Act 1961. The amount of the scholarship or award has not been fixed.

Senior Citizen Saving Scheme

If you are a senior citizen and you have invested in Senior Citizen Saving Scheme (SSSS), then your principal amount will not be taxed. However, you may have to pay tax on its interest income. Also, keep in mind that you have to mention this in your income tax return as well.

Provident fund income

According to section 10 (11, 12, 13) of income tax, income tax is not to be paid on such income which comes from PPF, PF or retirement fund.

The post ITR Alert: Know Here are your 10 incomes on which income tax is not to be paid, see the complete list first appeared on Rightsofemployees.com.

]]>