Income which is exempt from tax:
Every person has to pay tax on his earnings. This makes him
liable to income tax from his business. However, some such income has been
exempted from tax in India. For this, the role of sections 8c to 84 of Income
Tax becomes important.
Income Tax on Farming:
Today we will tell you about such a process of income that is
not taxed. First of all, income from farming, According to ClearTax Income
from farming in India is not taxed. Although the income from other sources is
decided to the tax slab in agriculture and also earning from farming will
remain same in tax.
Tax on Provident fund and gratuity:
Provident Fund and gratuity are the most important social security for
employed people. After retirement, the main source of income i.e. salary is
lost, PF and gratuity are very useful, this has also been kept tax-free. There
are also some conditions attached to it, that if your PF have deducted for 5
years, then it is tax-free, TDS is applicable at the rate of 10 percent on
withdrawal before 5 years
If your total income is not taxable then you can claim the
refund of this TDS deduction at the time of ITR filing. The gratuity received
by the government servant is completely tax-free. If the government employee
dies or he withdraws his gratuity after retirement then they get the discount
to save the amount. In the private sector, the employees are also exempt from
tax on gratuity up to 10 lakh INR.
Tax on Costly Gifts:
The tax on gifts has been levied under the rule of gift
tax act 1958, It was only after the amendment of the Income Tax provisions that
it was decided that the tax liability on costly gift transactions would be
given the tax. Whether you have received cash in gift, check or draft, movable
property, you have to show them in the form. If the value of the gift is up to
50 thousand, then you will get a rebate in tax.
Tax on the part of salary:
Some components in salary have taxable. The transportation cost,
mobile or internet bills, lunch vouchers, books, and magazines have been kept
in the tax category.
Tax on Scholarship:
Don't be surprised by looking
at the scholarship in the list, according to the Income Tax Act, the money
received from the scholarship is considered as income. Under Section 56(ii) of
the Income Tax Act, the money received from the scholarship is also exempt.
Tax on Gallantry Awards:
Tax is also levied on the pension of the people honored with
various gallantry awards which are honored by the Government of India, like
Param Vir Chakra, Maha Vir Chakra, and Vir Chakra as well as family pension was
kept free from tax.
Tax on Reverse Mortgage Scheme:
When you sell an asset and transfer it to someone else then people have to pay capital gains tax. Senior citizens get tax exemption in this scheme. Apart from this till the age of 62, the taxpayer gives a loan against any property, and then it is also tax-free.
Income tax on stock market transaction:
The headache starts in everyone's in March itself because of tax
deduction. The people have got into the problem of tax on Intraday Income with
Capital Gains. There may be difficulties in, who have invested the money in the
stock market. So we will talk about the tax benefit also.
If any rules are changed from the stock market, then they should be reviewed at least once. Because there is a network of taxes, it is a matter of great tension for yourself, which earnings of the stock market are taxed. What are the things to keep in mind?
At one time, second fear and thirdly what kind of deduction was made in the form of three special things. Now the first question is there are five different types of earning. From the stock market on which you have to pay tax. First dividend and second if you bought and sold shares in intraday, took intraday in the cash market, took any stock today, and gave intraday earnings.
Third, you had short-term capital gains on the short term you sold today or yesterday in a few days. Fourth is the long-term capital gain that you hold for a long time and then sell it will be any profit loss and fifth is futures & option (F&O) where futures traded. These five methods are rated low by the trade directorate and are related to mutual funds.
If you invest money in equity mutual funds or debt mutual funds, then basically five such trades of direct on which you do any debt in the stock market are taxed to you. Let us understand that there are five types of border earnings. Short Term Capital Gains Tax, Buy or Sell, Dividend Delivery, and Long Term Capital Gains Tax is the earnings from intraday off cost futures trading.
Whether tax liability is created, how to fill it is simple in dividend which will be taxed accordingly in your tax slab. You take a regular dividend as a normal income, which you earn in a job but which is taxable if you add it to your income from the business. You came in the higher slab, so the empty things from deducting the first dividend, and this 10% TDS is deducted. But if any company gives you more than 5 thousand rupees dividend in the New Year then they can deduct TDS.
If less than 5 years the company did not give this money to any company as a dividend, then TDS will not be deducted from it, now claim the rest of that TDS, you will get benefit from your tax. One of the interesting things is to save tax in dividends, understand the most useful things, you have borrowed any money and that loan goes to what you have invested, after that you will pay interest, then the interest you have paid in front of the dividend. You can claim it as an expense for the tax rebate.
Now the imported thing is that whatever STT turnover charges
brokerage etc. are levied at the time of levying them, but the STT that you
make up on that STT benefit is not available. As soon as you get the deduction,
keep in mind, that the slab of 15% is less than your normal tax slab, and in
return for 60 days from you, you are not getting any deduction in tax on STT
separately.
Keep in mind, whatever you want as expenses, whatever brokerage
charge, transaction charge, SEBI's turnover, the system duty would get its
deduction. This second thing because if you pay 15% tax then whatever you get
separate deduction income tax. If you put money in PPF put in insurance in LIC.
You will not get all these things or even their benefits.
If there is a loan, then yes, now it will be a loan for
you considering the tax saving scheme here, then you can carry forward that
loan for 8 years. If you make a profit in the next 8 years, you will not have
to pay tax in front of it, then you will be able to save tax next year.
Keeping this in mind, this is how you can do your tax planning
for short-term capital gains. long term capital gains tax is different from
short-term discussed earlier.
But short term holds the asset for more than one year and then
sell it for more than one year, the long term within one year and if you make
profit in it then there is also capital gain loss but there is a huge discount
in this and that many people should be planning. If you earn a gain of up to
one lakh rupees by adding all the shares in your portfolio throughout the year,
then it is taxed.
If there is a tax on the same amount above 1 lakh, then whatever
tax will be charged for exemption up to 1 lakh. However, there is a tax rebate
benefit. You have a discount of up to 1 lakh and the second will be 10% tax. In
this, STT inspection is not available in any kind of capital gains, knowing
that no deduction of STT will be available.
whatever comes out of your long-term comes only after
deducting all the charges. Brokerage which then only like in short term you
will not get the benefits of section 80C in long term also. Put money in PPF,
Home loan should be taken, all you will get benefit from is a chain in terms of
setup in the short term and long term.
Now you have locked it for the long term then how much tax was 10 to 15 percent at the rate of short term capital gain, then where you would pay 10 percent tax. That's why the government made this rule. If you have Long Term Capital Loss by Income Tax Department, then you will be able to set it up only against Long Term Capital Gain and you can reform it for 8 years. Just like you can do your loss in short term, there is only one chance in this regarding the simplest of 8 years that the setup of long term loss will be with long term of the short term with both of them.
Apart from equity tax, fixed income is also taxed as you invest your money in mutual funds or debt funds, you put money in your accounts or FDs and buy certain bonds. This fixed income also comes under the tax criteria. Inflation is increasing every year, and due to inflation, the value of the rupee gets depreciated. The more my interest accrued, the more my inflation increased, so I lost due to the increase in inflation.