skip to main
skip to sidebar
Income Tax At Your Door Step
General Knowledge on Taxation
Saturday, 16 November 2013
Tax Free Incomes
Posted by Unknown
on 06:21 in |
Comments : 0
TAX FREE INCOMES :
Some of the incomes are completely exempted from income tax and that too without any upper limit. The following incomes which are tax free :-
(a) Interest on EPF / GPF / PPF
(b) Interest on GOI Tax Free Bonds / Tax Free Bonds issued with specific stipulation to this effect
(c) Dividends on Shares and Mutual Funds. Dividend income from companies / Equity Oriented Mutual funds is completely exempt in the hands of investors. Dividend is also tax free in the hands of investors in case of debt-oriented Mutual Fund schemes. (However, the Asset Management Company is liable to deduct 22.44% distribution tax in case of non individuals / non HUF investors and 14.025% in case of individuals or HUF investors.)
(d) Capital receipts from Life Insurance policies i.e. sums received either on death of the insured or on maturity of Life insurance plans. However, in case of life insurance policies issued after March 31, 2004, exemption on maturity payment u/s 10(10D) is available only if premium paid in any year does not exceed 20% of the sum asssured;
e) Interest on Saving Bank accounts in banks upto Rs10,000/- per year (from FY 2012-13)
(f) Interest earned was Tax Free up to INR 3500/- per year in single and INR 7000/- in Joint account up to 2011-12. From 2012-13 FY, interest up to INR 10,000/- per year either in single or joint account
(f) Long term capial gains on sale of shares and equity mutual funds after 01/10/2004, if security transaction is paid / imposed on such transactions.
Post a Comment
<< Newer Post
Older Post >>
Post Comments ( Atom )
The Top 50 Accounting Firms in 2014
The Top 50 in 2014 Rank 2014 (2013) Name of firm UK Fee Income (£m) % change (vs 2013) Year end UK partners Fees per partner (£m)...
PERQUISITES EXEMPT FROM INCOME TAX
Some instances of perquisites exempt from tax are given below: Provision of medical facilities (Proviso to Sec. 17(2)): Value of medic...
When a Liability is reduced or decreased, it is recorded on the ?
When a Liability is reduced or decreased, it is recorded on the: A) Left or credit side of the account B) Right or debit ...
We can say that the business is in profit, when ?
We can say that the business is in profit, when: A) Assets exceed Expenditure B) Income exceeds Liabilities C) Inc...
Detailed Procedure and Steps to Create a Company Under Companies Act 2013
Moving from the Companies Act 1956 to the Companies Act 2013 is like shifting from your old house to a new one. In the old house, where...
Top 10 Financial Tools for Students
College should be a time to expand you mind: socially, academically, and professionally. Too often, however, lack of life experience catch...
Appointment of Foriegn Director
CLUBBING OF INCOME
Companies Act 2013
Comparison of accounting software
Employment Generation Programs
Export & Import
Export Processing Zone
General Knowledge on Taxation
Harshad Mehta's Scam
How to become Accountant
How to Save tax
How to Start a Small Business
How to Start a Subsidary Company in India
Importance of Trade
Income From Business
Income from Salaries
Indian Finance Market
Procedure & Forms for Registration of a Partnership Firm
Registration of a Partnership Firm
Steps to create a Company
Stock Exchange Scams
The 3 Decisions That Will Change Your Financial Life
Transfer Pricing FAQ's
US Sales Tax
US Taxation Basics
Wholly Owned Subsidiary (WOS)
Copyright © 2014