DTC introduced in the Parliament

Finance Minister Mr Pranab Mukherjee introduced DTC in the Parliament today. If it passes through, the existing 1961 Income tax act will be replaced by the new act. There are a number of proposed changes in the DTC, complete details of which are not known at. The new code will come into act from FY 2012 – 2013 that is assessment year 2013-2014 as opposed to the earlier understanding of FY 2011 -2012. Read more

August 30, 2010 | Filed Under Income Tax | Leave a Comment

IFCI Infrastructure bonds for tax deduction FY 2010 – 2011

IFCI (The Industrial Finance Corporation of India) has come up with infrastructure bonds which are eligible for tax deduction under section 80CCF of the Income Tax act, 1961.

The salient features of IFCI long term infrastructure bonds are as below. In case of over-subscription IFCI can issue more bonds. Read more

August 29, 2010 | Filed Under Income Tax | 1 Comment

Infrastructure bonds for tax saving FY 2010 - 2011

IFCI (The Industrial Finance Corporation of India) is the first company to come up with infrastructure bonds eligible for tax benefit under section 80CCF of the Income Tax act, 1961 for long term Infrastructure Bonds. As you know for the FY 2010 -2011 there is a tax deduction for an additional maximum amount of Rs 20,000 over and above the 1 Lakh limit available under section 80C.

Before taking a decision to invest in infrastructure bonds, please read the below to understand if you would really get benefit out of it. Read more

August 29, 2010 | Filed Under Income Tax | Leave a Comment

Proposed Income Tax Slabs for FY 2011 - 2012

Union Cabinet approved a proposed Direct Tax Code (DTC) on Thursday and now it will be sent to Standing Committee’s review. It would be presented in the parliament on Monday. The proposal has a plenty of changes to the existing structure. The exemption limit for the individual general category to be raised to 2 L from 1.6 L, and there are changes to the slabs. However, it is said that the exemptions under section 80 (c) etc would be terminated.

Also there would be exemptions of surcharge and cess on corporate taxes and the tax rate would come down to 30 % from the existing 33%. All the changes would be displayed on finance ministry’s site once they have been introduced in the Parliament. Read more

August 28, 2010 | Filed Under Income Tax | Leave a Comment

Investing in Infrastructure bonds FY 2010 – 2011

As you know during FY 2010 – 2011 if you invest in long term infrastructure bonds you will get tax benefit. The limit of investment for tax benefit is Rs 20,000.

This Rs 20,000 is apart from the regular investments under section 8 0 ( c ). So after looking at this don’t make a quick decision to invest in these bonds to avail tax benefit. Consider your taxable income, other investment avenues, inflation etc before investing in it.

I have come across a good article and here giving the link for the readers. Please go through it and make decision whether to invest in these bonds or not.

Investing in long term infrastructure bonds

March 11, 2010 | Filed Under Income Tax | Leave a Comment