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                          500,000   PAGE VIEWS Â
THANK ALL READERS ,WELL WISHERS WHO HAVE HELPED US TO REACH THE MILESTONEÂ
The Article on  " TAX PLANNING FOR FY 2022-23 CONTAINS  5 PARTSÂ
PART I Â : MAJOR CHANGES IN TAX RULES FOR FY 2022-23Â Â CLICK HEREÂ
PART 2 : TAX SLABS /RATES FOR FY 2022-23 READ THIS PART BELOW ​  Â
PART 3 :Â TAX REBATES ,POPULAR TAX SAVING PLANS FORÂ FY 22-23Â CLICK HERE Â Â Â
PART 4 :Â Â INCOME TAX CALCULATORÂ FOR FY 2022-23Â Â Â CLICK HEREÂ
PART 5 : TAX ON RETIREMENT BENEFITSÂ Â Â Â CLICK HERE Â Â Â Â Â Â
HOW TO PAY INCOME TAX ONLINE ? CLICK HERE   Â
​TO KNOW ALL ABOUT TDS RATES  , CLICK HEREÂ
PART I Â : MAJOR CHANGES IN TAX RULES FOR FY 2022-23Â Â CLICK HEREÂ
PART 2 : TAX SLABS /RATES FOR FY 2022-23 READ THIS PART BELOW ​  Â
PART 3 :Â TAX REBATES ,POPULAR TAX SAVING PLANS FORÂ FY 22-23Â CLICK HERE Â Â Â
PART 4 :Â Â INCOME TAX CALCULATORÂ FOR FY 2022-23Â Â Â CLICK HEREÂ
PART 5 : TAX ON RETIREMENT BENEFITSÂ Â Â Â CLICK HERE Â Â Â Â Â Â
HOW TO PAY INCOME TAX ONLINE ? CLICK HERE   Â
​TO KNOW ALL ABOUT TDS RATES  , CLICK HEREÂ
     FOR    INCOME TAX NEWS  CLICK HERE Â
 READ OUR ARTICLE "  TDS ON SALARY , PENSION AND PERQUISITES " ​
As FM has not announced any changes to TAX Structure for Fy 2022-23  , the Tax slabs  enumerated  below are valid for FY 2022-23 ( AY 2023-24 ) alsoÂ
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INCOME TAX SLABS AND RATES FOR FY 2022-23
 Income tax payers have now two options   to pay income tax from the Financial year 2020-21  with the introduction of Simplified optional Individual tax regime with lower income tax rates for the persons who are ready to forgo many tax rebates .  The  new optional section under ITAct is  115BAC  . If you opt for  section 115 BAC , THE INCOME TAX RATES  ARE AS FOLLOWS : Â
Income tax Rates
TAX SLABS NEW REGIME
INCOME RANGEÂ |
INCOME TAXÂ |
Up to Rs 2,50,000 |
NIL |
Rs 2,50,001 to Rs 5,00,000 |
5 % |
Rs 5,00,001 to Rs 7,50,000 |
10 % |
Rs 7,50,001 to Rs 10,00,000 |
15 %Â |
Rs 10,00,001 to Rs 12,50,000 |
20 % |
Rs 12,50,001 to Rs 15,00,000 |
25 % |
Above Rs 15,00,000 |
30 %Â |
 If you do not opt for new simplified tax regime and want to retain old tax structure and avail tax rebates prevalent in FY 2029-20 , The tax structure / slab will continue as below :Â
TAX SLABS OLD REGIME
INCOME TAX RATES / SLABS UNDER OLD REGIMEÂ
​Income Range |
General Citizens |
Persons above 60 years and below 80 years |
Persons above 80 years |
Up to Rs 2,50,000 |
NIL |
NIL |
NIL |
Rs 2,50,001 to Rs 3,00,000 |
5% |
NIL |
NIL |
Rs 3,00,001 to Rs 5,00,000 |
5% |
5% |
NILÂ |
Rs 5,00,001 to Rs 10,00,000 |
20% |
20% |
20% |
Above Rs 10,00,000 |
30% |
30% |
30% |
 1. Surcharge of 10 % for income between Rs 50,00,000 to Rs 1 Crore and surcharge of 15% on income above Rs 1 .00 crore .Surcharge at the rate of 25% of such tax,where total income exceeds Rs 2 crores to Rs 5 crores rupee . A surcharge at the rate of 37% of tax, where total income exceeds Rs 5 crores.(Since FM has announced that enhanced cess on income over Rs 2 crores will not be applicable for capital gains out of sale of Equities,MF etc)Â
​
2. Education cess of 4% on Tax+ SurchargeÂ
​
3. Tax rebate under Section 87A of IT Act up  to Rs 12,500 for Resident individuals with income less than Rs.5 lakhs.Â
​
2. Education cess of 4% on Tax+ SurchargeÂ
​
3. Tax rebate under Section 87A of IT Act up  to Rs 12,500 for Resident individuals with income less than Rs.5 lakhs.Â
ADVT
AMAZON INDIA :SHOP for Today's  DEALS                              Â
AMAZON INDIA :SHOP for Today's  DEALS                              Â
TAX ON INTEREST INCOME
1.Savings Bank  Accounts                 :  Tax free up to Rs 10,000 per year under old regime only Â
2.Tax on Fixed Deposits                   :    Fully taxable
3.Recurring Deposits                     :     Fully taxableÂ
4.Tax Saving FDs                          :     Fully taxableÂ
5.National savings Certificates             :     Fully taxableÂ
6.Kisan Vikas Patra                        :    Fully taxableÂ
7.Senior Citizens savings Scheme          :    Fully taxableÂ
8.Public Provident Fund                   :    Tax Free    under old regime only Â
9.Tax Free Bonds                          :    Tax Free           Â
10.Sukanya Samruddhi Yojana             :    Tax Free   under old regime only  ​
Note : ​Tax exemption limit is enhanced to Rs 50,000 for interest on bank deposits / postal deposits for senior citizens who opt for old Tax Regime .Â
2.Tax on Fixed Deposits                   :    Fully taxable
3.Recurring Deposits                     :     Fully taxableÂ
4.Tax Saving FDs                          :     Fully taxableÂ
5.National savings Certificates             :     Fully taxableÂ
6.Kisan Vikas Patra                        :    Fully taxableÂ
7.Senior Citizens savings Scheme          :    Fully taxableÂ
8.Public Provident Fund                   :    Tax Free    under old regime only Â
9.Tax Free Bonds                          :    Tax Free           Â
10.Sukanya Samruddhi Yojana             :    Tax Free   under old regime only  ​
Note : ​Tax exemption limit is enhanced to Rs 50,000 for interest on bank deposits / postal deposits for senior citizens who opt for old Tax Regime .Â
​TAX ON STOCK MARKET TRANSACTIONS
1. Profits made out of  short term stock holding  (for less than a year )to be added to the Income for tax purposes  .Â
2. Short term loss on one stock can be offset by short term gain on another stockÂ
3. Stocks held for more than 12 months are eligible for Long Term Capital Gain and hence profits  are tax free up to Rs 1.00 lakh only Long Term Capital Gain ( LTCG ) is taxed at 10 % beyond Rs 1.00 lakh   .Â
Long Term Capital Gain Tax on sale of equity shares and equity oriented mutual funds is introduced at 10 % ,flat and uniform rate for gains more than Rs 10,000 in the financial year .Further no indexation is allowed for calculating the gain . However gains earned up to January 31,2018 will be allowed to grandfathered.Grandfathering is allowing of existing benefits for the previous period . Hence Long Term Profits earned after February 1, 2018 will only be taxed id profits are booked in the financial year 2018-19 i.e from 01.04.2018 to 31.03.2019 .The higher of the purchase price of share or mutual fund or the price as on 31.01.2018 for equity and NAV as on 31.01.2018 for mutual fund will be taken as investment cost for arriving the long term gain .Â
​4. Dividend Distribution Tax is abolished for the Financial Year 2020-21 . However Dividend income is to be added to his / her personal income  by the receiver of the dividend .Â
5.  Short term losses can be carried forward for 8 years  only if you declare the same in your Income Tax returns before due date .Â
6. Trading in derivatives attract Business tax .Â
7.  Losses made out of  stocks held for more than 12 months cannot be offset for Short term gains .Â
2. Short term loss on one stock can be offset by short term gain on another stockÂ
3. Stocks held for more than 12 months are eligible for Long Term Capital Gain and hence profits  are tax free up to Rs 1.00 lakh only Long Term Capital Gain ( LTCG ) is taxed at 10 % beyond Rs 1.00 lakh   .Â
Long Term Capital Gain Tax on sale of equity shares and equity oriented mutual funds is introduced at 10 % ,flat and uniform rate for gains more than Rs 10,000 in the financial year .Further no indexation is allowed for calculating the gain . However gains earned up to January 31,2018 will be allowed to grandfathered.Grandfathering is allowing of existing benefits for the previous period . Hence Long Term Profits earned after February 1, 2018 will only be taxed id profits are booked in the financial year 2018-19 i.e from 01.04.2018 to 31.03.2019 .The higher of the purchase price of share or mutual fund or the price as on 31.01.2018 for equity and NAV as on 31.01.2018 for mutual fund will be taken as investment cost for arriving the long term gain .Â
​4. Dividend Distribution Tax is abolished for the Financial Year 2020-21 . However Dividend income is to be added to his / her personal income  by the receiver of the dividend .Â
5.  Short term losses can be carried forward for 8 years  only if you declare the same in your Income Tax returns before due date .Â
6. Trading in derivatives attract Business tax .Â
7.  Losses made out of  stocks held for more than 12 months cannot be offset for Short term gains .Â
TAX ON MUTUAL FUNDS
1. For Tax purpose , a Mutual fund that invests more than 65% in equities is classified as Equity Funds .Â
2. Diversified funds and arbitrage funds are also considered Equity Funds .Â
3. Profits on Equity funds held less than 12 months  is considered as Short term Capital Gain  and  to be included in the taxable income.Short Term Capital Gain attracts a tax of 15 %Â
4. Profits on Equity Funds held for more than 12 months is considered as Long  term Capital Gain and  is exempted from tax up to Rs 1.00 lakh only . Long Term Capital Gain ( LTCG ) is taxed at 10 % beyond Rs 1.00 lakh   .Â
5. Profit  on Debt Funds are considered Long Term , if held for more than 3 years .Â
6. Tax on Long Term Capital gain on debt Funds is 20% . However investors can get the benefit of indexation,which allows the original investment to be adjusted for inflation .Â
7. Short Term Debt Funds  for debt funds sold within 3 years is to be added to the taxable income and will be taxed according to slab 8. Dividends on Mutual funds are tax free ,as Mutual Fund Houses would have paid  Dividend Distribution Tax ,currently at 28.84%Â
2. Diversified funds and arbitrage funds are also considered Equity Funds .Â
3. Profits on Equity funds held less than 12 months  is considered as Short term Capital Gain  and  to be included in the taxable income.Short Term Capital Gain attracts a tax of 15 %Â
4. Profits on Equity Funds held for more than 12 months is considered as Long  term Capital Gain and  is exempted from tax up to Rs 1.00 lakh only . Long Term Capital Gain ( LTCG ) is taxed at 10 % beyond Rs 1.00 lakh   .Â
5. Profit  on Debt Funds are considered Long Term , if held for more than 3 years .Â
6. Tax on Long Term Capital gain on debt Funds is 20% . However investors can get the benefit of indexation,which allows the original investment to be adjusted for inflation .Â
7. Short Term Debt Funds  for debt funds sold within 3 years is to be added to the taxable income and will be taxed according to slab 8. Dividends on Mutual funds are tax free ,as Mutual Fund Houses would have paid  Dividend Distribution Tax ,currently at 28.84%Â
TAX ON INSURANCE POLICIES
​Under 80 C  of Income tax  Act , life insurance premia paid  on life indurance policies  is  one of the eligible instruments for total tax exemption up to Rs 1,50,000 only  .   However  be cautious and confirm with policy issuers whether the contribution made to the particular policy is eligible for such exemption . The reason is there are riders for contributions made to be eligible for exemption .Â
As per Income tax law ,Â
Quote ; Â "Â
Life Insurance premium is part of gross qualifying amount for the purpose of deduction under section 80 C.Payment of premium which is in excess of 10 percent  (if policy is issued on or after 1-4-2013 , 15 % in case of insurance on life of person with disability referred to in section 80U or suffering from disease or ailment specified in section 80 DDB/ rule 11DD)of actual capital sum assured shall not be included in gross qualifying amount .The value of any premiums agreed to be returned or of any benefit by way of bonus or otherwise,over the sum actually assured , which is to be or may be received under the policy by any person ,shall not be taken in to account for the purpose of calculating the actual capital sum assured .The limit of 10 per cent will be applicable only in the case of policies issued on or after 1-4-2012. In respect of policies issued prior to 1-4-2012, the old limit of 20 per cent of actual sum assured will be applicable.
With effect from 1-4-2013, 'actual capital sum assured' in relation to a life insurance policy shall mean the minimum amount assured under the policy on happening of the insured event at any time during the term of the policy, not taking into acc ount--
 (i) the value of any premium agreed to be returned; or
(ii) any benefit by way of bonus or otherwise over and above the sum actually assured, which is to be or may be received under the policy by any person. Â "unquote"
                          For full page  of Income tax website  relevant to  the above rule  , CLICK HEREÂ
Hence premiere paid one time premium policies may not be eligible to qualify for exemption as the insured amount may not be ten times the premium .Further amount received under those policies may be treated as Taxable Income and tax calculated. Hence double check  with insurance companies before purchasing  as selling agents may not reveal you correctly .Â
As per Income tax law ,Â
Quote ; Â "Â
Life Insurance premium is part of gross qualifying amount for the purpose of deduction under section 80 C.Payment of premium which is in excess of 10 percent  (if policy is issued on or after 1-4-2013 , 15 % in case of insurance on life of person with disability referred to in section 80U or suffering from disease or ailment specified in section 80 DDB/ rule 11DD)of actual capital sum assured shall not be included in gross qualifying amount .The value of any premiums agreed to be returned or of any benefit by way of bonus or otherwise,over the sum actually assured , which is to be or may be received under the policy by any person ,shall not be taken in to account for the purpose of calculating the actual capital sum assured .The limit of 10 per cent will be applicable only in the case of policies issued on or after 1-4-2012. In respect of policies issued prior to 1-4-2012, the old limit of 20 per cent of actual sum assured will be applicable.
With effect from 1-4-2013, 'actual capital sum assured' in relation to a life insurance policy shall mean the minimum amount assured under the policy on happening of the insured event at any time during the term of the policy, not taking into acc ount--
 (i) the value of any premium agreed to be returned; or
(ii) any benefit by way of bonus or otherwise over and above the sum actually assured, which is to be or may be received under the policy by any person. Â "unquote"
                          For full page  of Income tax website  relevant to  the above rule  , CLICK HEREÂ
Hence premiere paid one time premium policies may not be eligible to qualify for exemption as the insured amount may not be ten times the premium .Further amount received under those policies may be treated as Taxable Income and tax calculated. Hence double check  with insurance companies before purchasing  as selling agents may not reveal you correctly .Â
ADVANCE TAX
Under Section 208 of Income-tax Act, every assesses is required to pay advance tax if the tax liability for the previous year exceeds ten thousand rupees.The Tax payable during the financial year itself is called Advance Tax. For individuals with salary as sole source of income,TDS Â is to deducted by the employer during disbursal of salary and hence question of paying advance tax separately may not arise. Â
             ADVANCE TAX CALENDAR / DUE DATE SCHEDULE FOR BOTH INDIVIDUALS AND CORPORATEÂ
             ADVANCE TAX CALENDAR / DUE DATE SCHEDULE FOR BOTH INDIVIDUALS AND CORPORATEÂ
DUE DATE |
ADVANCE TAX PAYABLE |
Before 15th June 2022 |
15% of advance tax |
​Before 15th Sept 2022 |
​45% of advance tax |
​Before 15th Dec 2022 |
​75% of advance tax |
​Before 15th March 2023 |
​100 % of advance tax |
​​A Resident senior Citizen is exempted for paying advance tax ,if he has  no income from business or profession .  . He can discharge his tax liability  by paying self assessment tax . ​
For calculating Advance tax Payable  , CLICK HERE
For calculating Advance tax Payable  , CLICK HERE
 For Tax on Retirement  Benefits                  CLICK HEREÂ
The Article on  " TAX PLANNING FOR FY 2022-23 CONTAINS  5 PARTSÂ
PART I: MAJOR CHANGES IN TAX RULES FOR FY 2022-23Â Â Â Â Â CLICK HEREÂ
PART 2: TAX RATES/SLABS FOR FY 2022-23Â Â READ THE ABOVE PART Â Â Â
PART 3: TAX REBATES Â AND POPULAR TAX SAVING SCHEMESÂ Â CLICK HERE Â Â Â
PART 4: INCOME TAX CALCULATOR FOR FY 20212-23     CLICK HERE ​
            :                                 Â
PART 5: TAX ON RETIREMENT BENEFITSÂ Â Â Â Â Â Â Â CLICK HERE Â Â Â Â Â
PART I: MAJOR CHANGES IN TAX RULES FOR FY 2022-23Â Â Â Â Â CLICK HEREÂ
PART 2: TAX RATES/SLABS FOR FY 2022-23Â Â READ THE ABOVE PART Â Â Â
PART 3: TAX REBATES Â AND POPULAR TAX SAVING SCHEMESÂ Â CLICK HERE Â Â Â
PART 4: INCOME TAX CALCULATOR FOR FY 20212-23     CLICK HERE ​
            :                                 Â
PART 5: TAX ON RETIREMENT BENEFITSÂ Â Â Â Â Â Â Â CLICK HERE Â Â Â Â Â
​                                  FOR DETAILS ON AAYKAR SETHU ,
                  NEW MOBILE APPLICATION FROM INCOME TAX DEPT , CLICK HERE                                                                NEW  ARTICLES ON  Â
                                   Â
SMALL FINANCE BANKSÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â PAYMENT Â BANKS Â Â Â
                                    Â
UNIFIED Â PAYMENT INTERFACEÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â BHARAT BILL PAYMENT SYSTEMÂ Â Â
BHIM APPÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â AADHARÂ Â Â
e-INSURANCE Â Account ( eIA Â )
                  NEW MOBILE APPLICATION FROM INCOME TAX DEPT , CLICK HERE                                                                NEW  ARTICLES ON  Â
                                   Â
SMALL FINANCE BANKSÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â PAYMENT Â BANKS Â Â Â
                                    Â
UNIFIED Â PAYMENT INTERFACEÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â BHARAT BILL PAYMENT SYSTEMÂ Â Â
BHIM APPÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â AADHARÂ Â Â
e-INSURANCE Â Account ( eIA Â )