Tips on Tax Planning ! (page-5/5)

42: Salaried Employee will have to Restructured his Salary After the FBT Regime

Complete change has now taken place in the sphere of taxation of salary income particularly after the provisions relating to Fringe Benefit Tax have been scrapped by the Finance (No.2) Act, 2009 which has recently been passed by the Parliament.

43: Penalties for Cash Credits or Unproved Loans - HOW to Avoid ?

Where an assessee is not able to prove cash credits or satisfy the assess- - ing officer about the genuineness of a loan appearing in his books of account, assessing officer is entitled to treat the unproved cash credit or loan as the assessee’ s income even if it’s below ` 20,000.

44: Retirement Plans for Maximum Utilisation of Savings

It is absolutely necessary to have proper utilisation of savings which could be of great help at the time of retirement to all persons whether they are employees or self-employed professionals.

45: Finer Details of Tax Planning as well as Voluntary Tax Compliance Provisions.

In this tip, I have outlined some finer details of income tax planning as well as voluntary tax compliance provisions which would enable you to save both a good deal of tax on the one hand and also save money on penalty or penal interest which might become payable if proper compliance is not made with some of the important provisions of the income tax law.

46: Tax Planning for Making a Will !

Every person, particularly after the age of 50, must prepare a Will to provide for a smooth, litigation-free transfer of assets to his/her family in the manner in which he desires

47: The Income Tax Law with regard to Education Expenses, Education Loans etc.

The Income Tax Act, 1961 contains certain provisions with regard to the expenses incurred by a tax payer with reference to the education of his children.

48: Where the Property is Treated as Business Asset and not Capital Asset there is no Question of Invoking Section 50C of the I.T. Act

In one case the assessee-company filed its return of income for the assessment year 2004-2005 on 1.11.2004, admitting an income of ` 78.23 lakh and claimed set-off of the entire income against the earlier years losses and claimed capital loss of ` 83.64 lakh.

49: No Prosecution for Belated Filing of Wealth Tax Return if Default is Not Willful

There is a provision in the Wealth-tax Act for the prosecution of an assessee for willful failure to file Wealth-tax Return on time. But the prosecution has to be launched on the basis of proper evidence that the default in filing the Return was willful.

50: Tax Implication — Trading versus Investing in shares

Disputes do arise between the tax payers and the IT department about the nature of income as to whether it is Capital Gain or Business Income. This is so in case of transactions relating to purchase and sale of shares.