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The season of filing of tax returns is here. This year all those who have taxable income are required to file their return. Also those with income above Rs five lakhs have to compulsorily e-file their return. It’s very important to file error free Income tax Return to avoid future problems. Let’s see the most commonly committed mistakes those could be avoided. 1. Incorrect personal details: Every year a large number of returns are rejected for incorrect personal details like name, bank account number, IFSC code and address. This leads to delays in refunds. So please be sure to fill correct personal details. 2. Mistakes in claiming deductions under section 80C: Many of us think that employer’s contribution to EPF has to be included in claiming sec 80C benefits. It’s incorrect. Similarly only the principal repaid on housing loan is eligible for sec 80C. Many other deductions are claimed under wrong heads leading to their rejection and consequent arising of tax liability. 3. Fai...

The tax payers, auditors and tax masters go extremely busy filing taxes and working on refunds in July. 31st July is the cut off for filing your returns which is set by the central board of direct taxes. Not only tax filing process has become easier to do it online and also the filing has become mandatory on or before July 31st. This year, we have got the time extended up to Aug 5th. Do I need to file my returns? What are the criteria to file the returns? Is it mandatory for all the taxpayers to file the returns in the same assessment year? What happens if I miss to file the returns on or before July 31st? If you have such questions in mind, go ahead and read it further. Who needs to file the returns? For those whose taxable income exceeds Rs.2 lakhs in a financial year by way of income from salary, house property, capital gains and income from other sources needs to file the returns on or before July 31st every year. For income from business or profession the last date...

Since the significant announcement by the Reserve Bank of India on May 7, 2012 many NRIs have expressed interest in transferring funds from the Non-Resident Ordinary Account (NRO) to Non-Resident External Account (NRE). The Reserve Bank of India (RBI) permitted NRO to NRE fund transfer subject to payment of applicable taxes within the overall ceiling of $ 1 million in a financial year. Transfer of Funds from NRO to NRE: Before 2012... Prior to 2012, the transfer of funds from NRO to NRE account was not permitted by RBI. The only way to transfer the amount into NRE accounts was through release from abroad or another NRE account. Transfer of Funds from NRO to NRE: After 2012… The proclamation by the Reserve Bank of India is plainly good news for NRIs looking forward to transfer their money to NRE accounts, which are repatriable in foreign currencies. This change has helped NRIs to save transaction cost. However, there are certain conditions that have to be met before transferr...

The Indian equity market is viewed as a window to prosperity by resident Indians and NRIs. Despite facing strenuous economic disaster, the Indian stock market is enjoying sheer position. The market has been on a roll for the past 10 years, with an estimated growth of 19% per annum witnessed on the Sensex. The Bombay Stock Exchange (BSE) stands tall, promoting its strong market reputation and benefiting NRIs and resident Indians. One cannot demean the strength and scope of the Indian equity market, when it comes to creating wealth. As a Non Resident Indian (NRI) your first step toward investing in stocks should start from opening the NRI Demat account. What is it? The NRI Demat account is important for NRIs looking forward to invest in the shares, bonds, and Initial Public Offers (IPOs). The Demat account is maintained to hold shares or securities in electronic form. A Guide to understand the functioning of the NRI Demat Account An NRI planning to invest in the Indian stock m...

If you are a Non-Resident Indian (NRI) and returning to India, you may have certain income tax worries. You may be curious to know that. The following lines may satisfy all your queries. Who is a NRI? If you are a citizen of India or a person of Indian origin who is outside India visits India in any year you would be regarded as NRI if your total stay is less than 182 days in the relevant tax year. Alternately, if you are not physically present in India for 60 days or more and 365 days or more in the four financial years prior to that financial year then you are also considered to be an NRI. If neither of these two conditions is satisfied, the individual would be treated as an NRI. The tax year is calculated from April 1 to March 31. There is another category of non resident Indians, known as ‘Not Ordinarily Resident’ (NOR). You can become an NOR either if your stay in India in the 7 financial years immediately preceding that financial year is less than 729 days or if you were a ...

How many times you have asked yourself ‘Do I need to take a separate Critical Illness Insurance when i already have a Mediclaim Policy’. You will get the clarity when you complete reading this article. What is a Mediclaim Insurance Policy? A mediclaim insurance policy covers pre-hospitalisation and hospitalisation expenses for the treatment of illness / injury. It may also cover certain other expenses, viz., day-care treatment, ambulance charges, and pre-existing diseases after a specified period of the policy or on payment of additional premium. It however, does not cover post-hospitalisation rehabilitation and recovery process. What is Critical Illness Insurance Policy? A critical illness cover insures against the risk of serious illness such as heart attacks, cancer, bypass surgery, kidney failure, etc. It gives a guaranteed cash amount when diagnosed with a critical illness. It takes care of the rehabilitative stages of a patient who is unable to start work but would be i...

Our mind conjures up many images when we come across the term ‘balanced’. It is about the caution exercised by the tight-rope walker; it is about the safety and security achieved from a good decision and it is about peace of mind. In the context of investments, balanced mutual funds have all of the above. Investments and savings are required to live life and it is normal human instinct to strike a balance in the investments decisions taken. A balanced mutual fund could be the key to the balance and parity that we seek to achieve through our investments. What is a Balanced Mutual Fund? A Balanced Mutual Fund is a combination of equity and debt investments which provide capital appreciation as well as income, without taking excessive risk. In essence, balanced mutual funds hold a balance of debt and equity in their portfolio. Should I invest in Balanced Mutual Funds? The financial market has different kinds of investors with different motives and aspirations. Balanced mutu...