Category Archives: Tax

Investing in stocks and mutual funds helps grow your wealth and dividends are a key benefit.  It’s an extra income paid by companies to shareholders. However, dividends are taxable in India. Earlier, companies paid a Dividend Distribution Tax (DDT), making dividends tax-free for investors. But since April 2020, the tax burden has shifted to investors, …

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Navigating India’s complex tax laws and ever-changing rules can be challenging even for the most diligent of taxpayers. Despite one’s best efforts, it is easy to miss filings or make inadvertent errors that could result in hefty penalties. A lack of knowledge of tax penalties can drain substantial sums of hard-earned money if a business …

Continue reading “5 Important Tax Penalties Every Taxpayer Needs to Know”

An income tax notice simply means the department wants to double-check something in your tax filing. It’s quite common, so there’s no need to stress. You just need to understand what it’s about and reply on time. Read on to understand the main income tax notices for salaried individuals, why they’re issued and how to …

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The National Pension System (NPS) is a government-backed plan that helps you save for retirement. It works on the principle of making small contributions regularly. Over time, these small amounts compound, which helps your money grow. And, like all investments, it is important to keep track of your NPS contributions.  You can easily track them …

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If you’re curious about the full form of VAT tax, here’s your answer: VAT stands for Value Added Tax, meaning a tax collected at each stage of production and distribution of goods. While the Goods and Services Tax (GST) has replaced most indirect taxes since 2017, some goods still fall under the old VAT system. …

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Understanding the TDS on the interest of fixed deposits is an important aspect of calculating your total earned interest. It also directly impacts your total earnings, which is important when you are investing.  Here is everything you should know about TDS on fixed deposit interest and how much fixed deposit interest is tax-free to plan …

Continue reading “Tax Deductions on FDs: What You Need To Know Before Investing?”

Under section 194A of the Income Tax Act, financial institutions deduct TDS on interest if it exceeds ₹40,000 in a year. This limit for senior citizens is ₹50,000. If you rely on this income to manage these expenses, then you should definitely know about 15G and 15H forms.  This is a self-declaration form submitted at …

Continue reading “Form 15G and Form 15H: Differences and What to Use When Filing ITR”

To file ITR without Form 16, you need to replace the missing document with alternative paperwork.  Filing ITR before the due date is mandatory for all citizens of India earning over the taxable threshold limit. This is also important for avoiding penalties past the due date. Incomplete documentation is one of the common reasons for …

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The customs duty on gold in India is levied by the government to increase the revenue and regulate the movement of goods. This is why many people opt to buy gold out of India, where they can save on paying high taxes and other charges. Customs duty is a type of tax that you must …

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Direct tax and indirect tax are the two primary categories of taxes that the Government of India levies. They are the main sources of revenue for the government, which plays a crucial role in funding public services and infrastructure development. You need to pay these taxes on whatever you earn or whenever you purchase a …

Continue reading “Difference Between Direct and Indirect Tax: What you need to know”