Investment Valuation in India

Imagine this, if you start investing Rs 2,000 per month at the age of 20, you could accumulate a massive Rs 1.08 crore (assuming 9.5% interest p.a.) when you retire at the age of 60. On the other hand, if you started investing the same amount at the age of 30, you would accumulate only Rs 40.66 lakhs. The investment decisions you make in the first 5-6 years of your career have the potential to transform your  financial future. The longer you stay invested, and the greater is the power of compounding. Life Insurance: Insurance is the first thing you should start investing into. The earlier you buy life insurance, the lower is the premium. If you wanted to buy a 20 year Term Policy for Rs 1 crore at the age of 35, the amount of premium you’d be required to pay is Rs 34,000, whereas if the same policy is taken at the age of 20, the amount of annual premium you’d have to pay is Rs 19,700 [the premium for 35 years term i.e. till you reach the age of 60 would still be lower at Rs 2...

Here are some VAT forms for the state of West Bengal WB VAT Form 1 Application for New Registration WB VAT Form 2 Information to be provided by a registered dealer under Sec 24 (1a) WB VAT Form 14 WB VAT Form 15

It was only recently that the Central Board of Direct Taxes (CBDT) had required that salaries employees claiming HRA need to furnish the PAN details for their landlords in case the rent paid per month was Rs 15000 or more. The CBDT has found yet another means to increase the disclosure burden on salaried individuals by amending the requirements to Rs 100,000 per year, effectively decreasing the above limit to Rs 8,333 per month. Thus, for every employee whose total rent in a year exceeds of Rs 1 lakh per year, he will have to furnish the PAN of the landlord.  In case the landlord does not have a PAN, the assessee must submit a declaration to this effect from the landlord along with the name and address of the landlord. This should be filed by the employee. While this will put a check on the individuals claiming higher House Rent Allowance (HRA) exemption by showing fake receipts, it will unnecessarily increase the difficulties for honest tax payers as landlords are usually rel...

Given the financial crunch that most governments are going through, there is one thing that seems to be an easy route - imposing higher taxes on the richer people. Earn more pay more taxes. This has been hotly debated across the world and India is no exception. From the times of Robin Hood, squeezing the rich and passing on the benefits to the poor has had an emotional appeal - partly because they have it and so they can pay and partly because they are always a minority, so politicians can save their back by not adversely affecting the poor, usually their vote banks. However, there have been numerous studies that has shown that there are better alternatives than taxing the rich. Higher taxes for the richer is usually counter productive in the long run as it encourages tax evasion and is a disincentive to work. Also, usually it is ineffective since the rich can plan their taxes effectively and can often save taxes. As of 31s March 2011, the number of effective tax payers in India...

Accountants' Adda | Deduction at a lower rate or non-deduction of tax in case of salaries As per Section 192 of the Income Tax Act, an employer is required to deduct tax at source on the amount payable to the employee at the average rate of income tax. Unlike other payments, in case of salary, TDS is deducted only at the time of PAYMENT of salary.  This is to be computed on the basis of rates in force for the financial year in which payment is made. Section 197 enables a tax payer to make an application to his Assessing Officer for deduction of tax at a lower rate or non deduction of tax. The application has to be made in   Form No.13  (vide Rule 28(1)).    If the Assessing Officer is satisfied that the total income of a tax payer justifies the deduction of income tax at any lower rate or no deduction of income tax, he may issue a certificate in   Form No. 15AA   (relevant Rule 28AA) providing for deduc...

Imagine a situation where you grow old and have managed to buy a house. However, you could not save enough for your retirement. You certainly need money to manage your day to day finances since you are retired and have no fixed source of income or your income is not enough to meet your finances. Reverse Mortgage is the answer for you. Reverse Mortgage is a type of mortgage available to senior citizens in which a home-owner can borrow money against the value of his/her home. No repayment of the mortgage (principal or interest) is required until the borrower dies or the home is sold. After accounting for the initial mortgage amount, the rate at which interest accrues, the length of the loan and rate of home price appreciation, the transaction is structured so that the loan amount will not exceed the value of the home over the life of the loan. [1] How does it work? Reverse Mortgage in India Realising the potential benefits of Reverse Mortgage, the Union Budget 2007-...

Notification No. 29/2012- Service Tax ( New Delhi, the 20 th June, 2012) Under notification No. 29/2012 - Service Tax, the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service of renting of an immovable property, from so much of the service tax leviable thereon under section 66B of the said Finance Act, as is in excess of the service tax calculated on a value which is equivalent to the gross amount charged for renting of such immovable property less taxes on such property, namely property tax levied and collected by local bodies : Notes:  1) Any amount such as interest, penalty paid to the local authority by the service provider on account of delayed payment of property tax or any other reasons shall not be treated as property tax for the purposes of deduction from the gross amount charged. 2) Wherever the period for which property tax paid is different from the period fo...