Are you considering shifting from an employment arrangement with your company to a ‘consultant’ status to lower tax outgo leading to higher take-home package? As consultants you are required to pay a flat 10 percent tax on income while an employee is taxed as per applicable slab, the highest being 30 per cent along with surcharge. The dilemma of whether to take up the … [Read more...] about To Lower Tax Outgo Opt for ‘Consultant’ Status
Why Salaried Verma Should Get Employer To Stop HRA, Save Tax
Sudhir Kaushik of Taxspanner.com advises readers on how to restructure their income, investments and expenses to optimise their tax. Here is what he means when he says "stop HRA, save tax" Sujeet Verma pays almost 10% of his take-home pay in tax because his salary structure is not tax-friendly. Though his company does not allow tinkering with the pay structure, Taxspanner … [Read more...] about Why Salaried Verma Should Get Employer To Stop HRA, Save Tax
Who is More Tax Efficient – a Salaried employee or a Consultant?
Tax implication of switching from being a salaried employee and a consultant and vice-versa. Often people consider changing status from salaried employee to a consultant status to reduce tax liability. Following are the queries: 1)What are the advantages and disadvantages of shifting from a salaried status to a consultant? a)Rate of TDS is lower for professional on higher … [Read more...] about Who is More Tax Efficient – a Salaried employee or a Consultant?
Budget’17 shifted indexation calculation base to 2001. Who gains?
Although the Budget did not propose any major changes on the tax front, the move to shift the base year for computation of indexed cost of acquisition of an asset could have an impact for investors. However, the impact would differ across assets that enjoy indexation benefit on long term capital gains real estate, unlisted shares, gold and bond funds. Here's a look at the … [Read more...] about Budget’17 shifted indexation calculation base to 2001. Who gains?
Now, shed lethargy in filing tax returns, say experts
There are many with income above basic exemption limit who do not file returns even though it is mandatory. However, stiff penalties proposed to levied in Budget 2017 for late filing would ensure that taxpayers file their returns in time. Changes in tax administration brought about in Budget 2017-18 will force taxpayers to be more proactive in filing their tax returns and … [Read more...] about Now, shed lethargy in filing tax returns, say experts
