Money that you receive from a spouse is free from taxes, but once this money is invested, the income earned from that investment adds to the giver’s income and taxed appropriately. As an example, consider that you purchased a house on your wife's name. Any income earned from that house, whether in the form of capital gains on selling, or from rent, will add on to your taxable … [Read more...] about Tax evasion checklist: Ignoring income from investment in the name of spouse, kids
Tax Evasion Checklist: Ending Life Insurance Policy Before Three Years
Very few people know that an insurance policy, if terminated before 3 years since purchase, makes the policyholder liable to pay tax on the tax benefits reaped from the policy under Section 80C. By not paying the tax on the policy tax benefits, it amounts to concealment of tax liability and could even invite a penalty. Here are the common reasons where you must cross-check … [Read more...] about Tax Evasion Checklist: Ending Life Insurance Policy Before Three Years
Tax Evasion Checklist: Receiving Gifts And Cash From Persons Other Than Blood Relatives
In a financial year, receiving gifts whose total worth amounts to more than Rs 50,000 from non-relatives is taxable. Gifts offered by the following relatives are tax exempt: Spouse Parents Siblings of self and spouse Siblings of either parent Lineal ascendants or descendants of self and spouse Gifts to spouses or minor children will attract clubbing … [Read more...] about Tax Evasion Checklist: Receiving Gifts And Cash From Persons Other Than Blood Relatives
Tax Evasion Checklist: Not Including Ornaments In Wealth Tax
Wealth Tax is payable if the market value of particular assets exceeds Rs 30 lakh. The tax to be paid is 1% of the combined value of the assets exceeding Rs 30 lakh. Assets that qualify for Wealth Tax are: Second house that's lying vacant for more than 66 days Gold and ornaments Art and artifacts Luxury cars, watches, yatches and aircrafts Over Rs 50,000 in cash By … [Read more...] about Tax Evasion Checklist: Not Including Ornaments In Wealth Tax
Tax Evasion Checklist: Not Including Interest Income In Your Tax Return
You have interest income if you have: Invested in FDs or bonds Purchased Infrastructure Bonds A recurring deposit account A savings bank account Invested in NSCs The interest earned must be reflected in your tax return as income from other sources. In some cases, TDS will be deducted before you're paid the interest amount. This, however, doesn't mean that the income … [Read more...] about Tax Evasion Checklist: Not Including Interest Income In Your Tax Return
