Tax Refunds

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

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

Income Tax laws have created many innocent criminals. Your neighbour next door may be a proud tax payer: he prepares his ITR well in advance, makes sure all his sources of income are clearly mentioned and submits it to the Income Tax department without delay. And in a few months you see him frustrated because he received intimation for not reporting his full income. Your … [Read more...] about Are You Evading Tax? Here Are 10 Common Reasons

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

Be it school fees, medical insurance, etc., only the member making payment can avail the tax benefits offered. Both the spouses cannot claim the same tax benefit. If you have 2 children then each spouse that are actually making the payment can claim tax benefits for one child. Here are the common reasons where you must cross-check before handing over your income tax return (as … [Read more...] about Tax evasion checklist: Both spouses claiming tax benefit on same expenses