Question
Is interest earned on NRO deposits repatriable?
The answer is yes, first pay taxes on them, then get it certified.
Certification is done by your Chartered Accountant.
information courtesy N P Raghavan, Oman International Bank, Cochin, Kerala, India
Wednesday, March 25, 2009
Monday, February 9, 2009
Taxplanners Ahoy
For ordinary citizen tax planning is a euphemism for tax dodging. In some Scandinavian contries, people try to pay more taxes. Baffled! Let me explain. On the basis of tax paid, a citizen gets rewards ( like state care) when they are old, sick and unemployed. There tax is not a one way traffic.
In India, if one is employed, earn good salary, and pay taxes, well and good. what if he is sick, and cannot work. You starve, you die. There is no state mechanism to take care of you.
If you are a salaried person, there is no much chance to pay less. Investments of certain nature let you claim deductions from income and then you a little bit less. If you have housing loan, interest up to one lakh is deductable.
If you are a business man or self employed, there are several ways you can reduce your tax burden.
Premia paid towards life and health policies will provide for tax breaks u/s 80C and 80D.
When you stay in a rented home you can claim the rent paid as deduction u/s 80GG, upto Rs 24,000.
When you buy a house and pay interest on housing loan, you can claim a deduction of upto Rs 1.5 lakh on interest paid.
Are you self employed? Here are few items to look at.
Work and business expenses are business expenses. Bills and voucheers are to be maintained to to support expenses. Maintain proper account books and supporting documents, seek support of a chartered accountant to keep records in ship shape. Rent or home office expense, travelingl expenses post, phone internet, telex fax, meetings, office supplies and water, electricty are expenses.
All such expenses are to be acceptable in common sense as business expenses. Dont go on sholpping trip at festival time and say that is bussiness travel, - such things will be disallowed. If you have business interests there, and have e supporting documentation of business trasnactions, may be that could be acceptable as business expense.. Then there are grey areas, partly work and partly partying, ahem, problem there boy!
Some people employ family members in business and pay them salary. Permitted. Yes. Here what you do is transferring part of your income to anothe member of your family.
Vehicles, computers, furniture etc are maintained at business costs and there is allowance for depreciation as well.
Besides, for self employed persons there are other deductions.Public Provident Fund, insurance /unit linked insurance plans, pension plans, equity linked savings scheme, National Savings Certificate, infrastructure bonds, fixed deposits
and home loan principal repayment are part of tax planning deductions under section 80C
Do you know that medical insurance for your family, and for your parents up to Rs. 15000 each are permitted deductions? That is section 80 D
Tution fee for your children, upto one lakh a year is another deductible expense.
In India, if one is employed, earn good salary, and pay taxes, well and good. what if he is sick, and cannot work. You starve, you die. There is no state mechanism to take care of you.
If you are a salaried person, there is no much chance to pay less. Investments of certain nature let you claim deductions from income and then you a little bit less. If you have housing loan, interest up to one lakh is deductable.
If you are a business man or self employed, there are several ways you can reduce your tax burden.
Premia paid towards life and health policies will provide for tax breaks u/s 80C and 80D.
When you stay in a rented home you can claim the rent paid as deduction u/s 80GG, upto Rs 24,000.
When you buy a house and pay interest on housing loan, you can claim a deduction of upto Rs 1.5 lakh on interest paid.
Are you self employed? Here are few items to look at.
Work and business expenses are business expenses. Bills and voucheers are to be maintained to to support expenses. Maintain proper account books and supporting documents, seek support of a chartered accountant to keep records in ship shape. Rent or home office expense, travelingl expenses post, phone internet, telex fax, meetings, office supplies and water, electricty are expenses.
All such expenses are to be acceptable in common sense as business expenses. Dont go on sholpping trip at festival time and say that is bussiness travel, - such things will be disallowed. If you have business interests there, and have e supporting documentation of business trasnactions, may be that could be acceptable as business expense.. Then there are grey areas, partly work and partly partying, ahem, problem there boy!
Some people employ family members in business and pay them salary. Permitted. Yes. Here what you do is transferring part of your income to anothe member of your family.
Vehicles, computers, furniture etc are maintained at business costs and there is allowance for depreciation as well.
Besides, for self employed persons there are other deductions.Public Provident Fund, insurance /unit linked insurance plans, pension plans, equity linked savings scheme, National Savings Certificate, infrastructure bonds, fixed deposits
and home loan principal repayment are part of tax planning deductions under section 80C
Do you know that medical insurance for your family, and for your parents up to Rs. 15000 each are permitted deductions? That is section 80 D
Tution fee for your children, upto one lakh a year is another deductible expense.
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