A Complete Guide to Online Pharmacy Registration in India

October 22, 2019 by aishagarg, posted in Uncategorized

Introduction to the Indian Pharmaceutical Industry

The pharmaceutical industry in India is slated to increase its value in the near future. From US$ 33 billion in 2017, it is expected to go up to US$ 55 billion by 2020. The domestic pharma industry grew from Rs 116,389 crore in 2017 to Rs 129,015 crore in 2018. That is a result of the rapidly rising pharmaceutical product exports of India.

Indian pharmaceutical firms supply over 80% of the antiretroviral drugs used to treat AIDS globally. India supplies 25% of all medicines used in the UK and 40% of generic drugs used in the United States.

An Opportunity to grow with the trend

It is natural for a business-minded person to throw the hat in the game while the industry is booming. Experts suggest that the pharmaceutical industry is thriving and poised for greater glories. Hence, it’s time to utilize the global and domestic surge in demand for pharma products. That can establish a viable enterprise in the long run. To open a pharmacy in India, chemist shop or a wholesale outlet, you will first need to fulfil a few procedural requirements.

Types of Pharmacy

Firstly, you will need to decide on the type of pharmacy you want to open. Is it a standalone pharmacy, a chain pharmacy, a hospital pharmacy, an online pharmacy or a township pharmacy. If you intend to open a standalone pharmacy, you can proceed with obtaining an LLP pharmacy registration in India. Else you can even register your business as a private limited company.

Eligibility for Pharmacy Registration in India

However, you need to be aware that in most states, a person needs to possess a university-recognized diploma or a degree in pharmacy. It will be helpful to obtain pharmacy registration in India such as Retail Drug License (RDL) from the State Drugs Standard Control Organization. The list of recognized and approved colleges is accessible through the Pharmacy Council of India website.

Prerequisites for Obtaining a Drug License

Along with qualifications, obtaining a drug license requires at least a shop area of 10 square meters. Space air conditioners and refrigerators will also be required to store drugs in the Chemist Shop.

Authorizations and Experience Required

If you are applying for a Wholesale Drug License (WDL), you will not need to possess any degree or diploma in pharmacy. But you will have to ensure that the sale of drugs will take place under the supervision of a registered pharmacist. A degree-holder with at least one year of experience in dealing with drugs can also conduct the same. In both retail pharmacy stores and wholesale pharmacy stores, drugs can only be sold by pharmacists who have been approved by the state’s Department of Drug Control.

Documentation & Forms Required

Aside from fulfilling these requirements, you will need to deposit a number of documents in order to obtain a Retail Drug Licence or a Wholesale Drug Licence. One can download these forms from the Central Drugs Standard Control Organization website. Even individual State Drugs Standard Control Organizations provide the same. Submit the mandatory forms with required documents to ensure the smooth functioning of pharmacy registration in India.

The application forms include Form 19 (for Retail Licence), Form 21 (for Wholesale Licence), Form 19B (for Retail Homeopathic license), Form 20C (for Wholesale Homeopathic License), Form 19C (for Retail and Wholesale license of Schedule X Drugs), and Form 19A (for Retail Restricted license).

Other documents required are pharmacist’s self-declaration, Cold Storage facilities installation proof, store layout, applicant identity proofs, proposed premise Rental/Lease agreement, list of company directors or proprietors, electricity bills, NOCs from residential societies, partnership deeds, and Documents of Trust Registration issued by the charity commissioner.

Online Pharmacy in India

The procedure for opening an online pharmacy in India is quite similar to opening a pharmacy in India. However, there are rules that have to be followed in both cases while they put more stress on online pharmacy law in India :

No Sale without prescription
No Sale of Schedule X drugs
Final Packing in a tamper-proof cover under the personal supervision of registered Pharmacist of the pharmacy
Valid Bill for Every sale
Facilitate Medicine Recall in the case directed by the Government.

The IIPA is collaborating with the Central Government to update regulations by linking the Aadhaar Number with prescriptions to strengthen the online pharmacy law in India.

The first step for setting up an online pharmacy under Online Pharmacy Law in India is to buy a domain and hosting. Then associate an e-commerce portal with it. Later you can ensure the inclusion of payment options including cash on delivery and other preceding activities.

Applicable Fees

All the applicants have to pay a certain fee to acquire pharmacy registration in India. Post that the processing of your application begins for the grant of a Retail Drug Licence or a Wholesale Drugs Licence for opening a chemist shop. For instance, Maharashtra charges Rs. 3250 for Retail Chemist Shop Licenses, Rs. 3000 for Wholesale shop licenses, and an additional fee of Rs. 600 to allow the sale of Schedule X drugs.

Finally, before commencing a business, you will need to obtain a mandatory GST registration for your pharmacy registration in India. It is obtained from the state where your shop is located. Once this is done, you can purchase drugs from wholesale stores or from pharmaceuticals manufacturers. Post that you can begin selling them to buyers.

We are sure this information would be helpful for you. You can simply follow the above steps to obtain pharmacy registration in India and to start your chemist shop.

Are There Laws Against Trolling In India?

September 26, 2019 by aishagarg, posted in Uncategorized

“With great power comes great responsibilities”. Yes, that’s the most famous dialogue from the spiderman trilogy. Besides being famous, it also makes a lot of sense. When it comes to the internet, this dialogue is on point. The internet has empowered us greatly. However, there are downsides to this. Most notable is trolling. Trolling is a part and parcel of our lives. From memes on Instagram to Twitter threads, no place is spared by social media trolls. Above all, are there laws against trolling in India?

Troll Meaning

Troll meaning could differ from situation to situation. But mostly, a troll is someone who creates discord on the internet. Generally, by starting fights or harassing people. Social media trolls often give controversial statements to get famous.

Laws Against Trolling In India

Online bullying is very common in India. It can happen with a celebrity or even you. There are no specific laws against trolling in India. As a matter of fact, there can’t be as it will prohibit the right to freedom of speech. But, here are some laws that will help you tackle these online goons. They are categorized according to the type of activities, such as:

Online Stalking: Under section 354D IPC, monitoring a woman through the internet or any electronic communication platform and an attempt to start an interaction in case of her clear disinterest is punishable. Such an offence can land you in jail for 3-5 years with a compulsory fine.

Defamation: Under section 499 IPC, posting obscene images/videos or remarks on social media can land you in trouble. Defaming a woman online can land you in jail for 2 years.

Sexually Explicit Content: The IT Act holds a person liable for publishing or transmitting sexually explicit content in electronic form. You can end up in jail for 5-7 years coupled with a ₹10 Lakh fine.

Criminal Intimidation: Under section 503 IPC a person can be convicted if he/she intents or threatens to harm a woman’s reputation. Similarly, section 507 IPC convicts a person for threatening a woman by anonymous communication.

Lack Of Gender Neutral Laws Against Trolling In India

Most of the laws against trolling in India are for women. Thus, the laws can be biased at times. While the safety of women should remain the prime concern, a lack of gender-neutral laws might turn out to be a loophole for social media goons.

Conclusion

The lack of proper laws against trolling in India might cost us in the future. However, you can feel safe enough with the above-listed laws. Moreover, there have been healthy discussions about social media trolling in the Parliament and a proper law might just be around the corner.

Alimony Calculator India

September 25, 2019 by aishagarg, posted in Uncategorized

What is Alimony?

Alimony (Maintenance) is a legal obligation on a person to provide financial support to their spouse during or after marital separation or divorce under divorce maintenance rules in India.

The term alimony comes from the Latin word alimōnia (“nourishment, sustenance”, from alhere, “to nourish”), from which also alimentary (of, or relating to food, nutrition, or digestion) and the Scots law concept of aliment, and was a rule of sustenance to provide for the wife’s lodging, food, clothing, and other necessities after divorce.

There are five major communities in the Indian Society: Hindus, Muslims, Christians, Parsis, and Jews. These communities have their own personal laws derived from religious scriptures, customs, and traditions. Hence, the basis of seeking divorce and alimony varies according to their cultural beliefs.

Alimony vs Child Support

Often, people confuse alimony with child support. However, they are two completely different types of financial remedies. In simple terms, the financially weaker spouse receives alimony. Whereas child support is about providing financial assistance by one parent to the other, who has custody of the child. Alimony, in many cases, is awarded alongside child support and at the discretion of the judge presiding over the case.

There are two types of Alimony

As per divorce alimony calculator India the alimony is of two types:

First is Interim Maintenance amount provided during court proceedings
Second is the amount provided on final legal separation

It could either be in the form of:

a one-time lump sum amount
a fixed payment – which could be monthly, quarterly or as per the spouse’s requirement

The decision to award lump-sum alimony or monthly/periodical payment depends on the court as per the alimony calculator in India.

Who is eligible for Alimony?

If a couple marries under the Hindu Marriage Act, 1955

Under the Hindu Marriage Act, 1955, both the husband and wife can legally claim permanent alimony and maintenance under divorce alimony rules.

Divorced via mutual concern

In case a couple decides to get a divorce mutually, the decision on whether any alimony/maintenance is to be paid by either party is a matter of agreement between them. In such cases, alimony/maintenance could be paid by either the husband to the wife or by the wife to the husband subject to the mutual understanding between the couple. The court then gives directives with reference to the agreement between the couple under divorce maintenance rules. It binds the couple to follow the directives enforced by the court.

Provision of Alimony under The Hindu Adoption and Maintenance Act

As per the Hindu Adoption and Maintenance Act, a Hindu wife whether married before or after the commencement of this Act, shall be entitled to be maintained by her husband during her lifetime.

Under Hindu Marriage Act – 1955, a Hindu wife can live independently from her husband without forfeiting her claim to a maintenance, if the husband:

He is guilty of desertion or abandoning her without a proper cause. Without her consent or against her wish or willfully neglecting her;
Has treated her with such cruelty as to cause a reasonable apprehension in her mind that it will be harmful or injurious to live with her husband;
Is suffering from a virulent form of leprosy;
Has any other wife living;
Keeps a mistress in the same house in which his wife is living or habitually resides with a mistress elsewhere;
Is no more a Hindu by conversion to another religion;
Creates any other situation that justifies living separately.

Cases where Hindu wives don’t qualify for alimony; Under the Hindu Adoption and Maintenance Act:

A Hindu wife shall not be granted separate accommodation and maintenance from her husband in case she is unchaste or by conversion ceases to be a Hindu.
When the wife lives separately and brings up all the children without any support from the husband. In the case of Meera Nireshwalia v. Sukumar Nireshwalia, there was a clear case of seclusion, thus the court granted the wife separate residence and maintenance.
The plea for maintenance by a wife can also be continued under clause (g) even covered on the basis of one or other clauses i.e. clause (a) – (f) of section 18(2) substantially but not fully. In case the wife fails to rightly prove the specific grounds urged by her, she cannot be denied relief; Meera Nireshwalia v. Sukumar Nireshwalia, AIR 1994 Mad 168.

Quantum of Alimony

When alimony is paid periodically

The Supreme Court in one of its landmark judgments has set a benchmark for maintenance to be paid by a husband to his estranged wife. It stated that 25% of the net salary of the husband might constitute a “just and proper” amount as alimony. However, a hard and fast rule for alimony calculator in India has not been defined under any law. Neither is it possible due to its dependency on the facts and circumstances. As each case differs, the court administers the divorce maintenance rules.

A one-time lump sum amount Alimony

Under divorce alimony rules no lump-sum settlement benchmark exists. Although it ranges from 1/5th to 1/3rd of the husband’s net worth and is a one-time settlement.

Below are some important factors that decide the quantum of Alimony under Hindu Law, and divorce maintenance rules.

If the wife is working and drawing a handsome salary

Under divorce maintenance rules: When the wife is working and drawing a handsome salary, the Court will certainly take the earning into consideration along with the husband’s income. Depending on the facts and situations of the case, the court decides whether the wife will receive alimony/maintenance. And if yes, then they decide on the amount she shall receive from the husband. This is how the alimony calculator in India works.

What if Husband earns less than his wife

Provisions under the Hindu Marriage Act, 1955, allow a Hindu husband to claim alimony from his wife. When he earns less than her or does not earn at all, though this is rare.

Time Period of Alimony

How long Alimony need to be paid by the spouse?

Usually, the husband to maintain his wife until her lifetime.

What if wife remarries?

If the wife remarries, the husband is not responsible for her maintenance. The husband can petition the court for orders to stop the alimony.

What in case of a change in circumstances where the wife started earning more than her husband and the husband is unable to maintain his wife due to financial crises?

Likewise, if there is a change in situations, for example, the husband is unable to maintain the wife due to a financial crisis or any other adverse situation. Where the wife is financially independent earning a decent salary. In this situation, the husband may petition the court to address the changed circumstances under divorce alimony rules. The court may take into account the facts, evidence, and circumstances prevailing at that point of time, modify, vary or rescind the order.

What if the earning of a spouse increases after the award of permanent Alimony?

When the alimony/maintenance paying spouse earns more after the award for permanent alimony/maintenance has been passed. Then the spouse receiving alimony/maintenance may make a petition addressing the court. It will address the issue related to the increase in the husband’s income. But she will have to prove her inability to maintain herself with the alimony already awarded by the court. The court may take into account the facts, evidence, and circumstances prevailing at that point of time to increase the alimony payable. Although, it’s not necessary that a wife is entitled to more alimony in case the husband earns more.

When the person receiving alimony gets richer in the future (creates/inherits more wealth) than the one paying, will the flow of alimony be reversed?

It depends on the facts and situations of the case. In case the wife receiving alimony inherits wealth and becomes richer. Then the husband would have to make a miscellaneous petition to prove the same to the court. The court will again look into the merits of the case, that is, evidence produced. To show that the wife is a richer lady than what she was at the time of grant of the alimony. Also that the husband is incapable of maintaining his wife. So, if the husband claims alimony for his maintenance it will again have the court’s decision. After looking into the parameters for awarding alimony/maintenance as per the divorce alimony calculator in India.

Taxability of Alimony

Periodical payout: Alimony in the form of monthly/quarterly payouts is treated as revenue receipt and taxed in the hands of the receiver. Added to her total income and taxed as per the tax bracket. No deductions are available for the payer.

Lump-sum – Lump sum alimony is treated as a capital receipt and hence is tax-free.

What belongs to a wife after separation?

Factors considered with alimony calculator in India include any type of jewellery (gold, silver, precious stones, alloy), fixed property and other assets like cars, paintings, artefacts, appliances, furniture, etc. Presented to the woman before, after and during her marriage.

To claim alimony in case of a dispute, people can use A list of items with signatures of two witnesses can be given

Gifts from anyone to her is the wife’s property: husband, in-laws, parents, friends, relatives, and acquaintances.

Women’s earnings before or after.

What does not belong to a wife after separation?

Any jewellery, like a gold chain or ring, and other valuables gifted to the husband by the wife’s parents. Before, after and during the course of the marriage.
Any asset bought by the husband in the wife’s name without passing it on as a gift.
The wife’s earnings spent on the household is unclaimable.

The law is equal for both and considers that the richer spouse must support for the financially weaker spouse. It ensures the livelihood and wellbeing of a couple under divorce maintenance rules as per the divorce alimony calculator in India.

Procedure of Income Tax Filing India

September 25, 2019 by aishagarg, posted in Uncategorized

Filing for income tax returns in India can be confusing for some. Since it is a mandatory process this article will explain you the ITR filing procedure under taxation policy in India in the simplest way.

To begin with the basics, an income tax return is the tax form utilized ITR filing with the Income Tax Department. The tax return is normally in a predefined worksheet format where the income figures used to determine the tax liability are transcribed into the documents.

The law states that individual or business that receive income during the year must file ITR annually, whether through regular income (wages), bonuses, interest, capital gains or other sources. Tax returns, of an individual or a business, must be filed by a specific date without any fail.

In any of the subsequent cases, the Income Tax Department has made it compulsory to e-file your Return. Paper returns can only be filed by those who are above 80 years of age. Individuals or HUF whose income does not exceed 5,00,000 INR and who haven’t claimed a refund in the return of income can also file paper returns.

Who is required to file income tax returns?

If you fall in any of the subsequent criteria under Taxation policy in India, then you must file an income tax return:

Less than 60 years of age and your total annual income exceeds 2,50,000 INR.
Senior citizen i.e. 60 years or above and below 80 years of age, and your total annual gross income surpasses 3,00,000 INR.
Super senior citizen i.e. 80 years or above and your total annual gross income exceeds 5,00,000 INR.
A company or a firm, regardless of profit or loss, filing ITR for the financial year is a requirement.
If you are looking forth to claiming a tax refund for the fiscal year.
An Indian citizen and act as a signing authority for any foreign account.
An Indian citizen and maintain an asset or business interest established outside India.
If you have traded equity shares in a company or unit of equity-oriented mutual funds or unit of business trust for more than 2,50,000 INR and have earned tax-exempt long-term capital gains from the same.
If you accept any income earned from the trade of a property which had been held under a charitable or religious trust, political party, educational institution, and any other authority, body or trust.
A foreign company which has been using any treaty benefit on any deal made in India.
An NRI (Non-Resident Indian) but if your cumulative yearly gross income earned or accrued in India exceeds 2,50,000 INR.
File ITR if you are looking for a loan. ITR filings are taken as legitimate income proofs. You will need them while opting for any kind of loan.
If you do not file an ITR even after falling into any of the preceding criteria, you are liable to respective penalties for the error.
Mandatory Filing of Return in case of assets stationed outside India

Furnishing of return is compulsory in case of a person who fulfils the following conditions:

They are ordinary-residents in India or resident in India and is not under the obligation to furnish return u/s 139
Such a person at any time during the P.Y.
- Someone who holds, as a profitable owner or otherwise, any asset positioned outside India
- Is a possessor of any asset located outside India
However, if an individual is a beneficiary, they wouldn’t be required to file the return of income under this provision, where, `income, if any, resulting from such asset is included in the income of the person referred to above in accordance with the terms of the Income-tax Act,1961
What is the Due Date for Income Tax Filing India? The fiscal year 2018-19, AY 2019-20

The last day for filing Income Tax Returns for FY 2018-2019 for Individuals is 31st July 2019.

Taxpayer Category	Tax Filing Due Date – FY 2018-19
Individual	31st July 2019
Body of Individuals (BOI)	31st July 2019
Hindu Undivided Family (HUF)	31st July 2019
Association of Persons (AOP)	31st July 2019
Businesses (Requiring Audit)	30th September 2019
Businesses (Requiring TP Report)	30th November 2019

Documents Needed for Filing Income Tax Returns

According to the Taxation policy in India,

431^st July is the final day to file your Income Tax Returns in India in any given financial year. The procedure of Income Tax Filing India requires some preparation. This is why the Government provides you with four months’ window period to organize all documents like salary/income details, bank statements, previous tax statements, etc.

The procedure varies as per the income earned annually and income source like salary, business profit, investment profit, etc. Collating all your records is just one aspect of it.

Choosing the applicable ITR form

Taxpayers have to determine the appropriate ITR form for them in the AY 2019-20.

Link Aadhaar with PAN

It is compulsory for taxpayers to link Aadhaar with PAN for the AY 2019-20 on or before the filing of income tax returns.

For Salaried Employees

If you are a salaried employee, collect these documents to e-file your income tax returns in India. Go through this list to examine the documents you’ll need to pay your taxes.

PAN
Form-16 issued by your employer
Month-wise salary slips

From the AY 2019-20, it is necessary to gather the data on all taxable allowances received and the amount claimed excluded out of such allowances e.g., house rent allowance, leave travel allowance, etc., and reveal the same in the IT return.

Documents related to interest income

Bank statement or passbook for interest on the savings account.
Interest income statement for fixed deposits.
TDS document issued by banks and others.

Clear Tax automatically gives you tax benefit as per Section 80TTA when you register your income from savings account interest. You would not need every document listed here as they vary on a case-by-case basis.

Form 26AS

Form 26AS is an outline of taxes deducted on your behalf and taxes paid by you. This is given by the Income Tax Department. It shows aspects of tax deducted on your behalf by deductors, information on tax deposited by taxpayers and tax refund collected in the financial year. You can access the form, from the Income Tax Department’s website.

Section 80 Investments

Section 80C investment documents. The investments made under PPF, NSC, ULIPS, ELSS, LIC qualify for deductions under Section 80C.

Documents Required to Claim Expenses as Deductions

Keep these documents ready to claim the following expenses as deductions:

Your supplement to Provident Fund
Your offspring’s school tuition fees
Life insurance premium payment
Stamp-duty and registration charges
Principal repayment on your home loan
Equity Linked Savings Scheme/Mutual funds investment
The highest amount that can be claimed under Section 80C is Rs 1.5 lakhs

Additional Investment Documents

Interest paid on housing loan: Interest on housing loan is qualified for tax saving up to 2,00,000 for a self-occupied house. For let-out property, there is no limit of interest on housing loan qualified for tax saving till FY 2016-17.
From FY 2017-18, the total loss from house property available for set off against other income is bound at 2 lakhs INR and accordingly, interest on housing loan is suitable for tax saving up to 2,00,000 INR for let-out a property as well.
Education loan interest payments.
Stock trading statement: The stock trades that were produced during the year can possibly be taxed under Capital Gain.

The Procedure for Income Tax Filing India

Every year it is important to file ITR on time as there exists a late filing fee on overdue ITR filing.

One can fill the ITR form online. This step by step guide will help you file your ITR on time at the ease of your house

Visit the e-filing website: https://incometaxindiaefiling.gov.in/
If you are a first-time user or filing your returns for the first time then click on the ‘New Registration’ tab and register yourself by providing important details and creating your profile and password. While creating your user ID, you must ensure that you have an active e-mail id and mobile number and it is cited correctly.

Communication from the Department

It is essential as communication by the department will be sent on this. You can finish the registration by clicking the activation link sent via an email and providing a one-time password (OTP) which you receive on your mobile. Click on the tab ‘Registered User’ if you have already registered yourself on the website. For any help, one can click on the ‘Customer Care’ tab to get the helpline number and contact the customer care centre.

Next click on the login tab and enter the required details: your User ID i.e. your PAN, password and captcha code. Click on the log-in button at the bottom to sign in.
After signing in, your account dashboard will show up as displayed in the image below. Click on the ‘e-file’ tab and select the ‘Income Tax Return’ option. Please note that the process of filing returns for FY 2017-18 has some new modifications done by the tax department. Therefore, the image has new screenshots.
Next, choose the assessment year, i.e., 2018-19, form i.e. either ITR-1 or ITR-4 and then submission mode – “Prepare and Submit Online”. Click on the tab “Continue”. For example, some screenshots of ITR-1 are provided below.
Here you will also be asked to select the option to verify your returns Three options are provided to verify your returns: a) Via Aadhaar OTP which is valid for 30 minutes, b) Generated EVC option through My Account or Bank ATM that is valid for 72 hours or c) by sending signed copy of ITR-V to, “Centralized Processing Centre, Income Tax Department, Bengaluru – 560500”.

After selecting one of these options, click on “Submit”. You also have a choice to fill your ITR form in Hindi. Select Language “Hindi” if you wish to change your language and then press “Continue”.

The website will redirect you to the page for filling the form chosen by you. Before starting to fill the ITR form, one should read the ‘General Instructions’ given at the start of the form to know do’s and don’ts.
After that, you will have to fill in the necessary data in various tabs i.e. ‘General Data’, ‘Revenue Details’, ‘Tax Details’ ‘Taxes Paid and Verification’ and ’80G’ in the ITR form. One should make sure that the Tax payable shown in the online form is the same as your calculations.
Before finalizing the submission, it is prudent to save the data and recheck it to evade any mistakes. Once you click the ‘Preview and Submit’ button, your form will appear, providing you with a “Preview” of your ITR filing form before completing the final submission.
Once you click ‘Submit’, your ITR will be uploaded. You will have to verify your return using any of the options available.

Click here to know 6 ways to verify your ITR.

For FY 2016-17, people had the choice to submit their ITR by utilizing their digital signature. They can select the option to digitally sign their ITR while submitting data of ITR form using which they want to file their return. However, for FY 2017-18, this option is not on display on the e-filing website when you submit the data.
You can verify your return either electronically using the Aadhaar OTP or Electronic Verification Code method or by the offline method of shipping a signed printout of the ITR V Document to CPC – Centralized Processing Center, Bangalore before 120 days from the date of e-filing.
You will receive an acknowledgement or an ITR V is simultaneously on your registered email once you upload your return successfully. This acknowledgement will also show up in your account on the e-filing website from where you can download it if required.
The department processes your ITR on verification by you. After your ITR is processed, you will be intimated about the same via email and SMS on your registered mobile number.

How to check the status of your ITR

By using acknowledgement number without login credentials.

Firstly, look for the option of check ITR status under the services tab on the extreme left on the e-filing website
After that, you’ll land on a page where you’ll have to fill your PAN number and ITR acknowledgement
The status is displayed after the submission

Using login credentials

Click on the View returns/forms option by logging in to the e-filing website
Select Income Tax Returns and assessment year from the drop-down menu
Finally, after submission, the status will be displayed

Consequences of failure to furnish return of income

Mandatory interest for delayed submission or non-submission of return:

Where an assessee files a return of income after due dates prescribed, interest at the rate of 1% for every month of delay in filing the return will be levied u/s 234A. Starting from the date promptly following the due date and ending on the following dates:

Circumstances Ending of the following dates:

Where the return is filed after the due date
Where no return has been furnished at the date of completion of the AY

Fee for default in furnishing return of income:

Where a person who is required to furnish a return of income u/1139, fails to do so within the prescribed time limit u/s139(1), he shall pay, by way of fee, a sum of:

5000 INR if they furnish the return on or before 31st December of the A.Y.
10,000 INR in any other case

However, if the total income of the person does not exceed 5,00,000 INR the fees payable shall not exceed 1,000 INR.

Willful failure to furnish return of income may also attract prosecution u/s 276CC. In case, the tax evaded exceeds 1 Lakh INR, there is rigorous imprisonment for a term of a minimum of 6 months and up to 7 years along with fine.
If individuals do not file the return, then the best judgment will be taken u/s 144.

Conclusion

We hope the complete process explains you everything about taxation policy in India and ITR Filing as per the standard procedure. In case you need legal or financial assistance please feel free to write to us at contact@taxolawgy.com and our experts will be happy to guide you.

What is Aadhar – UID?

September 18, 2019 by aishagarg, posted in Uncategorized

A billion people possess an Aadhar card. The majority of them still do not know everything about it or have misconceptions. This article covers everything you need to know about the Aadhar card.

So what is an Aadhar card?

UIDAI or Aadhar Card is a principal identification number issued by the Unique Identification Authority of India (UIDAI) on behalf of the Indian Government. The main objective of Aadhar is to establish a unique identity of every citizen. It acts as a proof of identity and address, and not of citizenship.

The card has 12-digit unique number issued to people on verification. Any individual, who is a resident of India, may voluntarily enroll to acquire an Aadhar card.

According to the official UIDAI website, “The Aadhaar identity platform is one of the key pillars of the ‘Digital India’, wherein every resident of the country is provided with a unique identity.”

Why was the Aadhaar card introduced in India?`

In several countries such as Argentina, Belgium, Colombia, Germany, Italy, Peru, and Spain etc., national identification systems have been implemented. While these schemes differ by country, generally people are assigned an ID number, which is used for a wide range of identification purposes. Storing data in a centralized database. These databases are helpful in increasing the efficiency of administration.

The electoral identity card, income-tax PAN card, passport, ration card, driving license, etc., verify identity in India. They can’t handle India’s large population. The aadhar card was introduced in 2010 by the then PM Dr Manmohan Singh.

The card is used as a nationally acceptable identity card and can be linked with bank accounts, insurance, and pension.

What are the benefits of Aadhar Card?

According to the former UIDAI chairman, Nandan Nilekani, Aadhaar Card has helped save Indian government about USD 9 billion. Implementation of Unique Aadhar Number has resulted in reduced frauds. Eliminated fake duplicate beneficiaries from the employee list.
The use of bio metrics gives a unique identity to every individual in India.
The Aadhar card reduces the number of documents required as opposed to previous method of multiple document requirement.
Aadhar is used as the main document to open a bank account in Prime Minister’s ‘Jhan Dhan Yojana,’ scheme.
Aadhar card allows the holder to avail all the government subsidies that they are eligible for.
It ordinarily takes several weeks for a person to complete all processes and avail a passport. An Aadhar Card fastens the process of acquiring passport. People can apply online and attach the soft copy of their Aadhar Card which serves as both, the residence and identity proof.
The ‘Jeevan Pramaan for Pensioners’ scheme aims to eliminate the need for pensioners to be physically present to receive a pension. People can receive pension directly to their bank accounts. The agency can digitally access their details through Aadhar Card number.
People who link their Aadhar card with their Pension Account can have their provident fund disbursed directly to their accounts via their PF organization.
Individuals can also link the Aadhaar number to their LPG ID and avail the LPG subsidy directly in their respective bank accounts.

What was the supreme court ruling in 2018 about Aadhaar card?

In September 2018, the supreme court revoked several provisions of the Aadhaar card which could violate the privacy of Indian citizens.

The Supreme Court ruled that Aadhaar Act does not violate your right to privacy when you agree to share biometric data.

Private companies can’t use Aadhar card for KYC authentication purposes.
Most commercial banks, payments bank and e-wallet companies like Paytm, previously used to request customers to get their KYC (Know Your Customer) done using Aadhar Card. Any delay or failure to comply would result in blocking of services. After the ruling, they cannot seek Aadhar data. Customers have to comply with other KYC Criteria. Authentication of Aadhaar is not required for Account settings.
To buy a new SIM card, you no longer need to provide your Aadhaar details to the telecom service provider. You can easily provide other KYC documents like Voter ID card, driving license, etc to acquire a new SIM card.
Students of CBSE, NEET, UGC also do not need Aadhaar card to appear in examinations. Even schools cannot demand the Aadhar card for admissions.
Aadhar card is mandatory to avail facilities of welfare schemes and subsidies but the Supreme Court has made an exemption for children, stating that no minor can be denied benefits of any scheme if they do not have Aadhaar card.

Where do you need Aadhaar compulsorily?

As mentioned above, the supreme court ruled that private companies cannot demand Aadhaar card details. But the judgement also states some areas where the Aadhaar card is mandatory.

PAN card: Under the section 139AA of the Income Tax Act, the linking of Aadhaar card with PAN card is mandatory. Tax evaders generally used to create multiple PAN cards to avoid income tax. By linking Aadhaar with PAN, multiple PAN cards become invalid.

Filing income tax returns (ITR): As Aadhaar-PAN linking is necessary, you will require the same for filing income tax returns.

Welfare schemes: Aadhaar is mandatory to avail benefits under various government-run social welfare schemes and subsidies.

Why you should register your mobile with Aadhaar?

There are various reasons for registering your mobile number with the Aadhar card. Use OTP through registered mobile number to avail facilities. This OTP gives the Aadhaar card an added layer of security. Register your mobile number with Aadhaar in simple and easy ways. Enjoy its facilities and benefits.

You can also download the mAadhaar app and carry your Aadhaar card on your phone once you have your mobile number registered with your Aadhaar.

Fee for Registering Your Mobile Number in Aadhaar

People have to pay a fee of 25 INR to take advantage of the service when they visit the Aadhaar Enrollment Center for either registering or updating their mobile number.

They will have to pay an additional 25 INR every time they update their mobile number. No fees for updating other details.

Documents Required to Register Your Mobile Number in Aadhaar.

Candidates do not have to submit any document for updating or registering their mobile number in Aadhaar. Only the Aadhaar update Form, that contains their current mobile number, has to be submitted along with the fee.

What is the password for e-aadhaar?

Aadhar Card is a unique ID. Used in financial and non-financial activities across India. e aadhar is advisable to download PDF format E-Aadhar from the UIDAI official website along with a . If you update your details on the Aadhaar card and do not receive the updated card, download the PDF of the Aadhar card after you receive an SMS notifying you about the completion of the update.

Process of getting E Aadhar:

Go to https://eaadhaar.uidai.gov.in/ and then enter your Aadhaar number.
Receive an OTP on the number mentioned on your card.
Get access to download your Aadhar card on entering OTP.
Click and download it on your device. Since it is a PDF file, you can open it using your PDF reader, for example, Adobe Reader. You can also download the pdf version of the Aadhar card from your mobile phone using the UIDAI official Aadhaar app.
To open the PDF, you will require a password without which you cannot access the file. The password ensures that your Aadhaar details are secure so that your E-aadhar card cannot be used by an unknown individual.
The password is an 8 letter which is a combination of the first four letters of your name and your year of birth. For e.g. Suppose your name is RAMESH SINGH and your year of birth is 1976, then your password is RAME1979.

What to do in case an official refuse to lodge an FIR?

September 18, 2019September 18, 2019 by aishagarg, posted in Uncategorized

Section 154 of The Code of Criminal Procedure deals with registration of First Information Report (though the Section does not use the word ‘First Information Report or FIR). Know your rights on how to file an FIR in India, procedures of filing an FIR both through physical and online FIR filing system. Know everything about filing FIR in India and how to escalate the situation if any official refuses to file a complaint.

How to file an FIR in India?

One can do online FIR registration or online police complaint about cognizable crimes. Non-cognizable crimes require submitting a complaint to the magistrate. The magistrate, in turn, directs police for action.

A “cognizable” crime covers for example murder, rape, rioting, dacoity, etc. These are the crimes where arrest can be made without a warrant. A “non-cognizable” crime covers cheating, fraud, etc. There is a difference between an FIR and a complaint.

A First information report is the report of crime or civil issues that the police receive first in point of time. The commission of the crime or the police has the right to arrest without warrant and can start the investigation. The complaint refers to an appeal made to the magistrate, comprising an allegation that a crime has taken place.

You can file FIRs online. You can always find relevant information and get contact information from each State’s Human Rights Commission office. It can be through the website of the National Human Rights Commission http://nhrc.nic.in Moreover, it is not necessary to go to the police station if the police ask you to visit, unless the police are arresting you on criminal grounds.

Grounds for the arrest of a citizen

Police can summon you to the police station in case you are a witness, suspect or have a perceived part in the crime. The police cannot take you with them while you are walking outside or you are at home if you haven’t done anything illegal. Unless they have a substantial reason, you have the right to refuse to go with them anywhere.

Police can only question a woman or children under 15 years in their homes. They don’t have to visit the police station.

Let us summarize how you can file FIR in India (First Information Report). Register your complaint at the nearest police station. It can be done at the locality where the offence is allegedly committed, or where the victim resides or carries on business.

The concerned police officer in the police station may register an oral FIR. One can make a written complaint. Which is then converted to the FIR format.

The concerned Police officer, after recording the FIR in the prescribed form, will explain the contents of the said FIR. The complainant then has to sign over in the said recorded FIR.

The Police are obliged to give FIR to the complainant. It should be noted that an FIR can even be registered by a person who is alleged to have committed a crime.

What steps to take if the police refuse to register an FIR?

Send your complaint in writing to the Superintendent of Police (SP) through registered post.

Send a complaint to the concerned State Human Rights Commission or the National Human Rights Commission. Mention that the police are not enforcing the law or that they are being negligent and corrupt.

It is a crime to refuse to file FIR in India.

Refusal to lodge an FIR on jurisdictional ground amounts to 1 year of Imprisonment for the Police officials.

A petition can be filed and submitted to the Chief Justice of the concerned High Court / Chief Justice of India, Supreme Court. It requests to take Suo Moto Cognizance of the alleged contempt of the court. A copy of the letter is also sent to the concerned police officer. One can check for the status of the petition through an application under the Right to Information (RTI).

How to escalate your complaint?

Know that you can:

Complain to the superintendent of police
Approach to a judicial magistrate with your plea
File the writ petition
Complain to the state and national human rights commission.

You can write the complaint of your case and can send it by post to the senior officer of the police, Commissioner of Police or Superintendent of police. First, the superintendent analyses the complaint. Then sent to the High Court Chief Justice of the State.

A copy of the online police complaint is sent to the Chief Justice of the High Court of the State once it is analyzed by the Superintendent of the police.

You may send a written complaint in the form of the letter to the Concerned judicial metropolitan magistrate. After analyzing the letter magistrate will decide whether to take cognizance or not. An informant may also send an application to the judicial magistrate.

You can even file a writ petition in the Hon’ble High Court for the issuance of a writ of mandamus against the defaulting police officer. To give the reason why he has not registered the FIR, and why he should not be suspended from his position of police service for interfering in the administration of justice and disturbing the accused person.

Right to Compensation

A citizen can ask for damages/compensation, for the frustration and for the deprivation of life and liberty under Article 21 of the Indian constitution.

You can file a case with the State human rights commission or National human rights commission in written form. You will mention that the concerned police officer is not doing his duty. Disregarding law. Stating the disregard for the victim’s problems that could create a situation of mental trauma or frustration for the victim.

If a police official misuses their power against less privileged or someone who cannot read or write, an Application u/s 156(3) or Criminal Complaint u/s 200 of CRPC, 1973, can be filed. Also filed orally before the competent magistrate.

But in the recent era, things have been changed now. Refusing to file FIR is an offence. Follow up the above guidelines and do not be silent on the crime. The one who is doing the crime is equally responsible as the one who is suffering from it.

Why does India need Aadhar Card – UID?

September 18, 2019 by aishagarg, posted in Uncategorized

Does India Need Aadhaar Card?

You might already possess documents like Pan Card, passport, driver’s licence, etc. which help you in identification. So why do you need an additional document like the aadhar card? And what are the benefits of aadhar card

What is an aadhaar card?

The Aadhaar card is a unique identification number which is connected with fingerprints and iris scan of the cardholder. UIDAI issues the aadhar card. It functions as a proof of identity and not of citizenship.

The code on the card is a 12-digit unique number which the UIDAI assigns to Indian citizens after they complete the verification process. Indian residents may voluntarily enrol to acquire an Aadhaar card regardless of their age, gender, religion, etc..

So, Why was the Aadhaar card introduced in India?

National databases can prove to be quite helpful in increasing the efficiency of administration. In India, there were several means of verifying identity, for eg., electoral identity card, income-tax PAN card, passport, ration card, driving license, etc. But they weren’t capable to handle a large population such as India’s.

The concept behind Aadhaar was to formulate a centralized system for India with one form of recognizable ID. Thus, reducing the use of birth certificates and ration cards which were prone to loss and damage. The old system also left marginalized people especially the rural poor struggling to obtain state services. Thus, the aadhaar card scheme was started in 2010 by the then PM Dr Manmohan Singh.

The basic intention of the card is the identification of citizens and giving them the terminal benefits of the government schemes.

Additionally, people can use the aadhar card pan India as an identity card. They can also link it with bank accounts, insurance, and pension.

In the ruling of 2018, the Supreme court states that “Unique identification proof empowers and gives identity to marginalised sections of society.”

What is the importance of Aadhar Card?

According to Nandan Nilekani, the first UIDAI chairman, Aadhar card has helped the Government save about USD 9 billion. The unique aadhar number eliminates fakes and duplicates from the beneficiary and employee list. This helps in eliminating frauds in the financial distribution system.
The use of biometrics gives a unique identity to every citizen of India.
Another benefits of aadhar card is that people can use the Aadhar card instead of multiple documents for official work.
The ‘Jhan Dhan Yojana,’ scheme, uses Aadhar as the main document evidence, to open up a bank account.
Aadhar card also allows the holder to avail of all government subsidies that they are eligible for.
With the use of an Aadhar Card, the process of acquiring a passport can be now speeded up. People can apply online for passports by simply attaching their Aadhaar Card as the residence and identity proof along with their application instead of uploading multiple documents.
People can now get their pension without leaving the comforts of their homes. As agencies can obtain their details through their Aadhar Card numbers.
Individuals who link the Aadhaar number to their LPG ID can avail the LPG subsidy directly in their respective bank accounts.

These benefits establish the importance of aadhar card. Thus, India needs an Aadhar card.

Online tax payment in India

September 17, 2019 by aishagarg, posted in Uncategorized

Technology makes it easier to complete important mundane tasks from the comforts of your home. One such task is of income tax payment. The taxation system in India has made it easier to pay income tax using the online tax payment in India. Thus, more citizens are filing their returns thereby contributing to the national development.

Also, some citizens have a few queries, like:

What are the Benefits of Online Tax Collection In India?
How you enjoy the benefits of Digital India as an Indian Citizen?

Benefits of Online Tax Payment in India

To begin with, you can pay tax from anywhere in the country
Pay taxes anytime; i.e. 24*7*365
Furthermore, one can pay taxes on behalf of a firm or company
There is no need to submit a physical challan
Additionally, you also receive the cyber receipt instantly.

Taxes paid through Online payment in India

Income-tax
Corporate tax (i.e. income-tax paid by a company)
Tax deducted at source (TDS)
The tax collected at source (TCS)
Securities Transaction Tax (STT)
Wealth Tax
The gift tax, expenditure tax, and other direct taxes

Documents Needed for Filing Income Tax Returns in India

Choosing the applicable ITR form
Linking Aadhaar with PAN
For Salaried Employees
Documents related to interest income
Form 26AS
Section 80 for Investments
Other Investment Documents
Documents Required to Claim the Expenses as Deduction.

Step by Step Guide to Online Tax Payment

Visit the online tax e-payment website
Enter the website of online tax payment. Then, open the corresponding Challan based on your payment type
Choose suitable Challan and provide accurate details
Select the bank from the drop-down for online income tax payment
Next enter the verification code appearing on the screen
Then click on the proceed button
A new page with the details provided by the taxpayer in the Challan will appear. It has the name of the taxpayer according to the database of the Income-tax Department
Ensure that the name and other details are correct. Then proceed towards payment by clicking on the ‘Submit to Bank’ button.
After completing the transaction, the screen will display the receipt of payment
The receipt will contain the Challan Identification Number (CIN) and other data. Additionally, taxpayers should preserve the hard and the soft copy of the Challan for the record.

Challan Check

Challan Check is easily conducted by a taxpayer. Below details are accessible by entering the CIN and amount:

BSR Code
Date of Deposit
Challan Serial Number
Major Head Code with description
TAN/PAN
Enter the Name of Tax Payer
Received by TIN on (that is the date of receipt by TIN)
Do the verification that the amount entered is accurate

TAN Based Check

Get a quick look at TAN based check, Challan Tender Date range for the particular year. Thus, one can proceed to the following details:

CIN
Major Head Code with description
Minor Head Code
Nature of Payment

An individual or a business entity can simply pay their taxes using the taxation system in India. The online tax collection in India is a convenient system. It is easy to regulate. Additionally, it attains maximum taxpayers through the online payment system. Thus, an individual or a business entity can easily contribute to national development from the comfort of their home or office.

Know about the Dowry System in India – Act and Procedure

September 17, 2019 by aishagarg, posted in Uncategorized

We are excited for our wedding bells. That beautiful bridal dress, that pretty henna in hands, the glittering jewellery, the scented garland seems like a pretty fairy tale which she wants to see as a reality and enjoy every second of her married life. The dowry system in India or ‘Dahej Pratha’ is one of the most crucial phenomena in Indian marriages. Some of us want to know ‘Dahej’ meaning in English i.e. dowry and it is prevalent in Indian society for ages. It is a practice of exchange of material possessions, property and jewellery to be offered or asked by the groom’s family.

Do we ever wonder what all she loses?

Her family, her cupboard, her bed, her room and most importantly her surname. She gives away everything and is ready to come at your home only and only for you.
Isn’t it your responsibility to keep her protected, safe and make her smile every second.

Sometimes this happiness becomes small compared to the horror one ends up facing.

Objective of Marriage

Any discussion on marriage must begin with an honest recognition of your primary goal. The goal is your happiness and prosperity, and nothing that any parent, uncle, aunt, friend has to say about it has any agency over your own awareness of what brings you contentment.

Living together in the subcontinent encouraged us to adopt each other’s customs, and eventually, they became a part of ours.

This isn’t one of those blogs about the social nuisance about weddings nor it encourages divorce or live in relationships.
Whether we like it or not, all of us have come across Star Plus soap advertisement in between our favourite serials. This blog is also something that will make you think about the sad life of a few people after marriage.

The Never-ending dramas around new brides. Their unbearable miseries and the constant struggle to settle into the new family. These are a few constant outcomes of a marriage based on Dowry System in India or ‘Dahej Pratha’. We can take a look at the problems and the solutions.

Getting to know the Dowry

How does Dowry system in India or ‘Dahej Pratha’ works? Dowry, in simple words is the money, goods, or estate that a woman brings to her husband or his family in marriage.

Dowry is a conditional for the Wife. Which is supposed to be of the woman in case of divorces, abuses or assault.

Jewellery and property possessions have been used in dowry which is frequently inalienable by the husband. Though husband may otherwise benefit from them it is basically a protection for the woman.

Wondering, where all the love is gone?

What about education?

All in vain?

Yes, it happens. Many people marry for Dowry in India.

The Dowry system was eradicated from the Europe in the 19^th and 20^th Century. Other countries saw rise in Dowry popularity by the end of the 20^th Century, even after declaring illegal or discouraged by governments.

In South Asia, parents of the groom demand compensation for their son’s higher education and future earnings that would be shared by the bride.

Few cases which proves Dowry exists:

A woman apparently beaten to death by husband and in-laws over dowry. The incident took place in Balheda village in neighbouring Shamli district, police said.
Demand of additional dowry of Rs 25 lakh, which resulted in assault by the family of the husband against a pregnant woman
Married woman was allegedly beaten to death following a dispute over dowry in Kolkata.
Husband with other in-laws thrashed wife allegedly for dowry, ANI reported. The incident took place in Haryana’s Faridabad and a video of the incident has gone viral on social media.

I think these reports are enough that will make us to look into the case again. Reports from metro cities like Kolkata, Mumbai, Chennai makes it clear that it exists among well educated people as well.

THE DOWRY PROHIBITION ACT, 1961, (Act No. 28 of 1961)

Any property or valuable asset shared by one party to another party who is in a marriage consideration. Which takes place either before the marriage, during or after the marriage according to the Dowry system in India also known as ‘Dahej Pratha’.

After the commencement of this Act, if any person gives, takes or abets the giving or taking of dowry, he/she shall be punished with imprisonment of 5 years or a fine of more than fifteen thousand or the dowry amount whichever is higher.

Under the act against Dowry System in India, demanding of dowry directly or indirectly, from the parents, relatives or guardians of a bride or bridegroom shall be punishable. The punishment may include imprisonment from six months to two years and or imposed with a fine of up to ten thousand rupees.

One can complain if it is Abetment to suicide, dowry murder, cruelty, fraud or dowry torture.

How to file a complaint?

A victim, parents or an organization can file a complaint in the court of the Metropolitan Magistrate or a first-class Magistrate.

A complaint can be made in the police station or in the ‘Crime against women Cell’. They can investigate into the matter and report to court. Then court takes the matter ahead. (Cognizance is a notice or acknowledgement on which a judge is bound to act).

The Metropolitan Magistrate or a Magistrate of the first class may take cognizance himself if such facts come to his own knowledge.

Every offence under this Act is a non-bailable and non-compoundable offence (that which cannot be compromised or settled out of court, between the complainant and the accused, at any stage of the trial). One can approach the right medium and strike against the Dowry System in India.(Dahej)

Women use it as a weapon but what about men?

There is no provision for Domestic Violence to protect a man. Consequently, many women have been misusing the law against their husbands to harass them. Even the government has failed to take necessary steps to address violence against men.

Section 498A of Indian Penal Code, books husband and family against cruelty to woman. Usually, resulting in immediate arrest with proper investigation and punished with non-bailable terms. In false cases, the husband and his family is considered accused till they are otherwise proven innocent.

Three years is the maximum punishment for the guilty.

In case of false complaints against you by your wife, you have two alternatives – defend your allegation and hold on for the judgement or do a counter case against your wife and prove her wrong.

Record conversations (whether voice, chat, email, letters, etc.) and keep them safe. Keep every evidence secured and safe. It should not be in front of anyone who is not an authority.
Collect evidence of not demanding dowry or any kind of activity related to torture
Collect evidence to present that the female has moved out of marriage bonds without any consent
This evidence will be fruitful in the time of getting anticipatory bail or notice bail from the court.

Summarizing the Issue

Write letters to the media, human rights organizations, etc., telling them about the use and misuse of Section 498A.

Use social media platform for reaching the masses. It will be helpful in seeking attention from the society towards the misuse of the law.

Not all men are the same, some may be the sufferers as well. Their eyes also shed tears; pain can also be real. They become the sandwich between two superheroes of his life one her mother another her wife. Please stop stereotyping and fight for the right not only for male dominated society or feminism.

Although the violence against women is more prevailing the Dowry System in India (Dahej Pratha) is the cause for destruction of many families and households. Eradicating the dowry system in India is the only alternative to a better society and healthier relationships based on happiness and prosperity.

How to save income tax in India?

September 17, 2019 by aishagarg, posted in Uncategorized

How to save income tax in India?

Often, people end up paying taxes more than they should because of lack of awareness. If you file your own taxes it is quite possible that you might commit the same mistake. This blog discusses the best tax saving funds in India and different ways of how to save income tax in India.

ELSS Mutual Funds

This remains the best tax saving mutual funds in India despite the introduction of the tax on long-term capital gains from equity funds. The 10% of the tax is applicable only on the gains beyond Rs 1 lakh. Routine collection of capital gains can decrease the liability to a great extent. It also provides the highest returns among other 80C options. ELSS funds have the lowest lock-in of about 3 years and the return of the past three years has been 9.78%.

There are other problems present as the Equity markets were unpredictable last year and 2019 may not be any different. The economy has slowed down. This should not worry the long-term investors who stagger their purchases and average out their costs through monthly SIPs. But the SIP window is not applicable for taxpayers who have to show proof of Section 80C tax-saving investments in a few days.

“A lot of taxpayers are eager to invest in ELSS funds but we don’t want them to invest recklessly. If a first-time investor loses his/her money, they remember it for a lifetime and would stay away from the equity for a long time.” Says Shweta Jain, CEO, and Founder, Investography a Bengaluru – based financial advisory firm. She advises taxpayers to not put a large sum into ELSS funds at one go, distribute it over 2-3 tranches before the 31^st March deadline.

It should be noted that the risk is equal with all ELSS funds. Some invest more in small and mid-cap stocks while others invest more in large-cap ones. As the ELSS provides numerous benefits, it is currently the best tax saving mutual funds in India.

The best ELSS funds

TURBO-CHARGED

National Pension Scheme

At the time of retirement, 60% of the corpus is tax-free. People can keep investing in NPS until the age of 70. They can also stagger their withdrawals.

Additionally, investors can also allocate 75% to investments in the active choice option of the National Pension Scheme. Even though short-term returns may not seem very beneficial, in the long run, investors earn double-digit returns. Return of NPP has been 10.84% in the past five years.

“According to experts, NPS is the better alternative to PPF and bank deposits.”

National Pension Scheme helps people save income taxes in 2 ways:

People can declare contributions of up to 1.5 Lakh INR as a deduction under section 80C.

Furthermore, 50,000 INR can be deducted under 80 CCD(1b), Employers can deposit 10% of the salary of employees in NPS. The capital will not be taxable.

Public Provident Funds (PPF)

PPF funds is a savings fund provided by the Indian Government. The government pays the interest. The interest rate for PPF is 8 %.

In PPF helps save income tax by making the interest completely tax-free. Whereas in fixed deposits interest is taxable. Thus, advisors prefer PPF over fixed deposits. Public provident funds are also an easy investment and score high in terms of safety.

You can easily open an account in any post office branch. Some private banks also offer PPF.

Tax deductions for employed workers:

The income tax department allows multiple income tax exclusions for salaried employees. This proves to be very effective in saving taxes. To avail these benefits, workers have to inform their employers in advance.

The various income tax exclusions for salaried workers are listed below:

HRA exemption for salaried employees.
Income tax exemption on leave travel allowances.
Exception on encashment of holidays for salaried employees.
4.Tax exemption from pension income.

IT exemption on gratuity for salaried employees.
Income tax exemption on VRS received.
IT exemption for perquisites.
Exemption of various allowance.

Loans to claim tax deductions

Home loans are a great way to save taxes. Under section 24, not only the principal repayment but also the interest is tax-free.

For self-occupied homes, the tax deduction limit is INR 2 lakhs. Although, if the property is rented out the interest goes tax-free. Moreover, first-time owners get additional INR 50,000 reduced under section 80E.

Higher education is increasingly becoming expensive. Education loans that are taken for spouses, offspring, or for students whose guardians are taxpayers are eligible for tax-free interest under section 80E. This reduces a huge burden on taxpayers. The loans must be taken from either a charitable or financial institute.

Health Insurance

A simple way of saving income tax is through buying health insurances. Tax deductions can be made on the premium of the health insurances under section 80D. If you pay health insurance for yourself or for dependent family members the tax reduction is around 25,000 INR. For senior citizens, the tax reduction is 50,000 INR. If you pay a premium for dependent senior citizens then you receive an additional tax reduction of 50,000 INR. In this manner, you can save 1 lakh INR in tax reductions.

These are the easiest and most profitable ways in which you can save income tax and enjoy your rights while exercising your responsibilities simultaneously. Make sure before you invest anywhere you consult an expert to ensure your investment is safe.