Jul 14
A guest post by Ramalingam K, an MBA (Finance) and Certified Financial Planner. He is the Founder and Director of Holistic Investment Planners (www.holisticinvestment.in) a firm that offers Financial Planning and Wealth Management. He can be reached at ramalingam@holisticinvestment.in.
Is lack of time making you go crazy in your attempt to plan your finance?
Does your busy professional schedule offer you time to monitor your personal finance?
Balaji is working for an MNC. Today he has got a deadline for a particular assignment. His day is fully packed. First thing in the morning, he receives a mail from his HR Dept stating that today is the last date for producing proofs for tax saving investments; otherwise a huge amount will be deducted from his salary as tax. He wanted to do some tax saving investments urgently and submit the proof on or before end of the day. Continue reading »
Tagged with: Income Tax • Manage Money • Tax Saving
Feb 16
The following information is for educational purposes only and please consult your financial adviser or financial planner for further details.
These were some of the questions that I wanted answers and I am glad that I found them.
1. Can I pay to rent to my father if he owns a house? Is it legal? Continue reading »
Tagged with: Income Tax • Tax Saving
Feb 09
I am writing articles regarding taxes. I don’t preach others that it is bad to pay taxes or advice them not to pay taxes. I believe that Taxes have to be paid by the citizens for the welfare of the nation.
The only thing I want to emphasize is that, why does government gives tax break? It should serve some purpose right? I am certain that most of the rules does make sense even today which was formed way back before my birth. 
Continue reading »
Tagged with: Income Tax • Tax Saving
Feb 08
This time of the year, most of my friends prefer to go and get Insurance policy just because they have to buy one so that they can save tax. I get calls from various Insurance agents to take up policies from January to March time frame and the prominent reason they give me to buy the policy is “Tax Benefit”. I am not very keen on taking a policy just because I get a tax break. I know that it does not work that way.
I don’t mind taking a insurance cover for the purpose of insurance rather than “Tax Benefit”. But the fact is that most of us prefer to take the policy thinking it will reduce our tax bracket. I have done that in the past. I have taken a policy and I do pay a yearly premium. I did not know much about tax at that time and for tax benefit I did take a policy only to learn that it does not make sense. Continue reading »
Tagged with: Income Tax • Tax Saving
Feb 03
The maximum amount of House Rent Allowances (H.R.A.) permitted to be enjoyed by an employee tax-free is up to 50% of the salary in the metros namely Delhi, Kolkata, Mumbai and Chennai and 40% in other cities.
If you notice carefully, there is a clause of “up to” and not flat. This was quite interesting to me when I figured that out. Why not keep it flat? The following is the reason. The government wants some amount of money to be paid by the employee from his pocket which does comes back to exchequer. According to 2A section of the Income Tax Act, the employee has to bear a minimum of 10% of the salary as Rent so that he can get the full benefit of 50% or 40% depending on where he is located. Continue reading »
Tagged with: Tax Saving
