Category Archives: Pan Card

Tax Refund Status

Tax Refund Status: Do you want to check Tax Refund Status, then you have reached the correct place. Here, we will provide you complete details about Tax Refund Status. Income Tax Department gives Income Tax Refund to an Individual if his/her tax liability is less than total Income Tax paid.

Read More: Pan Card Tracking

Tax Refund Status

Tax Refund Status

Tax Refund Status


Eligible Conditions for Tax Refund

There are certain conditions under which all the Individuals are eligible for Tax Refund.

– If a taxpayer pays higher tax as per the self-assessment but his/her tax liability is less via regular assessment.
– Tax Deducted Scheme by the employee or bank is found to be higher as compared to the tax liability after correct assessment.
– When any assessee income is being taxed in the foreign country, Government of India has also made an agreement with the taxpayer in order to avoid double taxation and he/she is taxed in India also.
– If an assessee has not declared any of the investments which will be useful at the time of assessment.



Claim for Income Tax Refund

One can claim for Income tax Refund if an Individual has paid tax. The last date to file the Income Tax Return is 31st July, which was further extended to August 5, 1027.

Income Tax Refund Amount

The overall difference between the tax liability and the total tax paid is known as Income Tax Refund. IT Department will refund the amount to the taxpayer. An Individual can calculate Income Tax using Income Tax Calculator.

Total time taken to receive tax refund

The total time taken to receive Tax Refund is usually 2 to 6 months. However, if you have paid tax physically, then it will take more time.

Payment of Tax Refund

The Individual will receive the refund directly into his/her bank or by a cheque.


Check Income Tax Refund Status Online

In order to check Income Tax Refund Status online, you can login into the Income Tax portal. Then go My Account and click on “My Returns/ Form”. Here you will come across various messages, description of each status is given below:

1. Refund Status: Expired

Request for Refund mainly expires after 90 Days. Later, the expiry of refund is resulted into expired and cancelled. Possible steps to take, if you come across this situation.

– If you have applied for refund physically, then contact the liable Assessing Officer.
– If you have applied for a refund online, then you should follow the simple steps given below:

1.  Login into Income Tax Portal.
2.  Then click on “Refund Reissue” option available under the My Account Tab.
3. Then you have to provide your CPC Communication Reference Number and Refund Sequence Number.

2. Refund Status: Returned

If your Refund Status shows Refund Returned which simply means that refund was sent to you via post but it returned undelivered. Due to this, Cash amount is being returned back to the Cash Management Product (CMP) Center. You should follow the simple steps given below:

– If you have requested physically for the refund, then you should contact Assessing Officer.
– If you have applied online for Refund then follow the simple procedure given below:

1.  Firstly, visit the official portal of Income Tax.
2.  Log in with your Credentials.
3.  Now, click on “Refund Re-Issue” option available under the “My Account” Tab.
4.  You have to submit your Central Pay Commission (CPC) Communication Reference number        and your Refund Sequence Number.

3. Refund Status: Process through direct credit more but failed

If the refund status says that refund was credit directly into the bank account but failed, then possible reasons for failure could be:
– The account is deactivated
– Operations on the account have been stopped
– The account is other than Saving Account
– The account is owned by an NRI
– Lastly, the account is expired

What steps should you take, if any of such situation arise?

– If you have request physically, then you should contact Assessing Officer.
– If you have applied for a refund online, then follow the steps given below:

1.  Firstly, visit the Official Portal of Income Tax Department
2.  Login with your credentials
3.  Go to “Refund Re-issue” option available under the “My Account” Tab.
4. Then lastly, you have to submit Central Pay Commission (CPC) Communication Reference              Number and Your Refund Sequence Number.

4. Refund Status : Paid

If you have received an ECS refund advice slip but the amount is not credit in your account, this mainly happens if the bank uses incorrect information to transfer amount or there is a delay in crediting amount in your account from the bank. Then, follow the steps given below:
– If you have provided correct account information, then you should enquire about the status for NEFT, UTR or NECS sequence number which is provided by TIN website.
– If by mistake, you have provided wrong details, and you should visit the bank and enquire if the amount is a credit to the wrong account.

5. Refund Status: Adjustment against outstanding demand for previous year

Here, your refund from the current year can be adjusted due to outstanding demand of the previous year, either half or full. If you want to verify your amount, then follow the steps given below:

– If you have physically filled, then firstly check details of ECS Advice slip. Then verify your amount with the ward Assessing Officer.
– If you have applied Online, then follow the steps given below:

1.  Visit Official Income Tax Portal.
2.  Login with your credentials.
3.  Select “Submit Grievance” option available under the Helpdesk tab.
4.  Now, you have to select CPC as the grievance is related to refund.

6. Refund Status: Processed through NECS/NEFT and failed

Due to some reasons, refund generated through NECS/NEFT could fail. If anything like this happens, then you should verify your account number, account description and MICR/ IFSC code mentioned at the time of filing returns. If NECS/ NEFT return fails, follow steps given below:

– If you have applied physically, then you should visit concerned Assessing Officer, verify all the details and reissue the request.
– If you have applied Online, then follow steps given below:

1. Firstly, visit the official website of Income Tax Portal.
2. Then, click on “My Profile” option available under the “Profile Settings” Tab.
3.  Verify all details and make necessary changes.
4. Lastly, issue the refund request.

By following the above procedure, you will be able to apply for tax refund again. We hope, that you got all the important information about Tax Refund Status. If you liked this article, then please share with your family and friends.


Advance Tax

Advance Tax: Are you searching for Advance Tax, then you have reached the correct place. Here, we will provide you complete details about Advance Tax.

What is Advance Tax?

Advance Tax

Advance Tax is basically the tax payable on total income of the year earned from a various number of sources such as profession, salary, business, etc. One has to pay this tax before the end of the financial year.

Read More: Pan Card Status

If the Income Tax Liability of a person is more than Rs 10,000 in a particular financial year, then he/she is fully responsible to pay tax in the same year instead of paying in the next year. Advance tax is also known as “Pay as you earn” Scheme.

Who should pay Advance Tax?

All the salaried Individuals doesn’t need to pay Advance Tax. This Tax is only relevant to the individuals who earn money other than Salary. However, all the Individuals who are earning money from the sources other than money, then they have to pay Advance Tax.

Income generated from any of the below sources have to pay Advance Tax
– Income which is earned from capital gains via shares
– Winnings earned from the lottery
– Rent or any kind of Income gained from the house property
– Interest which is earned from fixed deposits


How to Pay Advance Tax?

You can pay Advance Tax via challans at bank branches which are being authorized by the IT Dept. You can deposit Tax in ICICI Bank, RBI, HDFC Bank, Syndicate Bank or from any other authorized bank.

Moreover, you can also pay tax from Official website of IT Dept or from National Securities Depository.


How to Calculate Advance Tax?

You can calculate Advance Tax on your own and find out whether you have to pay advance tax or not.

Follow the simple steps to calculate the Advance Tax:

  • Determine your Income: First of all, you have to determine the income that you have earned from the sources other than salary. Also, keep in mind that you have to include running agreements that you need to pay later.
  • Deduct the Expenses: Deduct all the Expenses from the income. Here, you can deduct all the expenses linked with work such as rent of workplace, internet expense, travel expense, the internet and the phone calls.
  • Total Income: Here, you have to add all the income that you have received via rent of any place, interest, etc. Now, deduct the TDS from the Income.
  • Total Advance Tax: If your Tax liability is still more than Rs 10,000, then you need to pay this tax.



How to pay Advance Tax Online?

One can pay

Tax only from the Online Portal of Income Tax Department. To pay the tax, follow the simple steps given below:

  • First of all, visit the official website of Income Tax.
  • Then Login with your credentials.
  • Now, you have to select proper challan which is applicable to you.
  • Then, you have to fill all the required details in the form such as right assessment year, address, phone number, email address, etc.
  • After this, you will be redirected to the Net Banking page. Now, pay the tax using Credit/ Debit Card or Net Banking.
  • Now, you will get full details about the payment along with the challan number.
  • Then, you have to report your payment as soon as you made the payment. You can do this by adding an extra entry simply under the paid tax page.


Late Payments of Advance Tax

If any of the Individual failed to pay tax on time, then he/she has to pay an interest. Here, interest is calculated as 1% interest on the total amount on each month until the tax is fully paid. The same penalty will be considered if you are unable to pay tax by 2nd or 3rd deadline.

Advance Tax Benefits

– If you pay tax in Advance, you will be relieved from tension. Also, by paying tax in Advance, you don’t need to worry about any last minute rush.
– The speed of tax collection process gets increased.
– Government Funds gets increased and by this Government will be able to earn more interest.
– All the Businesses will able to control all the finances and will be able to make an analysis of total income earned in the year.


Advance Tax Exception

All the Senior citizens who don’t own any business don’t have to pay this tax. However, all the taxpayers who have opted any of the presumptive schemes don’t have to pay this tax. These schemes are only applicable only to the individuals whose overall business turnover is more than Rs 2 Crore in a financial year. From the year 2016-17, the scheme was also applicable for doctors, lawyers, and all the architects, if their annual receipt total is more than 50 lakh rupees.


Refund of Advance Tax

At the end of a year, if the IT-Dept find that you have paid more than what you should pay, they will refund all the extra amount. Any of the taxpayers can claim the refund by filing the form 30 of IT-Department. To apply for a refund, they have to claim from within a span of 1 year from the last year.

Advance Tax Schedule:

Advance Tax for AY 2017-18:

List of Advance Tax Schedule for all the Individuals as well as Corporate Businessman

Payment Due Date Amount Payable
On or before 15th June 2016 15% of Advance Tax
On or before 15th September 2016 45% of Advance Tax
On or before 15th December 2016 75% of Advance Tax
On or before 15th March 2017 100% of Advance Tax


For all the Taxpayers who have opted for Presumptive Taxation Scheme:

Due Date Advance Tax Payable
by 31st March 100% Advance Tax


We hope that you got all the essential information about Advance Tax. If you liked this article, then please share it with your family and friends.


Read More:  Government Deactivates 11.44 lakh PAN Cards

Government Deactivates 11.44 lakh PAN Cards

Government Deactivates 11.44 lakh PAN Cards: Are you aware that more than 1.44 lakh PAN Cards are been Deactivated by the Government as of July 27, 2017. As per the Government Rules, a person should be registered with only one PAN Card Number. The Government has identified fake PAN Cards which were allocated to all the existing individuals. Check Pan Card Status Online.

Government Deactivates 11.44 lakh PAN Cards

Government Deactivates 11.44 lakh PAN Cards


The Government is able to identify the all the fake cards by conducting the de-duplication check on the existing allocated PAN Cards against the data provided by the new applicant. In PAN Card, only Demographic data is provided.

Government Deactivates 11.44 lakh PAN Cards

In order to check whether your PAN Card is Active or not, you need to visit the Official Portal of Income Tax Website. To check, follow the simple steps given below:

  1. First of all, visit the Official Website of Income Tax Portal.
  2. Now, under the “Services” tab, click on “Know your PAN“.
  3. Here, you will be able to see the Form as shown in the image below.

    Government Deactivates 1.44 lakh PAN Cards. How to check if your PAN is Active?

    Know your PAN

  4. Now, fill all the required details such as Surname, Middle Name, First name, Status, Gender and Date of Birth. Lastly, you have to enter the same mobile number which you have given at the time of application of your PAN Card.
  5. Then Click on “Submit”. Then you will receive OTP on your Registered mobile number.
  6. Enter the OTP on the next page and then click on “validate”.
  7. If you are holding a multiple PAN Cards, then you will view a pop-up saying “There are multiple records for this query. Please provide additional information.” Then, they will ask you to enter more details such as Father’s name.
  8. Lastly, you will be taken to a page, where you will be able to see the validity of PAN Card, Jurisdiction, and the Actual Number of the active PAN Card.

Thus, by following this process, you will be able to check whether your PAN is active or not.

Read More: 


House Property and Taxes

House Property and Taxes: If you want to know details about Income Tax for House Property and Taxes, then you have reached the right place. Here we will provide you details about what is Income tax house property, tax deductions on house property and lastly steps to calculate income from house property.

House Property and Taxes

House Property

House Property and Taxes

If you are having a house/flat that is on rent or kept vacant than you should know about the house property for tax calculation purposes. Also, this information will be helpful for tax saving if you want to fix an interest that you are paying on home loan taken from the same house against the same property.


What is Income from house property?

Income from house property is mainly the rent which is earned from the House property and it is chargeable to tax. However, sometimes the tax owner has to pay tax on ‘deemed rent’ if the property is not declared to IT-Department.

Income from house property is included if it satisfies all the below conditions:
1. The individual is the owner of the property.
2. The property should include house, buildings, and road.
3. This property can be used by the landlord for any of the purposes expect for running a business or profession.



Tax Deductions on Home Loans

1. Tax Deduction under the Section 24

Under Section 24, Homeowners can claim deduction up to Rs 2 lakh on their home loan interest only when the owner or any of family members live in that property. This condition is also applicable when your house is vacant. When you have given your house on rent, the whole interest on the home loan is given as deduction.

Here, the deduction on the interest is limited to Rs 30,000 if you unable to fulfill any of the conditions given below for the 2 Lakh refund.

All the conditions required for 2 lakh refund are as follows:
1. The home loan should only be taken for purchase and construction of new property.
2. The loan must have been taken after April 1, 1999.
3. Here, the purchase or the Construction should be completed within 3 years from the end of the financial year in which loan was taken.

When is the deduction limited to Rs. 30,000?

When the construction of the property is not completed within a period of 3 years, then the deduction on the home loan interest will be limited to Rs 30,000. Here, 3 years is mainly from the end of the financial year in which the loan was taken. For instance, if the loan is taken on 30th April 2014, then the construction of the loan should be completed until 31st March 2018. As per the Budget 2016, the period for construction of property can be extended for 5 years.

Apart from this, if the loan is taken for reconstruction, repairs or any kind of renewal, only Rs 30,000 will be given for deduction.

How can I claim the tax deduction on a loan taken before the construction of the property is finished?

One cannot claim the deduction on the home loan interest before the construction of the home is completed. The term from borrowing the money until the construction is completed is known as pre-construction period.

One will be able to claim the tax deduction in total 5 installments starting from the year the construction of property is finished.

2. Tax Deduction on Principal Repayment
(Under Section 80C)

Here, tax deduction to claim under the principal repayment is  Rs 1,50,000 which is within the term period of Section 80 for the Financial year 14-15. In order to view the principal repayment amount contact your lender or check your loan installment details.

Condition required to claim the deduction

1. The home loan should only be used for purchase or construction of new house property.
2. The property should not be sold in 5 years from the period you have purchased the property. By doing this, the deduction will be added back into your income in which you sell the property.

3. Tax Deduction for the First-Time Homeowners

Under the Section 80EE, which is currently introduced in the Income Tax Act, offers first-time homeowners tax benefit of Rs 1,00,000.

How to claim Tax Deductions on home loans?

  • The deduction amount is based on the ownership share that you have on that property.
  • The home loan should be own your name. Also, a co-borrower can claim the deductions.
  • Please note that home loan can be claimed from the financial year in which construction is completed.
  • Also, you have to submit the home loan interest certificate to the employer for him so that he can adjust the tax deductions at the source accordingly. The certificate contains details such as ownership share, borrower details, and EMI payments.
  • If you don’t submit the certificate, then you have to calculate the taxes on your own and then claim the refund.

Apart from above, if you are a self-employed or freelancer, then you don’t need to submit any of the documents to the anywhere, not also to the IT department.



Tax Benefits on home loan for Joint owners

In the case of joint owners, who are mainly the co-borrowers of a self-occupied house property can claim a deduction on interest of home loan up to Rs 2,00,000 each. Also, the deduction on principal repayments includes deduction from stamp and registration charges as per the Section 80C along with a limit of Rs 1,50,000 for each joint owners. Here, deductions can be claimed in the same ratio as of ownership share in the property.

Here, you have to take the loan with the another person, but if you are the owner of the property. Then also you will not get tax benefits.


Income from House Property

The owner of the property is taxed under the section ‘Income from house property’ for the income tax return. Also, the Income which is gained from the property which is mainly used for business or profession is not taxed under this Section.

Steps to Calculate income from house property

1. The gross Annual value of the property: The Gross Annual Value of the self-occupied house is zero. It is mainly the rent collected from a house on rent.

2. Less Property Tax: Property tax at the time of payment is allowed for deduction.

3. Net Annual Value: It is the difference between the Gross Annual value and the property tax.

4. Less 30% Standard deduction on NAV: Under section 24 of IT Act, 30% standard deduction on NAV is available. Please note that any other work such as painting and repairing can’t be claimed under 30% deduction.

5. Less Interest on a home loan: Deduction is also available for Interest on the home loan.

6. Income from house property: The total value of your income from house property. Income from house property will be applicable in the slab you fall.

7. Loss of house property: As here, the gross annual value of a property is zero, deduction from the house property will the loss of house property. You will be able to adjust income from income from all the other heads.

We hope that you got all the important information about House and Property Taxes. If you like this article, then please feel free to share this article with your friends and family members.

Income Tax for NRI

Income Tax for NRI: Are you an NRI? Do NRI have to pay Income Tax? If you have any of the doubts then you have reached the right place. Here, we will provide you detailed information about how to determine your residential status, Taxable Income for NRI, Deductions as well as Exemptions applicable on NRI and lastly How NRIs can avoid the double taxation.


Income Tax for NRI

Income Tax for NRI

Read More: Pan Card Tracking

How to determine My Residental Status?

You will be considered the Resident of India for a Financial year if any of the below conditions are met.

– If you are in India for 6months (182 Days) in a particular financial year.
– If you are in India for 2 months of a year in the last year and also you have lived in India for a whole year (365 Days) in the last four years.

Here, if you are Citizen of India, working on a member of a crew on an Indian Ship, then only the first condition is valid for you. The first condition is also significant for all the People of Indian Origin, who are mainly on the visit of India. Here, the second condition is not valid for above-mentioned categories of people.

A PIO is mainly the person whose parents or the grandparents were born in the undivided India.

Is My Income Earned Abroad Taxable in India?

The income tax of NRI in India is mainly dependent on the resident status for that year.
Here, if your status is ‘resident’ then your global income will be taxable in India. While if your status is ‘NRI’, then only the income which is earned in India is taxable in India.

Examples of Income earned from India include salary gained in India or salary for service provided in India, Income obtained from in house property, income from capital gains and assets, income gained for fixed or savings account.

All the income earned from any of the above resources is taxable for NRI. Here, Income earned from outside India is not taxable in India. Also, if you have earned any Interest from NRE or FCNR Account, then it is tax-free. However, interest earned from NRO Account is taxable in India.

Am I required to File Income Tax Return in India?

Whether you are NRI or not, if your Income exceeds Rs 2,50,000. then you are required to file Income Tax Return in India.

All the NRI should file Income Tax in any of the below cases:

– If NRI wants to claim a refund.
– NRI’s have a loss that they want to carry forward.

Which is the last date to file Income Tax Return in India?

Every year, July 31st is the last day to file Income Tax Return of that particular year.

Do NRIs have to pay an Advance Tax?

If your tax liability exceeds Rs 10,000 in a specific financial year, then you need to pay Advance Tax. However, if you don’t pay Advance Tax, then interest under Section 234B and Section 234C will be taken into consideration.

Read More: Hybrid Funds


Taxable Income of an NRI

Your salary income is taxable only if you receive your salary in India or someone transfers money in front of your behalf.

Here, Income from salary will be taken into account if your services are being offered in India. This concludes that, even if you are an NRI, but if you are getting the salary based on the services offered by you in India, then that will be taxed in India.

Here, if you are an Employer in Government of India, and you are also the citizen of India, then if your services are being offered in India, then Income tax will be considered.

Income from house Property

If an NRI holds a house property in India, then it is taxable as per the law. Here, income tax can be calculated similarly as a resident. NRI can also give property on rent.

Here, NRI has also been granted to claim a standard deduction of 30%, by which you can deduct your property taxes and earn the benefit of an Interest deduction if there is a home loan. Apart from this, NRI is also provided principle deduction under the Section 80C.

Rental Payments to an NRI

An Indian Resident who pays rent to an NRI Owner should surely deduct TDS at 30%. The income will be transferred to the NRI’s Account in India or in the country where he/she is living.

Let’s consider an Example, suppose Saina pays a rent of Rs 40,000 to his NRI Landlord. Here, Saina should deduct Rs 12,000 before transferring rent to the NRI’s account. Also, Saina should fill the Form 15CA and submit Online to the Income Tax Department.

A Citizen who pays rent to the NRI has to compulsory submit the Form 15CA. One has to submit this form online. Also in several conditions, Form 15CB along with Form 15CA is required. In Form 15CB, various details are being verified by CA such as payment, TDS Rate, TDS deduction as per Sector 195 of IT Act, etc.

Form 15CB is not needed in the following cases:

– When rent doesn’t exceed Rs 50,000 in a single transaction and Rs 2,50,000 in the whole financial year. Here, Form 15CA will only be considered.
– When lower TDS is being deducted and a special certificate is obtained under the Section 197 or lower TDS is deducted only by the order of an Assessing Officer.
– None of the Form is to be filled if the transaction falls under the Section 37BB of IT Act.

Income from Other Sources

For NRI, interest gained from all the savings as well as the fixed account is taxable in India. While Interest gained from NRE and FCNR account is fully free. Also, the Interest gained from all the NRO Account is taxable in India.

Income from any Business and Profession

Here, Income gained by NRI from a business setup in India or any business is being controlled in India is taxable in India.

Income from Capital Gains

If NRI has capital gains from investments in India in various shares and securities, then it is taxable in India.

Also, if you sell in house property that has a long-term capital gain, then the buyer should deduct the TDS at 20%. Apart from this, you can also claim capital gains exception if you invest in the in house property as per the Section 54 or by investing in the Capital bonds as per the Section 54EC.

Read More: Mutual Funds

The good news is:

Deductions and Exemptions for NRIs

Deductions under the Section 80C

Almost all the deductions are available for NRIs under the section 80C.

Deductions allowed to NRIs are:

  1. Life Insurance Premium Payment: The policy should be on the NRI’s name or spouse name or child’s name. Also, keep in mind that sum assured should be less than 10%.
  2. Children’s Tuition Fee Payment: All the tuition fee that is paid to any school, college or institution located in India for the overall education of both the children.
  3. Principal repayments on loan for the purchase of a house property: Here, a deduction is also considered for paying back the loan which was taken for constructing house property. Also, deductions are allowed for stamp duty, registration fees and for various other purposes in order to transfer such money to NRI.
  4. Unit-linked Insurance Plan (ULIPS): ULIPS is also sold along with the Life Insurance cover for deduction under the section 80C. All the Investments done in ELSS are deducted under Section 80C.

Read More: How to E-File ITR-1

Other Allowable Deductions

Deductions from House Property Income for NRIs

NRIs can claim all of the deductions that are provided to the resident for house property for a house purchased in India. Also, deductions for the property tax paid and the deductions for a home loan are also available.

Deductions under the Section 80D

NRIs are granted a deduction for the premium paid on health insurance. Here, Deductions is available for different categories such as Senior Citizen have a deduction of Rs 20,000 while self, spouse or the child has the deduction of Rs 15,000. Apart from this, NRI can also claim a deduction up to Rs 20,000 if parents are senior citizens and Rs 15,000 if parents are not a senior citizen.

Deductions under Section 80E

As per the Section 80E, NRI can claim the deduction of interest paid under the educational loan. The loan amount varies depending upon the higher education for a particular person. Here, the deduction is mainly offered for a period of 8 years or till you pay the interest, whichever is earlier.

Deductions under Section 80G

As per Section 80G, NRIs can claim the deduction for donations which are given to social causes.

Deductions under Section 80TTA

Under the section 80TTA, NRIs can claim a deduction on income from interest on savings bank account up to Rs 10,000.

Deductions not allowed to NRIs

Investments under the Section 80C:

– Investment in PPF is not granted
– Investment in NSCs
– Deposit Scheme in post office
– Senior Citizen saving scheme

Investments under RGESS

Deductions under the section 80CCG are available from 2014. The main aim of the deduction is to increase the participation of retail investors in equity funds.

Deduction for the Differently-Abled under the Section 80DD

Deductions under the section are mainly available for medical treatment of handicapped person so it is not available for NRI’s.

Deduction for the Differently-Abled under the Section 80DDB

Deduction is available for medical treatment a dependent who is disabled. This is only available to Indian residents.

Deduction for the Differently-Abled under the Section 80U

Deductions are available under this Section if the taxpayer himself suffers from disability for all the resident Indians.


Exception on Sale of property for NRI

One of the main things, long-term capital gains are being taxed at 20%. Also, keep in mind, long-term capital gains which are being earned by the NRI are subject to TDS of 20%.

Apart from this, NRIs can claim exceptions on long-term capital gains under the Section 54, Section 54EC and Section 54F.

Exceptions under Section 54 are mainly for long-term capital gains obtained from the sale of house property

Exceptions under Section 54F are mainly for all the assets other than house property.

Exceptions under Section 54EC are mainly for the sale of the 1st property which is being reinvested into specific bonds.

– If you don’t want to invest your profit gained from the first property into another one, here you can invest in bonds up to Rs 50 lakhs provided by the National Highway Authority of India (NHAI) or Rural Electrification Corporation (REC).
– The landlord has only 6 months to invest in these bonds, however, he/she can claim the exception, you have to invest before tax filing deadline.
– The money which is being invested in bonds can be sold after 3 years. But it can’t be sold before a period of 3 years

Read More: PAN Card Correction Form

Here is the main thing:

How can NRIs avoid Double Taxation?

Double Taxation means that NRI is being taxed for the same income for both the countries.

In order to avoid this, NRIs can request a relief from DTAA from both the Countries.

Under DTAA, NRIs can claim relief by two methods.

1. Exemption Method: As per this method, NRIs have to pay tax in one country and exempted from another.
2. Tax Credit Method: As per this method, tax relief can be obtained in the country of residence.

We hope that you got all the Essential Information about Income Tax for NRI. If you like this article, then feel free to share with your family and friends.

What are Equity Funds and Why You Should Invest in Them?

What are Equity Funds and Why You Should Invest in Them: Are you planning to invest in Equity Funds? Then you have reached the right place. Here, we will provide you basic information about Equity Funds, such as what are Equity Funds? Why should you invest in Equity Funds? And Types of Equity Funds.

Read More: What are Debt Funds and Who should invest in them

What are Equity Funds?

Equity Funds

Equity Funds

Equity Funds is a type of Mutual Funds, which invest in the shares of various companies. These funds can be actively or passively managed. Hence, they are also known as “Stock Funds”.

In Stock Funds, the increase and decrease which results from the rise and fall of the shares in the stock market decide the overall growth of the Mutual Funds. These funds buy shares in high quantity with the main aim of generating high returns by contributing to the company’s growth.

The main and the only purpose of Equity Funds is to generate high returns as compared to debt as well as fixed deposits. These funds can be very beneficial for long Term Goals and for building wealth.

Read More: Know the Issue Date and Place of PAN Card

Why should you invest in Equity Funds?

Following are the main reasons, due to which you should invest in Equity Funds:

1. Professional Money Management

Imagine that you want to build an Office. For this, you will seek help from a professional architect. Similarly, in the case of money, don’t you think you require the help of an Expert? That’s where you need the help of a Fund Manager.

We all know, most of the fund managers have a lot of years of experience in financial research and fund management. For an Individual, to keep an eye on the portfolio is a difficult task, expect if you are a full-time investor and have a good understanding of stocks.

On the other hand, Fund Manager has a special team, which keeps eye on the rise and fall of the stocks in the market. Also, they try to determine the best stocks to buy as well as sell. The team checks all the possible risks to identify the latest stocks in the market by analyzing different aspects.


2. Diversification

Equity Mutual Funds diversify their capital across multiple companies and sectors. Here, you will get an exposure to a lot of stocks when you start investing in Equity Funds.

Apart from these funds, some other funds such as small-cap and mid-cap funds rely on the stock of a particular market capitalization. While multi-cap funds or value funds invest in different market caps. If you are investing in different securities across various sectors then market-caps reduces the risk that may arise from limited stocks.

Apart from this, sector funds mainly focus on the stocks of that sector. However, their capitals are being diversified across stocks of that sector. Here, a sector overall growth will depend on the micro and macro-economic variables, change in the policy or any regulatory changes.

For Example, when the plastic prices crashed the stocks of that sector will be collapse or when the government introduces any higher infrastructure spending, then infrastructure stocks will go up. If you want to take high risks and you understand the risks in the sector, then you can invest between 5 -10 %.

3. Liquidity

Equity Mutual Funds are Liquid. In Equity Funds, you can buy and sell the stocks anytime, except for the Equity Linked Saving Schemes-‘ELSS’ which comes with lock in period of 3 years. By this, you can redeem your investment anytime you need or when your current price of NAV is higher than the price of NAV you purchased.

Apart from this, you can invest in the equity mutual funds when the market falls in order to buy units at lower NAV. Hence, you can manage all of your investments.

4. Economies of Sale

If you invest in the Equity funds, you will save a lot of transaction costs in the long run. For instance, if you plan to invest a fixed amount of money in the Equity Funds every year. Here, if you invest in more than 30 stocks, you will have high transaction costs.

As you move further if you are able to manage your portfolio by gaining profits and investing in high growth stocks, which results in further transaction costs. If you sell a stock before a year, you will earn a short-term capital gain of about 15%.

Before investing in stocks, please check all the costs. If the costs increase up to 3% of your portfolio value and return obtained are lower as compared to equity funds. Then you should start investing in the Equity Funds.

On the other hand:

5. Tax Benefits

If you are going to invest more than a year in Equity Mutual Funds, then the capital gain is exempted from the tax accountabilities. Apart from this, Government of India provides a tax rebate for all the ELSS (Equity Linked saving schemes) under the 80C act of 1961. You can invest in ELSS and deduct up to Rs 1,50,000 from the taxable income to decrease your tax liability.

Read More: Name Change in PAN Card after divorce of Woman

Types of Equity Mutual Funds

Equity Mutual Funds are classified into different funds based on the investment and the type of sectors & Stocks.

1. Diversified Equity Funds

In equity funds, you can invest in various sectors and market capitalizations. It gives freedom to invest in any type of stocks. Here, you can invest in small-cap, mid-cap as well as large-cap industries. Equity funds are spread across different sectors and industries, they are not compact to investments that are linked with any specific part of the economy.

2. Sector and Thematic Funds:

Equity funds that are concerned with a specific theme or sector will fall in this category. The funds that invest in a specific industry like oil, technology, and pharma will fall under sector funds. While the funds that are based on a specific theme like latest pharma stocks or value-based stocks will fall under these funds. Also, both these funds can be diversified based on market-cap.

Even get’s better:

3. Large-cap, small-cap, mid-cap and multi-cap equity funds

These funds which invest a large part of their investment in companies with large-cap are called large-cap funds. These funds offer a stability as well as sufficient results.

Mid-cap, as well as small-cap equity funds, invest in small and medium size companies. There are certain funds which invest in small as well as medium cap industries, these are called mid and small-cap funds. All these funds are in developing phase and they return varying results.

Equity Funds gives us the freedom to invest in different sectors and helps us to reduce the amount of risk in the fund. These are known as multi-cap funds.

Equity Linked Savings Scheme (ELSS)

Have you heard about ELSS, which can give you tax savings? ELSS is also known as tax saving vehicle or an equity instrument. In ELSS, you can lock your funds for a period of 3 years, thereby it will work as a very good investment plan for all the people who want to invest in MFs and to take benefit of tax savings.

want to know the best part?

SIP – Systematic Investment Plan

SIP is one of the best and the most structured way to invest in the Equity Funds. In SIP, there is a monthly installment that happens on a pre-decided date. Here, you give the permission to the fund company to deduct the amount from your bank. SIP mainly averages out the cost of investment. Here, you will be allowed low units when markets are high. While you will receive more units at the same amount.

SIP allows you to invest in a very structured and disciplined manner. One of the main benefits of SIP is, it helps you to invest in the market if you have a small amount to invest.

Read More: Hybrid Funds


What are Debt Funds and Who should invest in them

What are Debt Funds and Who should invest in them: Do you have any plan to invest in the debt funds in the near future? Do you have any queries related to debt funds? If yes, then you have reached the right place. Here, we will provide you all the basic information about debt funds such as what are debt funds, benefits of debt funds, types of debt funds and who should invest in debt funds.

What are Debt Funds?

What are Debt Funds and who should invest in them

Debt Funds are mainly a mixture of income earning investments like Government Securities, Corporate Bonds, Treasury Bills, Corporate Deposits, various money market instruments and debt securities of various measures.

Read More: Pan Card Status

The main difference between Equity and Debt Funds is whenever you buy any equity instrument like stock, you buy Ownership in that specific company and help in increasing its growth. However, in a case of Debt Funds, whenever you buy a debt instrument, you give a loan to that issuing entity. In return, all the government, as well as private companies issues, generate bills and bonds to continue their operations. The interest you gain from debt funds is pre-decided in advance, after which it will be closed.

Read More: Know Your PAN

Benefits of investing Debt Mutual Funds

Following are the main benefits of Debt Mutual Funds:

1. Time Horizon: When one thinks of investing in debt funds, one doesn’t have to worry about the Time Horizon. If you are thinking of investing for 3 months, then there are liquid Funds. These funds can be considered as a good choice when we compare with savings bank account. Also, they provide high liquidity and stable funds.

If you want to invest for a period of 3 months to 1 year, then they are called Ultra-short term bond funds. Also here, one can invest for a short term of 1-2 years, the medium term of 2-3 years and a long term of 3-5 years. In all the above terms, returns, as well as risks, increase as you invest for long term.

2. Tax Efficient: This is the main benefit of Debt Funds. In Traditional assured return products, interest income is taxed every year at income tax slab rates. However, in the case of debt funds, only a change in asset value is being taxed. In Debt funds, one has to pay short term capital gains if units are held of less than 3 years.

In debt funds, investors mainly benefit from long-term capital gains tax at 20% and only if a component of gain exceeds inflation. For Example, if you earn 8% per annum for over a period of 3 years and the inflation rate is 4%, you just need to pay tax on the incremental returns of 4%. This is known as Indexation and is mainly calculated using the cost inflation Index.

3. Regular Cash Flows: Day by day interest rates are decreasing and life expectancy is increasing. Due to this, there is a fear that retirees may run out of retirement corpus. In Debt mutual funds, you can achieve good cash flows using Systematic Withdrawal plans. For Example, if you invest Rs 25 lakh in a bank with a deposit paying 9% interest per annum. Hence, you will get about Rs 18,750 per year.

In this case, if you are coming under the highest tax slab of 30%, then you have to pay about Rs 5,600 as a tax on the total interest received and your final net income becomes Rs 13,100.

But, if you choose to invest in SWP with a monthly investment of Rs 18,750, you have to just pay a fraction of tax thus generating highest tax returns.

4. Diversification: Debt Funds helps you to make more diversified portfolio as they provide more returns as compared to equity funds. Hence, Diversifying in the debt funds decreases the overall portfolio risk.

5. Flexibility: Debt funds provide more flexibility than fixed deposits. One of the major benefits of debt funds is, one can withdraw the money every month, which is very much beneficial for retired people. Also, one can shift the money from a debt fund into an equity fund or any other scheme.



Types of Debt Funds

Dynamic Bond Funds

These types of funds are not fixed for a particular maturity period. Dynamic Mutual Funds have a varying maturity period as these funds interest call rates and invest in instruments with short as well as long maturities.

Income Funds

Income Funds you can invest in a scheme with across different debt instruments such as bonds, government securities, etc. These are more stable as compare to Dynamic Funds. Here, one can invest for short term of 1-2 years up to a long term of 15-20 years.

Gilt Funds

Gilt Funds mainly invest in the Government Securities. As they are owned by the Government, they don’t have any risk. However, these funds have high-interest rate risk. Also, these funds lose some part of the net asset value (NAV) due to any changes in the interest rates.

Liquid Funds

All the investors who are planning to invest for about 3 months, then liquid funds are the best. Liquid Funds invest in the debt instruments with a maturity period of about 91 days. Various liquid money market instruments include treasury bills, commercial papers, Commercial deposits, etc. The returns obtained using liquid funds are more comfortable. Also, liquid funds are a nice substitute of a savings account as it provides similar liquidity and higher returns.

Short term funds

This is a very good investment option for all the investors who want to invest for just 3-6 months. These funds mainly invest in the short term papers such as Commercial papers, and certificate of deposit.

Credit Maturity Funds

These funds have recently been introduced. As compared to all the other debt funds, Credit Maturity Funds doesn’t invest as per the maturities of debt instruments. These funds focus on getting higher returns by taking a call on credit risks. These bonds seek to hold low rated bonds that arrive with high rated risks. These funds hold more risk.

Fixed Maturity Plans

These are also known as closed-end funds. These funds invest in fixed income securities like corporate bonds and government securities, which comes with a fixed tenure. All the FMPs have a fixed tenure in which money will be locked-in. This tenure can range from months to years. In FMPs, there is no interest rate risk. Here, FMPs can provide higher returns but there is no guarantee.


Bottom Line:

How to Select Debt Mutual Funds?

One should select the Debt Mutual Funds, based on two main aspects. One is Investment Horizon and the other one is matching scheme for Investment.

Last but not the least:

Who should invest in Debt Funds?

Debt Mutual funds are very much beneficial to the regular investors. They are also considered as an alternative to fixed deposits. Debt Funds generate returns and are in the range of fixed deposit interest rates, while they are more efficient as compared to fixed deposits.

In Fixed deposit, the interest earned is added to your income and taxed as per your slab. While short-term gains which are obtained from the debt funds are also added into the investor’s taxable income. Here, they become tax efficient when the holding period is more than 3 years. Here, long term gains are taxed at 20% indexation.

Debt Funds are also known as liquid funds. As we know, fixed deposit comes with a fixed tenure, debt funds can easily be closed anytime or can be shifted to any other funds.

One of the main point to remember is, debt funds don’t provide a full guarantee of returns such as fixed deposits.

We hope that you got all the essential information about debt funds. If you liked this article, then please share it with your family and friends.



Know the Issue Date and Place of PAN Card – Pan Card Status

Know issue date and place of pan card: Are you excited to know the issue date of your PAN Card? Then you have reached the right place. Here we will provide you complete information about know issue date and place of PAN Card.

As we all know, PAN Card is one of the most important document. PAN Card is mainly used to pay tax. PAN Card can also be used as a Proof of Identity by all the Citizens of India. As per the government rules, PAN Card is required in various situations such as open a new bank account, receive a taxable salary, for making transactions above Rs 50,000, etc.

As per the new rules, all the Citizens have to compulsory link Aadhar Card with the PAN Card in order to pay tax. Otherwise, one will not be able to pay tax. Also, there are chances that your PAN Card gets rejected. To avoid this kind of situation, one should link PAN Card with Aadhar Card as soon as possible. Check NSDL & UTI Pan Card Status.

Know the Issue Date and Place of PAN Card

PAN Card Issue Date is not required for any of the documents. But, for the knowledge and information purpose, PAN Card Issue Date is printed on the right-hand side corner vertically. You will be able to see the date beside the photo. It is shown in the image below:

Know issue date and place of pan card

While, if you have issued PAN Card from an agency, then you will be able to view the name of the agency in front of your PAN Card.

Please note that all the PAN Cards which are issued before 2011, doesn’t display the Issue date on the PAN Card.

We hope that you are now able to get details about Know issue date and place of pan card. If you like this article, then please share it with your family and friends.

Related Post:

Name Change in PAN Card after divorce of Woman

Name Change in PAN Card after divorce of Woman: Due to certain conditions, a woman needs to change the name in various ID Cards and Records. This mainly happens when a woman wants to change her name or when she gets divorced. Here, we will provide you completed information about Name Change in PAN Card after divorce of Woman. Check Pan Card Status.

Name Change in PAN Card after divorce of Woman

PAN Card is must require in order to pay Tax. PAN Card is also recognized as a proof of identity. A woman can change the details in the PAN Card by filling the PAN Card Change/ Correction Form.



Name Change in PAN Card after divorce of Woman

As per the new government rules, PAN Card is required at various places such as
1. In order to pay tax
2. When you are making a transaction of more than Rs 50,000. Apart from this, PAN is useful at various other places.


Process to change name in PAN Card after divorce of woman

In order to change PAN Card details, follow the step-by-step process given below:

  1. First of all, Visit the Official website of NSDL or UTI to apply for PAN Card Correction.
  2. Then. Please fill the application form online with all the required details.
  3. Tick mark all the details that you want to be changed.
  4. Select a proper ID proof, Address proof, and Date of Birth proof.
  5. Now pay the nominal charge online using Net Banking, Credit Card or Debit Card, etc.
  6. Then, take print out of the form. Stick two passport size photographs along with your signature.
  7. Lastly, attach all the required proof of documents and then send the documents via post to the UTI or NSDL Office.



Second Way to make corrections in PAN Card

Follow the simple steps given below:

  •  Apart from above procedure, one can also Download the PAN Card Application form from the official NSDL or UTI Website.
  • Then all the required details in the application form.
  • Tick mark all the details that you want to change on the right-hand side.
  • Stick two passport size photographs and sign the document as required.
  • Attach all the documents required such as Proof of address, Proof of Date of Birth and Proof of Identity.
  • Visit the nearest PAN Card Office, submit all the documents and pay the amount.

After following any of the above procedure, PAN Card will be sent to your registered address within a span of 20-30 days.

We hope that you got all the information about Name Change in PAN Card after the divorce of Woman.



Hybrid Funds

Hybrid Funds: Are you searching for Hybrid Funds? Then you have reached the correct place. Here, we will provide you information about what are Hybrid Funds and the Types of Hybrid Funds.

Read More:  INCOME TAX


Hybrid Funds are a type of mutual Funds which invest in different types of asset classes. These Funds are also referred to as the combination of equity, debt, and bonds.

Read More: Pan Card Tracking

Hybrid Funds




Using these Funds one can invest in different areas. Hybrid Class allows investing in different asset classes in order to obtain diversification and reduce risks that are associated with any one asset class. One can invest in these Funds by considering in mind various aspects of it.



Bottom Line:

To which investors Hybrid Funds will be beneficial?

1. It is useful for all the people who are looking for both current income and long-term capital investment.
2. All the Individuals who are ready to handle moderate risks.
3. Individuals who are expecting higher growth potential as compared to other bond funds.
4. Investors who are ready to diversify their interest in both stocks and bonds within a single bond.



Different types of Hybrid Funds

There are mainly two types of Hybrid Funds based on the Equity and Debt ratio:

1. Equity Oriented Hybrid Funds

This kind of fund invest major part in the equity segment. These funds will be more favorable for people who are less risks takers and believe in long-term investment.

Most of the time, the exposure to equity is around 65%, while in some cases investment in equity may rise to 75% or 80%. When equity is around 75%, the fund could increase the exposure to mid-cap stocks for higher returns.

2. Debt Oriented Hybrid Funds

Debt Oriented Hybrid Funds can be further classified into conservative, moderate or aggressive funds based on the exposure of equity funds. All these funds will have a different range of equity exposure. Here, conservative funds will have an equity exposure of 10 % while, moderate funds will have an equity exposure of 20% and aggressive funds will have an equity exposure of up to 30%.

The main purpose of these funds is to keep the capital safe by generating higher returns as compared to the main fixed deposit rates.



But here is the Kicker:

Other Hybrid Funds

Apart from the above two, there are other Hybrid Funds such as Arbitrage funds. Arbitrary Funds are equity Oriented funds which take the main benefit from the difference in stock in the derivatives market and in the cash.

Read More:  HOW TO E-FILE ITR-1


In Arbitrage Funds, the fund manager looks of proper chances to generate maximum profit by buying stocks at a low price and selling them at a higher price. Also, these Funds have low risk. Apart from this, long-term returns which are gained from funds are tax-free. Keep in mind that, Arbitrage funds are not available simply. Whenever there is absence or shortage of arbitrage opportunities, funds will stay in debt or in cash. Due to this reason, they are included in Hybrid Funds.

Read More: Documents required for PAN Card

Last but not the least, there are some funds, which invest in gold along with equity and debt. However, the purpose is same: to diversify your investment in various funds, lower risks and increase more returns from the investor.

We hope that you got all the important details about Hybrid Funds. If you like this article, then please share it with your family and friends.