WHAT IS HEALTH INSURANCE?

Health insurance is a type of insurance coverage that covers the cost of an insured individual's medical and surgical expenses. Depending on the type of health insurance coverage, either the insured pays costs out-of-pocket and is then reimbursed, or the insurer makes payments directly to the provider.

In health insurance terminology, the "provider" is a clinic, hospital, doctor, laboratory, health care practitioner, or pharmacy. The "insured" is the owner of the health insurance policy; the person with the health insurance coverage.

REASONS TO BUY HEALTH INSURANCE

1. RISING COST OF TREATMENTS: Medical treatments cost rise by 15% every year due to Inflation

2. FINANCIAL SECURITY: Gives you financial security & quality healthcare access for expenses like hospitalization, day care treatments and even OPD expenses

3. TAX BENEFITS: Saves your tax under Section 80D upto INR 55,000 every year.

 

The top announcements made by finance minister Nirmala Sitharaman!!

*Enhanced surcharge on FPIs stands withdrawn.
* All pending GST refunds till now shall be paid in 30 days. Future GST refunds to be paid in 60 days.
* BS-IV vehicles can be used till registration period.
* BS-IV cars purchased till March 2020 to be valid.
* Govt asks its departments to replace old vehicles
* Higher vehicle registration fee deferred to June next year.
* Higher depreciation for all vehicle: Depreciation increased to 30 per cent for all vehicle purchased till March 2019.
* Scrappage policy to be announced soon.
* Govt withdraws angle tax provision for startups and their investors.
* Banks to make home, auto loans cheaper. Banks have agreed to pass on the rate cut announced by RBI to customers. Banks to launch Repo Rate linked loans.
* Online tracking system for home, auto loans
* PSBs to return loan documents to customers within 15 days of loan closure.
* NBFC can now use Aadhaar-based KYC
* NHB to be given Rs 30,000 crore
* Aadhaar-based KYC for opening demat accounts and investment in mutual funds
* One-time settlement policy for MSME loans.
* Laws to be amended to ensure one MSME definition.
* Govt to release Rs 70,000 crore upfront for PSBs recapitalisation.
* CSR violation would be treated as a civil offence, not a criminal offence.
* FM vows steps to end tax harassment. Old tax notice to be decided by October 1.
* All Income Tax notices must be disposed off within 3 months.

What is asset allocation?

Asset allocation is an investment strategy dividing an investment portfolio among different asset classes, such as stocks, bonds, and cash.
Each asset class has different levels of return and risk, so each of them will behave differently over time depending on the market conditions.
The purpose of implementing an asset allocation strategy is to balance the payoff between risk and reward.
Determining your asset allocation is the most important decision that you make, because it will likely have more impact on your overall return than the selection of individual investments. So, try to pick the best mix of assets that has the highest probability of meeting your goal at a level of risk you can live with.
Asset allocation largely depends on the following factors:
  • Age
  • Financial goals
  • Investment time horizon
  • Risk appetite

What Is TDS??

TDS represents tax deducted at source. According to the Income Tax Act, any organization or individual making an installment is required to deduct charge at source if the installment surpasses certain edge limits. TDS must be deducted at the rates endorsed by the tax department.

The organization or individual that makes the installment subsequent to deducting TDS is known as a deductor and the organization or individual getting the installment is known as the deductee. It is the deductor's duty to deduct TDS before making the installment and store the equivalent with the administration. TDS is deducted independent of the method of installment money, check or credit–and is connected to the PAN of the deductor and deducted.

TDS is one sort of advance tax. It is charge that will be kept with the administration occasionally and the onus of the doing likewise on time lies with the deductor. For the deductee, the deducted TDS can be claimed in the form of a tax refund after they document their ITR.

Different rates of TDS have been prescribed by the Income Tax Act for different payments and different categories of recipients. For example, payment of redemption proceeds by a debt mutual fund to a resident individual is not subject to TDS but for a Non-resident Indian is subject to TDS. 

There are certain incomes on which TDS is not collected, at source, like the following:

·        Interest which is paid to the central or the state financial organizations.

·        Institutions which are notified under no-TDS.

·        Interest earned on KVP, NSC or Indira Vikas Patra schemes.

·        Interest earned on NRE accounts.

·        Interest earned on KVP, NSC or Indira Vikas Patra schemes

·        Interest earned from Recurring Deposits or Savings Account opened in co-operative societies.

·        Interest earned from Recurring Deposits or Savings Account opened in co-operative societies.

·        UTI, LIC and other insurance or co-operative societies.

Highlights of 2019 budget

1. Turnover Limit for claiming lesser tax rate by Companies (25% instead of 30%) has been increased from INR 250 crores to INR 400 crores. In other words, Domestic Companies having turnover upto INR 400 crores in F.Y. 2017-18 will be charged to 25% tax rate in F.Y. 2019-20.

2. Surcharge in case Individuals/ HUF has been increased. Now, if an individual is having income ranging between INR 2 crores to 5 crores, then 25% Surcharge will be applicable and those having income greater than INR 5 crores, 37% Surcharge will be applicable.

3. TDS at the rate of 5% has been brought in for non-tax audit individuals or HUF if they avail contractor’s services or professional services greater than INR 50 lakhs in a F.Y. either for personal or business use.

 4. TDS in case of Insurance will now be deducted at the rate of 5% on the amount of income.

5.  Filing of ITR has been made mandatory for such persons who have deposited > INR 1 crores in their current account OR expended > INR 2 lakhs on their foreign travel OR expended > 1 Lakhs on electricity.

6.  Aadhaar can be used inter-changeably with PAN and ITR can be filed if a person do not have PAN but have Aadhaar Number.

7. Provisions have been made to incorporate BHIM UPI, Wallet Payments as permissible mode of payments under the Income tax Law and no disallowance will be there in case payments are made in such mode. 

8. TDS at the rate of 2% has been brought in for withdrawal of cash payment from the Bank exceeding INR 1 crore in a financial year. 

 9. Large Businessmen (with Turnover > INR 50 crores) have to provide a facility for electronic mode of payment mandatorily.

10. NBFCs are not required to pay tax on Interest on NPAs on accrual basis and they can also take the benefit of receipt-based taxation of Interest at par with Banks. Further, deduction to businesses for interest to NBFCs will be on payment basis u/s 43B.

11. Deduction under Chapter-VIA has been introduced upto an amount of INR 1.50 lakhs w.r.t. Interest on loan taken for purchase of first electric vehicles availed between 01.04.2019 to 31.03.2023.

12. Deduction under Chapter-VIA has been introduced upto an amount of INR 1.50 lakhs w.r.t. Interest on loan for new residential house property having value of upto INR 45 Lakhs availed between 01.04.2019 to 31.03.2020.

13. 0% TDS on interest paid to non-residents in respect of INR Bonds issued between 17.09.2018 to 31.03.2019.

14. Online Application for lower deduction of TDS will be brought in under Section 195 in case of payments to non-residents

15. Listed as well as Unlisted Companies will have the same process of taxation of Buy Back Transactions in the Company’s hands u/s 115QA and the same will be exempt in shareholder’s hands.

16. In case of Non-Residents, if the assessee failed to deduct TDS but such Non-resident pays tax in its ITR, then also the expense will be allowed. Earlier, the same was available only in case of resident payees.

 17. Relief u/s 89 will be available in case of Computation of Advance Tax now.

Income Tax Return Filing!!

An Income Tax Return is a form where a taxpayer discloses details of his income, claims applicable deductions and exemptions and taxes that are payable on the taxable income. Further, details of taxes paid also reflect in the return. Any excess tax paid for a year will be claimed as a refund in the return of income.


Filing of income tax return online has been made mandatory for all classes of taxpayers barring few exceptions :

      1.Taxpayers aged 80 and above need not filed return online.

      2.Taxpayers having an income less than Rs 5 lakhs and not claiming a refund need not file return online

For the rest, online filing  is mandatory.

The most important benefit of paying taxes and filing your income tax return is that only the income disclosed by you in your income tax return is considered your true income. If you are required to show your income at any place in future, only the amount disclosed in your income tax return would be considered as a valid proof of your income.

 

Moreover, even if you apply for any Loan from a Bank, you are mandatorily required to show them your income tax return and only the income disclosed in this income tax return would be considered as a valid source of income.

 

Secondly, there are many expenses which are done by the Govt. like construction of roads, airports etc. The Govt. incurs these expenses from the taxes collected. It is a legal right of the govt. to collect Income Tax and in case you don’t pay your income tax they may issue you a scrutiny notice and demand you to pay your Income Tax along with Interest and huge penalties.

 

For most individual taxpayers, the due date for filing return of income is 31 July immediately following the concerned financial year. 

 

E-filing online is a more complete and better alternative to filing on the income tax website. Also it is for more than just e-filing your income tax return. Young India Filing helps you claim all the deductions you’re eligible for and helps you invest.

 

Once you file your return online, you either e-verify the same or take a print of the ITR V and send it to CPC, bangalore for processing of your return. 

 


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