Section 80CCF and Infrastructure Bonds

This is an update for those who might be unaware.

For the financial year 2012-13 the deduction under section 80CCF for infrastructure bonds has been withdrawn. This deduction will most likely not be available in 2013-14 also.

However, infra bonds still say they are tax free because the tax-free then means that these bonds will fetch tax-free returns, that is, the interest earned from the bonds is exempted.

So, you will have to find an alternative if you want to avail tax benefits on investments above Section 80C limit of 1 lakh.

Five Businesses You Can Start For Under Rs. 50,000

Small businesses have always been the backbone of India. Even though there are many perks for working for self, many people are reluctant to start a business because of lack of funds. This of course is true if you are looking at starting a restaurant, or setting up a manufacturing unit where you may require as much as Rs.500,000 in initial investment. However, not all businesses require that much investment. There are many businesses that one can start for less than Rs.50,000, which are clearly not capital intensive but idea intensive.

portable office

Portable Office

While looking at starting a business with less money, one needs to look and seek ideas that will depend on business muscle more than financial. You may decide to sell a product or a service. In either case, your biggest expenses are going to be the working space and the salaries you pay to your employees. In most cases, you will also require a laptop, an internet connection, a telephone line and conveyance. You will also have to spend a small amount to register your business. [2] With all this, anyone is all set to start a small business that can even be grown to a multi-million dollar enterprise.

This article explores five ideas for a business you can kick start for less than 50k.

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How to Get Digital a Signature

Digital Signature in a USB Token

With many government departments embracing technology, it is becoming easier for Indian individuals as well as businesses to interact with them and even submit their documents electronically. For example, now you don’t have to prepare your tax returns on paper and stand in long queues to file the returns. You can actually file your tax returns online and even sign them digitally using a digital signature.

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The Enthusiastic Prospective Home Owners Cost Checklist

Image: ‘Bird Houses / 20071230.10D.46705 / SML’

A home you can call your own. A space where your children can scribble with a crayon. Your wife can put up as many paintings as she wants. Play areas, not roads to play. Wade in the swimming pool in summer for the kids. You can tone up your muscles at the building gym. A home to live in, and a community space to socialize. All in just Rs. 35 lacs or Rs. 50 lacs. You plan, scrimp, take a loan and make the down payment. Unfortunately new costs come up, one by one, which put further strain on you. It is therefore a good idea to have a checklist about most of the costs associated with buying a house.

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Home Made Beauty and Personal Care Tips

First a disclaimer. I am not a beautician or any kind of beauty expert. I often have very little time to take great care of myself. I am though a concerned mother who doesn’t want her kids to scratch themselves out because their skin is dry, or have smelly, knotty hair. My earlier monthly shopping always had a big can of baby lotion, shampoos for kids, shampoo for my husband and me, conditioners, creams for me…you get the idea.

Image: 'Stag Shop - Mississauga (on Derry Road)'

However, over time when you pour over the ingredients in each, you wonder how safe they are and if you really need all of it? Anyone who goes to shop for personal grooming products knows the feeling. The neatly arranged products in their pretty covers all call out to you. They whisper promises of smoother faces, glowing skin and lustrous hair. Before you know you have a basket full of personal grooming products, which post use you realize weren’t very different from the ones you bought earlier.

A lot of asking about and talking to friends and mothers my saving tip is go traditional. Our grandmothers with their oils and remedies, glowing in their 80’s are like that for a reason.

Let’s take a look at some of the simple things you can do at home that will not only help you stay gorgeous but also save some money.

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Income Tax Benefits on Home Loans

Resident Indians are eligible for certain tax benefits on principal and interest components of a loan under the Income Tax Act, 1961.

Benefits on interest paid

For self occupied properties, interest paid on a housing loan up to Rs 150,000 per year is exempt from tax. However, this is only applicable for a residence constructed within three financial years after the loan is taken and also the loan if taken after April 1, 1999.

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Investing in RBI Relief Bonds

RBI relief bonds are debt instruments issued by the Reserve Bank of India. There are many reasons why an investor would prefer to invest in RBI bonds. One, these bonds are completely risk-free. Two, they provide decent interest rate (~8%). The name of the bond specifies the interest rate offered on it, for example, 8% Savings Bond. Let’s look at some of the features of RBI Relief Bonds.

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Tax Deductions on Education Loan

So, you completed your studies and immediately got a job. You had taken an education loan for which you are paying an EMI every month. You’re completing one year in your job and it’s now time to file taxes. Can this education loan help you reduce your tax burden? The answer is Yes.

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Understanding Tax Deductions Under Section 80C

The Income Tax Act in India allows certain deductions to be made from the gross total income which can help us reduce the tax liability. One such section under which deductions are available is Section 80C. Section 80C of the Income Tax Act helps us save on taxes by allowing certain savings and investments. The idea is to encourage every person to save for long-term to benefit them in their retirement.

Under Section 80C, investments unto Rs. 1 lakh are tax deductible, provided that these investments meet the criteria specified under this section. What this means is that if you make investment of Rs. 1 lakh in the financial products as specified under Section 80C, then this 1 lakh will be deducted from your total income while calculating the taxable income. So, you don’t have to pay any tax on this amount. Please note that apart from Section 80C there are also other sections that allow you to save on tax, we will discuss them in other articles.

Let’s take a look at the investments that qualify for deductions under section 80C.

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Calculation of Taxable Income

In the previous articles we looked at the tax slabs for different income and age groups. We learned that the amount of tax payable is based on the total taxable person of the individual.

Let’s take a brief look at the taxable income. Below the the three steps to calculate the taxable income.
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