Health insurance provides coverage for unforeseen medical costs and hospital bills when you most require it. Health insurance is one of the best ways to overcome such financial crises. In India, most people don't have health insurance and rely on their own savings or borrow money when they have medical emergencies. To encourage people to purchase health insurance policies, the government introduced tax benefits on medical insurance under Section 80D.What is Section 80D?Every individual or HUF can claim a deduction for medical insurance premiums paid in the financial year under Section 80D. This deduction is also available for top-up health plans and critical illness plans.The best part is that it is over and above the Rs 1.5 lakh limit deductions claimed under Section 80C.Note: This deduction can be claimed if an individual or HUF chooses to pay taxes under the old tax regime. Who is Eligible for Deduction Under Section 80D? IndividualsHindu Undivided Family (HUFs)No other entity can claim this deduction. For example, a company or a firm cannot claim a deduction under this section.What Deduction is Allowed Under Section 80D?The following expenses are allowed as deduction under Section 80D:Medical insurance premiums paid for self, family and parentsMedical expenses incurred for senior citizensIndividual or HUF taxpayers can claim deduction for the insurance premium payments made for:Self Spouse Dependent children ParentsPayments Eligible as Deduction Under Section 80DAn individual or HUF can claim a deduction under Section 80D for the payments mentioned below:Health insurance premiums paid in any mode other than cash:Up to Rs.

House Rent Allowance (HRA) is one of the crucial element in the salary package of the individual. It's a significant benefit provided by employers to cover a portion of an employee's rental expenses for their residence. This article aims to explain the significance and extent of the deduction permissible for HRA.What is HRA (House Rent Allowance)?House Rent Allowance (HRA) is an allowance (part of CTC) given by your employer to help you cover the cost of living in a rented accommodation. Is HRA Taxable?HRA is a part of your salary income and therefore, it is initially considered as your taxable income. However, if you live in a rented accommodation, you can claim a tax exemption either – partially or wholly under Section 10(13A) of the Income Tax Act. This is popularly known as HRA exemption.

Advance tax is a tax payable by individuals on income sources beyond their regular salary, including earnings from rent, capital gains, lottery earnings, fixed deposits and more. Payments can done online using e-filing portal.The due date for the third instalment of advance tax is 15th December 2024 for FY 2024-25.Advance Tax Calculator – Calculate Advance Tax LiabilityUse this intuitive tool from Cleartax to calculate your advance tax liability:What is Advance Tax?Advance tax is the income tax that is paid in advance instead of lump sum payment at the end of the financial year. It is the tax that you pay as you earn. These payments have to be made in instalments as per due dates provided by the income tax department.  Who Should Pay Advance Tax?Salaried individuals, freelancers and businesses– If your total tax liability is Rs 10,000 or more in a financial year, you have to pay advance tax. The advance tax applies to all taxpayers, salaried individuals, freelancers, and businesses.Senior citizens– People aged 60 years or more who do not run a business are exempt from paying advance tax.

The Senior Citizens Savings Scheme (SCSS) is primarily for the senior citizens of India. The scheme offers a regular stream of income with the highest safety and tax saving benefits. It is an apt choice of investment for those over 60 years of age. In this article, we will learn about the following:Meaning of SCSSFeatures of the SCSSEligibilityInterest RateBenefits of SCSSProcedure to Apply for the SCSSDocuments requiredTax BenefitsWhat is the Senior Citizen Savings Scheme (SCSS)?Senior Citizen Savings Scheme (SCSS) is a government-backed retirement benefits programme. Senior citizens resident in India can invest a lump sum in the scheme, individually or jointly, and get access to regular income along with tax benefits. It is a Post Office savings scheme.

As a part of the Beti Bachao Beti Padhao campaign, Prime Minister Narendra Modi launched a scheme called ‘Sukanya Samriddhi Yojana (SSY)’, the campaign literally translates to ‘Girl Child Prosperity Scheme’ in line with the above objectives. It was launched on 22 January 2015 in Panipat, Haryana.What is Sukanya Samriddhi Yojana (SSY)?In order to majorly address the issue of the declining child sex ratio in our country, the Government of India launched a social campaign on 22 January 2015. The Beti Bachao Beti Padhao (BBBP) campaign sends the message ‘Save girls, educate the girl child’. This is a national initiative jointly run by the Ministry of Women and Child Development, the Ministry of Health and Family Welfare, and the Ministry of Human Resource Development.BBBP aims to achieve the following:To stop gender discrimination against children and abolish the practice of sex determination.To ensure the survival and protection of girls.To ensure higher participation of girls in education and other areas.SSY aims at tackling a major problem associated with the girl child i.e., the financial burden related to education and marriage. It is focused on securing a bright future for the girl child in India by facilitating the parents of a girl child in building a fund for the proper education and carefree marriage expenses of their child.

After filing your ITR if you do not get the refund because of the following errors:  Restricted Refund PAN - Bank account - IFSC linkage failedValidation in ProgressValidation in Progress not eligible for refundthen you must read the article and understand how to resolve the errors.What is Restricted Refund On Income Tax Portal?Many tax filers are observing the status ' Restricted Refund ' in the bank account section (Dashboard > My Profile > Bank Account). To understand the reason for this status, click on the three dots and select ‘View Bank Account Details’. Now. refer to the 'Remarks' section. This status commonly appears due to a name mismatch between the PAN and bank records. It's crucial to have the same name on both documents. To resolve this, update either your PAN or bank name. Practically, updating name in bank records is a much faster process than updating it on PAN.Common Bank Account Validation Errors on Income Tax PortalErrorReasonsSolutionRestricted RefundName mismatch between the PAN & Bank> Update either the name on PAN or bank. (PAN and Bank details must have same name)PAN - Bank account - IFSC linkage failedPAN not available with bank> Contact branch to link your PAN with the bank account or update KYC> Submit re-validation requestAccount number does not existWrong account number entered> Click Re-Validate > Enter the correct bank account number > Submit re-validation requestInvalid IFSCIn case of bank mergers, the IFSC code may change> Click Re-Validate, > Enter the correct IFSC > Submit re-validation request- Bank account closed / inactive- Zero balance / Inactive account- Litigated Account- Account frozen or blockedUnusable bank account> Click Re-Validate, > Try with a different bank account number. PAN - Bank account - IFSC linkage failedWhen pre-validating a bank account, you are required to submit a pre-validate request. Once the request is submitted, then, your contact details, including PAN, are verified with the bank details.

Thanks to the fintech sector, which has made Wall Street accessible to Dalal Street investors. With a large number of investors punting on the US stock markets, it becomes more important than ever to discuss the compliance requirements in India. This article attempts to enlist all the tax implications and how to use ClearTax to fill the required details in your ITR if you have invested in US stocks.Tax Implications if you have Invested in US Stocks Any resident individual who has invested in US stocks, i.e. equity shares or debt instruments of a US entity, must disclose the details of their holdings in the income tax return(ITR) in India. This disclosure should be given regardless of whether you have made gains from such investments.

Tax assessment is an integral part of the Indian taxation system, ensuring that taxpayers contribute their share of tax and fulfil necessary obligations. In cases where a taxpayer fails to file his/her income tax return, Section 144 of the Income Tax Act allows Assessing Officers to assess tax liability by following the Best judgment assessment process.In this article, we will guide you with all the necessary details mentioned below regarding Section 144 and how the AO offers his best judgement assessment based on your circumstances.Meaning of Section 144Understanding of the Best Judgement AssessmentSituations requiring Best Judgement AssessmentNotice Under Section 144Time Limit to initiate AssessmentConclusionWhat Is Section 144 Of Income Tax Act?Section 144 of the Income Tax Act 1961 deals with the assessment of a taxpayer that is carried out by the Assessing Officer (AO) as per his best judgement and based on all relevant information gathered. Such assessments are generally done in cases where any taxpayer fails to comply with the requirements of other sections of the act, and will be discussed in detail. Best Judgement Assessment In Income TaxAs per the Income Tax Act, a best judgement assessment signifies the assessment performed by an assessing officer with specific knowledge of an assessee’s financial circumstance. If a taxpayer is unable to produce necessary documents or fails to file tax returns, the taxation authorities might initiate a best judgement assessment to determine his/her tax liability.There are certain conditions that the assessing officer considers before applying the best judgement assessment. It helps to ensure the judgement is fair, unbiased and accurate.

If you're an Indian resident investing in US stocks, you may be wondering how your investments will be taxed and if there are any exemptions. In this article, we will break down the tax implications of investing in US stocks, specifically focusing on how dividends and capital gains arising from the US stocks will be taxed in both the US and India. Firstly, let's understand the types of income you may receive from investing in US stocks: DividendsCapital Gains on saleLet us look at how these incomes will be taxed in both the countries.Tax in USADividendIf a US company earns excess profits, then it may offer to distribute it profits by dividends to stockholders. As and when the Indian Investor earns this dividend incomes from a US Company, it is treated as income arised from US and will be subject to a maximum of 25% tax in the US according to the India-US DTAA. (DTAA is a treaty entered between the countries to avoid the double taxation on the persons having dealings in both the countries)Capital GainsThe other gain that the investment in US stocks can generate is the capital gains on the sale of stocks that is when the stocks are sold at a price higher than the purchase price. The good news is that, there is no capital gains tax in the US for Non-Resident Alien.Tax in IndiaDividendSuch dividend income will be taxable in India as well (as in case of tax residents of India, global income is taxable).

Employee Provident Fund is a fund meant for the welfare of employees where 12% of the employee’s basic salary and dearness allowance is contributed to the fund account every month. The employer also contributes an equal amount.You can withdraw this PF balance as per the PF withdrawal rules. However, if the amount you withdraw is more than Rs.50,000 in a year, the government will deduct some tax called TDS (Tax Deducted at Source) under section 192A of the Income Tax Act. So, you will receive only the balance amount after the tax is deducted.However, you can make sure that there are no TDS deductions on your PF withdrawal amount by filling out Form 15G if your income is below the taxable limit. To learn more on this matter, please read on.What is Form 15G?Form 15G or EPF Form 15G is a document people submit to ensure no TDS is deducted on the interest you earn from your EPF, RD or FD.