QUOTE OF THE WEEK:
"Central banker can never be comfortable; we tried to balance between inflation and growth. The moment we find a right mix, currency will take care of itself" - Raghuram Rajan, Governor, Reserve Bank of India
YOUR FINANCE DEMYSTIFIED:
Importance of receiving ITR-V acknowledgement
Most of us file our income-tax (I-T) returns ‘online’ before the July 31 deadline. Electronic filing (e-filing) is convenient and you can even pay your taxes online. However, filing your returns online does not mean that the process of filing return is complete. If you have added your ‘digital signature’ while e-filing, then your return filing process is complete. You will receive the acknowledgement by I-T department through email.
But if you have filed your return online ‘without adding digital signature’, then the process of e-filing is not complete. Your e-filing will only be complete after the central processing centre (CPC) of the I-T department sends an email or SMS acknowledging the receipt of the Form ITR-V.
ITR-V stands for ‘Income Tax Return–Verification’ Form. It is a one page document. ITR-V is received when you file your I-T return online—without using a digital signature. It is sent by the I-T Department. The I-T Department needs to verify the authenticity of your e-filing which does not have a digital signature. On receipt of Form ITR-V, you have to sign the copy of the Form in ‘blue ink’ and submit it to the I-T Department CPC, Bangalore to complete the filing process...Read more
Tax: Inter-source adjustments vs inter-head adjustments
Taxpayers earn income from salary, house property, business or profession, capital gains and income from other sources. There cannot be a loss from salary and income from other sources. However, we could suffer losses under other heads of income such as loss from house property, business loss and capital loss.
Adjusting loss from one head against any gain under the same head is called 'inter-source' adjustment. For example: You have two businesses 'A' & 'B'. Business 'A' is making a loss, while business 'B' is making profit. Then, the loss from business 'A' can be set-off against profit from business 'B'. Set-off means the process of reducing one’s income using losses under other heads or same head of income... Read more
DID YOU KNOW?
Assessment of tax made before it is possible to make a final assessment which is often based on, for example, estimated figure or the previous year's figures.
What is Finance Act?
The Finance Act contains necessary amendments in the direct taxes (e.g. income tax and wealth tax) and indirect taxes (e.g. excise duties, custom duties and service tax) signifying the policy decisions of the Union Government.
Finance Bill is presented usually in the last week of February every year and this bill contains amendments in direct as well as indirect taxes. It is usually presented in the Parliament by the Finance Minister.
The finance bill is passed by both the houses of Parliament after it is being tabled and necessary recommendation / amendments have been made in it. Once this bill has been passed by the Parliament, it goes to the President for his assent. After President’s assent, the finance bill becomes the Finance Act...Read more
TERM OF THE WEEK
Wealth tax is a direct tax, which is charged on the net wealth of the assessee. It is a tax on the benefits derived from ownership of property. The tax is to be paid year after year on the same property on its market value, whether or not such property yields any income. Wealth tax, in India, is levied under wealth-tax Act, 1957.
IN THE NEWS THIS WEEK
RBI relaxes gold loan ceiling for Non-Agricultural End-uses
RBI eases norms to buy immovable property abroad
RBI issues instructions for flexible loan structuring
FLAME (Financial Literacy Agenda for Mass Empowerment) is an IIFL initiative to promote financial literacy amongst the masses in order to make them an integral part of India’s spectacular growth story.
In an era of accelerating GDP and rising per capita growth, financial literacy has become more critical than ever before such that we all reap the tangible benefits of the nation’s economic prosperity. Financial inclusion has been quite high on the governmental agenda, given its emphasis on widening the Banking & Financial services network across the country. IIFL’s FLAME initiative stands committed to complement this effort by helping common people gain financial growth and security though better awareness and education on the variety of financial products while avoiding the lure of and loss from unrealistic claims made by unscrupulous agents and ponzi schemes.
Our objective is to light a FLAME, as the name suggests, which will set ablaze a chain of FLAMEs across the country. The new-found light of knowledge will undoubtedly dispel the dark clouds of financial illiteracy and ensure the bright sunshine of financial growth and prosperity.
This portal is but one of the various IIFL initiatives that would be part of FLAME.