Nirmal Ghorawat’s Post

Gifts from Maternal Grand Parents. Amongst the various unsetteled controversies in Income tax of India, one is in respect of gifts received from Maternal Grand Parents (Nana, Nani). There appears to be a big difference of opinion amongst tax professionals as to whether or not Nana/Nani is covered in the definition of Relatives as contained in Explanation to section 56(2)(vii) and accordingly whether gift received by a person from his/her Nana/Nani is chargeable to tax or not so. I am of the clear view that gift received from Maternal Grand Parents is NOT taxable in the hands of receiver. What is the view of other esteemed colleagues? #Tax_Controversies #Taxability_Of_Gifts #Gift_From_Maternal_Grand_Parantes

Tax on gift in India is applied when the value of the received gift exceeds ₹50,000 in the financial year. Gifts from non-relatives valued over ₹50,000 are taxable in India. The tax rate depends on your income tax slab (5%-30%). However, gifts from close relatives like parents, spouses, or siblings are tax-exempt. #Compliancetips

This year, 70% of the returns we've filed have opted for the new income tax regime. The choice for many taxpayers, especially those without significant deductions, is clear—the new regime often means lower tax payments. From the government's perspective, the new regime offers several advantages: 1. Encouraging a more consumer-driven economy. 2. Gradually removing various deductions and exemptions to reduce false claims. 3. Simplifying income tax provisions. Looking ahead, the new regime may shift from being the 'default' to the only option available. However, the government must maintain key deductions that support economic upliftment, particularly for individuals with disabilities. The old regime provided deductions under sections like 80U, 80DD, and 80DDB, offering relief to families facing significant healthcare and maintenance costs for their loved ones. (These deductions are currently not allowed under new regime) I've often wondered how the current standard deductions under these provisions (₹75,000 for 40%+ disability, ₹1,25,000 for 80%+ disability) are still far too low compared to the actual medical expenses incurred. In fact, India was one of the few countries to offer deductions for mental illness even before it became widely discussed. As the new regime evolves, I sincerely hope that these critical aspects of our tax system are preserved. #unionbudget #incometax #icai #beyondnumbers #taxplanning #mentalhealth #india

As citizens of India, we play a vital role in the growth and development of our nation by contributing both directly and indirectly to the national coffers. Through our hard-earned taxes, we ensure that the government has the resources it needs to provide essential services and infrastructure for the betterment of society. However, we have certain expectations from our elected representatives in return for our contributions. First and foremost, we expect our elected representatives to act in the best interest of the constituency that elected them. This means being loyal to the party that gave them the ticket and not switching sides without a cooling period of at least two years. This will ensure that our representatives are accountable to the people who put their faith in them. Secondly, we want our elected officials to act as custodians of the taxes collected from the people. They should ensure that these funds are used efficiently for the development of infrastructure and essential services, rather than being distributed for personal or political gains. Any freebies or perks should be announced from their own coffers, not at the expense of the public exchequer. Furthermore, we expect our representatives to be actively present in the constituencies from which they were elected. Spending at least six months a year in the constituency will allow them to understand the needs and concerns of the people they represent. This will enable them to address issues effectively and serve the community in a meaningful way. Moreover, transparency is crucial in a democratic society. Elected officials should disclose their contributions and actions for the causes they were elected to serve. This will help build trust and accountability between the representatives and the people they represent. Lastly, we urge our elected representatives to condemn and prevent any violent protests that may arise in our constituencies. Destruction of public property only hinders development and progress. Our representatives should work towards peaceful solutions and uphold the rule of law. In conclusion, as taxpayers and citizens of India, we have a right to expect accountability, transparency, and dedication from our elected representatives. By following these principles, our representatives can truly serve the people and work towards the betterment of our nation.

DEAR SALARIED TAXPAYERS, IT S ALMOST 76 YEARS THAT THE GOVERNMENTS ACROSS PARTIES AND GROUPS ARE ENDLESSLY BRUITALLY DISCRIMINATING THE SALARIED TAXPAYERS. IF YOUBARE A SALARIED EMPLOYEE IN INDIA AND COME IN TO TAXABLE INCOME GROUP..... 1. YOU ARE TAXED THE MOST. 2. YOU DONT HAVE ANY WAYS AND MEANS TO SAVE TAXES LIKE THE BUSSINESS HOUSES(WHO HAVE POWER TO DECIDE HOW KUCH TO PAY AS TAXES). 3. YOU CANT CLAIM ANY COST OF LIVING OR VOST OF PROFESSION TO THE TAXES(IN FACT THEY HAVE YO KEEP PAYING PROFESSIONAL TAXES ALSO) 4. YOU DONT RECEIVE ANY PREFERANCE OR FREEBIES FROM GOVERNMENT. 5. YOU HAVE YO PAY TRIPPLE TAXES (IT,PT,GST) FOR THE POLITICIANS TO KEEP BUYING THE VOTES FOR FREEBIES AND KEEP ENRICHING THEIR FAMILIES OR KEEP HAVING LAVISH PHOTO SHOOTS EVERY DAY. 6. YOUR KIDS ARE DENIED RESERVATIONS....DOMICILE.BENEFITS(CHECK THE DOMICILE STATUS OF YOUR CHILDREN....MANY OF YOU WILL NOT JAVE ANSWER). 7. IF YOU RETIRE AND STOP GETTING SALARY AND STOP PAYING HAFTY INCOME TAX,THE GOVERNMENT WILL IMMEDIATELY DUMP YOU TO DIE AT YOUR COST,WITHOUT ANY RECOGNITION OR SOCIAL SECURITY. WHO IS RESPONSIBLE?!! THINK ....ACT....ITS HIGH TIME NOW.... WE WILL VOTE THE GOVERNMENT WHICH WILL HELP YOU AND ACT FOR YOU.....WHICH EVER IT MAY BE....OR SIMPLY . RAISE QUESTUONS.....RAISE CRY.... NO ONE BUT YOU ONLY CAN HELP YOURSELF.....ITS HIGH TIME THAT YOU BECOME A VOTEBANK THAT THESE POLITICIANS START BOWING.

PARENTING TIPS Always snatch and eat one third of your child's chocolate and ice- cream. Let them cry. Doesn't matter. This will prepare them to pay Income Tax when they grow up. You can even take the first bite before the child eats. This will teach them to prepare for TDS when they get their salary. - Government of India 😅 #unionbudget2025 #TDS #Taxation #Incometax

3 - Tax System in India In India, the tax system creates significant disparities in how families with similar incomes are taxed. Consider two families, each with an annual income of ₹35 lakhs. In the first family, where only one member earns ₹35 lakhs, the individual faces substantial tax liabilities, potentially around ₹4-5 lakhs. This heavy tax burden significantly impacts their financial situation. Conversely, in the second family, where all five members earn ₹7 lakhs each, their combined ₹35 lakhs can benefit from tax exemptions up to ₹7 lakhs per person, resulting in no taxes on their total income. Moreover, the current tax system unfairly treats the single high-income earner as the sole contributor, while the support provided by the other family members—such as homemakers or those supporting children—is overlooked. This approach fails to recognize their economic contribution. Instead of taxing based solely on individual earnings, the tax system should consider the collective economic contribution of all family members. This disparity highlights the need for tax reform to ensure fair treatment and recognition of all families, regardless of their income structure. #TaxSystem #TaxFairness #SingleIncome #MultiIncome #TaxRelief #EconomicInequality #TaxReform

A to Z of Taxation of Hindu unidivided Family (HUF): A. HUF comes into existence on the marriage of the Male family member as per the Hindu Succession Act,1956. B. For the Income Tax Act, of 1961 HUF came into existence on childbirth (Both male female) only, as a minimum Two coparceners are required for the formation of HUF. C. Female members can be coparcener with effect from 09-09-2005 hence any child can bring into existence the HUF as per Income Tax. The wife cannot be a coparcener and can only be a member. Hence HUF cannot survive with only ... ... ... http://dlvr.it/T8v6Cl #IncomeTax #Articles #TaxLaws #TaxTMI

This is a very live issue and its not one that people should be complacent about or make assumptions that they will be fine. Its actually essential that anyone changing their country of residence takes professional tax advice, appropriate to their specific circumstances. I am a chartered financial planner with 38 years experience and I hold the STEP Financial Advisers certificate which is significantly about this. Even I took formal tax advice and learned aspects that I had hitherto been unware of. The advice provides a road map to keep on the straight and narrow with HMRC and enables measures to be taken to mitigate the consequences of circumstances which might bring you back into UK tax. #expattaxes #taxadvice #ukresidence #ukdomicile

Over the weekend while clearing out a shed I found a box of old papers. It contained accounts and paperwork from 1990. In there I found tax tables from 1990/91. I thought great, a post about the complexities of tax and how having a great tax adviser is always key…..but then I saw a key date - 6 April 1990. This was the date when husbands and wives started to be taxed independently on all their income. Prior to this date tax legislation denied married women independence and privacy in tax matters, and so for high income couples there was a tax penalty on marriage. Having your own personal allowances as a married woman has only been in existence for 34 years……!! With women predicted to own more than 50% of the wealth in the UK by 2025, now more than ever it’s about having the right advisers around you to ensure you make the most of those allowances!! #womenswealth #financialplanning