|Author: Manoj Chaurasia 19 Feb 2012 Member Level: Gold Points : 6 (Rs 4) Voting Score: 2|
If you consider investing your money in FD then the interest earned on the same is fully taxable. But considering the fact that your father has retired and assuming that he does not have any other source of income then the interest earned upto Rs. 180000 will definitely be tax free. Income over 180000 will be taxable at existing tax rates.
For example, if you invest Rs. 35,00,000 as FD and you get interest of Rs. 3,50,000 at rate of 10%, then your monthly income comes to Rs.29,167 p.m., but the bank is definitely going to deduct tax @10% on the same before crediting this amount to your account.
Although Rs. 180000 exemption limit for general individual is for the current financial year i.e. 2011-12 and considering that you invest the amount in April 2012, then you enter the next financial year i.e. 2012-13.
Exempted slab of income is not yet defined for the upcoming financial year as the budget has not yet come out and it is expected that the exemption limit is going to be raised to Rs.5,00,000, if it happens so then you will need not worry about evading tax and can very well invest the whole money in FD.
At least wait for the budget to come and then decide about investing in FD. Budget is expected by mid of March, 2012.
Although there are other options too for investing the money but that needs professional consultancy.
|Author: abirami 19 Feb 2012 Member Level: Gold Points : 0 Voting Score: 0|
Thanks much Manoj. Not sure whether exceptional limit will be 5L.If that happens then i will be the most happiest person.
But is there any other way of making the same amount as an investment ? any idea ?
|Author: Manoj Chaurasia 20 Feb 2012 Member Level: Gold Points : 6 (Rs 4) Voting Score: 0|
Lets explain it with an example:
Total income: Rs. 350000
Less: Exemption Rs. 180000
Balance Rs. 170000
Less: Savings under section 80C and 80 CCF Rs. 120000
Balance taxable income Rs. 50000
You will have to pay Rs. 5150 as tax on income of Rs. 350000 for the whole year, if you are able to save Rs. 120000 out of the above income.
Bank will deduct tax on whole amount of Rs. 350000 i.e. Rs. 35000, out of which you can claim Rs.29850 as refund while filing return of your father.
But this computation is valid only if you save all of Rs. 120000 and no less.
Definitely you can save this much amount by investing Rs. 100000 in PPF and Rs. 20000 in Infra bonds, but yes they are long term investments so you need to plan before doing so.
This can be altered in future years as your father is at present 56 years of age and will become senior citizen when he reaches 60 years and then the exemption limit will get raised as well as taxable limit will definitely change by then.
I am assuming that you are aware of the tax rates and slabs as existing on date.
Hope this example clarifies your concern to some extent.
|Author: abirami 20 Feb 2012 Member Level: Gold Points : 0 Voting Score: 0|
Thanks Manoj for your clarification.
|Author: abirami 16 Mar 2012 Member Level: Gold Points : 0 Voting Score: 0|
Manoj, I am not sure of the company code.In that case what else i can do ?
But i know my PF number..
|Author: Manoj Chaurasia 16 Mar 2012 Member Level: Gold Points : 2 Voting Score: 0|
You can search the company code by its name. Do as told you in above steps.
Click on search company code and fill the company name, few words will be sufficient. All the companies with similar name will be displayed form which you can select your company.
Do as told you will get the result or if you want just tell me the name of company i will search the code and tell you.
|Author: Manoj Chaurasia 16 Mar 2012 Member Level: Gold Points : 6 (Rs 5) Voting Score: 0|
I am re-posting the answer as it got deleted due to one mistake.
To find the PF balance you should log on to link given at the end.
After that do the following
1. Select the state where you are presently working.
2. Select the region where your company might be registered or you can search the company code and area by clicking the link on the page opened, where it is written ''search your establishment code''
Fill some details about your company and you will find the name of your company along with the establishment code.
3. Fill the details on the page which opens after selecting the region. While filling the details there are three empty blocks, in the first block fill the code of your company which shall not be more than 7 digits.
Leave the next block empty and in the last block fill your PF no. as provided on your salary slip, which shall be 4 or 5 digits and not exceeding 7 digits.
4. Fill in your cell number as asked on the page and click submit.
You will get he details on your phone with an sms.
But one more thing you need to know that the PF balance is updated till 31/03/2010 and hence the balance will be available only till that date. In addition if you have started job after that date you will not get any information regarding your PF balance.
Next updation to PF balance will be around september or october 2012. So anyone who will try to find the balance will get the balance only upto 31/03/2010 and not the current balance as on date.