Proper tax planning is the basic duty of every person, which should be carried out religiously. Basically, there are three steps in the tax planning exercise. You need not consult an Income Tax Practitioner or a Chartered Accountant for this. In fact, you can do it yourself.

 These three steps are:

1) Calculate your taxable income for the Financial Year (from April 1 to March 31) from all sources such as salary, pension, interest etc.

2) Calculate tax payable on Annual Taxable Income using a simple tax rate table, given on the next page.

3) After you have calculated the amount of your tax liability, you have two options to choose from:

a) Pay your tax (no tax planning is required)

b) Minimize your tax through Prudent Tax Planning

Most people should and do choose the latter option. For this, you have to compare the advantages of the various tax saving schemes and depending on your age, life stage, tax slab and personal preferences, decide on the right allocation of investments and plans which shall reduce your tax liability to zero or Minimum possible. You may consult your Financial Planner for this.

The following rates are applicable for calculating tax liability for the FY ending on March 31, 2013. 

For a resident male individuals below 60 years of age (born after April 1, 1952) and HUFs

Consult the govt website for current details

Tax Free Incomes

The following incomes are completely exempt from income tax without any upper limit.

1) Interest on PPF/GPF/EPF.

2) Interest on GOI tax free bonds.

3) Dividends on Shares and Mutual Funds.

4) Any capital receipt from life insurance policies ie sums received either on death of the insured or on maturity of life insurance plans. However, in case of life insurance policies issued after March 31, 2004, exemption on maturity payment u/s 10(10D) is available only if the premium paid in any year does not exceed 20 % of the sum assured.

5) Interest on savings bank account in a post office.

6) Long term capital gain on sale of shares and equity mutual funds if the security transaction is paid/imposed on such transactions.

Dividend income

Dividend income from companies/ equity -oriented Mutual Funds is completely exempt in the hands of investors. Dividend is also tax-free in the hands of investors in case of debt- oriented Mutual Fund schemes.

Gift tax

Gift tax was abolished with effect from October 1, 1998. The gifts are no longer taxable in the hands of donor or donee. However, with effect from September 1, 2004, any gift received by an individual or HUF will be included in taxable income, provided the amount of gift exceeds Rs 50,000.

India is a developing economy; India boosts a lot being a part of nuclear club, G8 nations club and much more.

In reality the common citizen who pays taxes does not care about all this.

As a common citizen, I look forward for better infrastructure in terms of better roads, 24/7 power supply, efficient inexpensive medical care, proper drainage system, helpful disaster management in terms of crisis, but I guess we all just pay for it and get a very little in return.

Ask a local politician in my country: “the surrounding areas are developed but not mine?”, the best answers are listed below:

1. Required funds are short
2. Approval not received from concerned government authorities
3. My party is not in power, so I will not get the required funds for develpment
4. In the last election your locality voted against me and MANY MORE such eXcuses

In a recent report released by a NGO against the usage of fund by the so called “Public Servant” (politicians) have only spent 9% of their allocated amount … surprised? Not me!

I live in an area for the past 9 years which is developing just like my country … SNAIL pace … development is only at places where there is political gains in terms of power or money.

I hope the coming elections we pick the right candidate to change all this and the person elected does justice to his ROLE J

These are generally in search of essential faults concerning earnings as well as expenses. In cases where, by way of example, an individual’s sales revenue can be $3,000 along with your expenditures usually are $135,Thousand, by merely looking at the amounts the internal revenue service auditor will be dubious. The amounts happen to be consequently as compared to former overtax filings when the internal revenue service leaders think that there’s a respectable event against the specific, they give these products formed notifying them all they are remaining audited.Even so, phone numbers using a place a burden on create is able to inform so much. Of which organization that is definitely developing $3,500 around profits in addition to $135,Thousand with prices can nevertheless be qualified for some sort of tax break if they prove they may be following revenue reason and not a spare time activity. Is that will demonstrate that you will be operating your company at a business-like mode. This Buy Toshiba Excite X-10 Android Tablet   might really mean some different issues. Examples might possibly be constructing a in depth strategy of one’s corporation, predicting outside incomes or more. Another can be to produce a proforma money report, in which just as before will job available revenue as well as prices for several years later on.One more problem the IRS could talk to is undoubtedly, could be the cutbacks your company is suffering with as a result of issues beyond your manage. This could possibly imply you will be living with deficits due to a monetary financial bad times. On many occasions organizations expertise a loss of revenue because of the drop of any not related enterprise. These sort of is without a doubt world in the widespread influence of the crash with Lehman Bros in the summer from ‘08. 

Which is connected to the slip within the housing marketing and advertising of which put in place many companies prices. One more big one is disasters. Storm Hurricane katrina anniversary passes brought about many organizations for you to content a loss of revenue on their own taxation forms for quit some time. The British petroleum engine oil discharge with the Gulf of Mexico can also be a affair which can bring about your business to help survey a loss of revenue which in fact had nothing to do with people or simply the way in which run your small business.A particular thought the internal revenue service might possibly talk to from a income tax court instance is undoubtedly, really does all the individual or simply counselors have got know-how a sufficient amount of for achievement. What is anxiety this question are usually used plenty of different ways even. You can increase your expertise in a specific attentiveness because of taking part within fun-based activities. If you happen to adopt a manuscript which usually works on round the area of your own firm, that shows skills. For those who participate in instructional classes which could enrich knowing in the business enterprise you’re in, that is as well also considered competence.A method people in most cases get tripped upward inside a taxes legal court Lenovo IdeaTab S2-10   case is where they can be inquired when they are absolutely based mostly on those actions of her or his small business. Normally these kind of individuals are employed by a firm not to mention performing a company quietly. Most often the work many people work for attracts many of the earnings.The Irs chooses to discover with tax bill judge circumstances quite simply usually are going after a legitimate profit objective by means of contemplating most of these concerns. They aren’t inevitably hinting to end your company should you produce a online loss, having said that, if you’re screwing up over Five-years, it may continue to heighten dubious. It is important to remember is to try to papers all your transactions that report for a small business. I really hope the next few paragraphs presented certain guidance for the methods to point out revenue mobile.

You will find completely utilised your financial budget and still have promises to pay for determining capital items subsequently, net income enabling, it’ll be useful to create these kinds of expenses ahead of instead of after 31st Strut. (Low getting qualified investments consist of trucks, herb plus machines given on your organization or even that has been used to get another purpose).Another thing to consider with regard to bundled establishments and folks is a prospects for generating type of pension positive factors. For organizations determining retirement International calls   living installments tend to be the allowed tremendous expense, decreasing the taxable sales. Also your check can take shape a part of a good payment or even encourage deal. If you are the power ideal for much higher price overtax payers since they get an extension therefore to their common speed wedding band, therefore exempting a few source of income because of higher cost taxes.Making pension plan positive factors nevertheless should also remain visible regarding individual scenarios To net income requirements, perspective so that you can associated risk along with an individual’s look at all the pensions industry appearing only some.

You ought to speak with a good IFA meant for suggestions before generating a method. You must also understand that there’s an twelve-monthly restriction in individuals pension check many advantages connected with £50,Thousand, despite the fact that abandoned limitations with the past a few years is usually used.Pertaining to firms that are getting close no more their own fiscal season it has to be time to bring stock not to mention take into account the results of 2010 until now, possibly looking at these phones marks arranged early on around. By using an information about all seasons so far figures, along with the of stocks helped bring in advance, it is then easy to determine whether almost any additional bonuses and / or profits should really be made. In order for the Cheep Long distance calls  theifs to possibly be tax deductible company costs during they do not have to generally be compensated because of the economic 365 days last part, nonetheless a definitive persistence for reimburse them need to be proved by way of a plank moment as well as res, and even signup bonuses should be afflicted by the payroll inside seven a long time to ensure the tax deduction. You sould never forget whenever that you are professing handsomely these kind of will not likely lower taxable gains but you are possibly not subject to nation’s insurance protection.

One particular, which often this accountancy firm laughed and said had been criminalized, in addition to laughed within everyone i always might quite possibly attempt to attempt to argue at their side that this was obviously a online business write off.You  International calls   see, being a businessperson, I actually usually seemed to be raced as well as in a rush, Some have enough to attend during tier, commonly I needed spend people in lines towards exchange regions.

Mainly, here is $5, Eight, Something like 20 and also “if you are likely to demand to come back belonging to the path as well as begin around along with have can destination, I’ll go ahead and business you and give you revenue, the following, at this moment?”This effectively is a incentivise, and it also can be a 100 % legal one particular, yet it is visibly not necessarily insurance deductible professionals Interest rates requirements. There’s no doubt that it ought to be, since a business person only has a finite stretch of time, and i could work with a personal aide to look fetch  Cheep Long distance calls  everyone any a cup of coffee within lines within Starbucks, however cannot take a bribing of a nether part of series to help you industry places to me should i be in the spine.So allow this often be a please note back for being an business person, as well as to any organization sales pros around which come across in order to these outrageous deduction attempts; you should not take bribes, not modest 100 % legal types. Indeed I think you will please look at this.

Credit conditions within the US economy are still tight since the financial meltdown of 2008. Public debt is steadily rising and the average citizen is feeling the pinch with every dollar he spends. The growing rate of inflation is not helping the situation in any way either. In these trying times, a small short term monetary boost for your personal finances will help you to meet your operational costs. Most people resort to payday loans or a home equity credit line to pay their bills and end up bearing a debt load which is almost impossible to get rid off. Incidentally, there is a resource which most people are not aware of when it comes to covering short term cash deficits.

Self employed people, retirees, pensioners, investors and people living off Social Security benefits have the option of applying for a loan from the Internal Revenue Service (IRS). The advantages of borrowing from the IRS are many. You don’t have to negotiate with a loan officer, prove your income, go through credit checks or fill out lengthy application forms. If I can’t pay off my credit card debt, this is a good option to use. Here is a guide to help you manage your finances by using the IRS to your advantage.

Temporary layover of estimated tax payments

If you choose to postpone paying a portion of your federal income tax payments that you would generally make through estimated tax installments. You can free up some funds for the time being and increase your cash flow this way. You will not require federal permission to do this. You only need to delay a part of the payment and make up for it later. The IRS will in turn charge interest on the difference between the amount you paid and what you actually owe. The IRS currently charges an affordable 3% interest on estimated tax underpayment. It’s a pretty good option for anyone trying to deal with a short term credit cash crunch.

What are estimated tax payments?

Self employed people are not subject to federal income tax withholdings. Investors, pensioners and retirees who earn in the form of dividends, pension payments, social security benefits, interest, and taxable withdrawals from retirement funds are not subject to federal income tax withholding either. People earning from such sources are required to pay their yearly estimated taxes in 4 installments. For example, in 2012, estimated taxes will be due on the 17th of April, 15th June, 17th September and 15th January 2012. You can choose to work out the installment amounts due on each date and pay less than what you owe or skip paying the installment altogether.

Borrowing from the taxman is a simple process if you are an investor, self employed or retired. Keep in mind that it is only a temporary remedy for the current fund crisis you may be facing and is in no way going to alleviate your long term financial needs. You also need to keep in mind that you will need to catch up with the payments before the end of the financial year. In case you fail to do so, the IRS will start charging an additional 0.5% interest in the succeeding months which translates into 6% per year on top of the ‘regular’ interest rate.

Pastor of one of the largest megachurches to be found anywhere in the United States – Lakewood Church in Houston, Texas – televangelist Joel Osteen has definitely come a long way from the humble beginnings he inherited from his charismatic and hardworking father. Today, however, some have come to doubt that he truly is a representative of Jesus Christ because the ‘verson of gospel that he preaches is consdiered watered down and tailored to be easy to swallow, especially for folks who are only interested in making money and being comfortable. It would seem he provided his detractors with more ammunition to attack himsehim with when he spoke up concerning openly Mormon Republican Presidential Canditate Mitt Romney Wednesday on CNN’s “The Situation Room”, saying he thinks “Mormonism is not traditional Christianity, but Mormons are ‘brothers in Christ,’ especially since [Romney] says he believes that Jesus is the Son of God, that he’s the Christ, raised from the dead, that he’s his Savior” According to Mr. Osteen, “that’s good enough for me.”

And should it not be? Is the good pastor wrong?

The origins of the word ‘Christian’ would seem the same as the word ‘Negro’ – those referred to by the word didn’t ask for it; it was just given them by others. (Acts 11:26). As such, the idea of ‘ True Christianity’ could easily be a myth fostered by separatists in sheep’s clothing and hardly God’s design.

What the Bible says is: ‘If you believe in your heart and confess with your mouth that Jesus Christ is the Lord, you are saved.’ (Romans 10:9). Now, should anyone care whatever in the world anyone else chooses to call themselves? Should not what counts be what – no, WHO – they believe in, and the choices they make as a result? The same ‘Word of God’ after all says, ‘by their fruit  you shall know them,’ (Matthew 7:20) not by what name they are called.

Sadly, a large number of Americans would argue that much of Romney’s fruit (or works) don’t speak too good about him, what with the tax issues, many employees who have suffered the sack at his hand in the name of making profit for his businesses, offering a bet on National Television for more money than  many citizens of the country see in a year, … and all the rest and so forth. However, it’s not the place of anyone to judge: the Lord knows His own.

So who’s right, who’s wrong, and why should anyone care? The Presidency is not about religion now… or is it?

Your federal income tax dollars help to pay for the items on the federal budget. In fiscal year 2010, the government collected $2.4 trillion in tax revenue, but spent $3.5 trillion. The gap between revenue and spending is known as the budget deficit. The money the federal government borrows to cover the budget deficit is what creates the national debt, which stood at $14 trillion at the end of 2011 [source:WhiteHouse.gov].

Who writes the federal budget? The federal budget begins as a “budget request” by the president, which is a detailed proposal of how the government should spend its money in the upcoming fiscal year and where those funds should come from [source: Center on Budget and Policy Priorities]. The House and Senate Budget Committees then draft their own budget resolution, which must be passed by both houses of Congress and signed by the president.

In recent years, 80 percent of the federal budget has been spent on five major items:

1. National defense and security (20 percent)
2. Social Security (20 percent)
3. Medicare, Medicaid and the Children’s Health Insurance Program (CHIP) (20 percent)
4. Safety net programs (14 percent)
5. Interest on the national debt (6 percent) [source: Center on Budget and Policy Priorities]

What exactly are “safety net” programs? These are government initiatives that give extra financial support to the elderly, unemployed, disabled and the poor. Examples include the earned income tax credit, child tax credits, Supplemental Security Income for the elderly poor, unemployment insurance, food stamps, subsidized school meals, low-income housing assistance, energy assistance and more [source: Center on Budget and Policy Priorities]. In recent years, critics of these initiatives have labeled them “entitlement” programs.

According to data on the official federal spending website, USAspending.gov, the federal agencies that received the most budget dollars in fiscal year 2011 were:

• Social Security Administration ($774.5 billion)
• Department of Health and Human Services ($393.3 billion)
• Department of Defense ($380 billion)
• Department of Homeland Security ($146.3 billion)
• Department of Veterans Affairs ($68.7 billion) [source: Office of Management and Budget]

The federal government spends its money in four major ways: direct payments, grants, contracts and insurance. In 2011, the largest chunk of the federal budget was spent on direct payment to individual taxpayers (42 percent) through Social Security benefits ($773 billion), VA benefits ($39 billion), and the federal Pell Grant program for low-income college students ($33 billion) [source: Office of Management and Budget]. So, a lot of your tax dollars go directly to fellow Americans.

The Department of Defense accounts for nearly 70 percent ($373.9 billion) of all federal money spent on contracts. In 2011, Lockheed Martin Corporation was the big winner, receiving $38.6 billion in government contracts [source: Office of Management and Budget]. Maybe you should buy some stock.

Surprisingly, the Department of Homeland Security spends most of its federal money on insurance ($126.3 billion), mostly flood insurance payments through FEMA and its National Flood Insurance Program [source:Office of Management and Budget].

What about money spent on foreign aid? The U.S. Agency for International Development (USAID) received $13.5 billion in 2011. That was about $3 billion less than the government spent on NASA [source: Office of Management and Budget].

For a detailed breakdown of how your personal tax dollars are spent, try the Tax Receipt Calculator on WhiteHouse.gov. Enter the amount you paid in payroll taxes in 2010 (called FICA on your paystub) and the amount you paid in income tax. The calculator will show exactly how much you contributed to each federal budget item. For example, a married couple with two children earning $80,000 will pay $1,015 to national defense ($11.59 goes directly to the FBI) and $139 to food stamps [source: WhiteHouse.gov].

I have never been impressed by Mr. Marco Rubio.  He appears to me like all Hispanic politicians I have ever been aware of in life.  Their culture turns them into emotional supporters of the demands of Hispanics.

Again, I state that I do not fly the Hispanic flag.  I do not salute the Hispanic flag.  I am human. The human race is the only race I claim allegiance to in life.

My personal immigration story is a sorted tragedy.  I was illegally imported into the US by my parents around 1970.  On my 18th birthday I received a letter asking me to clarify my immigration status or leave the country.  I stood there with my hands up in the air wondering what immigration status the letter was talking about.

Apparently, my mother did not take care of this immigration situation before I became an adult.  I had cash saved up.  I went to lawyer that was recommended to me.  Within a month this lawyer had my legal residency card.

During the proceedings I was scared.  There were many worried days.  Today, I am a man without a country.  Mexicans do not like me.  Americans think I am an alien.  I find it offensive that my residency card reads Permanent Alien Passport. I am not gray with a strange shaped head.

These are the reasons I do not salute nor fly the Hispanic flag.  What is right is right.  What is wrong is wrong.

It is this simple.  American tax payers do not have an endless supply of money to take on the burdens of everyone in the world.

I can tell you that Mexicans who cross into the US illegally are not poor victims of life just looking for a way to earn a living.  For decades Americans- politicians and others-have been promising illegals support and benefits.

Many illegals from Mexico come expecting what they have been promised.  They expect food stamp, welfare, housing, and assistance in immigration for their family members.

It has been the politics of America that has planted these ideas in the minds of people from Mexico.  I was born in Mexico.  For over 40 years I have lived in the border city of El Paso, Texas, USA.  Every job I have had has involved public contact.  I have been hearing the attitudes and opinions of people from Mexico all my life.

I suspect Mr. Marco Rubio is interested in his own political career.  Mr. Rubio lives in areas with a large percentage of people from Cuba.

The immigrants from Cuba are completely different then the people of Mexico.  I have written many articles describing the immoral and unethical behavior of people from Mexico.  In these articles, I have expressed my conclusion that the people of Mexico worked together to destroy their country.

The corrupt politicians, corrupt business people, and criminals have played a big role in the death of Mexico. However, the average Mexican’s attitude the “since the rest  are corrupt we can do what we want” has also contributed to the death of Mexico.

Mexico is dead.  The zombie just does not know it.  Even today in the present day Mexican president’s war on drug dealers military leaders, politicians, and bureaucrats, in Mexico continue to work for Mexican drug dealers.

The people of Cuba are victims of Fidel Castro and his brother.  Cubans did not decide since everyone is corrupt we are going to do what we want.

Mr. Marco Rubio how do you stop a bad behavior when you forgive it and reward it.  America cannot be held as a political hostage to people who only want to live of the American tax payer.  With all respect to you Mr. Marco Rubio I have more credibility on the issue of illegal immigration from Mexico then you do sir.

It is a tragedy that so many are in what Mr. Rubio calls “limbo”.  However, it is the parents of these children who have to be held responsible.  Consequences correct bad behavior. Consequences teach people how to do things better.

If the goal is to stop illegal immigration from Mexico, then there have to be real consequences for breaking American laws.  In addition, people in the US illegally can very easily return to their respective countries.  There they have papers.  They can work, study, and live out in the open in their respective countries.

Furthermore, I am tired of the charge that expecting everyone in the US illegally to self deport as uncompassionate.  Mr. Rubio and the rest of you US politicians you are supposed to be representing Americans.  You should have compassion for the American tax payer who is working hard and having less to show for it because they are funding politicians supposed compassionate policies.

If you want to arbitrate for the people of Mexico, move to Mexico and work at improving conditions in Mexico. The rest of us will be here, in the US, working to improve conditions here in our home which we love and take pride in ownership.

It is wrong for conservatives to reward and forgive illegal Mexicans just to win elections.  There have to be high standards in order to maintain a successful society.  Everyone who is able to work has to work. We all benefit from living in America; we should all fund the limited US government that respects individual rights.  Being that American tax payers financial resources are limited resources, Mexicans and people from other nations are going to have to respect America’s borders.

Now, I am smart enough to know that the special interest operatives, politicians, liberal news media, and Mr. Rubio will not change their opinion on immigration because of the opinions I have expressed here in this article.  My comments are for my traditional values neighbors in the US.  You should not feel bad about expecting illegal immigrants to respect your home and respect you.  You did not destroy Mexico.  Mexicans destroyed Mexico.  Now, they want to destroy the US with their entitlement attitude.

Let us go back to the civil War…., in 1862, President Lincoln created the position of ‘commisioner of Internal Revenue’ and enacted the income tax to pay for increasing war epspenses. this income tax was repealed 10 years later until Congress revived the tax in 1894. However, just one year later, the Supreme Court ruled the income tax unconstitutional.

Then in 1913, say hello to the 16th Amendment, ratified by Wyoming, it provided the three-quarter majority needed to amend the constitution. So, what did the 16th amendment do?, it gave congress the authority to enact an income tax.

The first 1040 Form came that same year after congress levied a 1% tax on net personal incomes over $3,000. there was also a 6% sutax on incomes greater than $500,000.

During World War I, in 1918, the top rate of income tax rose to 77% to help finance the war. It dropped to 24% after the war but rose again during the Great Depression. And… (woulldn’t you know it?) during War World II Congress introduced the payroll withholding and quarterly tax payments. This set the stage for taxes as we know them today.