GST Course

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Keeping the conversation between Lord Krishna and Arjuna as the foundation, we will learn certain basic financial and tax matter. Let us try to get answers to our questions in a bit different and joyful manner. The character of Arjuna will be played by the common man or tax payer and the character of Lord Shri Krishna the Expert for giving solutions to all problems. Conversation is named as “KARNITI”.

Arjuna: Krishna, In India festival of Navratri is being celebrated very joyfully. In this festival women power is worshiped.

Lord Krishna: Arjuna, where Females are honoured, there the deities are pleased but where they are unhonoured, there all the religious acts become fruitless. Women are treated as Goddess. She is also called as “Jagat Janani.” Further wife is called as “Ardhangini”. Therefore while taking name of god also, name of female Goddess is taken first for eg. Sita Ram, Radhey Shyam, Laxmi Narayan etc.

Arjuna: On the occasion of Navratri festival, please explain us provisions related to female under Income Tax Act.

Lord Krishna: Oh! Arjuna then listen some of the major provisions under Income Tax Act:

1. As per Income Tax Act, for men and women same tax rates are applicable. Further income up to Rs. 2 Lakhs is exempt. If a woman is doing business or job on her own then all rules and exemptions of Income Tax are equally applicable to her also.

2. As per Hindu Law, women have right of all the gold ornaments, valuables and other gifts received on the occasion of marriage from her parents. It is called as “Stri Dhan.” Further, valuables and gifts received on any other occasion from the relatives should be kept on record as regards when and how they are received i.e. list should be prepared. Don’t forget income tax department may enquire about when and how these valuables were received.

If these records are kept properly, then income tax will not be required to be paid.

3. As per Income Tax Circular the person who does not file wealth tax return and there is raid by Income Tax Department, the IT personnel cannot seize 500 gms of gold ornament from married female and 250 gms of gold ornaments from the unmarried female. Further Income Tax Department cannot seize valuables, ornaments disclosed in the Wealth Tax Return. Therefore all wealth tax payers should file wealth tax return regularly.   

4. As per Hindu Succession Act and Hindu Women’s Right to Property Act, a woman has equal right in the property of her husband and father. Income Tax is not applicable on the property received out of such rights.

5. If husband and his wife have taken home loan in their joint names then both can get the deduction otherwise one who has paid the installments can get the deduction of interest and principal paid.

6. Male taxpayer can get the deduction on the Life Insurance premium and medical insurance paid for own, wife and children in his Income Tax Return. Deduction up to Rs. 100,000/- can be taken for Life Insurance Premium paid and Rs.15,000/- can be taken for the medical insurance premium paid. Further additional deduction of Rs. 15,000/- can be taken on the medical insurance premium payment of father and mother.

7. As per latest Judgement from the Ahmedabad IT Tribunal, if the house is in the name of wife and if husband is paying rent then husband can get deduction under House Rent Allowance from the Salary income. But benefit of this judgement should be taken by following regulations of the act.

8. While giving payments of salary, commission, interest etc. to the mother, wife, sister or daughter in law, need of business, her education, experience etc. is to be taken into consideration. These expenses may be allowable subject to verification by Income Tax Department.

9. If a married woman gets property, valuables from her husband, father in law or mother in law without consideration and income is derived from such property, such income may be clubbed in the income of the person.

By going through these provisions we come to know that, whether it is Income Tax Act or Hindu Succession Act equal rights have been given to women.

Arjuna: Oh Great! Krishna, if taxpayer follows Income Tax provisions related to female they will be greatly benefitted in their family life also.

Lord Krishna: See! Arjuna we know women power through different forms of Goddesses such as Sarawati, Mahalaxmi, Durga, Amba, Rudrani etc. Remembering these Goddesses everyone should perform day to day affairs of life. It is said that Husband should earn by fair working and wife should spend fairly with proper planning to run the family. Behind every successful man there is a women, she may be mother or wife. In the greed of earning more money, people have left behind paying attention on house hold affairs. In today’s system of separate living the responsibility on the wife has increased. Every man should carefully do income and tax planning for his wife. In Sanskrit there is a Shloka:

“Kar” Agrey Vasate “Laxmi”, “Kar” Madhey “Saraswati”,

“Kar” Mule Tu Govindam, Prabhate “Kar” Darshanam.

From this shloka everyone should understand the meaning of word “Kar”. At the end wish you all HAPPY NAVRATRI.   


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Category Income Tax, Other Articles by - CA Umesh Sharma 



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