Monthly Archives: November 2016

Government of India – Income Tax Slab Rates for AY 2010-2011 – Articles #india #tax

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Government of India Income Tax Slab Rates for AY 2010-2011

Personal Income Tax Rates for the Financial Year 2009-2010 and Assessment Year 2010-2011

New Delhi (Delhi, India), November 17, 2015

Indian Government Ups Basic Personal Income Tax Exemption Limit from Rs. 150,000 to Rs. 160,000

The Government of India has increased the basic personal income tax exemption limit from Rs. 150,000 to Rs. 160,000 for the Financial Year 2009-2010 and Assessment Year 2010-2011.

The new income tax rates or Income tax slabs are applicable for the incomes earned or generated from April 01, 2009 to March 31, 2010.

Mr. Pranab Mukherjee, the Finance Minister of India, announced the new personal income tax slab rates while presenting the Union Budget of India, also called the Indian General Budget, on Monday, July 06, 2009 in New Delhi.

Here are the personal income tax slab rates for calculating your income tax for the Financial Year 2009-2010 (Assessment Year 2010-2011).

Income Tax Slabs for the Individual Male (Below 65 Years Age) for the Assessment Year 2010-2011

Government of India Income Tax Slab Rates for AY 2015-2016
Personal Income Tax Rates for the Financial Year 2014-2015 and Assessment Year 2015-2016

Government of India Income Tax Slab Rates for AY 2014-2015
Personal Income Tax Rates for the Financial Year 2013-2014 and Assessment Year 2014-2015

Government of India Income Tax Slab Rates for AY 2013-2014
Personal Income Tax Rates for the Financial Year 2012-2013 and Assessment Year 2013-2014

Government of India Income Tax Slab Rates for AY 2012-2013
Personal Income Tax Rates for the Financial Year 2011-2012 and Assessment Year 2012-2013

Government of India Income Tax Slab Rates for AY 2011-2012
Personal Income Tax Rates for the Financial Year 2010-2011 and Assessment Year 2011-2012

Government of India Income Tax Slab Rates for AY 2009-2010
Personal Income Tax Rates for the Financial Year 2008-2009 and Assessment Year 2009-2010

Government of India Income Tax Slab Rates for AY 2008-2009
Personal Income Tax Rates for the Financial Year 2007-2008 and Assessment Year 2008-2009

Government of India Income Tax Slab Rates for AY 2007-2008
Personal Income Tax Rates for the Financial Year 2006-2007 and Assessment Year 2007-2008

Government of India Income Tax Slab Rates for AY 2006-2007
Personal Income Tax Rates for the Financial Year 2005-2006 and Assessment Year 2006-2007

Indian Government Plans, Policies, and Projects
Government of India – Current and Past Financial Plans, Policies, Programs, Projects, and Schemes

Section 80DDB – Income Tax benefit for your Medical Treatment – Your Finance Book #what

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Section 80DDB – Income Tax benefit for your Medical Treatment

Section 80DDB is applicable to an individual and HUF with effect from first of April 2004. Under Section 80DDB, an individual or HUF can claim tax deduction up to a maximum amount of Rs 40, 000 for medical treatment expenses paid during the previous year .

In the case of senior citizen the tax deduction amount can go up to Rs 60, 000.

Who is eligible for tax deduction on medical treatment Section 80DDB

Following persons are eligible to claim tax deduction under section 80DDB for their medical treatment subject to fulfillment of other terms and conditions;

  • A salaried or self employed person and any other individual taxpayer, or
  • HUF

To claim tax deduction under section 80DDB for medical treatment, the taxpayer is to be a resident in India during the financial or previous year.

A foreign citizen who is resident in India can also take tax benefit of section 80DDB as this section will be applicable to them as well.

Persons for whom Medical expenses are to be incurred Section 80DDB

To claim tax deduction under section 80DDB, medical expenses are to be incurred for medical treatment of;

  • The taxpayer himself or
  • Wholly dependent spouse, Children, Parents, Brothers and Sisters of the taxpayer or any of them

Such expenses are to be incurred by the individual who wants to claim tax deduction under section 80DDB.

In case of a HUF, medical expenditures are actually to be incurred and paid for the medical treatment of any member of the HUF family. If HUF claimed exemption for the medical treatment then members of such HUF can not claim tax deduction under section 80DDB for the same amount.

Tax Deduction Limit Section 80DDB

A maximum tax deduction of Rs. 40, 000 can be claimed under section 80DDB for medical treatment of specified diseases.

If taxpayer has incurred a lesser amount towards medical treatment then such lesser amount will be allowed as income tax deduction under section 80DDB.

This means, the amount of tax deduction under section 80DDB is Rs. 40, 000 or the amount actually paid which ever is lower.

If amount paid for medical treatment with respect to taxpayer or dependent spouse, children, parents, brothers and sisters of such taxpayer or any of them who is a senior citizen then tax deduction under section 80DDB can be claimed up to Rs 60, 000.

This means, the available amount of tax deduction in this case under section 80DDB is Rs 60, 000 or the amount actually paid which ever is lower. A senior citizen is a person who is resident in India and who is at least 60 years of age at any time during the previous year.

Budget 2015 has amended section 80DDB to allow tax deduction up to Rs 80000 for very senior citizens. This means, if the person for whom amount actually paid is a very senior citizen then the person who made payment can claim tax deduction of Rs 80000 or the amount paid which ever is lower under section 80DDB for medical treatment of specified diseases.

Rs 80000 tax deduction under section 80DDB can be claimed from assessment year 2016-2017 i.e. financial year 2015-2016 onwards.

Very senior citizen means an individual resident in India who is of the age of 80 years or more at any time during the relevant previous year.

Please remember that section 80DDB deductions are allowed over and above the limits as specified under section 80C of Income tax act 1961. For assessment year 2015-2016 80C maximum exemption limit is Rs 150000.

Other conditions to claim tax deduction Section 80DDB

  • To claim tax deduction under section 80DDB for medical treatment you have to actually paid such amount during the previous year for the medical treatment of specified disease or ailment as prescribed by the board. This means to claim tax deduction under section 80DDB for assessment year 2015-2016, the assessee must have paid for medical treatment during the financial year starting from 1st of April 2014 to 31st march 2015.
  • To claim the benefit of section 80DDB, the tax payer has to get a certificate in the prescribed form from a neurologist, an oncologist, a urologist, a hematologists, an immunologist or such other specialist as many be prescribed, working in a Government Hospital or in any other hospital. As per the new law, to claim tax deduction under section 80DDB for medical treatment, the taxpayer is not required to submit the certificate to income tax department. Instead he has to keep the certificate with himself and in case asked by the assessing officer then such certificate need to be produced before the assessing officer.
  • Tax deduction claimed under section 80DDB will be reduced by the amount received under insurance from an insurer or reimbursed by an employer.

Budget 2015 has made another amendment to section 80DDB by which the tax payer can also get a certificate in the prescribed form from a neurologist, an oncologist, a urologist, a hematologists, an immunologist or such other specialist as many be prescribed, working in any hospital i.e. it can be government hospital or private hospital.

FAQ on Section 80DDB – Tax Deductions for Medical Treatment

Question 1: What are the specified diseases and ailments for the purpose of deduction under section 80DDB of income tax act, 1961?

Answer: For the purposes of section 80DDB, the following shall be the eligible diseases or ailments:

(i) Neurological Diseases where the disability level has been certified to be of 40% and above,—

(iii) Full Blown Acquired Immuno-Deficiency Syndrome (AIDS) ;

To know more on specified diseases under section 80DDB please read our article on rule 11DD of IT Act .

Question 2: Who can issue a certificate under section 80DDB of income tax act?

Answer: Following persons can issue certificate to claim income tax deduction under section 80DDB for medical treatment;

For Neurological Diseases a Neurologist having a Doctorate of Medicine (D.M.) degree in Neurology or any equivalent degree, which is recognized by the Medical Council of India

For Malignant Cancers an Oncologist having a Doctorate of Medicine (D.M.) degree in Oncology or any equivalent degree which is recognized by the Medical Council of India

For Chronic Renal failure a Nephrologists having a Doctorate of Medicine (D.M.) degree in Nephrology or a Urologist having a Master of Chirurgiae (M.Ch.) degree in Urology or any equivalent degree, which is recognized by the Medical Council of India;

For Hematological disorders a specialist having a Doctorate of Medicine (D.M.) degree in Hematology or any equivalent degree, which is recognized by the Medical Council of India

Provided that where in respect of any diseases or ailments specified in sub-rule (1), no specialist has been specified or where the specialist specified is not posted in the Government hospital in which the patient is receiving the treatment, such certificate, with prior approval of the Head of that hospital, may be issued by any other specialist working full-time in that hospital and having a post-graduate degree in General or Internal Medicine, which is recognized by the Medical Council of India.

Budget 2015 has amended section 80DDB by which, a tax payer can get a certificate in the prescribed form working in any hospital i.e. it can be government hospital or private hospital.

Question 3: I have incurred Rs. 30, 000 as medical expenses for my grand father on Chronic Renal Failure. Can I claim it as tax deduction under section 80DDB?

Answer: No, you are not eligible for this deduction as section 80DDB does not allow any payment for medical treatment of grand father as deduction.

Question 4: I am a NRI and have incurred Rs. 24, 000 as medical expenses for medical treatment of my dependent mother who is suffering from Hematological disorders. Can I claim this amount as income tax deduction under section 80DDB against my taxable income that I am generating in India?

Answer: No, section 80DDB is not applicable for a taxpayer who is a non resident even though the person for whom you are making payment is a resident.

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Individual – Series I Savings Bonds Rates – Terms: Calculating Interest Rates #income #forms

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RESEARCH CENTER

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Series I Savings Bonds Rates Terms: Calculating Interest Rates

What interest will I get if I buy an I bond now?

The composite rate for I bonds issued from May 1, 2016, through October 31, 2016, is 0.26%. This rate applies for the first six months you own the bond.

How do I bonds earn interest?

An I bond earns interest monthly from the first day of the month in the issue date. The interest accrues (is added to the bond) for up to 30 years.

  • The interest is compounded semiannually. Every six months from the bond’s issue date, all interest the bond has earned in previous months is in the bond’s new principal value. Interest is earned on the new principal for the next six months. For example, in month seven, interest is earned on the original price plus six months of interest. In month 13, interest is earned on the original price plus 12 months of interest. (However, values displayed by the Savings Bond Calculator for bonds that are less than five years old do not include the latest three months of interest. These values reflect the interest penalty.) If you hold the bond for at least five years, when you cash in (redeem) the bond, you receive all the interest the bond has earned plus the amount you paid for the bond.
  • You can redeem the bond after 12 months. However, if you redeem the bond before it is five years old, you lose the last three months of interest.

How does Treasury figure the I bond interest rate?

The interest on I bonds is a combination of

  • a fixed rate, and
  • an inflation rate

To see the current value of your bonds, use the Savings Bond Calculator. When using the Savings Bond Calculator to look up values of bonds that are less than 5 years old, keep in mind that the values of those bonds do not include the latest three months of interest. However, rates shown by the Savings Bond Calculator for those bonds do not reflect that interest penalty.

Fixed rate

You know the fixed rate of interest that you will get for your bond when you buy the bond. That fixed rate does not change during the life of the bond.

Treasury announces the fixed rate for I bonds every six months (on the first business day in May and on the first business day in November). That fixed rate then applies to all I bonds issued during the next six months.

The fixed rate is an annual rate. Compounding is semiannual .

Inflation rate

Unlike the fixed rate which does not change for the life of the bond, the inflation rate can and usually does change every six months.

We set the inflation rate every six months (on the first business day of May and on the first business day of November), based on changes in the non-seasonally adjusted Consumer Price Index for all Urban Consumers (CPI-U) for all items, including food and energy.

However, the change is applied to your bond every six months from the bond’s issue date. (The dates for these changes might not be May 1 and November 1.) When does my bond change rates?

Combining the two rates

To get the actual rate of interest (sometimes referred to as the composite or earnings rate) we combine the fixed rate and the inflation rate, using the equation in the example below.

  • The combined rate will never be less than zero. However, the combined rate can be lower than the fixed rate. If the inflation rate is negative (because we have deflation, not inflation), it can offset some of the fixed rate.
  • If the inflation rate is so negative that it would take away more than the fixed rate, we don’t let that happen. We stop at zero.

An example

The composite rate for I bonds issued from May 1, 2016, through October 31, 2016, is 0.26%

Here’s how we set that composite rate:

December 1 and June 1

Because I bonds that are less than five years old have values that do not include the latest three months of interest, values displayed by the Savings Bond Calculator for these bonds will not reflect rate changes on the schedule in the table above (When does my bond change rates? ) When looking at changes in values for these bonds, rate changes will seem to be delayed by three months.

What have rates been in the past?

Our Series I bond rate chart shows in one table all past and current rates–fixed rates, inflation rates, and composite rates.

The two tables below show fixed rates and inflation rates, respectively.

Fixed rates

The fixed rate set each May and November applies to all bonds we issue in the six months following the date when we set the rate. The fixed rate applies for the life of the bond.

Date the fixed rate was set

Fixed rate for bonds issued in the six months after that date

Deflating the hype about hybrid annuities #what #is #a #life #insurance

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Deflating the hype about hybrid annuities.

StanHaithcock

Stan The Annuity Man Haithcock is an annuity specialist and nationally recognized annuity critic. Haithcock is the author of six published books on annuities, including the highly acclaimed “The Annuity Stanifesto.” With over 25 years of experience in the financial-services industry, he has propelled his “will do, not might do” contractual-guarantees-only mantra to reframe the annuity category for the transfer-of-risk strategies they were designed to be. Haithcock is the co-founder of the first direct-to-consumer annuity platform, annuities.direct. Haithcock is licensed in all 50 states and is based in Ponte Vedra Beach, Florida. You can learn more at stantheannuityman.com .

Stan ‘s Latest Posts

The word “hybrid” is being embraced by annuity agents nationwide to describe an annuity as the best thing since sliced bread. What’s with all the hybrid hype?

For many years, I drove the original hybrid car offered in the U.S. the Honda Insight. As you probably know, the car used both battery and gas in combination, and a lot of Americans now embrace this technology for their choice of automobile. I put over 275,000 miles on that car and averaged over 60 miles per gallon, so I can consider myself well versed when it comes to the word hybrid.

When I pulled up the word “hybrid” on Dictionary.com, I expected to see an annuity reference because of how the industry is now using the word, but I only saw definitions related to automobiles, plants, and animals…and nothing about annuities.

Let me start by reminding you that with any annuity sales pitch, “If it sounds too good to be true, then it is.” No exceptions. With that foundation in place, the hybrid annuity hype that is currently being promoted in the annuity world can be easily explained with two words: Multiple benefits.

The hybrid pitch is now showing up on the local-lunch annuity seminar circuit and is really being pushed heavily by the online annuity promoters and appointment setters. Wooed by display ads and “instructional” videos that sound too good to be true, people are falling for the hybrid dream to the tune of hundreds of millions of dollars annually.

Most of these annuity buyers have no idea what they own and how the product works, but they do remember one word when they call me to validate what they have done or are getting ready to do. That word they hang on to is “hybrid,“ and the product that is normally attached to this gas/battery powered dream is a long-term, high-surrender-charge, very- high-commission indexed annuity.

A hybrid annuity simply means that the annuity policy can do more than one thing, and provides multiple benefits under one policy structure. Hybrid does not mean it’s appropriate for every person the agent talks to, but that is certainly how the majority of these annuities are sold.

It’s hard for me to believe, but I’ve been told that there are actually ongoing arguments within the industry concerning who came up with the correlation between the words hybrid and annuity. I’m assuming that it’s due to the fact that the industry has discovered that this word combination sells a lot of annuities.

I find this word fight somewhat humorous because I remember over 15 years ago annuity wholesalers in the brokerage world using the word hybrid to explain variable annuities with multiple benefits. But that was way before annuity blast emails, the ever-annoying annuity pop-up and display ads, and “bad chicken dinner” annuity seminars. It’s also way before over $250 billion of annuities were being sold per year.

You have to admit, “hybrid annuity” sounds cool, catchy, and modern on the surface. However, I equate this new nickname to a deferred immediate annuity now magically being referred to as a longevity annuity. A hybrid annuity simply means that the annuity offers more than one benefit. Remember, it’s not about the market, it’s about marketing!

Most annuity structures, in my opinion, can be classified as offering multiple benefits within the policy…and therefore can attain the new noble status of being a hybrid. I have listed the majority of annuity types available and their corresponding hybrid benefits below. My apologies to the “one size fits all” indexed-annuity hybrid hype-sters out there who think they are holding the hybrid annuity holy grail, but facts are facts—most annuities offer multiple benefits.

Variable annuity

Hybrid benefits. Tax deferral; market growth through funds (aka: separate accounts); potential to add contractual benefits (riders) for income, death and confinement care.

Fixed-rate annuity

Hybrid benefits. Tax deferral, principal protection, guaranteed rate of growth for a specified term.

Single-premium immediate annuity

Hybrid benefits. Lifetime income stream starting now; highest contractual payout; tax benefits when used outside of an IRA; cost-of-living increases can be built into the contract.

Longevity annuity

Hybrid benefits. Lifetime income stream starting at a specific date in the future; enhanced actuarial payout; tax benefits when used outside of an IRA; cost-of-living increases can be built into the contract; ability to defer up to 45 years.

Charitable-gift annuity

Hybrid benefits. Lifetime income stream; premium goes to help charity or nonprofit; tax deductions; income can start now or later.

Fixed indexed annuity

Hybrid benefits. Tax deferral; limited upside attached to an index option; principal protection: potential to add contractual benefits (riders) for income, death, and confinement care. (This is the annuity structure that is associated most with current hybrid annuity promotions.)

Flexible-premium annuity

Hybrid benefits. Tax deferral; ability to add money to the policy; lifetime income stream at a future date

The annuity industry and its corresponding annuity sales practices commonly suffer from “me too” repetitive pitch strategies. Be prepared to hear the word hybrid a lot in the near future until the next annuity sales angle is created and targeted at the unsuspecting baby boomer middle class.

Democrats are now called liberals. Republicans are now called conservatives. Multiple benefit annuities are now called hybrids. It’s all in a name…and what name sells best.

Copyright 2016 MarketWatch, Inc. All rights reserved.

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Hybrid Annuities – Compare Key Factors Before Deciding #earned #income #credit #chart

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Hybrid Annuities Explained

Review and Compare Hybrid Annuities-

Are Hybrids Good for Retirement Safety, Growth Income?

Hybrid Annuities 2,750+ Reviews; Best Hybrid Annuities, Learn how they earn higher yields. Hybrid Annuity Reviews; Rates, Features, Ratings, Fees Riders. Compare pros cons. So, how do hybrid annuities pay a higher yield Check out the video below

Hybrid Annuities Explained

Definition Hybrid annuity is a marketing term that refers to a combination of several unique aspects of fixed, variable and immediate annuities sold by insurance companies, these aspects have been combined to create new annuity terminology, hence, the hybrid annuity! What is most commonly being referred to as a Hybrid annuity is actually in most cases a Fixed Index Annuity with one of the newer more innovative income riders. [Read more below video]

Video: Dick and Eric discuss earning a higher yield safely with hybrid annuities.

Guarantees, including optional benefits, are backed by the claims-paying ability of the issuer, and may contain limitations, including surrender charges, which may affect policy values. During this segment, Dick and Eric are referring to Fixed Annuities unless otherwise specified.

[continued] Many times hybrid annuities are only partially explained leaving the prospective client either believing that it is too good to be true or expecting more than what s realistic from this popular retirement financial solution. The Immediate Hybrid Annuity™ refers an annuity that is built on an immediate annuity chassis to create the highest lifetime income that also allows access to initial premium or initial principal that has not been withdrawn yet for income purposes.

Fixed Index Hybrid Annuities for retirees have surged in popularity. Demand since the Great Recession has grown faster than all other annuity types. Appeal is to safety, income, and growth. The newer Immediate Hybrid Annuities™ are designed to eliminate annual fees and increase income for those desiring a pension style income stream sooner rather than later.

Google, Yahoo Bing value your rating,So please Click a Star Rate Us.

Five indicates very helpful information!

Know the Pros Cons before Committing ANY Retirement Savings to Hybrid Annuities

Make Decisions based on income, ratings, and key facts Compare Hybrids!

Our helpful visitor field survey finds:

  1. Most Hybrid annuity owners with higher rated Hybrid annuities are pleased.
  2. A portion of Hybrid annuity owners did not adequately understand their purchase.
  3. Those who chose the lesser rated insurers were less confident with their decision.
  4. Some purchasers believe their agent left-out key facts and did not inform them fully.
  5. Few owners, after purchasing, felt Hybrid annuities were not in their best interest.
  6. Those who structured Hybrid annuities for maximum income with reduced or no annual fees were more likely to recommend this type of annuity to others.

Frequent Annuity Questions How To:

Understand Hybrid Annuity Pros and Cons

Are you considering a Fixed Index Hybrid or a New Hybrid Immediate Annuity™? Learn about both of them first then compare the two for maximum income. There is a new generation of Hybrid Immediate Annuities™ available that have adopted many of the Hybrid features without the annual fees and higher agent commissions typically associated with Hybrid Annuities.

Watch as Dick Eric discuss a new Hybrid Annuity chassis that some agents are ignoring.

Guarantees, including optional benefits, are backed by the claims-paying ability of the issuer, and may contain limitations, including surrender charges, which may affect policy values. During this segment, Dick and Eric are referring to Fixed Annuities unless otherwise specified.

Hybrid Annuity (Fixed Index) Advantages:

  • Five to eight percent growth of an income base account for future income.
  • The ability to have increasing income as an inflation hedge
  • Upside market potential using popular indices such as the S P 500 or the Dow Jones IA
  • No actual market investment and no downside market risk
  • Pension styled income that cannot be outlived
  • Majority control of initial premium for unexpected expenses
  • The ability for heirs to receive the full account value of what has not been withdrawn.

Hybrid Annuity Immediate™ Advantages:

  • Easy to understand all contractually **guaranteed.
  • Simple to compare on the internet and purchase based on simple quotes.
  • The ability to have increasing income as an inflation hedge.
  • No market investment and no downside market risk.
  • The Largest pension styled income that cannot be outlived.
  • No Fees.
  • Majority control of initial premium for unexpected expenses after a designated time period.
  • The ability for heirs to receive the full account value of what has not been withdrawn.

Tim was concerned about Laura having enough income if he predeceased her. This educational video shows the inside story on how Tim and Laura solved their dilemma by using the best Hybrid Annuity Income Plan designed specifically for them.

  • These financial instruments are considered to be complex with moving parts that can substantially limit growth potential
  • Income for life is lower than most immediate annuities without approximately five or more years of deferral.
  • The five to eight percent growth **guarantee is not a cash value and can not be taken out in a lump sum.
  • Most do not have any increasing income probability after the income rider is activated.
  • Upside market potential using popular indices such as the S P 500 or the Dow Jones IA. Gains are limited considerably.
  • Fees are charged for income riders costing typically about one percent annually for as long as the annuity is in effect.
  • Surrender charges amount to around ten percent for excessive withdrawals in early years
  • Heirs may pay ordinary income tax rates depending on how the Hybrid annuity is structured.

Hybrid Annuity Immediate™ Disadvantages Misconceptions :

  • There is no deferral period income typically starts within thirty days
  • Surrender or commutation charges amount to around ten percent for withdrawals in early years
  • Heirs may pay ordinary income tax rates depending on how the Hybrid annuity is structured.

Cindy wanted to retire next year but did not want to risk retiring too early and running out of money. This educational video explains how Cindy and Bill used an Inflation Hedged Hybrid Income Annuity.

Hybrid Income Annuities Hybrid Income Annuity Riders: Read More

Are Hybrid Annuities too Complicated? Read More

Learn the Truth About Hybrid Annuities: Read More

Question: How many baby boomers will retire over the next 10 to 15 years?

Answer: 78,000,000. Yes. Seventy Eight Million retiring with not one dime on reserve in our Social Security System. We re at least a day late and a dollar short. It s too bad FDR didn t use our social security tax to fund annuities; then we would not be in this mess today!
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Amount of Roth IRA Contributions That You Can Make for 2016 #example #of #income #statement

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Amount of Roth IRA Contributions That You Can Make for 2016

Amount of your reduced Roth IRA contribution

If the amount you can contribute must be reduced, figure your reduced contribution limit as follows.

  1. Start with your modified AGI.
  2. Subtract from the amount in (1):

    $184,000 if filing a joint return or qualifying widow(er),

    $-0- if married filing a separate return, and you lived with your spouse at any time during the year, or

    $117,000 for all other individuals.

  • Divide the result in (2) by $15,000 ($10,000 if filing a joint return, qualifying widow(er), or married filing a separate return and you lived with your spouse at any time during the year).
  • Multiply the maximum contribution limit (before reduction by this adjustment and before reduction for any contributions to traditional IRAs) by the result in (3).
  • Subtract the result in (4) from the maximum contribution limit before this reduction. The result is your reduced contribution limit.
  • See Publication 590-A. Contributions to Individual Retirement Accounts (IRAs). for a worksheet to figure your reduced contribution.

    Page Last Reviewed or Updated: 23-Dec-2015

    Individual – Treasury Bonds: Rates – Terms #home #income

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    RESEARCH CENTER

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    Treasury Bonds: Rates Terms

    Treasury bonds are issued in a term of 30 years and are offered in multiples of $100.

    Price and Interest

    The price and interest rate of a bond are determined at auction. The price may be greater than, less than, or equal to the bond’s par amount (or face value). (See rates in recent auctions .)

    The price of a fixed rate security depends on its yield to maturity and the interest rate. If the yield to maturity (YTM) is greater than the interest rate, the price will be less than par value; if the YTM is equal to the interest rate, the price will be equal to par; if the YTM is less than the interest rate, the price will be greater than par.

    Here are some hypothetical examples of these conditions:

    Type of Security

    Yield at Auction

    Above par price required to equate to 3.99% yield

    Sometimes when you buy a bond, you are charged accrued interest, which is the interest the security earned in the current semiannual interest period before you took possession of the security. If you are charged accrued interest, we pay it back to you as part of your next semiannual interest payment.

    For example, you buy a 30-Year Treasury bond issued February 15, 2006 and maturing February 15, 2036. If February 15, 2006 fell on a Saturday, Treasury would issue the bond on the next business day, Monday February 17, 2006. Besides the purchase price, you would pay Treasury for the interest accrued from February 15 to February 17, 2006. When you get the first semiannual interest payment, it will include the accrued interest you paid.

    If you are a TreasuryDirect customer, you should look at your Current Holdings, Pending Transactions Detail after 5 pm Eastern Time on auction day and check the price per $100 and accrued interest to determine the total price of the security. Next, make sure the source of funds you selected has sufficient funds to cover the total price. If you need to add funds to cover the purchase price, you have to do so before the issue date of the security.

    If you buy from a bank or broker, please consult the bank or broker to learn payment arrangements.

    Bonds pay interest every six months.

    Options at Maturity � and Before

    You can hold a bond until it matures or sell it before it matures.

    If you don’t sell, your options at maturity depend on where you hold your bond:

    • TreasuryDirect. Redeem the bond or use its proceeds to reinvest into another bond of the same term.
    • Legacy Treasury Direct. Redeem the bond. (Bonds cannot be reinvested in Legacy Treasury Direct, which is being phased out .)
    • Bank or Broker. For your options, consult your bank or broker.

    Auction Pattern

    • Original Issues�February, May, August, November
    • *Reopenings�January, March, April, June, July, September, October, December

    * In a reopening, we sell an additional amount of a previously issued security. The reopened security has the same maturity date and interest rate as the original security. However, as compared to the original security, the reopened security has a different issue date and usually a different purchase price.

    Paper Bonds or Electronic Bonds

    Treasury bonds exist in either of two formats: as paper certificates or as electronic entries in accounts. Paper Treasury bonds can be converted to electronic form. For information on this and other issues about paper Treasury bonds, contact us by any of these methods:

    • Send an e-mail
    • Call 844-284-2676 (toll free)
    • Write to:
      Bureau of the Fiscal Service
      P.O. Box 426
      Parkersburg, WV 26106-0426

    Canadian International Income Tax Rules #online #income #tax #return

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    Canadian International Income Tax Rules

    Canadian international tax rules adhere to the tax models promoted by the Organisation for Economic Co-operation and Development (OECD). They follow the international norm of giving priority to the country where taxable income is generated (i.e. the source country).

    Broad principles of tax rules

    Worldwide taxation

    Canadian residents are liable for taxes on their income worldwide. A corporation is considered a resident of Canada for tax purposes if its central management is located in Canada or if it is incorporated in Canada.

    Eliminating double taxation

    To avoid the double taxation that would result from having the same income taxed in both the source and residence country, Canadian residents are entitled to relief in the form of a credit or exemption.

    Permanent establishment

    A foreign entity operating in Canada through a permanent establishment (i.e. an entity not legally separate from its parent corporation) is liable for tax only on income generated in Canada.

    Taxating of Foreign Investment in Canada

    Subsidiaries

    Foreign investors doing business in Canada through a separate legal entity (such as a subsidiary) are considered to be Canadian residents and are taxed as such. Income tax is applied to these investors’ worldwide income, and appropriate relief is provided for taxes paid in other countries, if the subsidiary also carries out business abroad. Payments made to non-residents are subject to withholding taxes. The statutory withholding tax rate is 25%. However, this rate is usually reduced through Canada’s extensive network tax treaties with other countries.

    Branches

    Non-residents doing business in Canada through permanent (such as a branches) rather than as separate legal entities pay income taxes on the income attributed to the business they conduct in Canada. In addition, a branch tax is imposed on non-resident corporations’ after-tax source income that has not been reinvested in Canada. The statutory branch tax rate is 25%, but it can be reduced by tax treaties.The branch tax is a proxy for the withholding tax that would have been on dividends if the branch’s business had been carried out through a subsidiary.

    Mining specific provisions

    Non-resident corporations incorporated as principal-business corporations (PBC) in Canada have access to special tax incentives, such as flow-through shares and the Canadian Exploration Expense and Canadian Development Expense PBCs are corporations whose principal business is directly related to one or more mining or oil and gas activities.

    Taxating of Canadian Investment Abroad

    Branch income

    When a Canadian resident’s foreign operations are conducted through a branch the branch’s income is included in the resident’s taxable income in Canada. However, a tax credit can be claimed for foreign taxes levied on income attributable to the branch. This credit is limited to the tax payable to Canada on the foreign-source income, and is computed on a country-by-country basis. Canadian taxes cannot be deferred when a branch structure is elected, but foreign losses are deductible against Canadian source income.

    Subsidiary income

    When foreign operations are conducted through a subsidiary, the income earned by the subsidiary is generally not subject to taxation in Canada until profits are remitted to Canadian shareholders in the form of dividends, or until the Canadian corporation disposes of its foreign subsidiary. The tax treatment of foreign subsidiaries depends on ownership:

    • If Canadian ownership is less than 10% of common shares, then the income is “portfolio income.”
    • If ownership is equal or greater than 10%, but less than 50%, the foreign corporation is a “foreign affiliate.”
    • If ownership is greater than 50%, the corporation is a “controlled foreign affiliate.”

    Tax Rules for Gifts #fixed #income #investment

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    #income rules

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    Tax Rules for Gifts

    Here are the main tax rules for gifts, including income tax and gift tax.

    The main rules for gifts between individuals are fairly simple. These gifts don t produce deductions for the donor or income for the recipient. And most of the time there s no gift tax, either. But if you give more than the annual exclusion amount ($14,000 as of 2016) to one person other than your spouse in a single year, you ll have some planning concerns — and a reporting obligation.

    Recipient doesn t report income

    Gifts you receive aren t considered income. It doesn t matter how large they are. You don t report them on your income tax return in any way.

    There are a couple of important qualifications on this simple rule:

    • True gifts. This rule applies only to true gifts. You can t avoid paying income tax by calling something a gift when it isn t. For example, a gift you receive in exchange for services or some other consideration isn t a gift.
    • Income after gift. If you receive a gift in the form of income-producing property, you must report any income produced after the gift. For example, if you receive stock as a gift, you must report any dividends paid on that stock after the gift.
    • Foreign donor. Certain large gifts or bequests from certain foreign persons must be reported on Form 3520.

    Sorry, no deduction

    Some people hear that they can give an annual amount to their child tax-free and wonder if this means they can claim a deduction for such gifts. We ll explain below how the annual exclusion amount can keep these transfers free of gift tax. giftsdon t produce income tax deductions, though, unless we re talking about donations to qualifying charities.

    Basis and holding period

    If the gift consists of property other than cash, the basis and holding period of the property will transfer over to the recipient. It s important for the recipient to know when the donor acquired the property, the cost of the property, and any other information that would affect the property s basis. Ideally, the recipient of the gift should also receive records that will provide adequate proof of these facts.

    It s also necessary to know the value of the property at the time of the gift. The donor needs this information to determine whether the gift exceeds the annual exclusion amount and, if so, the amount to report on the gift tax return. The recipient of the gift may also need this information to determine whether a deduction is available if the property is later sold at a loss.

    Gifts can be used to transfer built-in gain from the old owner to the new one, but the recipient can t use any loss that was built-in at the time of the gift to claim a deduction.

    Gift tax

    Although there s no income tax on gifts, there is such a thing as a gift tax. The gift tax is imposed on the donor. The person receiving the gift does not have to pay this tax.

    Most people don t have to worry about this tax because it generally doesn t apply until you make gifts exceeding the annual exclusion amount to one person within a single year. And there are other exclusions that often prevent the gift tax from applying. There is an unlimited exclusion for gifts to your spouse. (An annual limit applies if your spouse is not a U.S. citizen.) And there s an unlimited exclusion for the payment of medical expenses or educational costs, provided you make these payments directly to the service provider or educational institution.

    The annual exclusion

    The annual exclusion is adjusted for inflation and applies to each person every year. The amount is $14,000 as of 2016.

    Example: On December 31 you give $14,000 to your son and $14,000 to your son s wife. On January 1 (the next day) you give another $14,000 to your son and another $14,000 to your son s wife. If you made no other gifts to your son or his wife during these two years, all of the gifts are covered by the annual exclusion.

    If you re married, your spouse can also make the gifts described in the example. You and your spouse each have your own annual exclusion amount, even if you file joint federal income tax returns.

    Giving more than the annual exclusion amount

    If you give more than the annual exclusion amount to one person in a single year you ll have to file a gift tax return. But you still won t have to pay gift tax unless you gave a very large amount. The rules let you give a substantial amount during your lifetime without ever paying a gift tax. As of 2016 the amount is $5,450,000.

    You don t use up any of this amount until your gifts to one person in one year exceed the annual exclusion amount described earlier. For example, if you make a $15,000 gift in 2016, you have used up only $1,000 of your lifetime limit.

    Any amount you use out of your lifetime gift tax exclusion counts against the estate tax exclusion, which is also $5,450,000 as of 2016. This means that if you use $250,000 of the limit by making gifts during your lifetime, you have reduced by $250,000 the amount that can pass through your estate free of the estate tax. So you shouldn t ignore your lifetime limit even if you feel certain that your lifetime gifts will never add up to that amount. It pays to plan your gifts around the annual exclusion amount and the exclusions for educational and medical expenses wherever possible.

    Bonds: Infrastructure Bonds, Bonds Market, Capital Gains Bonds, Government Bonds, Non Convertible Debentures Bonds #hmrc.gov.uk/income

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    #income bonds rates

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    Bonds

    Bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest (the coupon) to use and/or to repay the principal at a later date, termed maturity. A bond is a formal contract to repay borrowed money with interest at fixed intervals (ex semi annual, annual, sometimes monthly).

    Bonds provide the borrower with external funds to finance long-term investments, or, in the case of government bonds, to finance current expenditure. Bonds and stocks are both securities, but the major difference between the two is that (capital) stockholders have an equity stake in the company (i.e. they are owners), whereas bondholders have a creditor stake in the company (i.e. they are lenders). Another difference is that bonds usually have a defined term, or maturity, after which the bond is redeemed, whereas stocks may be outstanding indefinitely.

    Vikram Dalal, MD

    Rajiv Raj, Founder & Director

    Jitendra P.S.Solanki, Investment Adviser & CFP

    Listed Bonds

    Last Traded on. 09 Sep 16:01

    Housing and Urban Development Corporation

    Housing and Urban Development Corporation

    Housing and Urban Development Corporation

    Housing and Urban Development Corporation

    India Infoline Finance

    India Infoline Finance

    Non-Convertible Debentures (NCDs)

    NCDs – Issues Open Now

    SREI Infrastructure Finance

    10 bonds (Rs 10,000) and in multiples of 1 bond thereafter

    Issue Size (Rs Cr)

    Types of bonds offered

    400 days from date of allotment

    3 years from date of allotment

    3 years from date of allotment

    3 years from date of allotment

    5 years from date of allotment

    5 years from date of allotment

    5 years from date of allotment

    Note: Company aims to raise Rs 250 crore with green shoe option of Rs 750 crore, aggregating to overall issue size up to Rs 1,000 crore

    Oct 06 2015, 18:34

    Sep 24 2015, 15:27

    Mar 31 2015, 18:25

    Mar 11 2015, 19:32

    Feb 23 2015, 19:31

    Frequently Asked Questions

    Capital Gains Bonds

    Capital Gains Bonds are instruments which offer tax exemption for transferring gains of long term capital assets. The Investment in these Bonds is to be made within six months from the date of such transfer of capital assets (Land/House Property etc.) for being exempted from Capital Gains Tax under Section 54EC of the Income Tax Act, 1961.

    The eligible bond under Section 54 EC are:

    As per provisions of Income Tax Act, 1961, any long term capital gains arising from transfer of any capital asset would be exempt from tax under section 54EC of the Act if:

    The entire capital gain realized is invested within 6 months of the date of transfer in eligible bond.

    Such investment is held for 3 years

    To avail of capital gain exemption, the bonds so acquired cannot be transferred or converted into money or any loan or advance can be taken on security of such bond within 3 years from date of acquisition else, the benefit would be withdrawn

    If the amount invested in bonds is less than the capital gains realized, only proportionate capital gains would be exempt from tax.

    Government Of India Savings (Taxable) Bonds

    Who’s eligible for investment?

    Bonds may be held by: An individual, NRI, HUF, Charitable institution or University.

    What is the limit of investment in bonds?

    There is no maximum limit for investment. Bonds are issued at a minimum amount of Rs. 1000/- (face value) and in multiples thereof.

    What are the taxes on the bonds?

    Interest on bonds will be taxable under IT Act, 1961. The bonds will be exempt from wealth tax under the Wealth Tax Act, 1957.

    How can I subscribe for bonds?

    Subscription to the Bonds is in the form of Cash/Drafts/Cheques.

    In what form will the bonds be issued?

    Bonds will be issued only in the form of Bonds Ledger Account and may be held at the credit of the holder in an account called Bonds Ledger Account (BLA).

    Who will receive my application?

    Applications for the Bonds in the form of Bonds Ledger Account will be received at :

    1) Any number of Branches of State Bank of India, Associate Banks, Nationalised Banks, four private sector banks and SCHIL as specified in the TB 3.

    2) Any other bank or number of branches of the banks and SCHIL where the applications will be received as specified by the Reserve Bank of India in this behalf from time to time.

    Can I have nominations in my application?

    No nomination shall be made in respect of the Bonds issued in the name of a minor.

    1) Every nomination and every cancellation or variation shall be registered at the Receiving Office where the Bonds is issued and shall be effective from the date of such registration.

    2) If the nominee is a minor, the holder of a Bonds may appoint any person to receive the Bonds/amount due in the event of his death during the minority of the nominee.

    Are the bonds transferable?