JavaTechies / Personal Finance

    (I) Introduction to Rajiv Gandhi Equity Savings Scheme, 2012 1) What is Rajiv Gandhi Equity Savings Scheme, 2012 (RGESS)? With an objective to encourage flow of savings of the small investors in domestic capital market, the Government of India announced a scheme named Rajiv Gandhi Equity Savings Scheme, 2012 (RGESS). 2) Does RGESS offer any tax benefits? A new section 80CCG under the Income Tax Act, 1961 on ‘Deduction in respect of investment under an equity savings scheme’ has been introduced to give tax benefits to ‘New Retail Investors’ who invest up to `50,000 in ‘Eligible Securities’ and have gross total annual income less than or equal to Rs.10 Lakhs. 3) Who is a ‘New Retail Investor’? A ‘New Retail Investor’ is any resident Individual  ü who has not opened a demat account and has not made any transactions in the equity or derivative segment as on the date of notification of the scheme i.e., November 23, 2012. OR ü ...

There have been Drastic Changes in the Service Tax law as applicable to Apartment Owners Associations or Cooperative Housing Societies, as presented in Budget 2012. These changes are applicable from  01-July-2012. We compile below all the changes.  A circular with clear details from the Service Tax Department is still awaited. Below have been compiled with inputs from two leading Society Accounting Firms – Firm led by CA Guruprasad Pandit in Bangalore and a Firm led by CA Mohanraj Yenagudde in Mumbai. Please note, these are interpretations of the actual Budget Proposal. Please do consult your Auditor before making relevant changes to your accounting process. Summary, For Those In A Hurry: 1. Almost every Society will be eligible for Service Tax Registration (Income above Rs.10Lakh/year) 2. Exemption of Rs.5000/month/ member . An owner of Multiple Flats will almost always exceed this. 3. Almost all Income Heads will come under Service Tax purview, including F...