Invest In Tax Saving Mutual Funds Online
Human resource managers at multi-national companies in India often struggle with many key issues that are ambiguous for tax treatment of expatriate employees. However, to everyone's relief, many of such contentious issues have been addressed by the Delhi High Court in its recent ruling (Yoshio Kubo vs CIT).
The ruling upheld that the tax paid by the employer on behalf of the employee constitutes a non-monetary perquisite in the hands of the employee, making it eligible for exemption under Section 10(10CC) of Indian Income Tax Act. As a result, the employer can pay tax on behalf of the employee on non-monetary perquisites with a single gross up instead of multiple gross up.
The court further clarified that tax paid by the employer is also excluded from the definition of salary for the purpose of valuing accommodation benefit provided by the employer to the employee.
On the issue of taxability of the amount paid by a foreign employer to overseas pension funds, social security, etc, it has been held that the employer's contribution to such funds is not taxable when the contribution does not result in a direct present benefit to the employee, but assures him of the future benefit in the event of a contingency.
The court also re-affirmed the principle laid down by the Bombay High Court, which stated that hypothetical tax denotes the sum of money withheld by the employer to fulfil the commitment of paying a net salary to the employee and is, therefore, deductible from the taxable salary of the employee.
On the taxability of legal expenses (such as fee for the tax return preparation, etc) paid by employer for tax-compliance of the employee, the court ruled that such sums paid are expenses of the employer since it was the contractual obligation of the employer to handle the tax-related matters of the employee and, hence, non-taxable in the hands of the employee.
There are cases where the tax paid by the employer on behalf of the employee exceeds the actual tax liability. The ruling clarifies that the refund of excess tax to employee is not taxable in the ands of the employee if, under the contractual obligation, the amount of refund received by the employee is due to the employer.
The issues addressed by the court ruling have a wide impact on the tax implications of expatriates seconded to India. The ruling provides greater clarity on the contentious issues resulting in saving of tax cost and advisory costs for the employers.
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Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.
Invest Tax Saving Mutual Funds Online
Tax Saving Mutual Funds Online
These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)
Download Tax Saving Mutual Fund Application Forms from all AMCs
Download Tax Saving Mutual Fund Applications
These Application Forms can be used for buying regular mutual funds also
Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )
- ICICI Prudential Tax Plan Invest Online
- HDFC TaxSaver Invest Online
- DSP BlackRock Tax Saver Fund Invest Online
- Reliance Tax Saver (ELSS) Fund Invest Online
- Birla Sun Life Tax Relief '96 Invest Online
- IDFC Tax Advantage (ELSS) Fund Invest Online
- SBI Magnum Tax Gain Scheme 1993 Invest Online
- Sundaram Tax Saver Invest Online
- Edelweiss ELSS Invest Online
Best Performing Mutual Funds
- Largecap Funds Invest Online
- DSP BlackRock Top 100 Fund
- ICICI Prudential Focused Blue Chip Fund
- Birla Sun Life Front Line Equity Fund
- Large and Midcap Funds Invest Online
- ICICI Prudential Dynamic Plan
- HDFC Top 200 Fund
- UTI Dividend Yield Fund
- Mid and SmallCap Funds Invest Online
- Reliance Equity Opportunities Fund
- DSP BlackRock Small & Midcap Fund
- Sundaram Select Midcap
- IDFC Premier Equity Fund
- Small and MicroCap Funds Invest Online
- DSP BlackRock MicroCap Fund
- Sector Funds Invest Online
- Reliance Banking Fund
- Reliance Banking Fund
- Tax Saver MutualFunds Invest Online
- ICICI Prudential Tax Plan
- HDFC Taxsaver
- DSP BlackRock Tax Saver Fund
- Reliance Tax Saver (ELSS) Fund
- Gold Mutual Funds Invest Online
- Relaince Gold Savings Fund
- ICICI Prudential Regular Gold Savings Fund
- HDFC Gold Fund
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