TAXATION

Income Tax in India
Income tax is a tax paid to the central government on personal income. According to Income Tax Act 1961, every person who is an assessee [an Assessee is a person by whom any tax or any other sum of money (eg. interest, penalty, fine, etc) is payable under the Income Tax Act] and whose total income exceeds the maximum exemption limit shall be chargeable to the income tax at the rate prescribed in the Finance Act. Read More

Tax Benefit For Elderly: Post Office Investors
In a pre-budget bonanza for senior citizens and the common man, the government has decided to extend the benefit of Section 80C of the Income Tax Act to the Senior Citizens Saving Scheme and five-year Post Office Time Deposit account. This will be applicable from April 1, 2007.
In addition, the government has announced that a bonus at the rate of 5 per cent will be paid on the Post Office Monthly Income Account at the time of repayment on maturity. Together with the bonus, the effective yield will be 8.9 per cent. Read in detail

Retiring Abroad May Not Be Paradise
Many of today's graying expatriates are heading permanently offshore to stretch their nest egg. Jon and Gretchen Nickel, formerly of Portland, Ore., settled in Panama, where they say they can live like the rich without needing a big bankroll. Lee Harrison and Julie Lowrey, from Vermont, moved to Uruguay because the lower living costs allowed them to retire years early. Other expat retirees are seeking foreign adventure, cultural experiences and exotic travel, without having to board an airplane.
But retiring to a foreign land can present a number of challenges, from opening a local bank account to avoiding being gouged for services. And while many countries, from Belize to South Africa, offer inducements to attract foreign retirees, making sure you've got health insurance can be a big problem. Read more

Insurance Authority Seeks Clarifications on LIC's Health Plan
Two days after the Life Insurance Corporation of India (LIC) launched Health Plus, its unit-linked health insurance policy ( ULIP), the Insurance Regulatory and Development Authority (Irda) has asked the insurance major to clarify the income tax benefits that would accrue to holders of the policy. Read more

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