Taxes

  • Thread starter Thread starter agantuk
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I would not term what you said as tex evasion but rather tax avoidance.

I meant tax avoidance leading to tax evasion. It becomes difficult to track all these things after a particular point. One other case is investing such that your deposit amounts are less than 50K. No PAN required, traceability becomes harder for the IT folks. I am not encouraging tax evasion, just presenting ways where one can get away without paying taxes.

Again, if you earn more in FDs after some time you're going to run out of branches to bank with 🙂

Your idea works maybe for the first few years out of college, after that it will become unmanageable.

That's right. In such scenarios, one very useful (and probably less used) option is to invest the amount in any direct relation's name (apart from spouse's) with an income less than the taxable minimum. That way any profit earned by that person on the amount is taxable to that person and not to you. ex: one can invest in their mother's name if their mother doesn't have a taxable income. All profit derived thus is legally exempt.
 
In assessments that take place after a search has been conducted u/s 132. incometaxindia.gov.in - Direct Tax Laws
 
I meant tax avoidance leading to tax evasion. It becomes difficult to track all these things after a particular point. One other case is investing such that your deposit amounts are less than 50K. No PAN required, traceability becomes harder for the IT folks. I am not encouraging tax evasion, just presenting ways where one can get away without paying taxes.
Avoidance is legal. its just smarter, unorthodox planning.

earning x, declaring 0.2x and getting away paying tax on the remainder is evasion. The only way you can do this is if your cash in hand, this will work with small amounts and is more trouble than its worth. Or if you have a business then there's much better possibilites that lead to real gains without the hassle. Got to be on your toes though.

In this area don't think in black & white terms, all you care about is risk. Its your hard earned money and if you want to hold onto to it then more strength to you.

That's right. In such scenarios, one very useful (and probably less used) option is to invest the amount in any direct relation's name (apart from spouse's) with an income less than the taxable minimum.
Yes, but then its all in their name, what will you do if they suddenly decide to go on that once in a life time trip to Acapulco 😀

That way any profit earned by that person on the amount is taxable to that person and not to you. ex: one can invest in their mother's name if their mother doesn't have a taxable income. All profit derived thus is legally exempt.
Emphasis on the bolded bit. Be aware that it does not take much to send these senior citizens into a higher tax bracket. They usually dont like that.
 
Thats the limit u/s 142 i guess.....need to check up. Feeling very sleepy now, and mood is off again!! 😕
 
I noticed 1 thing - this this site which hosts the Income tax Act, creates problems in other browsers. When i click on a particular section, the new window does open up, but its completely blank!It shows the contents only when i open thru the Internet Explorer. Not able to nail the exact reason of this.
 

Yea. Sarkari site, not even worth the effort opening them in other browsers. That said, it is really good that the IT site contains the details. Has helped me a great deal in the past when dealing with incompetent finance people

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That said, after posting I realised that I browse their site only on Opera, and it works 😀 Which browser are you trying? May be the adblocker is blocking the content?
 
Used FF, & Chrome - both. Adblocker isnt blocking. I tried disabling that extension just now.Otherwise its worth the effort for me. it not just helps me in Income tax related works, but also when i am at Audits. We do have to ensure compliance with Tax provisions!
 
Check your browser addons, might be some issue. I just opened up a section on FF. Opens fine:
 
I disabled all the extensions i had installed, and cleared cache/cookies.

Still, the same issue:
 
That screenshot suggests a 'broken' page.

Can you copy paste this URL in your browser and see. This is the URL of the frame within that page which has the actual contents

Code: 
http://law.incometaxindia.gov.in/DIT/HtmlFileProcess.aspx?page=ITAC&schT=&csId=8bd970f9-49a6-4b86-bed5-b5c8d4880800&rdb=sec&yr=e5be6bdb-1fc4-42d6-ac7b-34a44fd65485&sec=&sch=&title=Taxmann#

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Just checked with Chrome. It is indeed a problem on Chrome. FF and other browsers work fine.
 
Yes that worked! So whats the solution to this?

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This is the problem in FF in Mint......havent tried with FF in Windows.
 
From what I could make out it seems to be a problem with the way Chrome is interpreting the paths. There are relative paths, and it seems to be resolving them wrong. Need to look further.

Temporary workaround is for you to save one of these links - like the one I gave, and then navigate from that. That approach works right now, you just won't get that IT department banner, but that is anyway of no use 😀

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I think I got what is going wrong. Do you have any blocker where you can block a particular URL in Chrome? I don't use Chrome so don't have any such thing

If you have such a thing, just add the following URL to the block list, clear your history (or work in private mode) and try accessing the IT site again.

http://law.incometaxindia.gov.in/images/Loader2.gif

Block all permutations of this URL, so if it supports something like *law.incometaxindia.gov.in/images/Loader2.gif, add that too

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Ignore my previous post about blocking that gif. The reason why this fails is, there is a weird condition check on the IT website (didn't bother to find out why, but just suffice to know that there is a check) to see if the browser has the 'Adobe Acrobat' plugin. Now as we know, Google Chrome uses its own plugin to render PDFs. So if you want to browse the IT site too, you will have to enable Adobe's plugin and disable Google's. For that purpose, do this:

1) Go to the plugins section in Chrome (chrome:///plugins)
2) Search for Chrome PDF and Disable it
3) Search for Adobe Acrobat and Enable it.

Reload your IT page. It should work 😀

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But do we have Adobe Acrobat Plugin for Chrome in Linux? i didnt find that plugin!
 
Check your plugins list. There just might be.

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It is the standard plugin. Installing Adobe Reader should fix the issue. Chances are you already have it installed, but disabled
 

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