THE COMPLETE GUIDE To PERSONAL TAXES by Ankur Warikoo — > Money needed for development by the govt- comes from taxes — lt is collected in 2 different forms — @ DIRECT TAXES 4 you pay them directly - Intwome tax — tax on Your salary = Capital gain tax — tax on profits from investments — Corporate tax — companies pay this @ INDIRECT TAXES 4 levied indirectly from the citizens - GST - tax on goods & Services we use 4 INCOME TAX — very important element - it has 2 options — f (i) Old tax regime (ii) New tax regime biggest difference b/w them — ie —> you get some deductions in the old tax regime T Xx UT REGII you can subtract some HE elements from your taxable LZ income to lower the tax amt. Section 80 — 80C,¢0D — deductions that allow us to Yeduee the impact of taxes on PF our inwme. [refer video - income tax saving tips] [made on procreate] Page 4ben) * . . —7 1! g) — You can deduct your health & life insurancels premium from your taxable invome — by investing in vight tax instruments - premium Is tax free NEW —> - tax Yates ave lesser than old tax regimes TAX - bvb there are no deductions REGIME = WHICH REGIME TO CHOOSE 2 — it is @ Mathematical exercise, you can uce tools that can help you with this — you need to feed in your Inwome kit Shows you the payable taxes Under both the regimes — you have to Make tis decision in the beginning of a financial year & it cannot be changed [ater = Rates — Old tax regime —> Annval income after deductions — + less than %2-5- — No TAX + F25L +o SSL — 5A Tax (1007: rebate © S5L to SOL — 207 Tax + SOL to S50L - 30% Tax * intome over SS0L has a different rate New tax regime —> Annval invome (NO dedvetions possible) + less than €25L - No TAX Z2-SL to SS- — S/. Tax (1007: rebate) + SSL to #SL —- 10/. Tax + SFSL to SOL - 157 Tax + Slo to S425L - 207 Tax + F/2SL to ISL - 257 Tax + SISL + S50L - 307% Tax * intome over TSVL has a different rate [made on procreate] Page 2Wend 2. #€ PLANNING FOR TAXES Screen Share — 9:15 Tool —» policybazaar. tom —» tax benefits plan - Click on investment plans — under tne old regime — vpto ZISL deductions every year 4) Total income — SSL if you invest SSL from it in tax saving instruments =) taxable iniome = F5L - SSL = S3-5L if You invest €10,000 every month & you do this every year for !0 years => every year you Invest 1-2 years if you withdraw after 20 yrs & you participate ” Market — Linked plans, 7 MARKET —> you get a capital aan on S-2L that you invested LINKED — for every year til) [0 years PLANS ib gets invested in the mkE & You get all your returns BENEFIT — under sec 0C + — investment amt. RAL Tax slab 207. (considery ine-= SSL) A «<— 24,000 x 4% (cess) B <— F460 Tax Saved = AtB=s 224,960 + no taX after you withdraw this money after 20 yrs. [made on procreate] Page 3you invest — monthly — 210,000 for lo years => total = =l2L You get — return basis Mkt performance — %87-3L (say 14-17) bs peeewvent oN MKT + 1007 gvaranteed amt: - 22b L GUARANTEED (check for 7 year retvrn on poliwbazaar) 1007. GUARANTEED PLANS (~ FD) (not AW!s preference) — you will get the money vider these plans irrecpective of the mkt performance, = vse 100% of Your possible deductions under section 80C [made on procreate] Page 4Went 2 fF TAXES ON INVESTMENTS (I) Fixed Deposits inflation ~ 67- return on FDS ~ 5S/ — this I's taxable as well , at the end of the Year — total interest income earned from FDs/any recurring deposits + Veturn from savings ajc You have pay tax on your interest income from these Qctording t your tax slab from your taxable intome. eg) If your tax slab is 20/. ‘5% which You earned from Fos ~- you will have to pay 20f tax on this as well = net earned 47: this Means every year your inflation ~ 67 money is devalued by 2/: if it ts invested in FDs. “FDS ave not a right trol to grow money. you can use them for emergency funds , or use it for short terms +9 protect your money, (2) Stocks % Mutval Funds — Capital gains tax - profit from bvying & selling stocks — it Is appicavle on the entire financial year & not on individval taxes Short LONG TeRM TERM [made on procreate] Page 5eg) You have 3 stocks im a year after selling , you earned the following profits — profit from stock A =+2Z1000 a ” 1B — 2200 » : » ¢ + [300 Zlloo Capital gain 1 ToTAL PROFIT — TF you buy & cell a stock within 4 year 5 profit gained on such stocks —> short term Capital gain tax — 157 short trm tax = S100 xX IS7 = F165 = effective gain = Filo0 - 26S = $435 — If you hold on the stocks for more than 4 year ib profit gained on such stock —> long term capital gain tax — lo7 2 advantages — ert (i) No tax upto S4L (ii) After S4L, it is only loZ sk Biggest component of government ‘vevenve — GST (~28/ of the total revenve) [made on procreate] Page