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MSME Credit

MSME clients– How does can banking and electronic payments help in building the credit history for MSME Setups?

AS: One of the big collateral benefits is going to be financial inclusion. A lot of small and medium enterprises don’t have easy access to credit because they don’t have documentation or a track record. So now the tax payments that are made electronically can be discounted, and MSME’s can create a market for bills and a backbone where these people can have better access to credit.

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About Saving Income Tax

All You Need to Know About Saving Income Tax

Recommended ways to save taxes under Sec 80C & 80D

  • Make an investment of Rs 1.5 Lakh under Sec 80C to reduce your taxable income
  • Buy medical insurance and claim a discount up to Rs. 25,000 (50,000 rupees for seniors) for medical insurance premiums under Section 80D
  • Claim a discount of up to Rs 50,000 on interest on a housing loan under Section 80EE

Investment options under Sec 80C

The most tax-saving options available to individuals and HUFs in India are under Section 80C of the Income Tax Act. Section 80C includes many investments and expenses that can be used to claim discounts. The maximum section of 80 ° C is 1.50 in the fiscal year, which means that you can use this amount in full to reduce taxable income.

Investment options under Sec 80C

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Other options for saving taxes outside Sec 80C

Apart from the discounts available under Section 80C, there are many other deductions under Section 80 which can also be claimed to provide income tax. These deductions include health insurance premiums and tax benefits on mortgages

  • Buy medical insurance and claim a discount up to Rs. 25000 (50,000 rupees for seniors) for medical insurance premium
  • Claim a discount of up to Rs 50,000 on interest on a housing loan under Section 80EE
  • A home loan also helps you reduce your taxable income. The main part of the home loan can be claimed under Section 80C up to Rs. 1.5 crore. The interest portion can be claimed as a deduction from the homeowner’s income

How to plan your investments to provide taxes for the year

The best time to start planning your investments to provide tax is at the beginning of the fiscal year. Most taxpayers stall until the last quarter of the year and end up making quick decisions. Instead, if you plan at the beginning of the year, you can make investments that can also help you achieve your long-term goals. Tax-saving investments should be used to build wealth as well, not only to provide taxes.

Use the following indicators to plan your tax savings for the year:

  • Check the tax savings you are already making and can claim. This includes expenses, such as premium, tuition fees for children, Contribution of EPF, repayment of housing loans, etc.
  • This amount is deducted from $ 1.5 lakh to find out the amount of investment. There is no need to invest the full amount if the expenses are covered.
  • Choose your tax savings investments based on your goals and profile. ELSS, PPF, NPS, and fixed deposits are among the common options.

That way, you can figure out how much you need to invest to save taxes. It is best to start investing in the first quarter of the financial year so that you can distribute investments throughout the year. This will not affect you at the end of the year, and will also allow you to make informed investment decisions.

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Need to stabilize GST implementation

Need to stabilize GST implementation to facilitate easier compliance

India needs to work to stabilize the tax on goods and services (GST), eliminating the uncertainties of sectors such as exports, said the Economic Survey while excluding some products from the scope of the new tax.

The government should also stabilize the implementation of Goods and Service tax  to eliminate the uncertainty of exporters, facilitate compliance and expand the tax base,” according to the Economic Survey 2017-18.

GST Implementation

The launch of the new tax was affected by compliance issues, which prompted the GST Board to expeditiously reconsider provisions such as rates on household assets and those on small-scale sectors.

He called GST’s revenue collections “surprisingly robust” given that these are the first days of a disruptive change.

The revenue collection under the GST is working well, surprisingly, so for a transformational reform.

GST revenues recovered to `86,700 crores in December from 83,000 crores in October and` 80,808 crores in November.

The success of the new tax

The implementation of GST has increased more than 50% with more than 34 Lakh businesses entering the tax network, Survey said, highlighting the success of the new tax. Based on the average collections in the first months, the implicit weighted average collection rate (incidence) is around 15.6%.

Therefore, as estimated by the RNR committee, the single tax rate that would preserve income neutrality is between 15 and 16%. India launched the Goods and Service tax  on July 1, replacing 43 state and central indirect taxes and fees with a single levy.
The Survey said that the largest number of Goods and Service tax registrants are in Maharashtra, Uttar Pradesh, Tamil Nadu and Gujarat. Tamil Nadu and Gujarat Uttar Pradesh and West Bengal have seen further increases in the Goods and Service tax  base among states closely linked to their economies, easing fears in the major producing states that changing to the new system would undermine their tax collections.

TECHNOLOGY MODEL FOR THE IMPLEMENTATION OF COMPLEX REFORMS

The GST Council, the GST Council to carry out a tax review are embedded in the rest of the GST area … the GST Council must conduct a comprehensive review of the incorporated taxes arising from the products that are left out GST ( oil and electricity) and those that arise from the same Goods and Service tax  (for example, tax credits that are blocked due to the “tax investment”, so the taxes further back in the chain are greater than that in the chain), “he said.

He added that this revision should lead to an early elimination of these embedded export taxes, which could provide a significant boost to Indian manufactured exports.
By promoting the GST Council as an effective example of federalism, the survey said it could be used for other reforms.

The Council’s model could be used for DBT … for effective implementation

The survey cited Goods and Service tax as the repository of data on the Indian economy. It uses Goods and Service tax data to establish that the non-agricultural payroll of the formal sector of the country is significantly higher than what is currently believed. “Formal defined in terms of formal sector in a formal sector is defined as a formal sector payroll of 53%,” he said. ..