Professional tax must be paid before Sept 30

Salaried individuals, private establishments and companies should pay half-yearly profession tax before September 30, the Chennai Corporation said on Friday.

"Payment can be made either by cheque or by demand draft drawn in favour of the revenue office, Corporation of Chennai. If anybody fails to pay the profession tax in time, necessary action will be taken to collect the dues with penalty by following due process of law," said a press release from corporation.

Any company that transacts business and every person who is engaged in any profession, trade or employment in the corporation jurisdiction has to pay profession tax under Section 138C of the Tamil Nadu Municipal Laws as amended in 1998.

Every person who is liable to pay profession tax should pay it before September 30 and March 31 every year.

The Tamil Nadu Municipal Act has stipulated tax revision once in five years and the Chennai Corporation hiked the tax last in 2009. 

For more details visit our site:-  Tax adviser in India

5 smart things to know about tax benefits on insurance policies

1. Section 10 (10D) of the Income Tax Act exempts the maturity proceeds received on an insurance policy from being taxed, provided certain conditions are fulfilled.

2. If the premium paid in any year exceeds 10% of the sum assured, the policy will not be eligible for exemption.

3. In case of single premium policies, where the premium paid exceeds 10% of the sum assured, the maturity proceeds are taxed in the year of receipt.

4. Keyman insurance policies, irrespective of the premium as percentage of sum assured, are not eligible for the benefits of tax exemption.

5. If the sum assured becomes payable on a life insurance policy in the event of death, the proceeds are exempt from taxation in the hands of the payee.

For more details visit our site:-  Tax adviser in India