STIPENDS ARE TAX EXEMPT! Posted by Rajratan Mendhe

Stipends, awards, fellowships & grants for education have been held as scholarships exempt from tax!

Under Section 10(16) of the Income-tax Act, any scholarship granted to a person to meet the cost of education is exempt from tax. The term ‘scholarship’ has been interpreted liberally to also include within its scope and ambit, amounts of fellowships, stipends, grants for travel and incidental expenses, etc. awarded for acquiring education.

STIPEND IS NOT SALARY

In the case of ‘A. Ratnakar Rao vs. Addl. CIT’ 128 ITR 527, the Karnataka High Court had occasion to consider whether the trainee’s stipend granted to a physician to further his education and training was exempt under Section 10(16). The Income-tax Department took the view that the amount received by the taxpayer was not in the nature of scholarship, but it was salary for the services rendered.

The High Court held that the amount paid to the taxpayer was for the benefit of securing training and pursuing study and research in medicine and the entire amount received from the hospital was in the nature of scholarship and not for services rendered and services, if any, rendered by the taxpayer were only incidental to the course of practical training.

The Income-tax Appellate Tribunal, Chandigarh Bench, in the case of Dr. Rahul Tugnait vs. Income-tax Officer 124 ITD 480, has held that the stipend received, by a student pursuing his post graduation at a medical college, cannot be termed as salary and the same would qualify for exemption under Section 10(16).

Similarly, the Income-tax Appellate Tribunal, Jaipur Bench has in the case of ‘Sudhirkumar Sharma vs. ITO’ 17 TTJ 226, also held that the stipend received by an Article Clerk from a Chartered Accountant is exempt, since it is not paid for rendering services by the Article Clerk, but is paid to him to meet the cost of books, coaching fee, examination fee, etc.

SCHOLARSHIP IF NOT FULLY SPENT?

An interesting question that could arise for consideration is in regard to taxability of a scholarship, where the recipient has not spent the whole amount. The Madras High Court, in the case of ‘CIT vs. V.K. Balachandran’ 147 ITR 4, had occasion to consider this very issue. The High Court held that where the purpose of payment of scholarship is to meet the cost of education, the question whether the quantum of payment is adequate or inadequate, or, is or is not in excess of the requirement is beside the point. It is enough if the whole object is to meet the cost of education of a person and no further enquiry is called for in order to exclude the amount from the taxable income under Section 10(16).

In this case, the taxpayer, a professor of mathematics was awarded grant-in-aid by a foreign university for doing advance research in the field of mathematics. The Court held that the fact that the recipient does not spend the whole of the amount or saves something out of it or utilizes for other purposes would not detract from the character of the payment being one for scholarship and accordingly exempt from tax.

The Income-tax Appellate Tribunal, Ahmedabad, in the case of ‘ACIT vs. Girish Saran Agarwal, had occasion to consider the taxability of DM 30,000 received by a PRL Scientist as Humboldt Research Award from Alexander Von Humboldt Foundation, Germany. The taxpayer’s name was approved by the Council of Scientific and Industrial Research as a beneficiary of the said award. According to the Assessing Officer, the amount received by the taxpayer was not a scholarship but an award which did not fall within the ambit of section 10(16).

The Assessing Officer further observed that the amount so received by the taxpayer having been partly utilized for the purchase of shares, RBI Relief Bond, NSC and Mutual Fund, the same could not be said to have been given as scholarship and disallowed the taxpayer’s claim. The Tribunal allowed the taxpayer’s claim for exemption u/s. 10(16), holding that the facts and circumstances of his case were similar to the Madras High Court case of V.K. Balachandran and accordingly the ratio of the same could be applied in the instant case as well.

Why should we file Income Tax return on Time?

Why should we file Income Tax return on Time?

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As per income tax act 1956, if the income of any person exceed the basic exemption limited limit of income tax act. Then he or she is required to file his/her income tax return according to the time limit specified in the section 139(1).

Last dates for filing income tax return for income tax assessment year 2013-14 are as follows:

  

1. 31st July 2013: for the person whose account need no to be audited.

2. 30th Sept 2013: for the person, firm or company whose account to be audited. 

Now the big question is that if we not file return on due date that what is the loss?

Some are as follows: 

A. As per the section 234A of income tax act, if a person have not paid his tax liability on or before due date mention u/s 139(1), the person need to paid off it all liability with interest. The rate of interest on the same is 1% per annum.

1. But as the interest is calculated on tax amount and tax amount is calculated after deduction of TDS, TCS and Advance tax. So if o tax is due on you then there is no interest also 

2. In simple words if you already paid you tax dues through TDS or TCS or Advance tax, then you need not to worry, no interest will be applicable.

B. As per section 139(1) of income tax act 1956, if you find any omission, mistake or missing information in the return or any other reason, then you can revise your income tax return. But the revision is only possible if you have filed the return according to section 139 (1).

C. Set off and carry forward of losses: if you current year income contain loses from business or profession or from capital gain or House property then you can carry forward the same amount of loss to next assessment year and setoff the amount against that year income.  But this benefit is available only if you have filed you income tax return according to the section 139(1). 

D. If still you have not file the return on due date then you need to file it by 31st march 2014, otherwise you will be levied a penalty of Rs 5000/- u/s 271F.

 So submit you return on time and save money.

Exemption in respect of Medical Expenses – Individual Taxpayers

One can not plan medical expenses, both in terms of timing and amount and cannot avoid or control such expenses, but the fact that medical expenses can provide tax exemption, gives a sigh of relief to the taxpayer. In order to claim medical expenses, one should know the relevant section of Income Tax Act to claim medical expenses, keep documentary record of medical bills, doctor’s prescription and claim medical expenses on the same financial year in which it is incurred as they cannot be carried forward. Section 10 – Medical Treatment Expenses Reimbursement Section 10 of the Income Tax Act provides medical expenses exemption if your salary package includes medical reimbursement as perquisites. Exemption is available on expenses incurred for you and your family for any diseases except cosmetic treatment and eye glasses. Exemption limit is Rs.15000 per year, supported by adequate documents. Section 80DDB – Medical Treatment Expenses Section 80DDB of the Income Tax Act provides medical expenses exemption on those incurred for you and your dependents for certain diseases. Exemption limit is Rs.40,000 per year and if you or your dependent is a senior citizen, then limit increases to Rs.60,000 per year. You need to submit form 101, issued by a specialist doctor working in government hospital. Section 80DD – Expenses on Physically Disabled Section 80DD of the Income Tax Act provides exemption for expenses on your physically disabled dependent. Exemption is allowed on expenses namely Medical Treatment Expenses and Payment or deposit under an approved scheme of LIC or UTI. Exemption limit is Rs.50,000 per year and if disability is severe the limit increases to Rs.60,000 per year. You need to submit form 101, issued by a specialist doctor working in government hospital.

Question and Answer Segment

13 Income-tax and investment tips for 2013

Let us all welcome the year 2013 with varied ideas to bring home tax planning for you and your family and also take you through Investment Strategies for investing your money. The following thirteen important Tax and Investment Tips for the year 2013 will surely help you to achieve your desired results :-

1) Income-tax file for one and all 

It is time now for every tax payer of the country to make a resolution to have a separate independent Income-tax File for every member in the family.  The objective of this is to achieve tax planning and cut down on your income-tax payments. Firstly think of your wife and if she does not have till now a separate independent Income-tax File, then start of having such independent Income-tax File for your wife. The concept of gift and loans in the name of your wife will help you to achieve this.  However, do remember that your wife can receive gift from any relative other than her husband, her father in law and her mother in law.  However, wife is free to take loan with reasonable interest from anyone including the husband.  Similarly adopt the concept of gifting your major children and start having separate independent Income-tax File for your major children. 

2) Hindu Undivided Family tax file in your kitty  

If you are a Hindu, then it is time now to find out whether you have a separate independent Income-tax File of your Hindu Undivided Family.  If still now you have not been instrumental in opening a separate Income-tax File for your Hindu Undivided Family, then right now is the time when you should start such separate Income-tax File in your family so that it helps you in the process of tax planning. The HUF file apart from enjoying the basic income-tax exemption of Rs. 2,00,000 will also continue to enjoy tax deduction in terms of section 80C as well as deduction for interest on housing loans. Also do remember that your HUF file can come into existence whether you have a son or just a daughter and even if you do not have any children, still your HUF file can come into existence right now.   

3) Plan for your minor children  

If you are having a minor child or a grand child, plan right now the different strategies for the safety and security of your minor child in particular.  If you want to have lots of income and wealth in the name of the minor child and would still like no clubbing of the income of the minor child, then it is time now to think of creating a separate independent hundred per cent “Specific Beneficiary Trust” in the name of the minor child based on the principles enunciated by the various courts of India including the Supreme Court of India so that the income of the minor child with special terms and conditions mentioned in the Trust Deed is not clubbed with the income of the parents.  It is also possible for you to think of starting a PPF account in the name of the minor child for his or her safety and also do not forget to take out Life Insurance Policies specially in the name of your minor child which will help the process of investment strategy in the years to come for the safety, security of your loving children. 

4) Real Estate strategy  

In the year 2013 in case you are thinking of buying your sweet home, then at that point of time do consider various vistas of tax and investment planning and then only take a decision to buy the property in the name of a particular member of the family.  Generally speaking, it will be worthwhile to buy the property in joint names so as to reap the full fruits of tax and investment planning. Please do note that every co-owner of the property will enjoy a separate deduction of interest on housing loan up to Rs. 1,50,000 per annum and would also enjoy  deduction in respect of repayment of the housing loan and plan now for your Real Estate to grow. Simultaneously, do not forget to keep in mind the provisions of the Wealth Tax Law so as to take care of wealth tax liability in respect of Real Estate or plan your wealth tax matter in such a manner that keeping in view the provisions contained in the Wealth-tax Law wealth-tax is not attracted on your Real Estate investment. It would also be a good idea to think of Rental Real Estate investment with the basic aim of getting a fixed secured rental income and lower tax incidence which is made possible through the special tax deduction at the rate of 30 per cent available for repairs etc. 

5) Salaries and Perquisites 

We pray to the Almighty God to give you a good rise in your salary package in the year 2013.  It may also be possible that you might be thinking of changing your job. In all situations namely when you get a good rise in salary or when you shift your service, then in both these situations do take care with regard to income-tax provisions contained in the Income-tax Law to save tax on your salary and perquisites. Study in greater detail the provisions contained specially in Income-tax Rules to get hold various of tax free allowances and perquisites for you during the year 2013.  It is time now for you to even design your salary package and finally keep a strict watch on the comparatively recent new circular of the Central Board of Direct Taxes dealing with various aspects connected with taxation of salary income which will help you to save your taxes. Likewise, while you make contribution in the year 2013 to Provident Fund, please keep a strict watch during the year because the definition of salary for the purposes of Provident Fund is expected to be amended.  Hence, your contribution as well as the contribution of your employer during the year 2013 has to be definitely in tune with the new provisions based on the change of the definition of salary. 

6) Get ready to face the new GAAR provisions  

Whether you like it or not but the fact remains that in the year 2013 the big tax payers in particular and more specifically the corporate tax payers will have to gear themselves to understand the provisions concerning General Anti Avoidance Rules popularly known as GAAR. It is a well known fact that even today the provisions concerning GAAR are contained in the Income-tax Act, 1961 as per the budget proposals made last year namely in the year 2012.  But these provisions relating to GAAR will become applicable from 1st April 2013. The tax payers should carefully watch the provisions contained in the Finance Bill 2013 to find out the latest update with reference to GAAR and the tax payers particularly the big tax payers should make a deep study into the provisions concerning GAAR so that they do not face problem at a future point of time. It may also be noted that the purpose of GAAR is to ensure that the tax provisions are not misused by the tax payers and that is the reason that the provision of GAAR requires utmost care and concentration and study of the subject matter. It is even possible that the provisions concerning GAAR may be completely done away with in the statute book. But the final verdict of the Government will be known only when the Finance Bill 2013 is presented.  Hence, carefully study the new tax provisions as and when introduced through the Finance Bill 2013. 

7) Tax Planning relating to Capital Gain 

If in the year 2013 you are going to receive certain amount by way of Capital Gain, then before making your decision to sell your assets, find out in the first place whether the gain arising to you is a Short-term Capital Gain or is it a Long-term Capital Gain because generally speaking, if you hold the asset for more than thirty six months, only then the gain becomes Long-term Capital Gain and is eligible to various concessions and deductions. Reversely, if the gain happens to be a Short-term Capital Gain, then there is no advantage at all in most cases. However, the shares and mutual funds if sold after holding it for more than twelve months, becomes a Long-term Capital Gain and less than that is a Short-term Capital Gain. Therefore, during the year 2013 at any point of time whenever you are contemplating to sell a particular asset, firstly sit down and calculate the period of holding.  It is even possible that just postponing your sale to couple of months later or in some cases couple of days later may enable you to get full advantage of Long-term Capital Gain.  Hence, do not sell the asset till you calculate the tax impact thereon.  Also take care to save your Long-term Capital Gains either by investing in Capital Gain Bonds or in a residential property or finally investing in shares of certain new companies which are micro and small enterprises so that your tax liability with reference to Long-term Capital Gain becomes a big zero. 

8) Cash is king, but take care  

Cash is king, yes this statement is absolutely true.  But during the year 2013, please continue to take care of all your cash transactions keeping in view the tax provisions as contained in the Income-tax Law.  Do remember that wrong action of playing with your cash money may result into substantial financial loss to you. Hence, it is time now to remember that in the year 2013 one should be very careful to take care of handling cash in tune with the provisions contained in the Income-tax Act, 1961. Firstly do remember that in your business or profession never make cash payment of an expenditure exceeding Rs. 20,000 on one single day to one party or else take the expenses so incurred by you will be disallowed within the provisions of the Income-tax Law. This limit,  however, happens to be Rs.35,000 for payment to transporters etc. Similarly, do take care to see that during the year 2013 you never make cash loan or repay the existing loan by cash  of an amount of Rs. 20,000. The provisions contained in the Income-tax Act specifically provides levy of very very harsh penalties for taking cash loan and or repayment of the cash loan in which case the penalty is equal to the amount of loan.  Hence, stop blaming right now the tax provisions but just concentrate on complying with the provisions contained in the Income-tax Law relating to cash payment. 

9) Keep your eyes and ears open for DTC  

All tax payers should keep a watch over the changes which are going to be proposed through the Direct Taxes Code.  We are not sure whether the Direct Taxes Code or DTC will be presented in the year 2013 but going by the common expectations  one can reasonably come to a conclusion that during the year 2013 Direct Taxes Code may be introduced in the Parliament which will completely result into makeover of the Income-tax Act, 1961.  Hence, we should carefully peep into all the intricate provisions contained in the Direct Tax Code so that we can plan our tax and investment strategy for the years to come keeping in view the proposed amendments introduced in the tax laws of the country through the Direct Taxes Code. The investment strategy for you and your family will have to be geared up with new dimension specially after the coming into operation of the Direct Taxes Code.  As soon as the Direct Taxes Code is presented it would be a good idea to forget all about the Income-tax Act and to concentrate on the deep study of the new Direct Taxes Code. As soon as the new Code is presented, all the tax payers of India must carefully screen the new provisions and should plan their strategy and tax planning in the years to come.   

10) Time to vigorously think on investments in NPS 

Please focus your investment strategy for the year 2013 on investment vistas connected with New Pension Scheme. Although by now the New Pension Scheme popularly known as NPS is into operation for the last couple of years.  However, still now NPS investment has not become the darling of tax payers of India. However, it is time now to show your love and affection to the investment in new Pension Scheme. It is time now for you to study the new provisions in greater detail and try to open separate NPS account for different members in your family. For those tax payers who are having high income and wealth, it is recommended that two tier account in NPS should also be obtained.  Finally if you are going to complete sixty years of age during the year 2013, then you should be more careful to immediately open NPS account in your name. This is mainly because of the fact that once you have completed sixty years of age, you cannot open a new NPS Account.  Please note that after sixty years of age one cannot go in for opening an NPS account.  But if you have already opened NPS account, then you can continue contributing in the said account.  Hence, in  the year 2013 you  should aim at bringing NPS as a preferred tool of investment in your family. 

11) New Life Insurance Policies for your family   

Are you adequately insured ?  Let this question be asked by every adult income-tax payer in his family.  I would like every tax payer to take care of securing his family during the year against  calamity.  One of the best way to protect the family is to adequately insure all the family members.  It is time now for you not just to count your Life Insurance Policies for different members in the family but to sit down and ponder whether all the family members are adequately insured.  In most cases I am sure the answer that will come in conclusion would be that most of the family members are not adequately insured.  Hence, during the year 2013 please take a call to answer the question whether you and your family members are adequately insured.  Do not forget to take an insurance policy for your dear loving daughter too.  

12) Rajiv Gandhi Equity Savings Scheme  

For all those tax payers who have never had any exposure in the stock market let the year 2013  be their first year for  investing in the stock market.  Firstly the action plan to enter into the stock market would be to open a Demat Account in your name.  To inspire all those who have never had any exposure in the stock market tax incentive is being made available in the Income-tax Law in terms of the provision contained in section 80CCG whereby first  time investors in the stock market can go in for making investment up to Rs. 50,000 and enjoy a tax deduction equal to 50 per cent of such investment.  Thus, tax saving can be made by taking an exposure to Rajiv Gandhi Equity Investment Scheme and thereby cutting down your tax payment by Rs. 2,500 to Rs. 5,000. 

13) Your 360 Degree Watch 

All those who are big spenders should be very careful in the year 2013 because Government is going to keep a strict 360 Degree watch on such spenders because the Income-tax Department has been collecting data in respect of its 360 Degree High Profile Spenders.  It may be noted that there is no problem in your spending the money for the purpose which you like.  But what is relevant is that you should have adequate sources and resources to prove the spending by you.  Hence, in the year 2013 do keep records and details of high spending by you in different vistas so that if the tax radar comes to you, you can adequately answer about the spending by you either on holidays or on big purchase of assets etc.
Writer:

Rajratan Mendhe

(Financial  planner)

Tax Treatment to Doctors - It’s all about Doctors

Tax Treatment to Doctors - It’s all about Doctors

Rajratan:8275288646/8087829189

Behind SBI,Kothari layot

Umred

Rajratan2006@gmail.com

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Both Self Drugging & Self Tax Planning are not advisable.

           

Doctor is one of noble professional in the society & helps the society to be a healthy. But this professional will not be spared & will be taxed for the income generated from his profession.

  “The hardest thing in the world to understand is the income tax.” — Albert Einstein, Physicist.

 But this small document is an effort to give the doctors about overall picture of tax (which Einstein said is hard). It aims to help doctors to have insight knowledge on income tax.  This document will assist them on to have the idea of tax/accounts/audit & to avoid unnecessary payment of tax, interest & penalty.

SI.	Subject	Explanation
1.	Accounts	Doctor is also one of the professional who is covered under section 44AA of income tax act, which requires maintaining books of accounts if the doctor is in receipt  of  Fee (gross fee collection) of more than Rs. 1,50,000/- (one lakh and fifty thousand) during the year. This is mandatory as per the income tax act. Penalty for non maintenance of books of  accounts is Rs.25,000.(As Per Section-271A of Income Tax Act)
2.	Accounts	Rule 6F of Income Tax Rules specifies that few books of accounts has to be maintained – 1) Cash book , Journal, Ledger, 2) Carbon copies of bills (more than Rs. 25) and original bills of expenditure made, daily register and inventory (of Medicines). These documents and accounts should be preserved for 6 years from the end of relevant Assessment Year.
3.	Audit	If practicing doctor is having gross fee collection of Rs. 10,00,000 (ten lakhs) or more (15 laks For AY 2011-12) during the previous year (April to March), then books of accounts should be audited by a qualified practicing Chartered Accountant. Penalty for not having audit is---0.5% of the receipts or Rs. 100,000, whichever is less. (As Per section 271B of income tax Act)
4.	Tax	Section 139 of Income Tax Act requires to file the Income Tax return every year on or before 31st  July  (Non- Audit Cases i.e. gross fee collection is less than Rs.15,00,000/-) or 30th September (Audit cases i.e. gross fee collection is more than Rs.15,00,000/-)
5.	Tax	If Annual Tax liability is more than Rs. 10,000, then tax is required to be paid in advance. It can be called as self TDS. TDS is the tax which employee will pay every month from salary.  But for professionals, the due dates for advance tax are – 15th September, 15th December and 15th March. They are required to pay 30%, 30% and 40% of Annual tax liability for the forth coming assessment year. (The advance tax has to be paid on estimate basis). Ex.  If the tax liability estimated is Rs.20,000/- ,then the due dates for paying tax liability are 1) Rs.6,000/- on or before 15th September, 2) Rs.6,000/- on or before 15th December & 3) Balance Rs.8,000/- on or before 15thMarch.
6.	Interest	If Advance tax is not paid within the due date as specified above interest @ 1% per month till the next due date is payable. (As Per Section-234C of Income Tax Act). If 100% of tax is not paid in advance, interest @ 1% per month is payable from 1st April till the date of payment on the balance tax due. (As Per Section-234B of Income Tax Act). If 100% of tax is not paid in advance and return is not filed in time, interest @ 1% per month is payable till the date of filling the return of Income by paying 100% of tax due on the return. (As Per Section-234A of Income Tax Act).
7.	Hand Loan Taken	As Per Sec. 269SS of Income Tax Act, “No person  shall take or accept from any other person any loan otherwise than Account payee cheque or account Payee Bank Draft if amount of such loan is Rs.20,000/- or more.” If already any loan is taken during current year or any earlier year and/or interest accrued there on and any loan is accepted during the year, aggregate amount of such loan is Rs.20,000/- or more, then also the Account Payee Cheque or Account Payee Bank Draft is must for such Loan.
8.	Hand Loan Repayment	As Per Sec. 269T of Income Tax Act, “In case the loan balance along with the interest there on, on the date of repayment is Rs.20,000/- or more,  then such loan has to be repaid through the Account Payee Cheque or Account Payee Bank Draft”
9.	Payments to Relatives	Nobody (including Income Tax Officer) will stop doctors paying salary or professional payment to spouse/relative for any service availed, if it’s reasonable. EX: 1.If a CA is undertaking the assignment of account writing for Rs.18,000/-, and the doctor shows professional payment of Rs.50, 000/- to his B.Com. Passed spouse. Such contention is not tenable as the payment is more in the nature of relationship. 2. If spouse of a Doctor is a nurse or held office superintendent and salary to the spouse is Rs. 20,000/- p.m. but the salary to same kind of job in market is Rs.5,000/- then payment of Rs.20,000/- is not tenable.
10.	Business in the name of Spouse. (Unless Professionally Qualified).	1.       Running Medical Shop in the name of spouse. Purchasing the medicines in the name of doctor, and selling in the name of spouse and diverting the income of doctor is another tactics of avoiding tax. Such contention is not tenable, unless the spouse holds pharmaceutical qualification or the spouse of doctor employs any such graduate and the medicines are purchased in the name of such graduate and sold in his name. 2.       Running diagnostic center in the name of spouse. Unless the spouse is pathological graduate or employs any such graduate for carrying out the diagnostic center then the contention of diverting the income to spouse can’t be taken. 3.    Other Incidental Business in the name of spouse. Unless the spouse has a professional qualification to do the business or employs any such graduate for carrying out the incidental work of doctor, the contention of diverting the income to spouse can’t be taken.
11.	Payments in excess of Rs.20,000/-	If any expenditures like Medicine Bill, Vehicle Maintenance and such other Payments are claimed as expenditure while computing the income, are to be mandatory by Account Payee Cheque or Account Payee Bank Draft, if the payment exceeds Rs.20,000/-. (As Per Sec. 40A(3) of Income Tax Act)
12.	Savings / Investments	As known to everyone, tax can be saved through investing the amount in the eligible investments to the tune of Rs.1,00,000/-. The investments are like Insurance premium, House loan principal repayment & Eligible Mutual Funds.etc.,
13. .	MediClaim  Policy Payments	Doctors also can purchase these policies and get the premium deducted from their total income up to Rs.15, 000/- on the life of spouse, Children and parents- u/s 80D. This deduction is in addition to Rs.1,00,000/- u/s 80C. As Per Section 80D “ the deduction is allowed only if Premium is paid through the account payee cheque, demand draft or through the credit card or debit card.(CASH PAYMENTS ARE NOT ALLOWED).
14.	Donations	No charitable donations to N.G.O.’s will give 100% tax benefit. Tax saving from these donations varies from 5%, 10% or 15% depending on your tax slab rate. For some specified donations Tax savings varies 10%, 20% or 30% depending on your tax slab rate. Ex. If you donate Rs.100/-, you will get the maximum tax saving  of  Rs.15.

The following documents are required to be maintained:

1. Cash receipts and / or Fee Collection Register for Fee Collection.

2. Expenditure details – Accounts Writing Fees, Bank Charges, Clinic Rent, Conference Fees Payment, Electricity Bills, Interest on Loan, Insurance (on Vehicle or Indemnity Insurance), IMA Fees Payment, Medicines, Mobile Bills or Recharge Currency, News Papers & Periodicals for Hospitals, Printing & Stationary, Professional Payments (CA’s or Lawyers), Professional Tax Payment Challan, Pooja Expenses of Hospital (if any),  Travelling & Boarding Charges (Bus, Train or Air Tickets, & Loading & Hotel Bills),  Vehicle Maintenance (Petrol Bills & Service Bills), Salary payments to staff or such  other type of expense made for office.

We advice for collection of bills for expenses made and file it.

3. Assets details – Any assets purchased of sold during year – Computer, Medical Equipment, Land & Building, Car, Flat etc. Please consult your CA whenever you have any intention to purchase. Keep the record of these – Date, Bills & Payment, etc.,

4. Investment Details – Shares, Bank FD, Mutual funds, Savings Bank, Recurring Deposit (Bank or Post office), Life Insurance.

5. Pass Book Details (Details on Bank OD if any).

6. Loan Details and repayment there of (Statement of Loan Repayment With the bifurcation of principle & interest portion in the installment).

Last note but not the least, Self Medicine is dangerous to health which doctor discourages to every patient. Even Self –Tax planning is not advisable, unless he/she is salaried person and salary is the one and only source of income.

"Taxes are what we pay for civilized society.'' — Oliver Wendell Holmes, Jr., U.S. Supreme Court Justice. Hope this document will help the doctors to plan tax than avoiding the tax.

 Writers:

Rajratan Mendhe

(Financial  planner)

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