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USD fixed deposits function like regular fixed deposits but are held in US dollars (USD) instead of Indian Rupees (INR). This allows investors to earn fixed returns in a stable global currency while avoiding the risk of INR depreciation over time.

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GIFT City (Gujarat International Finance Tec-City) is a smart city designed to cater to global finance, offering a tax-efficient and investment-friendly environment. It helps NRIs invest in foreign currencies while benefiting from India’s financial growth.

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GIFT City is governed by IFSCA, which consolidates RBI, SEBI, and IRDAI regulations to ensure investor security.

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No INR conversion needed – Invest directly in foreign currency.

No TDS – Unlike NRE/NRO accounts, withdrawals are tax-free in India.

Easier repatriation – Direct fund transfers without RBI approvals.

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Tax planning should start at the beginning of a financial year, as it enables individuals and businesses to settle their financial affairs and take advantage of the best tax-saving opportunities. However, you can still benefit from it at any time during the year.

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Beyond Section 80C, there are several avenues for tax savings. You can consider:

Claiming tax-deductible expenses such as insurance premiums, tuition fees for children, rent payments, home loan/stamp duty payments, interest on home loans, and medical expenses for dependent family members.

Exploring investment options like the National Pension Scheme (NPS) to optimize your income structure and minimize taxable income.

Diversifying your tax-saving investments across various asset classes and leveraging a mix of deductions and exemptions is key to comprehensive tax planning.

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Several common mistakes can hinder effective tax planning: Relying Solely on Tax-saving Mutual Funds: While these are popular, limiting oneself to these funds may not optimize tax savings.

Diversifying across different tax-saving instruments is advisable. Procrastinating Investments: Delaying tax-saving investments until the last quarter can lead to hasty decisions.

It's better to plan investments strategically throughout the year. Lack of Diversification: Placing all tax-saving funds into a single asset class is risky. Diversification helps manage risks and potentially enhances returns.

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Yes, the employee has to intimate the employer regarding his intended tax regime during the year. If the employee does not make an intimation, it shall be presumed that the employee continues to be in the default tax regime and has not exercised the option to opt out of the new tax regime. Thus, the employer shall deduct tax in accordance with the rates provided under section 115BAC.

However, the intimation made to the employer would not amount to exercising the option in sub- section (6) of section 115BAC for opting out of the new tax regime. The employee shall be required to do so separately before the due date specified under section 139(1) for filing of return of income.

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In new tax regime, Chapter-VIA deductions cannot be claimed, except deduction u/s 80CCD(2)/80CCH/80JJAA as per the provision of Section 115BAC of the Income Tax Act, 1961. In case, taxpayer wants to claim any deductions (as applicable), then taxpayer needs to choose the old tax regime by selecting “Yes” option in ITR 1 / ITR 2 (or) “Yes, within due date” option in ITR 3 / ITR 4 / ITR 5 in the field provided for “opting out option” under Schedule ‘Personal Information’ or ‘Part- A General’ in the respective ITR.

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Form 10-IEA is applicable to AOP’s (other than Co-operative society) or BOI or AJP, who are filing return of Income in ITR-5 for AY 2024-25.

Form 10-IFA is applicable to new manufacturing co-operative Societies resident in India filing ITR 5, if they wish to avail New Tax Regime under Section 115BAE for AY 2024-25.

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Presumptive Taxation involves the use of indirect methods to compute tax liability where the taxable income is calculated based on assumptions instead of actuals. Here, the business entity is required to declare a given percentage of its business turnover (or gross receipts in case of professionals) as its income and pay a fixed percentage of it as tax. As per Finance Act 2016, professionals (as notified by CBDT) with gross receipts upto Rs. 50 Lakhs for the period April 1st, 2016 to March 31st 2017 can opt for presumptive taxation.

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The combined holdings of a fund scheme consisting of securities like short-term debt, stocks, bonds, etc., is called a mutual fund portfolio.

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No, debt funds are not free of risk. However, they are less risky if you compare them to equity funds as they do not invest in equities.