At a time when real estate prices are on the rise, these red flags can be a hindrance.
1. Your main door
Although the main door isn't inside your house, it pretty much gives the first impression of what lies beyond. Surely, you don't need to be Einstein to figure out the importance of having a well-maintained main door. Interior designer Arbasys Ashley says that cleaning doors -- unless they have a zillion stickers of the gods of the world on it -- is the simplest thing to do. "If it's a wooden door, wipe it regularly with a dry cloth. Laminate or PU coated doors can be wiped with semi-wet cloth. That'll help the design looking fresh," he says. It is also important to ensure that you put a thought in designing your main door because first impressions are the ones that last the longest.
2. Clutter when the prospective buyer comes to visit
Even a large house tends to look smaller when cluttered. It's one thing if you like living that way. But chances are that the person coming to buy it does not look at things the way you do. So if you're hoping to sell your house, the first thing you must do is to clear the clutter. Throw away the things you don't require. Stack away the stuff you won't be needing anytime soon and keep only your bare essentials out. Anyway you're selling the house so why keep things for the last moment?
If you are one of those who like things to be in place right from day one, Arbasys suggests you mark out the requirements of storage carefully with your architect. "It ensures that there is definite storage space for everything and all the clutter is well hidden. Avoid clutter even in respect to artefacts. If you cannot display a certain piece, don't! Keep thing to the basic minimum and understated; it makes the place look classy. A home in order makes a large impact to a prospective buyer," he says.
3. Unclean kitchens
Surprising as it may sound, kitchen is the one room that requires the maximum attention in terms of designing. It is also the only 'room' in the house that has a water connection. So trust us when we say maintaining a kitchen can be quite a task. Leaking sinks and walls smeared with your last cooking experiment should be fixed immediately. Owners who give out homes on rent have often had to deal with unclean and terribly maintained kitchens. When you rent out that extra home of yours make sure you give it to the right persons rather than simply looking at the money that will come as rent. Unclean kitchens are huge red flags. It's where the lady of the house spends a lot of time. And if you fail to impress the lady there are little chances the man will go ahead with the deal.
4. Children's graffiti over the walls
Unless you're planning to be a DINK (Double Income No Kids) couple, we'd suggest you take real good care of your walls. Sure kids can be sweet. Heck they are very adorable. But boy don't you hate them when they spoil the wall you spent 20k on?
Not only does kids graffiti look shabby when you're hosting a party, it does not score any brownie points when someone comes over to buy your house. There are two ways of ensuring the safety of your walls -- one is trying to discipline the children and giving them just one wall to display their artistic talents. The other is to take Arbasys' advice and simply cladding a wall with a wipe board so they can fun doing their graffiti and you can wipe it clean when someone drops over.
5. Unclean loos
This one's another major red flag. It shows lack of hygiene but more importantly it is such an assault on your visual senses it's not funny.
Rashmi Deshpande recounts an incident that put her off so much she refused to see another flat in the same building. "I am quite a stickler for cleanliness. And I'm particularly keen on keeping my loo and kitchen area dry. The kitchen had not put me off so much as much as the loo did. There was a good amount of leakage and to say the pot was unclean would be an understatement," she says.
Broker Rekha Mehta, a real estate consultant in Thane says that many owners who rent out their flats to single men face this issue. "Bachelors take little efforts to keep the house clean. Kitchen and loos are the worst maintained in most bachelor pads. That's one of the primary reasons why people avoid renting out their houses to single men."
While we do agree with most of what Mehta says, we think it'd be somewhat unfair to label all single men as messy, unclean people. It would help though, if you do a background check on your prospective tenant before you let him/her live there.
Talk to their previous landlords/ladies and ask them how they were to deal with. That way you know your house will be in safe hands and chances are you won't be sweating over the poorly maintained loo and kitchen while selling it off.
6. The satsang in your neighbour's house
Being religious is okay. But what happens when your neighbour's bhajans become a nuisance? There is no way you can ask them to shut up without raising a controversy in the building. It is pertinent that you bring it to their notice and if they don't relent, the society. CA Cardoz, a secretary of a housing society says that they have a blanket ban on late night music -- religious or otherwise. "We have quite a few senior citizens in the building. So no one is allowed to play loud music beyond a certain time."
7. The building's stairwell
The house may be out of the world. But if the approach to it is less than flattering, chances are that the buyer may chicken out, especially if he is Marc Billimoria a sales manager at a prominent bank.
After looking at the flat, Marc takes the stairs. According to him the stairwell is always a good yardstick to measuring how well maintained a society is. "There have been times when I have loved the house and the view from it but the stairwell is cluttered with garbage bags, beer bottles, unused pieces of furniture and what not. It puts me off because it showed that the callousness of the society members," he says.
Marc agrees that it might be a small thing and young professionals like him rarely spend much time in the house any way. "But the callousness can and usually does extend beyond the stairwell to fixing leakage problems or water shortage issues," he says.
8. The documents not in order
It's one thing if you lose your mark sheet and a completely different story if you cannot find your property papers. Paying stamp duty and registration fees is not an option; it's a rule.
Ensure you've got these two things out of the way when you've bought a property. Vikas Sakpal who recently sold his house in Andheri learnt it the hard way. "We have purchased this place many years ago and were told that it was okay if we paid a part of the stamp duty. We ended up paying a couple of lakh rupees as fine and other charges. That was a huge dent in my pocket," he recollects.
In case of a resale property, insist on seeing the originals of what is called 'chain documents' (papers of ALL the past owners) before making any token payment. Also ensure that the share certificate of the society is in the name of the buyer and no one else.
9. YOU!
It's important that you carry yourself appropriately while approaching the prospective buyer. Rekha Mehta says that she's seen quite a few deals falling through because the owner decided to be a pain.
She says, "One of my clients had liked a house so much, he had given in to almost every demand that the owner was making. The negotiations were in an advanced stage and the buyer was carrying considerable money as a token amount.
But the owner walked in to my office, shabbily dressed, unshaven and listed out a new set of demands. The buyer flinched at first but gave in because he wanted the house desperately. In fact he was even willing to pay more than what was agreed upon earlier.
The final nail in the coffin was when he told the buyer he couldn't move out for the next six months!"
You might think of it as a silly old saying but honesty is indeed the best policy. It is important to be transparent at all times. Also when a buyer approaches you, ensure you're well dressed and carry yourself in an appropriate manner. Think of it as a job interview where the impression you make on the opposite person is crucial. You don't need to lay all your cards on the table. But basic information must be given out to avoid any complications.
Thanks to _____ Rediff.com
Saturday, December 12, 2009
Exempt income
Income Tax – Exempt Income
In a few months' time the taxman will coming knocking on your door. However, he cannot tax you on the following 14 important items of income and receipts, as they are fully exempt from income tax and which a resident individual Indian assessee can use with profit for the purpose of tax planning.
1. Agricultural income
Under the provisions of Section 10(1) of the Income Tax Act, agricultural income is fully exempt from income tax.
However, for individuals or HUFs when agricultural income is in excess of Rs 5,000, it is aggregated with the total income for the purposes of computing tax on the total income in a manner which results into "no" tax on agricultural income but an increased income tax on the other income.
Agricultural income which fulfils the above conditions is completely exempt from tax. The manner of calculating tax on total income and agricultural income, is explained in the following illustration:
Illustration
For the assessment year 2010-2011 a male individual has a total income from trading in cloth amounting to Rs 162,000 besides, he has earned Rs 40,000 as income from agriculture.
The income tax payable by him will be computed as under:
On the first Rs 1,60,000 of taxable non-agricultural income: Nil
On the next Rs 40,000 of agricultural income (falling under 10% slab): Nil
On the next Rs 2,000 of taxable non-agricultural income @ 10%: Rs 200
IT on aggregated income of Rs 202,000 (Rs 162,000 + Rs 40,000): Rs 200
2. Receipts from Hindu undivided family (HUF)
Any sum received by an individual as a member of a Hindu undivided family, where the said sum has been paid out of the income of the family, or, in the case of an impartible estate, where such sum has been paid out of the income of the estate belonging to the family, is completely exempt from income tax in the hands of an individual member of the family under Section 10(2).
3. Allowance for foreign service
Any allowances or perquisites paid or allowed as such outside India by the Government to a citizen of India, rendering service outside India, are completely exempt from tax under Section 10(7).
This provision can be taken advantage of by the citizens of India who are in government service so that they can accumulate tax-free perquisites and allowances received outside India.
4. Gratuities
Under the provisions of Section 10(10) of the IT Act, any death-cum-retirement gratuity of a government servant is completely exempt from income tax.
In respect of private sector employees, however, gratuity received on retirement or on becoming incapacitated or on termination or any gratuity received by his widow, children or dependants on his death is exempt subject to certain conditions.
The maximum amount of exemption is Rs 3,50,000. Of course, this is further subject to certain other limits like the one half-month's salary for each year of completed service, calculated on the basis of average salary for the 10 months immediately preceding the year in which the gratuity is paid or 20 months' salary as calculated. Thus, the least of these items is exempt from income tax under Section 10(10).
5. Commutation of pension
The entire amount of any payment in commutation of pension by a government servant or any payment in commutation of pension from LIC pension fund is exempt from income tax under Section 10(10A) of IT Act.
However, in respect of private sector employees, only the following amount of commuted pension is exempt, namely:
(a) Where the employee received any gratuity, the commuted value of one-third of the pension which he is normally entitled to receive; and
(b) In any other case, the commuted value of half of such pension.
It may be noted here that the monthly pension receivable by a pensioner is liable to full income tax like any other item of salary or income and no standard deduction is now available in respect of pension received by a tax payer.
6. Leave salary of central government employees
Under Section 10(10AA) the maximum amount receivable by the employees of central government as cash equivalent to the leave salary in respect of earned leave at their credit upto 10 months' leave at the time of their retirement, whether on superannuation or otherwise, would be Rs 300,000.
7. Voluntary retirement or separation payment
Under the provisions of Section 10(10C), any amount received by an employee of a public sector company or of any other company or of a local authority or a statutory authority or a cooperative society or university or IIT or IIM at the time of his voluntary retirement (VR) or voluntary separation in accordance with any scheme or schemes of VR as per Rule 2BA, is completely exempt from tax.
The maximum amount of money received at such VR which is so exempt is Rs 500,000. As per Finance (No. 2) Act, 2009 an assessee cannot enjoy both the exemption in respect of VRS upto Rs 500,000 and also a deduction under Section 89.
8. Life insurance receipts
Under Section 10(10D), any sum received under a Life Insurance Policy, including the sum allocated by way of bonus on such policy, other than u/s 80DDA or under a Keyman Insurance Policy, or under an insurance policy issued on or after 1.4.2003 in respect of which the premium payable for any of the years during the term of the policy exceeds 20% of the actual capital sum assured, is fully exempt from tax.
However, all moneys received on death of the insured are fully exempt from tax Thus, generally moneys received from life insurance policies whether from the Life Insurance Corporation or any other private insurance company would be exempt from income tax.
9. Payment received from provident funds
Under the provisions of Sections 10(11), (12) and (13) any payment from a government or recognised provident fund (PF) or approved superannuation fund, or PPF is exempt from income tax.
10. Certain types of interest payment
There are certain types of interest payments which are fully exempt from income tax u/s 10(15). These are described below:
(i) Income by way of interest, premium on redemption or other payment on such securities, bonds, annuity certificates, savings certificates, other certificates issued by the Central Government and deposits as the Central Government may, by notification in the Official Gazette, specify in this behalf.
(iia) In the case of an individual or a Hindu Undivided Family, interest on such capital investment bonds as the Central Government may, by notification in the Official Gazette, specify in this behalf (i.e. 7% Capital Investment Bonds);
(iib) In the case of an individual or a Hindu Undivided Family, interest on such Relief Bonds as the Central Government may, by notification in the Official Gazette, specify in this behalf (i.e., 9% or 8.5% or 8% or 7% Relief Bonds); (iid) Interest on NRI bonds;
(iiia) Interest on securities held by the issue department of the Central Bank of Ceylon constituted under the Ceylon Monetary Law Act, 1949;
(iiib) Interest payable to any bank incorporated in a country outside India and authorised to perform central banking functions in that country on any deposits made by it, with the approval of the Reserve Bank of India or with any scheduled bank;
(iv) Certain interest payable by Government or a local authority on moneys borrowed by it, including hedging charges on currency fluctuation (from the AY 2000-2001), etc.;
(v) Interest on Gold Deposit Bonds;
(vi) Interest on certain deposits are: Bhopal Gas victims;
(vii) Interest on bonds of local authorities as notified, and
(viii) Interest on 6.5% Savings Bonds [Exempt] issued by RBI
(ix) Stipulated new tax free bonds to be notified from time to time.
11. Dividends on shares and units - Section 10(34) & (35)
With effect from the Assessment Year 2004-05, the dividend income and income of units of mutual funds received by the assessee completely exempt from income tax.
12. Long-term capital gains of transfer of securities - Section 10(38)
With effect from FY 2004-05, any income arising to a taxpayer on account of sale of long-term capital asset being securities is completely outside the purview of tax liability especially when the transaction has been subjected to Securities Transaction Tax.
Thus, if the shares of any company listed in the stock exchange are sold after holding it for a minimum period of one year then there will be no liability to payment of capital gains.
This provision would even apply for the old shares which are held by an assessee and are sold after the Finance (No.2) Act, 2004 came into force.
13. Amount received by way of gift, etc - Section 10(39)
As per the Finance (No.2) Act, 2004, gift, etc. received after 1-9-2004 by individual or HUF in cash or by way of credit, etc. is being subjected to tax if the same is not received from relative, etc. However, Section 56(2) provides that the amount received to the extent of Rs 50,000 will, however, be exempt from the purview of income tax.
Similarly, amount received on the occasion of marriage from a non-relative, etc. would also be exempted. It may be noted that the gift from relatives. as mentioned in the Section can be received without any upper limit.
14. Tax exemption regarding reverse mortgage scheme - sections 2(47) and 47(x)
Any transfer of a capital asset in a transaction of reverse mortgage for senior citizens under a scheme made and notified by the Central Government would not be regarded as a transfer and therefore would not attract capital gains tax. The loan amount would also be exempt from tax.
These amendments by the Finance Act, 2008 apply from FY 2007-08 onwards
In a few months' time the taxman will coming knocking on your door. However, he cannot tax you on the following 14 important items of income and receipts, as they are fully exempt from income tax and which a resident individual Indian assessee can use with profit for the purpose of tax planning.
1. Agricultural income
Under the provisions of Section 10(1) of the Income Tax Act, agricultural income is fully exempt from income tax.
However, for individuals or HUFs when agricultural income is in excess of Rs 5,000, it is aggregated with the total income for the purposes of computing tax on the total income in a manner which results into "no" tax on agricultural income but an increased income tax on the other income.
Agricultural income which fulfils the above conditions is completely exempt from tax. The manner of calculating tax on total income and agricultural income, is explained in the following illustration:
Illustration
For the assessment year 2010-2011 a male individual has a total income from trading in cloth amounting to Rs 162,000 besides, he has earned Rs 40,000 as income from agriculture.
The income tax payable by him will be computed as under:
On the first Rs 1,60,000 of taxable non-agricultural income: Nil
On the next Rs 40,000 of agricultural income (falling under 10% slab): Nil
On the next Rs 2,000 of taxable non-agricultural income @ 10%: Rs 200
IT on aggregated income of Rs 202,000 (Rs 162,000 + Rs 40,000): Rs 200
2. Receipts from Hindu undivided family (HUF)
Any sum received by an individual as a member of a Hindu undivided family, where the said sum has been paid out of the income of the family, or, in the case of an impartible estate, where such sum has been paid out of the income of the estate belonging to the family, is completely exempt from income tax in the hands of an individual member of the family under Section 10(2).
3. Allowance for foreign service
Any allowances or perquisites paid or allowed as such outside India by the Government to a citizen of India, rendering service outside India, are completely exempt from tax under Section 10(7).
This provision can be taken advantage of by the citizens of India who are in government service so that they can accumulate tax-free perquisites and allowances received outside India.
4. Gratuities
Under the provisions of Section 10(10) of the IT Act, any death-cum-retirement gratuity of a government servant is completely exempt from income tax.
In respect of private sector employees, however, gratuity received on retirement or on becoming incapacitated or on termination or any gratuity received by his widow, children or dependants on his death is exempt subject to certain conditions.
The maximum amount of exemption is Rs 3,50,000. Of course, this is further subject to certain other limits like the one half-month's salary for each year of completed service, calculated on the basis of average salary for the 10 months immediately preceding the year in which the gratuity is paid or 20 months' salary as calculated. Thus, the least of these items is exempt from income tax under Section 10(10).
5. Commutation of pension
The entire amount of any payment in commutation of pension by a government servant or any payment in commutation of pension from LIC pension fund is exempt from income tax under Section 10(10A) of IT Act.
However, in respect of private sector employees, only the following amount of commuted pension is exempt, namely:
(a) Where the employee received any gratuity, the commuted value of one-third of the pension which he is normally entitled to receive; and
(b) In any other case, the commuted value of half of such pension.
It may be noted here that the monthly pension receivable by a pensioner is liable to full income tax like any other item of salary or income and no standard deduction is now available in respect of pension received by a tax payer.
6. Leave salary of central government employees
Under Section 10(10AA) the maximum amount receivable by the employees of central government as cash equivalent to the leave salary in respect of earned leave at their credit upto 10 months' leave at the time of their retirement, whether on superannuation or otherwise, would be Rs 300,000.
7. Voluntary retirement or separation payment
Under the provisions of Section 10(10C), any amount received by an employee of a public sector company or of any other company or of a local authority or a statutory authority or a cooperative society or university or IIT or IIM at the time of his voluntary retirement (VR) or voluntary separation in accordance with any scheme or schemes of VR as per Rule 2BA, is completely exempt from tax.
The maximum amount of money received at such VR which is so exempt is Rs 500,000. As per Finance (No. 2) Act, 2009 an assessee cannot enjoy both the exemption in respect of VRS upto Rs 500,000 and also a deduction under Section 89.
8. Life insurance receipts
Under Section 10(10D), any sum received under a Life Insurance Policy, including the sum allocated by way of bonus on such policy, other than u/s 80DDA or under a Keyman Insurance Policy, or under an insurance policy issued on or after 1.4.2003 in respect of which the premium payable for any of the years during the term of the policy exceeds 20% of the actual capital sum assured, is fully exempt from tax.
However, all moneys received on death of the insured are fully exempt from tax Thus, generally moneys received from life insurance policies whether from the Life Insurance Corporation or any other private insurance company would be exempt from income tax.
9. Payment received from provident funds
Under the provisions of Sections 10(11), (12) and (13) any payment from a government or recognised provident fund (PF) or approved superannuation fund, or PPF is exempt from income tax.
10. Certain types of interest payment
There are certain types of interest payments which are fully exempt from income tax u/s 10(15). These are described below:
(i) Income by way of interest, premium on redemption or other payment on such securities, bonds, annuity certificates, savings certificates, other certificates issued by the Central Government and deposits as the Central Government may, by notification in the Official Gazette, specify in this behalf.
(iia) In the case of an individual or a Hindu Undivided Family, interest on such capital investment bonds as the Central Government may, by notification in the Official Gazette, specify in this behalf (i.e. 7% Capital Investment Bonds);
(iib) In the case of an individual or a Hindu Undivided Family, interest on such Relief Bonds as the Central Government may, by notification in the Official Gazette, specify in this behalf (i.e., 9% or 8.5% or 8% or 7% Relief Bonds); (iid) Interest on NRI bonds;
(iiia) Interest on securities held by the issue department of the Central Bank of Ceylon constituted under the Ceylon Monetary Law Act, 1949;
(iiib) Interest payable to any bank incorporated in a country outside India and authorised to perform central banking functions in that country on any deposits made by it, with the approval of the Reserve Bank of India or with any scheduled bank;
(iv) Certain interest payable by Government or a local authority on moneys borrowed by it, including hedging charges on currency fluctuation (from the AY 2000-2001), etc.;
(v) Interest on Gold Deposit Bonds;
(vi) Interest on certain deposits are: Bhopal Gas victims;
(vii) Interest on bonds of local authorities as notified, and
(viii) Interest on 6.5% Savings Bonds [Exempt] issued by RBI
(ix) Stipulated new tax free bonds to be notified from time to time.
11. Dividends on shares and units - Section 10(34) & (35)
With effect from the Assessment Year 2004-05, the dividend income and income of units of mutual funds received by the assessee completely exempt from income tax.
12. Long-term capital gains of transfer of securities - Section 10(38)
With effect from FY 2004-05, any income arising to a taxpayer on account of sale of long-term capital asset being securities is completely outside the purview of tax liability especially when the transaction has been subjected to Securities Transaction Tax.
Thus, if the shares of any company listed in the stock exchange are sold after holding it for a minimum period of one year then there will be no liability to payment of capital gains.
This provision would even apply for the old shares which are held by an assessee and are sold after the Finance (No.2) Act, 2004 came into force.
13. Amount received by way of gift, etc - Section 10(39)
As per the Finance (No.2) Act, 2004, gift, etc. received after 1-9-2004 by individual or HUF in cash or by way of credit, etc. is being subjected to tax if the same is not received from relative, etc. However, Section 56(2) provides that the amount received to the extent of Rs 50,000 will, however, be exempt from the purview of income tax.
Similarly, amount received on the occasion of marriage from a non-relative, etc. would also be exempted. It may be noted that the gift from relatives. as mentioned in the Section can be received without any upper limit.
14. Tax exemption regarding reverse mortgage scheme - sections 2(47) and 47(x)
Any transfer of a capital asset in a transaction of reverse mortgage for senior citizens under a scheme made and notified by the Central Government would not be regarded as a transfer and therefore would not attract capital gains tax. The loan amount would also be exempt from tax.
These amendments by the Finance Act, 2008 apply from FY 2007-08 onwards
EXCEL TIPS
CTRL+( Unhides any hidden rows within the selection.
CTRL+) Unhides any hidden columns within the selection.
CTRL+& Applies the outline border to the selected cells.
CTRL+_ Removes the outline border from the selected cells.
CTRL+~ Applies the General number format.
CTRL+$ Applies the Currency format with two decimal places (negative numbers in parentheses).
CTRL+% Applies the Percentage format with no decimal places.
CTRL+^ Applies the Exponential number format with two decimal places.
CTRL+# Applies the Date format with the day, month, and year.
CTRL+@ Applies the Time format with the hour and minute, and AM or PM.
CTRL+! Applies the Number format with two decimal places, thousands separator, and minus sign (-) for negative values.
CTRL+- Displays the Delete dialog box to delete the selected cells.
CTRL+* Selects the current region around the active cell (the data area enclosed by blank rows and blank columns).In a PivotTable, it selects the entire PivotTable report.
CTRL+: Enters the current time.
CTRL+; Enters the current date.
CTRL+` Alternates between displaying cell values and displaying formulas in the worksheet.
CTRL+’ Copies a formula from the cell above the active cell into the cell or the Formula Bar.
CTRL+” Copies the value from the cell above the active cell into the cell or the Formula Bar.
CTRL++ Displays the Insert dialog box to insert blank cells.
CTRL+1 Displays the Format Cells dialog box.
CTRL+2 Applies or removes bold formatting.
CTRL+3 Applies or removes italic formatting.
CTRL+4 Applies or removes underlining.
CTRL+5 Applies or removes strikethrough.
CTRL+6 Alternates between hiding objects, displaying objects, and displaying placeholders for objects.
CTRL+7 Displays or hides the Standard toolbar.
CTRL+8 Displays or hides the outline symbols.
CTRL+9 Hides the selected rows.
CTRL+0 Hides the selected columns.
CTRL+A Selects the entire worksheet.If the worksheet contains data, CTRL+A selects the current region. Pressing CTRL+A a second time selects the entire worksheet.When the insertion point is to the right of a function name in a formula, displays the Function Arguments dialog box.CTRL+SHIFT+A inserts the argument names and parentheses when the insertion point is to the right of a function name in a formula.
CTRL+B Applies or removes bold formatting.
CTRL+C Copies the selected cells.CTRL+C followed by another CTRL+C displays the Microsoft Office Clipboard.
CTRL+D Uses the Fill Down command to copy the contents and format of the topmost cell of a selected range into the cells below.
CTRL+F Displays the Find dialog box.SHIFT+F5 also displays this dialog box, while SHIFT+F4 repeats the last Find action.
CTRL+G Displays the Go To dialog box.F5 also displays this dialog box.
CTRL+H Displays the Find and Replace dialog box.
CTRL+I Applies or removes italic formatting.
CTRL+K Displays the Insert Hyperlink dialog box for new hyperlinks or the Edit Hyperlink dialog box for selected existing hyperlinks.
CTRL+L Displays the Create List dialog box.
CTRL+N Creates a new, blank file.
CTRL+O Displays the Open dialog box to open or find a file.CTRL+SHIFT+O selects all cells that contain comments.
CTRL+P Displays the Print dialog box.
CTRL+R Uses the Fill Right command to copy the contents and format of the leftmost cell of a selected range into the cells to the right.
CTRL+S Saves the active file with its current file name, location, and file format.
CTRL+U Applies or removes underlining.
CTRL+V Inserts the contents of the Clipboard at the insertion point and replaces any selection. Available only after you cut or copied an object, text, or cell contents.
CTRL+W Closes the selected workbook window.
CTRL+X Cuts the selected cells.
CTRL+Y Repeats the last command or action, if possible.
CTRL+Z Uses the Undo command to reverse the last command or to delete the last entry you typed.CTRL+SHIFT+Z uses the Undo or Redo command to reverse or restore the last automatic correction when AutoCorrect Smart Tags are displayed.
F1 Displays the Help task pane.CTRL+F1 closes and reopens the current task pane.ALT+F1 creates a chart of the data in the current range.ALT+SHIFT+F1 inserts a new worksheet.
F2 Edits the active cell and positions the insertion point at the end of the cell contents. It also moves the insertion point into the Formula Bar when editing in a cell is turned off.SHIFT+F2 edits a cell comment.
F3 Pastes a defined name into a formula.SHIFT+F3 displays the Insert Function dialog box.
F4 Repeats the last command or action, if possible.CTRL+F4 closes the selected workbook window.
F5 Displays the Go To dialog box.CTRL+F5 restores the window size of the selected workbook window.
F6 Switches to the next pane in a worksheet that has been split (Window menu, Split command).SHIFT+F6 switches to the previous pane in a worksheet that has been split.CTRL+F6 switches to the next workbook window when more than one workbook window is open.Note When the task pane is visible, F6 and SHIFT+F6 include that pane when switching between panes.
F7 Displays the Spelling dialog box to check spelling in the active worksheet or selected range.CTRL+F7 performs the Move command on the workbook window when it is not maximized. Use the arrow keys to move the window, and when finished press ESC.
F8 Turns extend mode on or off. In extend mode, EXT appears in the status line, and the arrow keys extend the selection.SHIFT+F8 enables you to add a non-adjacent cell or range to a selection of cells by using the arrow keys.CTRL+F8 performs the Size command (on the Control menu for the workbook window) when a workbook is not maximized.ALT+F8 displays the Macro dialog box to run, edit, or delete a macro.
F9 Calculates all worksheets in all open workbooks.F9 followed by ENTER (or followed by CTRL+SHIFT+ENTER for array formulas) calculates the selected a portion of a formula and replaces the selected portion with the calculated value.SHIFT+F9 calculates the active worksheet.CTRL+ALT+F9 calculates all worksheets in all open workbooks, regardless of whether they have changed since the last calculation.CTRL+ALT+SHIFT+F9 rechecks dependent formulas, and then calculates all cells in all open workbooks, including cells not marked as needing to be calculated.CTRL+F9 minimizes a workbook window to an icon.
F10 Selects the menu bar or closes an open menu and submenu at the same time.SHIFT+F10 displays the shortcut menu for a selected item.ALT+SHIFT+F10 displays the menu or message for a smart tag. If more than one smart tag is present, it switches to the next smart tag and displays its menu or message.CTRL+F10 maximizes or restores the selected workbook window.
F11 Creates a chart of the data in the current range.SHIFT+F11 inserts a new worksheet.ALT+F11 opens the Visual Basic Editor, in which you can create a macro by using Visual Basic for Applications (VBA).ALT+SHIFT+F11 opens the Microsoft Script Editor, where you can add text, edit HTML tags, and modify any script code.
F12 Displays the Save As dialog box.
ARROW KEYS Move one cell up, down, left, or right in a worksheet.CTRL+ARROW KEY moves to the edge of the current data region (data region: A range of cells that contains data and that is bounded by empty cells or datasheet borders.) in a worksheet.SHIFT+ARROW KEY extends the selection of cells by one cell.CTRL+SHIFT+ARROW KEY extends the selection of cells to the last nonblank cell in the same column or row as the active cell.LEFT ARROW or RIGHT ARROW selects the menu to the left or right when a menu is visible. When a submenu is open, these arrow keys switch between the main menu and the submenu.DOWN ARROW or UP ARROW selects the next or previous command when a menu or submenu is open.In a dialog box, arrow keys move between options in an open drop-down list, or between options in a group of options.
ALT+DOWN ARROW opens a selected drop-down list.
BACKSPACE Deletes one character to the left in the Formula Bar.Also clears the content of the active cell.
DELETE Removes the cell contents (data and formulas) from selected cells without affecting cell formats or comments.In cell editing mode, it deletes the character to the right of the insertion point.
END Moves to the cell in the lower-right corner of the window when SCROLL LOCK is turned on.Also selects the last command on the menu when a menu or submenu is visible.CTRL+END moves to the last cell on a worksheet, in the lowest used row of the rightmost used column.CTRL+SHIFT+END extends the selection of cells to the last used cell on the worksheet (lower-right corner).
ENTER Completes a cell entry from the cell or the Formula Bar, and selects the cell below (by default).In a data form, it moves to the first field in the next record.Opens a selected menu (press F10 to activate the menu bar) or performs the action for a selected command.In a dialog box, it performs the action for the default command button in the dialog box (the button with the bold outline, often the OK button).ALT+ENTER starts a new line in the same cell.CTRL+ENTER fills the selected cell range with the current entry.SHIFT+ENTER completes a cell entry and selects the cell above.
ESC Cancels an entry in the cell or Formula Bar.It also closes an open menu or submenu, dialog box, or message window.
HOME Moves to the beginning of a row in a worksheet.Moves to the cell in the upper-left corner of the window when SCROLL LOCK is turned on.Selects the first command on the menu when a menu or submenu is visible.CTRL+HOME moves to the beginning of a worksheet.CTRL+SHIFT+HOME extends the selection of cells to the beginning of the worksheet.
PAGE DOWN Moves one screen down in a worksheet.ALT+PAGE DOWN moves one screen to the right in a worksheet.CTRL+PAGE DOWN moves to the next sheet in a workbook.CTRL+SHIFT+PAGE DOWN selects the current and next sheet in a workbook.
PAGE UP Moves one screen up in a worksheet.ALT+PAGE UP moves one screen to the left in a worksheet.CTRL+PAGE UP moves to the previous sheet in a workbook.CTRL+SHIFT+PAGE UP selects the current and previous sheet in a workbook.
TAB Moves one cell to the right in a worksheet.Moves between unlocked cells in a protected worksheet.Moves to the next option or option group in a dialog box.SHIFT+TAB moves to the previous cell in a worksheet or the previous option in a dialog box.CTRL+TAB switches to the next tab in dialog box.CTRL+SHIFT+TAB switches to the previous tab in a dialog box.
CTRL+) Unhides any hidden columns within the selection.
CTRL+& Applies the outline border to the selected cells.
CTRL+_ Removes the outline border from the selected cells.
CTRL+~ Applies the General number format.
CTRL+$ Applies the Currency format with two decimal places (negative numbers in parentheses).
CTRL+% Applies the Percentage format with no decimal places.
CTRL+^ Applies the Exponential number format with two decimal places.
CTRL+# Applies the Date format with the day, month, and year.
CTRL+@ Applies the Time format with the hour and minute, and AM or PM.
CTRL+! Applies the Number format with two decimal places, thousands separator, and minus sign (-) for negative values.
CTRL+- Displays the Delete dialog box to delete the selected cells.
CTRL+* Selects the current region around the active cell (the data area enclosed by blank rows and blank columns).In a PivotTable, it selects the entire PivotTable report.
CTRL+: Enters the current time.
CTRL+; Enters the current date.
CTRL+` Alternates between displaying cell values and displaying formulas in the worksheet.
CTRL+’ Copies a formula from the cell above the active cell into the cell or the Formula Bar.
CTRL+” Copies the value from the cell above the active cell into the cell or the Formula Bar.
CTRL++ Displays the Insert dialog box to insert blank cells.
CTRL+1 Displays the Format Cells dialog box.
CTRL+2 Applies or removes bold formatting.
CTRL+3 Applies or removes italic formatting.
CTRL+4 Applies or removes underlining.
CTRL+5 Applies or removes strikethrough.
CTRL+6 Alternates between hiding objects, displaying objects, and displaying placeholders for objects.
CTRL+7 Displays or hides the Standard toolbar.
CTRL+8 Displays or hides the outline symbols.
CTRL+9 Hides the selected rows.
CTRL+0 Hides the selected columns.
CTRL+A Selects the entire worksheet.If the worksheet contains data, CTRL+A selects the current region. Pressing CTRL+A a second time selects the entire worksheet.When the insertion point is to the right of a function name in a formula, displays the Function Arguments dialog box.CTRL+SHIFT+A inserts the argument names and parentheses when the insertion point is to the right of a function name in a formula.
CTRL+B Applies or removes bold formatting.
CTRL+C Copies the selected cells.CTRL+C followed by another CTRL+C displays the Microsoft Office Clipboard.
CTRL+D Uses the Fill Down command to copy the contents and format of the topmost cell of a selected range into the cells below.
CTRL+F Displays the Find dialog box.SHIFT+F5 also displays this dialog box, while SHIFT+F4 repeats the last Find action.
CTRL+G Displays the Go To dialog box.F5 also displays this dialog box.
CTRL+H Displays the Find and Replace dialog box.
CTRL+I Applies or removes italic formatting.
CTRL+K Displays the Insert Hyperlink dialog box for new hyperlinks or the Edit Hyperlink dialog box for selected existing hyperlinks.
CTRL+L Displays the Create List dialog box.
CTRL+N Creates a new, blank file.
CTRL+O Displays the Open dialog box to open or find a file.CTRL+SHIFT+O selects all cells that contain comments.
CTRL+P Displays the Print dialog box.
CTRL+R Uses the Fill Right command to copy the contents and format of the leftmost cell of a selected range into the cells to the right.
CTRL+S Saves the active file with its current file name, location, and file format.
CTRL+U Applies or removes underlining.
CTRL+V Inserts the contents of the Clipboard at the insertion point and replaces any selection. Available only after you cut or copied an object, text, or cell contents.
CTRL+W Closes the selected workbook window.
CTRL+X Cuts the selected cells.
CTRL+Y Repeats the last command or action, if possible.
CTRL+Z Uses the Undo command to reverse the last command or to delete the last entry you typed.CTRL+SHIFT+Z uses the Undo or Redo command to reverse or restore the last automatic correction when AutoCorrect Smart Tags are displayed.
F1 Displays the Help task pane.CTRL+F1 closes and reopens the current task pane.ALT+F1 creates a chart of the data in the current range.ALT+SHIFT+F1 inserts a new worksheet.
F2 Edits the active cell and positions the insertion point at the end of the cell contents. It also moves the insertion point into the Formula Bar when editing in a cell is turned off.SHIFT+F2 edits a cell comment.
F3 Pastes a defined name into a formula.SHIFT+F3 displays the Insert Function dialog box.
F4 Repeats the last command or action, if possible.CTRL+F4 closes the selected workbook window.
F5 Displays the Go To dialog box.CTRL+F5 restores the window size of the selected workbook window.
F6 Switches to the next pane in a worksheet that has been split (Window menu, Split command).SHIFT+F6 switches to the previous pane in a worksheet that has been split.CTRL+F6 switches to the next workbook window when more than one workbook window is open.Note When the task pane is visible, F6 and SHIFT+F6 include that pane when switching between panes.
F7 Displays the Spelling dialog box to check spelling in the active worksheet or selected range.CTRL+F7 performs the Move command on the workbook window when it is not maximized. Use the arrow keys to move the window, and when finished press ESC.
F8 Turns extend mode on or off. In extend mode, EXT appears in the status line, and the arrow keys extend the selection.SHIFT+F8 enables you to add a non-adjacent cell or range to a selection of cells by using the arrow keys.CTRL+F8 performs the Size command (on the Control menu for the workbook window) when a workbook is not maximized.ALT+F8 displays the Macro dialog box to run, edit, or delete a macro.
F9 Calculates all worksheets in all open workbooks.F9 followed by ENTER (or followed by CTRL+SHIFT+ENTER for array formulas) calculates the selected a portion of a formula and replaces the selected portion with the calculated value.SHIFT+F9 calculates the active worksheet.CTRL+ALT+F9 calculates all worksheets in all open workbooks, regardless of whether they have changed since the last calculation.CTRL+ALT+SHIFT+F9 rechecks dependent formulas, and then calculates all cells in all open workbooks, including cells not marked as needing to be calculated.CTRL+F9 minimizes a workbook window to an icon.
F10 Selects the menu bar or closes an open menu and submenu at the same time.SHIFT+F10 displays the shortcut menu for a selected item.ALT+SHIFT+F10 displays the menu or message for a smart tag. If more than one smart tag is present, it switches to the next smart tag and displays its menu or message.CTRL+F10 maximizes or restores the selected workbook window.
F11 Creates a chart of the data in the current range.SHIFT+F11 inserts a new worksheet.ALT+F11 opens the Visual Basic Editor, in which you can create a macro by using Visual Basic for Applications (VBA).ALT+SHIFT+F11 opens the Microsoft Script Editor, where you can add text, edit HTML tags, and modify any script code.
F12 Displays the Save As dialog box.
ARROW KEYS Move one cell up, down, left, or right in a worksheet.CTRL+ARROW KEY moves to the edge of the current data region (data region: A range of cells that contains data and that is bounded by empty cells or datasheet borders.) in a worksheet.SHIFT+ARROW KEY extends the selection of cells by one cell.CTRL+SHIFT+ARROW KEY extends the selection of cells to the last nonblank cell in the same column or row as the active cell.LEFT ARROW or RIGHT ARROW selects the menu to the left or right when a menu is visible. When a submenu is open, these arrow keys switch between the main menu and the submenu.DOWN ARROW or UP ARROW selects the next or previous command when a menu or submenu is open.In a dialog box, arrow keys move between options in an open drop-down list, or between options in a group of options.
ALT+DOWN ARROW opens a selected drop-down list.
BACKSPACE Deletes one character to the left in the Formula Bar.Also clears the content of the active cell.
DELETE Removes the cell contents (data and formulas) from selected cells without affecting cell formats or comments.In cell editing mode, it deletes the character to the right of the insertion point.
END Moves to the cell in the lower-right corner of the window when SCROLL LOCK is turned on.Also selects the last command on the menu when a menu or submenu is visible.CTRL+END moves to the last cell on a worksheet, in the lowest used row of the rightmost used column.CTRL+SHIFT+END extends the selection of cells to the last used cell on the worksheet (lower-right corner).
ENTER Completes a cell entry from the cell or the Formula Bar, and selects the cell below (by default).In a data form, it moves to the first field in the next record.Opens a selected menu (press F10 to activate the menu bar) or performs the action for a selected command.In a dialog box, it performs the action for the default command button in the dialog box (the button with the bold outline, often the OK button).ALT+ENTER starts a new line in the same cell.CTRL+ENTER fills the selected cell range with the current entry.SHIFT+ENTER completes a cell entry and selects the cell above.
ESC Cancels an entry in the cell or Formula Bar.It also closes an open menu or submenu, dialog box, or message window.
HOME Moves to the beginning of a row in a worksheet.Moves to the cell in the upper-left corner of the window when SCROLL LOCK is turned on.Selects the first command on the menu when a menu or submenu is visible.CTRL+HOME moves to the beginning of a worksheet.CTRL+SHIFT+HOME extends the selection of cells to the beginning of the worksheet.
PAGE DOWN Moves one screen down in a worksheet.ALT+PAGE DOWN moves one screen to the right in a worksheet.CTRL+PAGE DOWN moves to the next sheet in a workbook.CTRL+SHIFT+PAGE DOWN selects the current and next sheet in a workbook.
PAGE UP Moves one screen up in a worksheet.ALT+PAGE UP moves one screen to the left in a worksheet.CTRL+PAGE UP moves to the previous sheet in a workbook.CTRL+SHIFT+PAGE UP selects the current and previous sheet in a workbook.
TAB Moves one cell to the right in a worksheet.Moves between unlocked cells in a protected worksheet.Moves to the next option or option group in a dialog box.SHIFT+TAB moves to the previous cell in a worksheet or the previous option in a dialog box.CTRL+TAB switches to the next tab in dialog box.CTRL+SHIFT+TAB switches to the previous tab in a dialog box.
Deduction for FY 2010-11
During the last few months of a financial year you see people making last moment impulse decisions to invest in tax saving instruments and in the process they may end up buying products which are not right for them. Tax planning should be done a few months in advance as it gives you ample time to understand and evaluate different options that are specific to your financial situation. Start your tax planning now for Assessment Year 2010-11.
Here are some simple tips for planning your taxes this financial year:
I. Utilise Income Tax exemptions
Section 80C
This is the most popular exemption as you can claim up to Rs. 1 lakh in deductions. The options include Employee Provident Fund (EPF), Public Provident Fund (PPF)- up to Rs.70,000 per annum, National Savings Certificate (NSC), 5-year bank fixed deposits, Life insurance policies, Equity-Linked Savings Schemes (ELSS), Unit Linked Insurance Plans (ULIPs), school fees, and home loan principal repayment. For making investments in this section you will have to decide on the ideal debt vs. equity mix that is right for you based on your age, risk-return profile and goals.
Section 80D
If you have taken a medical insurance plan for yourself, your spouse, dependant parents or children, you can claim deductions up to Rs 15,000 (and additional Rs 15,000 for your parents' medical insurance) under Section 80D for the premiums paid. The limit now has been enhanced to Rs 20,000 for senior citizens on the condition that the premium is paid via cheque.
Section 80DD
Expenses on the medical treatment of a dependent with a disability qualifies for tax benefits under Section 80DD. In this case, deductions up to Rs 50,000 or 75.000 can be claimed based on the severity.
The interest component of your home loan is allowed as a deduction under the head 'income from house property' under Section 24(b) up to a limit of Rs 1.5 lakhs a year in case of a self-occupied house.
The claim can be made even on loans taken for repair, renewal or reconstruction of an existing property.
Shuffling is a popular strategy used by ELSS investors which have a mandatory lock-in of 3 years. If you have been investing Rs 50,000 for the past few years and don't have cash to invest this year, you can easily redeem investments made 3 years ago and re-invest that amount this year to claim the benefits.
You will not have to pay any long term capital gains since you will be redeeming after more than a year. Thus you can enjoy tax benefits without making any fresh investments. Only risk is that the NAV can go up or down in the shuffle process and you may end up making a small profit or loss.
Some fund houses allow switch option for tax benefits. Let's say an investor with previous ELSS investments doesn't have money to make further investment in the current financial year 2008.
He could consider switching it to a liquid fund and back into the ELSS fund within a short span of time like 10-15 days to enjoy the tax benefits.
While donations should not be made simply for tax purposes but for philanthropic reasons, you can always make a couple more at the end of the year to lower your tax. You get a tax relief if you donate to institutions approved under Section 80G of the Income Tax Act.
The rate of deduction is either 50 or 100 per cent, depending on the choice of the charity fund. There is no restriction on the amount given to charity. However, donations must be made only to specified trusts and also only donations of up to 10 per cent of your total income qualify for such a deduction.
Remember to get receipts whenever you make any charitable donation. Please remember that tax exemption is only an added advantage of charity and it should not be the primary reason for doing so.
Normally, if you invest in your wife's or child's name, the income generated from such investments will be clubbed with your income and taxed accordingly. However, if you transfer money through a deed to a child who is over 18 years of age and invest in his name, then the income generated from such investment will not be clubbed with your income. Instead, that will be clubbed with the income of your child/wife and taxed accordingly.
Cash gifts received from specified relatives are exempt from income tax and there is no upper limit. Similarly, cash gifts of any amount and from anyone received during your child birth, marriage or any other specified event are totally tax-free. However, any cash received from a non-relative where the value is in excess of Rs 50,000 in a particular year will be considered as income in the hands of the recipient.
You should make sure that you have a record & valid receipts for all tax savings investments made in your name. You do not want to be running around at the last minute collecting all the documents required for tax filing.
In a nutshell remember the following:
Combine your tax planning with your financial plan so that the products you invest in match your risk profile and your future goals
A home loan is not necessarily a bad debt. Consider getting a loan while buying a home.
Charity is good- not only for the receiver, but the giver as well; Check on the validity and receipts before you claim that deduction u/s 80G
Take advantage of the tax breaks that the IT sections 80C, 80D and 80DD offer.
Insuring oneself makes sense- as the premium is exempt u/s 80C (upto 1 lakh) and the maturity amount is tax free
By taking medical insurance, you not only insure your family against medical expenses, you also get a tax deduction u/s 80D- so take that cover today!
File your taxes on time!
Here are some simple tips for planning your taxes this financial year:
I. Utilise Income Tax exemptions
Section 80C
This is the most popular exemption as you can claim up to Rs. 1 lakh in deductions. The options include Employee Provident Fund (EPF), Public Provident Fund (PPF)- up to Rs.70,000 per annum, National Savings Certificate (NSC), 5-year bank fixed deposits, Life insurance policies, Equity-Linked Savings Schemes (ELSS), Unit Linked Insurance Plans (ULIPs), school fees, and home loan principal repayment. For making investments in this section you will have to decide on the ideal debt vs. equity mix that is right for you based on your age, risk-return profile and goals.
Section 80D
If you have taken a medical insurance plan for yourself, your spouse, dependant parents or children, you can claim deductions up to Rs 15,000 (and additional Rs 15,000 for your parents' medical insurance) under Section 80D for the premiums paid. The limit now has been enhanced to Rs 20,000 for senior citizens on the condition that the premium is paid via cheque.
Section 80DD
Expenses on the medical treatment of a dependent with a disability qualifies for tax benefits under Section 80DD. In this case, deductions up to Rs 50,000 or 75.000 can be claimed based on the severity.
The interest component of your home loan is allowed as a deduction under the head 'income from house property' under Section 24(b) up to a limit of Rs 1.5 lakhs a year in case of a self-occupied house.
The claim can be made even on loans taken for repair, renewal or reconstruction of an existing property.
Shuffling is a popular strategy used by ELSS investors which have a mandatory lock-in of 3 years. If you have been investing Rs 50,000 for the past few years and don't have cash to invest this year, you can easily redeem investments made 3 years ago and re-invest that amount this year to claim the benefits.
You will not have to pay any long term capital gains since you will be redeeming after more than a year. Thus you can enjoy tax benefits without making any fresh investments. Only risk is that the NAV can go up or down in the shuffle process and you may end up making a small profit or loss.
Some fund houses allow switch option for tax benefits. Let's say an investor with previous ELSS investments doesn't have money to make further investment in the current financial year 2008.
He could consider switching it to a liquid fund and back into the ELSS fund within a short span of time like 10-15 days to enjoy the tax benefits.
While donations should not be made simply for tax purposes but for philanthropic reasons, you can always make a couple more at the end of the year to lower your tax. You get a tax relief if you donate to institutions approved under Section 80G of the Income Tax Act.
The rate of deduction is either 50 or 100 per cent, depending on the choice of the charity fund. There is no restriction on the amount given to charity. However, donations must be made only to specified trusts and also only donations of up to 10 per cent of your total income qualify for such a deduction.
Remember to get receipts whenever you make any charitable donation. Please remember that tax exemption is only an added advantage of charity and it should not be the primary reason for doing so.
Normally, if you invest in your wife's or child's name, the income generated from such investments will be clubbed with your income and taxed accordingly. However, if you transfer money through a deed to a child who is over 18 years of age and invest in his name, then the income generated from such investment will not be clubbed with your income. Instead, that will be clubbed with the income of your child/wife and taxed accordingly.
Cash gifts received from specified relatives are exempt from income tax and there is no upper limit. Similarly, cash gifts of any amount and from anyone received during your child birth, marriage or any other specified event are totally tax-free. However, any cash received from a non-relative where the value is in excess of Rs 50,000 in a particular year will be considered as income in the hands of the recipient.
You should make sure that you have a record & valid receipts for all tax savings investments made in your name. You do not want to be running around at the last minute collecting all the documents required for tax filing.
In a nutshell remember the following:
Combine your tax planning with your financial plan so that the products you invest in match your risk profile and your future goals
A home loan is not necessarily a bad debt. Consider getting a loan while buying a home.
Charity is good- not only for the receiver, but the giver as well; Check on the validity and receipts before you claim that deduction u/s 80G
Take advantage of the tax breaks that the IT sections 80C, 80D and 80DD offer.
Insuring oneself makes sense- as the premium is exempt u/s 80C (upto 1 lakh) and the maturity amount is tax free
By taking medical insurance, you not only insure your family against medical expenses, you also get a tax deduction u/s 80D- so take that cover today!
File your taxes on time!
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