Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: VAT RATES :: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: articles on VAT and GST in India :: TAX RATES - GOODS TAXABLE @ 4% :: form 3cd :: TDS :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: VAT Audit :: cpt :: due date for vat payment
General »
 Banks warn share tax hike threatens Paris' post-Brexit appeal
 PMC may decide on property tax rebate for IT firms this week
 I-T Dept is giving out certificates of appreciation. Have you received yours?
 Government works on ironing out benefits refund mechanism for exportersa
  Tax officials are using an IDS provision to question transactions beyond six-year-limit
 Tax-free bonds rally like midcap funds
 Senior citizens do not have to pay advance tax on salary and interest income
 GST: Audit commissioners to get adjudication powers
 Interest on NRE rupee account can be exempt from tax under FEMA
 Impact of GST on Real Estate Sector
 GST regime: Tax payers allowed to take option of third-party interfaces

Money matters: Generation Y short on tax planning
July, 16th 2013

They may have great jobs and could be drawing handsome salaries, but it seems, Gen Y is not very smart when it comes to money matters. Tax filing data show that 25-30-year olds pay significantly higher tax than older taxpayers. The average minimum tax paid by 25-year-old taxpayers earning 10-11 lakh a year was 12%. But 34-year-olds with the same income paid only 6%.

These figures are based on a study of the tax returns filed last year through tax filing portal The study looked at the bottom 10% of roughly 1.2 lakh taxpayers across different ages and found that the minimum average was lower among older taxpayers. "Younger taxpayers are not very adept at planning their taxes. Many of them are not aware or able to claim the various tax deductions available to them," says Sudhir Kaushik, CFO and co-founder of noted that nearly 51% of the salaried taxpayers had not fully exhausted the 1 lakh saving limit under Section 80C. Only one out of four of these taxpayers had claimed deduction for medical insurance under Section 80D.

The study found that senior citizens were more clued in about tax rules and, therefore, managed to curtail their tax liability to a great extent. One of every five senior citizen assessees paid zero tax even though the average income was 4 lakh a year. Only 26% of senior citizen assessees had not claimed the full deduction under Section 80C.

Kaushik says the minimum payout ratio of 12% is very high and indicates that younger taxpayers are losing out on benefits available to them. "They are leaving far too much on the table for the taxman," he says.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Custom Software Development Outsourcing Custom Software Development Offshore Cus

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions