@ srividya, indian demats deduct tax at source and you are provided with a TDS certificate to be submitted for your tax filings. i am not sure about US. @ ami, From what i understand, if you are asking about the TDS for all the bills submitted, any excess collected at source by your company/paid to the govt, you can claim it. there is a form/procedure to claim the excess TDS.
Shanthi Thank you for stepping in! I understand that there is this TDS/ W2 that would be sent by the online trading site to me..I just wanted to know, how are the taxes calculated..is it for the profits made on the stocks..or is it going to be for the total amount in the account i.e invested ..just wanted to understand the concept!
SV, The taxes are deducted on the profits not on the principal. You can also claim tax exemptions for any losses that you carry over for a few yrs(forgot the acutal #). Regards, L
Thanks Pro I would love to call you that way:cheersfrom now on.... My next query is..on Mortgage rates / Interest in US I see that Mortgage rates are for 15 yr and 30 yr period here in US. obviously total interest we pay at the end of 15 yrs is less than 30 yrs..however I see that most of the home buyers take/ start with 30 yr mortgage rate...why is that?? So is the interst rate thats paid on 15/30yr mortgage rates is totally tax deductible??? I know that in India, interest paid on home loan, is totally tax deductible!!but how does it work in US? was I able to explain my query clearly??:bonk
:rotfl:rotfl:rotfl Glad you found my half baked knowledge useful. DH says it's dangerous, my finance information that's always in bits and pieces, never complete! Even I've heard from friends that home buyers do get tax breaks in the US. Not sure of the ins and outs of it though. I did not buy a house in the US so never probed into the taxes bit. Here in India, we do get a tax break on the mortgage. Isn't there a tax exemption limit in both countries, even for mortgages? I guess there is but I have no idea what it is:drowning:drowning
SV, As laks says there is an limit on the tax exemption for the interest paid on housing loans and that is 1,50,000 if it is self-occupied if the loan is taken on or after April 1999.
Shathi - As usual, you are the savior! Thanks for that information. SV - I'm guessing a similar cap exists in the US too! IRS website should have the information.
Shanthi & Laks Thank you...I have checked what is the cap here in US? and here is teh info I got... mortgage interest on loans up to $1 million is completely deductible for the year in which you pay it to buy, build or improve your principal residence plus a second home. You can also deduct points you pay to refinance your home - over the life of the loan. You can deduct points paid when you purchase your home in the year paid, no matter who pays them, the buyer or the seller. When you sell your home, you probably won’t need to worry about capital gains taxes if you own and live in your home at least two years. The exclusion has been raised to $500,000 for married couples and $250,000 for single owners.
Tax Deducations and Slabs in USA (Source Msn) Here is how the brackets change in 2009. <TABLE><CAPTION>2009 tax rates and brackets</CAPTION><TH colSpan=3>These tables can help you estimate your tax bill</TH>For single taxpayersIf taxable income is over --But not over --The tax is:$0$8,35010% of the amount over $0$8,350$33,950$835 plus 15% of the amount over $8,350$33,950$82,250$4,675 plus 25% of the amount over $33.950$82,250$171,550$16,750 plus 28% of the amount over $82,250$171,550$372,950$41,754 plus 33% of the amount over $171,550$372,950no limit$108,216 plus 35% of the amount over $372,950For married couples filing jointly* If taxable income is over --But not over --The tax is:$0$16,70010% of the amount over $0$16,700$67,900$1,670 plus 15% of the amount over $16,700$67,900$137,050$9,350 plus 25% of the amount over $67,900$137,050$208,850$26,637.50 plus 28% of the amount over $137,050$208,850$372,950$46,741.50 plus 33% of the amount over $208,850$372,950no limit$100,894.50 plus 35% of the amount over $372,950* Or qualifying widow(er)For married couples filing separatelyIf taxable income is over --But not over --The tax is:$0$8,35010% of the amount over $0$8,350$33,950$835 plus 15% of the amount over $8,350$33,950$68,525$4,675 plus 25% of the amount over $33,950$68,525$104,425$13,318.75 plus 28% of the amount over $68,525$104,425$186,475$23,370.75 plus 33% of the amount over $104,425$186,475no limit$50,447.25 plus 35% of the amount over $186,475For heads of householdsIf taxable income is over --But not over --The tax is:$0$11,95010% of the amount over $0$11,950$45,500$1,195 plus 15% of the amount over $11,950$45,500$117,450$6,227.50 plus 25% of the amount over $45,500$117,450$190,200$24,215 plus 28% of the amount over $117,450$190,200$372,950$44,585 plus 33% of the amount over $190,200$372,950no limit$104,892.50 plus 35% of the amount over $372,950
