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Tax Returns filling - Get your tax figures right

Some deductions you are eligible for to help you arrive at the right taxable income while filing returns. This time you don’t need to attach any documents to the form. The last date for individuals to file returns is July 31



The time to file the income tax returns is here. July 31 is the last date to file the IT returns for individuals. The returns has to be filed for the previous year - April 2008 to March 2009. So, the transactions should have taken place during that period only. Any subsequent transactions will be taken into account during the next year - 2009-10.



An assessee also needs to compute taxes properly and pay off any outstanding dues. This can be done before the date of filing of the returns.



It is of utmost importance that one uses the correct form, as is applicable to him. In a radical change from the past, no document (including TDS certificate) should be attached to this form. The officials receiving the returns have been instructed to detach all documents enclosed with the form and return them to the assessee.



In order to avoid interest and penalty, you also need to compute your interest liability for either non-payment of advance tax or late payment of instalments of advance tax. The interest rate is calculated at the rate of one percent per month on the specified tax amount. This interest can be paid along with the self-assessment tax.



Obligation to file returns



Every individual and Hindu Undivided Family (HUF) has to furnish the returns of income if the total income before allowing deductions under Chapter VI-A exceeds the maximum amount which is not chargeable to income tax.



Losses, if any, will not be allowed to be carried forward unless the returns has been filed on or before the due date. It is to be noted that the total deductions allowable is limited to the amount of gross total income. Deductions are available under Chapter VI-A.



Deductions



Details of deductions which are available to an individual and HUF not carrying out any business or profession are:



Section 80C



Some of the major expenses for deduction under this Section are amount paid towards life insurance, contribution to Provident Fund set up by the Government or recognised Provident Fund, contribution by the assessee to an approved superannuation fund, subscription to National Savings Certificates, tuition fees, and home loan repayments.



The aggregate amount of deduction cannot exceed Rs 1 lakh.



Section 80D and DD



This deduction is in respect of medical insurance premium. It also covers deduction in respect of maintenance including medical treatment of dependents.



Section 80E / G



This covers deduction in respect of interest on loan taken for higher education, donations to certain funds and charitable institutions etc.



Other related details:



Step by step Guide for IT Returns filling:
http://prajnacapital.blogspot.com/2008/07/filing-tax-return-step-by-step-guide.html


Tax Filling details for NRIs:
http://prajnacapital.blogspot.com/2008/07/nri-corner-part-i-filing-income-tax.html


E-filling of Tax Returns:
http://prajnacapital.blogspot.com/2008/07/e-filing-it-returns-india.html
http://prajnacapital.blogspot.com/2008/07/time-to-file-tax-returns.html


Tax and Donations

http://prajnacapital.blogspot.com/2008/09/income-tax-deduction-on-donations.html


Income Tax and Housing loan

http://prajnacapital.blogspot.com/2008/12/income-tax-benefits-of-housing-loan-emi.html

Income Tax Refunds

http://prajnacapital.blogspot.com/2009/02/income-tax-refunds-faster-now.html

Income Tax planning for next year

http://prajnacapital.blogspot.com/2008/12/tax-planning-plan-tax-savings-well-in.html

Income tax and Mutual Funds (ELSS)

http://prajnacapital.blogspot.com/2009/01/elss-to-save-on-tax.html

Income tax and HRA

http://prajnacapital.blogspot.com/2008/12/hra-and-income-tax-deduction-relation.html

Income tax and Property

http://prajnacapital.blogspot.com/2008/12/loss-from-property-can-reduce-taxable.html

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