Skip to main content

IT returns - Saral-II

Taxpayers will have to fill anew form, Saral-II, this tax-filing season. The form, introduced by the Central Board of Direct Taxes (CBDT) in April, is supposed to make filing tax returns easier. The form is to be used for filing returns for Financial Year 2009-10 or Assessment Year 2010-11.

Kaushik Mukherjee, executive director, PricewaterhouseCoopers said, "Saral-II incorporates a larger variety of income compared to income tax returns-1 (ITR-1), which sought different forms for declaring different types of income."

Eligibility: Saral-II is to be used only by individuals having income from salary, pension, from one house property (excluding the loss brought forward from previous years), and from other sources excluding lottery and horse race. In other words, you can use this form if you earn salary, pension or interest income.

If you have to club two incomes like yours and your spouse's, or that of your minor child, you can use this form, provided the incomes clubbed fall under the specified categories. Other forms

ITR-2 :Individuals or Hindu Undivided Families (HUFs) who don't earn from business or profession

ITR-3 :Individuals or HUF partners in firms and those who don't earn from business or profession under any proprietorship

ITR-4 :Individuals or HUF earnings from a proprietary business or a profession

ITR-5 :Firm, association of persons, body of individuals, corporation or society, and local authority

ITR-6 :Company

ITR-V :If returns in Forms Saral-II (ITR-1), ITR-2, ITR-3, ITR4, ITR-5 & ITR-6 are transmitted electronically without digital signature An important point in SaralII is that no documents like tax computation, tax deducted at source (TDS) certificates issued by employers (Form 16), other TDS certificates (Form 16A), tax payment challans are required to be attached.

You can file returns on paper/electronically with digital signature/transmitting data electronically and thereafter submitting the verification in return form ITR-V by furnishing abar-coded return.

Electronic filing: You are required to take two prints of ITRV. Sign one copy and post it to the Directorate of Income Tax in Bangalore and retain the other copy for your record.

You also need to furnish the magnetic ink character recognition code of the bank for receiving the refund through the electronic clearing system. Homi Mistry, partner, Deloitte said, "In the previous form, one could give details of either a savings bank account or a current account. But in Saral-II, you can give only your savings account number. So, in case you don't have a savings account, it will be a problem." On taxable income, the tax is to be calculated inclusive of secondary and higher education cess at the rate of 3 per cent.

The new form has many advantages over the earlier version. For example, individuals with salary income and more than one house have to file returns with Form ITR-2, a complex, six-page document. Financial planners say senior citizens or retirees who have acquired a second property over the course of time and rent from which is a source of income, cannot use Saral-II.

Earlier, if you earned dividend or long-term capital gains from mutual funds or shares and income from agriculture up to Rs 5,000, it had to be filled in ITR-2.

However, the annual information report has been retained in the new form. It requires declaration of transactions such as deposits over Rs 10 lakh in savings account, property transactions over Rs 30 lakh, purchase of Reserve Bank of India bonds or company debentures of over Rs 5 lakh, company shares issued for more than Rs 1 lakh, among others.

You can file returns on paper, electronically with a digital signature or by transmitting data electronically

Popular posts from this blog

Real Returns in Investing

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300 Real Returns in Investing     A Anil Singh (name changed), 44, works with a private company and believes in investing his entire savings in fixed deposits. His financials from the year 2000 till date is given in the table. Anil's savings in FDs gave him an average return of around 8%. The total amount saved over the 174 months (From January 2000 to June 2014) is Rs 49.80 lakh. The value of his investment today is around Rs 66.71 lakh. Naveen Singh (name changed), 44, works in a similar profile like Anil. However his expenses were on the higher side. His financials are as in the table. Naveen invested only in equities. The total amount saved over the 174 months (From January 2000 to June 2014) is Rs 38.40 lakh. The v...

Budget 2014 Highlights for Saving

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   The new finance minister Arun Jaitley has just presented his first budget. What measures does the budget contain that will specifically impact savers and investors? Here they are: 1. Housing loans exemption for self-occupied properties increased to Rs2 lakh: Earlier this amount was Rs1.5 lakhs. This move barely keeps pace with the inflation in asset values.   2. Investment limit under 80 (C) increased to Rs1.5 lakh: This is a good move again and offers some relief to taxpayers.   3. IT exemption increased to Rs2.5 lakh, Rs3 lakh for senior citizens. This comes as a minor relief for taxpayers.   4. Annual PPF ceiling to be enhanced to Rs1.5 lakh, from Rs1 lakh: This is in tune with the change in 80C.   5. Long term capital gains tax for debt funds has been rai...

ICICI Prudential MIP 25 - Invest Online

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   ICICI Prudential MIP 25     (CRISIL Rank 2)   This scheme was launched March 2004. Please see the chart below for the one, two, three and five years annualized returns from this scheme. The minimum investment in the scheme is Rs 5,000. The asset allocation of the portfolio is 24% equity, 72% debt and 4% cash equivalent and others. Please see the chart below for the monthly dividends declared by the scheme, on a per unit basis, over the last 5 years.   For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call Leave a missed Call on 94 8300 8300 Leave your comment with mai...

Franklin India Smaller Companies Fund - Invest Online

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   Franklin India Smaller Companies Fund   While the universe of small-cap stocks in India is vast, there are very few equity funds which take on the task of sifting through this space for good long-term bets. Franklin India Smaller Companies Fund has managed this with aplomb. What we like about this fund is its significant out-performance of its category and benchmark over the last four years, and its ability to moderate portfolio risk despite investing in the riskiest segment of the equity market. This fund's stock selection strategy, like that of Franklin India Prima Fund is focused on finding companies that generate positive cash flows across business cycles. High return on investment and manageable leverage are also filtering criteria. Says R. Janakiraman, fund ma...

How to open a Capital Gains Account?

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   How to open a Capital Gains Account? You can open a capital gains account in an authorized bank. The Government has notified 28 banks which can open the Capital Gains Account on behalf of the Government. You have to apply for opening the account by filling out the required application form (Form A) and submit proof of address, PAN card and photograph. You cannot withdraw funds from a capital gains account using a cheque book or ATM, like you do in your normal savings bank account. There are procedures to be followed to withdraw funds from the capital gains account. Investment in Specified Bonds Section 54EC of Income Act provide that if the seller invests whole or part of capital gains arising from the sale of asset in specified Capital Gains, within a period of six months of the ...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now