Skip to main content

Time to file IT returns: The new forms make filing IT returns easier

   The time to file your income tax returns is coming close. Under the Income Tax Act, every individual whose total income before allowing deductions under Chapter VIA of the Income Tax Act exceeds the maximum amount that is not chargeable to income tax is required to furnish his returns of income. For the current assessment year, 2010-11, (applicable to the previous year 2009-10), the income limits are Rs 1.6 lakhs for men, Rs 1.9 lakhs for women and Rs 2.4 lakhs for senior citizens. For individuals, the income tax returns need to be filed by July 31, 2010.


   A taxpayer is also required to declare income he has claimed as exempt from tax such as dividends, long-term capital gains on which securities transaction tax has been paid etc in the returns form.


   The government has simplified the IT returns forms for taxpayers to help in easy filing of the tax returns. Any individual having an income through salary or pension, income from one house (excluding cases where loss is brought forward from previous years) and income from other sources (excluding winnings from lottery and such one-off income) can file his tax returns in the simplified form - Saral II.


   In case income of any other person such as spouse or minor child is to be clubbed with the income of the taxpayer the same returns form can be used, provided the incomes so clubbed are in the mentioned categories. Most individuals with a salary income and one house will primarily be required to file their tax returns in the new Saral-II form (ITR-1). Individuals with a salary income and owning more than one house have to file their returns in Form ITR-2. The ITR-2 is to be used by an individual or Hindu Undivided Family (HUF) with income under the head salaries/pensions, house property, capital gains, and income from other sources. ITR-3 is to be used by an individual or HUF who is a partner in a firm. ITR-4 is to be used by an individual or HUF who is carrying on a proprietary business or profession. ITR-5 is to be used by a firm, association of person, body of individuals, corporation or society and local authority. ITR-6 is to be used by a company. It is to be noted that no documents like tax computations, TDS certificates issued by the employer (Form 16), Other TDS certificates (Form 16A), tax payment challans etc are required to be attached with these returns forms. A taxpayer may file his tax returns in Saral II with the tax authorities in paper form, or electronically with digital signature, transmitting the data in the returns electronically and then submitting the verification returns in Form ITR-5. In addition to the income and taxes, a taxpayer is also required to furnish details of certain financial transactions undertaken by him during the financial year.

These include:


• Cash deposits of Rs 10 lakhs or more in a savings bank account

• Credit card payment of Rs 2 lakhs or more

• Mutual fund units purchased for Rs 2 lakhs or more

• Bonds or debentures of a company or institution purchased for Rs 5 lakhs or more

• Purchase of shares issued by a company for Rs 1 lakh or more

• Property purchased or sold for Rs 30 lakhs or more

• Purchase of bonds issued by the Reserve Bank of India (RBI) for Rs 5 lakhs or more

 

Popular posts from this blog

Group Health Insurance

Buy Group Health Insurance Online   For Human Resources, the biggest challenge today is to decide whether medical benefits should be offered to employees or not, what type of plans should be offered, what will be the cost and how will the cost be split between employees and employer. Well, most of these are subjective and would depend on a lot of factors including company size, average employee salary, etc. However, this article will give you a fair idea on how you should go about deciding these factors: 1. Why offer group health insurance benefit to employees : Studies have proved that retention rates among employers offering GHI are much higher than the ones who are not offering. Moreover, the cost of providing this benefit as a percentage of salary is very low as compared to the perceived value. As an example, say if average salary of an employee in your organization is 4 LPA. If you decide to offer a health insurance benefit to him for a Sum insured of ...

ICICI Prudential Dynamic Plan 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 Dynamic Plan             Invest Online This fund does remarkably well during falling markets, but fails to show the same prowess during a rising market. The fund sticks to its mandate to adapt to the dynamic nature of the market by shuttling between debt and equity. It takes aggressive asset calls in equity when the market surges by investing in quality mid-cap stocks. At the same time, it adopts a defensive strategy by investing in debt and cash when markets get overvalued, making it a good long-term choice.     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 mail ID and we will ...

Birla Sun Life MIP II Savings 5

  Birla Sun Life MIP II Savings 5 - Invest Online   Have you traditionally been a debt investor but now wish to test waters in equities? Then, debt-oriented funds such as Birla Sun Life MIP II Savings 5 (Birla Savings 5), which have limited exposure to equities, may fit your requirement. With a five year return of 10.5 per cent compounded annually, the fund managed a good 3-3.5 percentage points more than its benchmark Crisil MIP Blended Index, as well as its category average. The fund appears well poised to capitalise on a falling interest rate scenario and has increased the average portfolio duration of its debt instruments in recent times. Suitability Birla Savings 5 is suitable only for conservative investors. If you want to make a beginning in equities and cannot take any short-term declines in your stride, then this fund will suit you. If you are already an equity investor and want to use a debt-oriented fund merely as a diversifier, then you may prefer peers from the HDFC and Re...

SBI MAGNUM MIDCAP ONLINE

Invest SBI MAGNUM MIDCAP ONLINE   SBI MAGNUM MIDCAP fund didn't fare well in its initial years but, in recent years, has steadily improved its performance under the capable hands of its current fund manager. Although investing predominantly in mid-cap stocks, the average market capitalisation of its portfolio is lower than other category peers.   Although the stock selection approach is mostly bottom-up , the fund manager doesn't shy away from taking bold sector bets , as is reflected in its large exposure to the healthcare sector. She is equally adept at handling performance across market cycles--the fund has captured more of the upside during market upticks and contained the downside during downturns in a better manner than its peers.   Given its superior risk-reward equation, the fund is a worthy pick in its category.     ----------------------------------------------- Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing EL...

Lump Sum or SIP?

Invest Mutual Fund Online     You have a lump sum in hand and you wish to invest in equity funds. However, you have heard a lot of talk about investing in equity funds through Systematic Investment Plans (SIPs) because they help average costs, ensure you do not ill-time the market, and help you invest in small sums, besides giving you many other advantages. So, should you invest the money you have in hand in one go, or let it remain in your bank account and then do an SIP? There is no harm in investing a lump sum amount. For all you know, compounding, over the long term, could work better with lump sum. However, make sure you fulfill all of these three criteria if you want to invest in one go. Else, SIP is the way to go. #1: You invest for the long term According to past data, ideally, if you have a time frame of 12 years or more, you can consider lump sum investing (provided you satisfy the other two conditions that follow). So, what is the sanctity behind 12 years? Is it because only...
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