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

Surrender ULPPs

  ICICI Pru LifeTime and ICICI Pru Lifestage are Unit Linked Pension Plans. Such insurance linked retirement plans are neither good investments nor do they offer sufficient insurance cover. As you can see, these have turned out to be bad deals. In the Lifetime plan, the fund value is not even equal to the total premiums that you have paid and in the Lifestage plan your return is just about 6% which is quite low. The mortality charges are as per your age which is why they have increased. Moreover, once these plans matures, you will have to compulsorily opt for annuity (regular income) and the annuity rates are generally modest. Assuming these plans mature in the next one year, it will be wise to surrender the plan now and curb your future commitments.   Before you choose to buy a term plan, you have to consider a few points. You need to insure yourself, only during the time you are working and your family is financially dependent on you. At the age of 59, not all insurance companies w...

Sundaram Mutual Fund new plan Sundaram Fixed Term Plan CJ

Sundaram Mutual Fund has announced the launch of a new fund named as Sundaram Fixed Term Plan CJ. The new issue will be closed for subscription on January 30. --------------------------------------------- Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.   Invest Tax Saving Mutual Funds Online Tax Saving Mutual Funds Online These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)   Download Tax Saving Mutual Fund Application Forms from all AMCs Download Tax Saving Mutual Fund Applications   These Application Forms can be used for buying regular mutual funds also   Some of the best Tax Saving Mutual Funds available are: 1. HDFC TaxSaver 2. ICICI Prudential Tax Plan 3. DSP BlackRock Tax Saver Fund 4. Birla Sun Life Tax Relief '96 5. Reliance Tax Saver (ELSS) Fund 6. IDFC Tax Advantage (ELSS) Fund 7. SBI Magnum Tax Gain Scheme 1993 8. Sundaram Tax Saver   -...

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 ...

Why credit history is critical?

Will you need a loan to buy a car or a house? Do you know why some people get their loans sanctioned quickly without any hassle, whereas others find that their approval is delayed or their application is rejected? If you want a loan, you will need to work to build a solid credit history because this can have a bearing on the ease with which you get loans. Read on to learn more about what is a credit history and how to build a good credit score. What is a credit history? Your credit history is a way of tracking your credit behaviour and habits — basically it shows how disciplined and regular you are when it comes to repaying your dues on loans that you have taken. It will show a complete record of your past borrowing and repayment record including details about any late payments or if you have defaulted on a loan. This track record is readily accessible to lenders and is used by them to when reviewing your loan application. Borrowers who have historically had a bad record of managing...

Commercial Paper (CP)

Invest Mutual Funds Online Download Mutual Fund Application Forms Commercial Paper (CP): These are issued by corporate entities in denominations of Rs.2.5mn and usually have a maturity of 90 days. CPs can also be issued for maturity periods of 180 and one year but the most active market is for 90 day CPs.   Two key regulations govern the issuance of CPs-firstly, CPs have to be compulsorily rated by a recognized credit rating agency and only those companies can issue CPs which have a short term rating of at least P1. Secondly, funds raised through CPs do not represent fresh borrowings for the corporate issuer but merely substitute a part of the banking limits available to it. Hence, a company issues CPs almost always to save on interest costs ie it will issue CPs only when the environment is such that CP issuance will be at rates lower than the rate at which it borrows money from its banking consortium. ----------------------...
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