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

Mutual Fund Review: Religare Tax Plan

Tax Plan is one of the better performing schemes from Religare Asset Management. Existing investors can redeem their investment after three years. But given the scheme's performance, they can continue to stay invested   Given the mandated lock-in period of three years, tax saving schemes give the fund manager the leeway to invest in ideas that may take time to nurture. Religare Tax Plan's investment ideas revolve around 'High Growth', which the fund manager has aimed to achieve by digging out promising stories/businesses in the mid-cap segment. Within the space, consumer staples has been the centre of attention for the last couple of years and can be seen as one of the key reasons for the scheme's outperformance as compared to the broader market. It has, however, tweaked its focus and reduced exposure in midcaps as they were commanding a high premium. The strategy seems to have worked as it returned a 22% gain last year. Religare Tax Plan has outperformed BSE 100...

Good time to invest in Infrastructure Funds

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   Good time to invest in infrastructure The Sensex has gained almost 10 per cent from May 15 till date, while the CNX Infrastructure Index has gained almost 17 per cent in the period. The price to earnings ( P/ E) ratio of the BSE Sensex is 18.96; for the CNX Infrastructure Index, it is 24.57. The estimated P/ E for next year is 14.04 for the Sensex. Of the 24 companies that make up the CNX Infrastructure Index, six have a P/ E higher than 20. Does this mean infrastructure is fairly valued? Or, has it run up quite a bit? According to experts, barring stray companies, the infra sector is fairly valued and it is a good time to invest. Even if some companies are facing debt restructuring problems, once interest rates come down and regulatory norms become flexible, they will start giving good re...

ICICI Prudential Balanced Fund

 ICICI Prudential Balanced Fund scheme seeks to generate long-term capital appreciation and current income by investing in a portfolio that is investing in equities and related securities as well as fixed income and money market securities. The approximate allocation to equity would be in the range of 60-80 per cent with a minimum of 51 per cent, and the approximate debt allocation is 40-49 per cent, with a minimum of 20 per cent. An impressive show in the last couple of years has propelled this fund from a three-star to a four-star rating. The fund has traditionally featured a high equity allocation, hovering at well over 70 per cent, which is higher than the allocations of the peers. But in the last one year, the allocation has been moderated from 78-79 per cent levels to 66-67 per cent of the portfolio. ICICI Prudential Balanced Fund appears to practise some degree of tactical allocation based on market valuations. Within equities, well over two-thirds of the allocation is parked i...

Mutual Funds: Past Performance is not just everything

Many a times your agent / distributor / relationship manager tries to push you some mutual fund schemes by enticing you with a typical sales pitch…"Sir, this scheme has generated 20% returns in the past one year." And this sales pitch often gets louder when the market conditions have been favourable. Some of the agents / distributors / relationship managers have another unique way of luring you. They say, "Sir / madam this scheme has been awarded the best scheme award in the past by a leading business channel"... And hearing all these sales talks you investors very often get attracted and sign a cheque in favour of the respective scheme.   But please ask yourself do you hear these sales talks when the capital markets turn turbulent? Why is it so that your agent / distributor / relationship manager avoids talking to you during turbulent times of the capital markets and doesn't boast about returns generated by the respective funds or awards being conferred on t...

To rent or to buy a home? Is a million dollar question!!

Your financial planner can help you weigh pros and cons of whether you plan to buy home in your current city or hometown THE two giant real estate deals of residential properties in prime locations in Mumbai and Delhi made to the headlines recently. Yet, with housing prices sky-rocketing post the real estate slump in 2008 properties in cities like Mumbai and Delhi are beyond the reach of the common man. Many studies reveal that over the last year the property sales in major metros have been stagnant despite the meticulous efforts put in by the real estate developers. Now, it is not rare to find clients who come to me with the notion that today renting a house is better than buying one. Buying a house is one of the biggest financial decisions one takes in an entire lifetime and the dilemma of `rent versus buy' continues to perplex many people across salary brackets. A research conducted by the Center for Economic and Policy Research in Washington, DC estimates that the fair...
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