Skip to main content

Save on tax outgo even if you missed the deadline

 

AS THE financial year is coming to an end, it's a race against time for those who wait till the last minute to do their tax planning.

Fortunately, there are ways to claim tax deductions where you are entitled to even if you have missed the deadline set by your employer for submission of relevant proof of investments or expenses.

If you are a salaried individual, you are required to submit relevant documents/proof with respect to various exemptions and deductions that you wish to claim. If you stay in a rented accommodation, you can submit rent receipts or a copy of the lease deed to claim exemption in house rent allowance.

In respect of medical and travel expenses, you can submit relevant bills up to the prescribed limit to the employer so that the allowances given to you under these heads are not considered taxable in your hands.

Medical expenses up to Rs 15,000 per annum can be claimed for exemption while in case of travel allowances, expenses for travel to any place within India is exempt twice in a block of four calendar years. The current block is from 2010 to 2013.

In case you are repaying interest on a home loan for a self-occupied property, then you are eligible to claim deduction up to Rs 1,50,000 per annum and the amount can be set off against your salary income as prescribed under the Income Tax Act.

In respect of investment for which one can claim deductions as specified under the In come Tax Act, one should ensure that the same is done before the end of the financial year, that is March 31.

Under Section 80C, an individual can claim deduction up to a maximum of Rs 1,00,000 from taxable income for investments made in specified tax-saving instruments. These include investment in public provident fund (which is limited up to Rs 70,000), national savings certificate, premium for life insurance, bank fixed deposits for tenures of more than five years, repayment of principle on a housing loan, tuition fees and tax-saving mutual fund schemes. In case of salaried individuals, the contribution towards employees provident fund is considered directly by the employer while allowing deduction under Section 80C.

There are a host of other deductions available up to prescribed limits.

These include payment of medical insurance premium up to Rs 15,000 for self as well as family under Section 80D, which can go up to Rs 20,000 if the same is taken for a senior citizen; investment up to Rs 20,000 in long-term infrastructure bonds is available for deduction under Section 80CCF; donations as prescribed under the act (Section 80G ­ 100 per cent or 50 per cent of the total amount depending on the fund to which the contribution is made), interest paid on loan for higher education under Section 80E (entire amount if prescribed conditions are fulfilled), among others.

Now, what if you are entitled to claim deductions under many of these heads but you have missed the deadline to submit your claims? Worry not; you can still claim those exemptions and deductions while filing your tax return.

This means claiming a refund while filing your tax return in case you are unable to adjust the excess tax deducted by your employer against the tax payable on other incomes, if any.

In case you have income from any other sources on which income tax has not been deducted at source, you should ensure that you pay advance tax in time to avoid paying interest at the rate of 1 per cent per month for the delay in depositing such taxes.

However, no interest will be levied for late deposit if the advance tax liability is not more than Rs 10,000.

It is also important to take stock of certificates of taxes deducted on salary (Form 16) and other income (Form 16A).

If the said certificates are not issued by the payers or have been misplaced by the individual, one may not be able to claim necessary credit for the taxes if the tax authorities raise a demand for the same at a later date.
Therefore, it is imperative for individuals to ask for original/duplicate certificates from the persons or entities that deducted such taxes.

These small yet important precautions can go a long way in ensuring that correct amount of taxes are paid with the tax authorities on a timely basis and the tax liability is minimized to the extent possible under various sections of the tax law.

 

Popular posts from this blog

All about "Derivatives"

What are derivatives? Derivatives are financial instruments, which as the name suggests, derive their value from another asset — called the underlying. What are the typical underlying assets? Any asset, whose price is dynamic, probably has a derivative contract today. The most popular ones being stocks, indices, precious metals, commodities, agro products, currencies, etc. Why were they invented? In an increasingly dynamic world, prices of virtually all assets keep changing, thereby exposing participants to price risks. Hence, derivatives were invented to negate these price fluctuations. For example, a wheat farmer expects to sell his crop at the current price of Rs 10/kg and make profits of Rs 2/kg. But, by the time his crop is ready, the price of wheat may have gone down to Rs 5/kg, making him sell his crop at a loss of Rs 3/kg. In order to avoid this, he may enter into a forward contract, agreeing to sell wheat at Rs 10/ kg, right at the outset. So, even if the price of wheat falls ...

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...

Fortis Mutual Fund

Fortis Mutual Fund, a relatively new player, it is still to prove its case and define its position in the industry. In September 2004, it came onto the scene with a bang - three debt schemes, one MIP and one diversified equity scheme. And investors flocked to it. Going by the standards at that time, it had a great start in terms of garnering money. Mopping up over Rs 2,000 crore in five schemes was not bad at all. The fund house has not been too successful in the equity arena, in terms of assets. Though it has seven equity schemes, it is debt and cash funds that corner the major portion of the assets. Most of the schemes are pretty new, and the two that have been around for a while have a 3-star rating each. The last two were Fortis Sustainable Development (April 2007), which received a rather poor response, and Fortis China India (October 2007). Fortis Flexi Debt has been one of the better performing funds, after a dismal performance in 2005. It currently has a 5-star rating. None ...

SBI bonds FAQ

  Maximum retail subscription and over – subscription There is a lot of excitement around these bonds, so I won't be surprised if they get over-subscribed on the first day itself. So, I thought Sameer asked a very good question about over-subscription. Here is that discussion. Here are some other questions that you may find useful. Can I trade the SBI bonds on NSE after it lists? Yes, these can be traded after listing. Where can I get the application forms, and can I buy the bonds online? You can get the application from notified branches, and then fill it up there and submit it. To the best of my knowledge, there is no way to invest in them online, but if anyone knows otherwise then please leave a message, and let us know. Can NRIs apply for these bonds? NRIs can't apply for these bonds as they fall under one of the ineligible categories. Can you take a loan by keeping the SBI bonds as security? The terms of the issue in the prospectus state that the bank shall no...

ING Mutual 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     Information Updated As On December 30, 2013   Name of the Mutual Fund ING Mutual Fund Date of set up of Mutual Fund February 11, 1999 Name(s) of Sponsor ING Group Name of Trustee Company ING Mutual Fund Name of Trustees Mr. Chetan Mehta - Associate Trustee Mr. Haresh M Jagtiani - Independent Trustee Mr. Sunil Gulati - Independant Trustee Mr. Surinder Mohan Pathania - Independent Trustee ...
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