Skip to main content

Income Tax Return - SAHAJ

Only salaried individuals, pensioners or those earning interest income can use the new form

There is a lot that tax payers can cheer about. Not only has a more user friendly income tax return (ITR) form been introduced, but the time limit for getting an acknowledgement of efiling of returns for assessment year 10-11 (financial year 09-10) has also been extended till July 31, 2011.

In his budget speech the Finance Minister, Pranab Mukherjee, had indicated that the tax filing process would be made simpler. True to his word, on April 5, the Central Board of Direct Taxes (CBDT) notified the issue of the tax return forms for financial year 10-11 (assessment year 11-12). It introduced SAHAJ (Income Tax Returns -1), which replaces the erstwhile SARAL-II. SAHAJ is a two-page form that, prima facie, seems far more straightforward than its last year's counterpart.

SPECIFIC TAXPAYER GROUP

However, SAHAJ is restricted to a specific taxpayer group only. These are individuals having income from salary/ pension/ income from one house property/income from other sources. In other words, those who earn a living only from salary, pension or interest income may use this form. Even within this group, owning more than one house makes one ineligible. Some believe that these are unfair conditions.

One can save in bank deposits, post office instruments, PPF and even mutual funds or equity. But if the taxpayer were to earn long term capital gains (exempt or otherwise) from such mutual fund and / or equity investments, it would make him ineligible to use SAHAJ. Similarly with the second house property senior citizens or retirees may have over the course of time acquired a second house, the rental income of which is used to augment their pension. But since having a second house makes one ineligible, this group too will not be able to use SAHAJ.

In another significant move that may bring cheer to many if not all taxpayers, the much feared annual information return (AIR) schedule seems to have been dropped from all forms. Until last year, it formed a part and parcel of the ITR form. This schedule required a disclosure of transactions such as deposits over `10 lakh, mutual fund investments or credit card payments of over `2lakh, property transactions over `30 lakh, purchase of RBI bonds over `5lakh and so on. It was a cause of distress and disgruntlement amongst tax payers and was deemed to be an invasion on the privacy of the taxpayer. Many people, who otherwise honestly pay up their taxes, even went to the extent of investing an amount slightly lower than the specified limits, just to escape furnishing this information.

Well, for the current tax filing, it looks like this requirement has been dropped altogether. However, the forms have just been put up on the website and the instructions that normally accompany the forms could not be accessed. Upon an initial perusal, there was no AIR schedule in the forms. However, there might be a change in this position.

EFILING YOUR RETURNS

Earlier, filing ITR meant waiting endlessly in long winding queues at the income tax office. With the advent of technology, all that is history.

Even though returns can be filed electronically today, many are still not familiar with digital filing. But once, you do so, you will realise that the process is simple and ultimately results in the return getting processed much faster and more efficiently than the physical filing mode.

Logging online, one will need to download the softcopy of the required return form. An XML file needs to be generated and submitted. Maintaining the record of the acknowledgement is important. In case you are using a digital signature, on generation of "acknowledgement" the return filing process gets completed. You may take a printout of the acknowledgement for your record. In case the return is not digitally signed, on successful uploading of e-return, the ITR-V Form would be generated which needs to be printed by the tax payers. This is an acknowledgement cum verification form. A duly filled ITR-V form should be mailed to the Income Tax department at Bangalore by ordinary post or speed post only within 120 days after the date of transmitting the data electronically.

Taxpayers need to note that as per an order dated February 10, 2011, the time limit for filing the ITR-V forms (120 days from filing the return as mentioned above) has been extended up to 31 July, 2011. The stipulation of 120 days meant that for the FY 09-10 (AY 10-11) filing (the last date for which was July, 2010), the ITR-V form had to be submitted before 30 November, 2010. Now as a final opportunity for those taxpayers who have not yet sent their ITR-V forms, the last date has been extended to July 31, 2011.

GET ONLINE FOR EASY FILING

Log on to

www.incometaxindiaefiling.go v.in

Select appropriate type of return form

Download Return Preparation Software (link provided on the website) for selected Return Form

Fill your return offline and generate an XML file.

Register and create a user id / password

Login and click on relevant form on left panel and select "Submit Return"

Browse to select XML file and click on "Upload" button

Successful upload shows acknowledgement details. Get printout of acknowledgement /ITR-V Form

Generation of acknowledgement completes the return filing process if using a digital signature.

A duly filled ITR-V form should be mailed to Income Tax Department, Bangalore within 120 days of the electronic filing.

Popular posts from this blog

SBI Magnum Tax Gain Scheme 1993 Applcation Form

    https://sites.google.com/site/mutualfundapplications/tax-saving-mutual-funds-elss     Investment Details Basics Min Investment (Rs) 500 Subsequent Investment (Rs) 500 Min Withdrawal (Rs) -- Min Balance -- Pricing Method Forward Purchase Cut-off Time (hrs) 15 Redemption Cut-off Time (hrs) 15 Redemption Time (days) -- Lock-in 1095 days Cheque Writing -- Systematic Investment Plan SIP Yes Initial Investment (Rs) -- Additional Investment (Rs) 500 No of Cheques 12 Note Monthly investment of Rs 1000 for 6 months and quarterly investment of Rs 1500 for 4 quarters.

Impact of Demonetisation

The government's move to demonetise `500 and `1,000 currency notes will immediately impact reserve money and money supply in the system along with the balance sheet of the Reserve Bank of India, the sole authority in the country for accepting currency notes and coins as legal tender. ET explains the interplay of currency, reserve money and money supply. 1. What is currency in circulation? It is the total value of currency (coins and paper currency) that has ever been issued by the central bank minus the amount that has been withdrawn by it. Currency in circulation comprises currency notes and coins with the public and cash in hand with banks. It is a major liability component of a central bank's balance sheet. 2. What is reserve money? It is essentially the central bank's money . It is also called high-powered money , base money and central bank money . As per the definition, reserve money equals currency in circulation plus bankers' deposits

Birla Sun Life Tax Plan Online

Invest Birla Sun Life Tax Plan Online   An Open-ended Equity Linked Savings Scheme (ELSS) with the objective to achieve long-term growth of capital along with income tax relief for investment.   After a bad patch from 2008 to 2010, Birla Sun Life Tax Plan has made a big comeback in the last five years, with a particularly good run since 2014. The fund's rankings, which had slipped to two stars in 2011-12, recovered sharply to three-four stars in the last three years. The fund has delivered a particularly large outperformance over its benchmark and peers in the last couple of years. The fund's investment strategy focuses on a diversified and high-quality portfolio, with parameters such as capital ratios and balance-sheet strength used to judge quality. It uses a combination of top-down and bottom-up approaches to take sector/stock positions. The fund avoids highly leveraged plays. Staying more or less fully invested at all times, the fund parks roughly half of its portfoli

Should you Roll Over 1 year Fixed Maturity Plans?

The period between January and March typically sees an uptick in the launch of fixed maturity plans, or FMPs. Not this year. Instead, fund houses are busy rolling over or extending the tenure of their one- year FMPs launched last year to three years. Investors in one- year FMPs have a choice. Either redeem units or roll over to three years. If you exit now, your gains will be added to your income and taxed in line with your individual slab rate of 10, 20 or 30 per cent. If you stay invested for two more years, you pay 20 per cent tax with indexation benefit. Yields have softened in the past few months on expectations of a rate cut. If the central bank continues its soft monetary stance, yields are likely to fall further. In such a scenario, it makes sense for investors, particularly those in the 30 per cent tax bracket, to roll over their investments and lock in at a higher yield now. In a surprise move, the Reserve Bank of India cut repo rate by 25 basis

Mutual Fund Review: IDFC Premier Equity Fund

  IDFC Premier Equity Fund, which falls under the presumed high risk group of mid- and small-cap schemes, can rely on astute and timely equity picks. These make it less vulnerable to fluctuations compared with others in the category   IDFC Premier Equity Fund is designed to invest in upcoming, but promising businesses available at cheap valuations, and hold on to these businesses until they reap desired returns. The experiment has been successful so far, and IDFC Premier Equity has emerged as one of the top performing mutual fund schemes in the mid- and smallcap category of equity schemes.    While the scheme is an open-ended equity fund, i.e. open for subscriptions throughout the year, it has a unique philosophy to limit fresh inflows. Thus, while an investor can always take the systematic investment plan ( SIP ) route to invest in the scheme throughout the year, inflows through a lumpsum investment have been restricted. Since inception, IDFC Premier Equity has been opened for l
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