Skip to main content

Are you not filing your Income Tax returns?

 

IF YOU were feeling pleased at the introduction of the new provision of non filing of the tax returns for those with an income of less than Rs 5,00,000, then this joy could be short lived. There are so many conditions related to the entire process that it is likely that several people could find themselves being ineligible for this process and hence they would have to end up doing the same normal tax return filing that they have been undertaking each year. Here are some conditions related to this process which will hamper the individuals Two heads: The income to be eligible for the benefit of not having to file an income tax return has to be under just two heads. One of them is salaries and the other is income from other sources in the form of interest income from savings bank account. This is a big restriction because of the fact that just having some other income under a third head or even interest from a fixed deposit will ensure ineligibility from the process.

Having some investments which generate capital gains or even if there is a house property that has been bought with the help of a loan can create problems. The restriction of interest income earned from only savings bank account is especially harsh and this will take people out of the ambit.


Amount: Another thing that has to be considered is the monetary limits for the purpose of being able to file this kind of return. One of them is that the total in come has to be Rs 5,00,000 or less. This will be the income after considering the deductions that are available to the individual. This has to be considered for both the heads, so, even if the total for the salaries is lower but due to the interest income the figure crosses the limit then it will not be eligible.

Secondly, even in case of the interest part, there is a sub limit of Rs 10,000.

This means that even if the total income is less than Rs 5,00,000 but the interest income from savings bank account exceeds this figure then the benefit cannot be taken.

Form 16: The employee who is looking towards taking this benefit needs to ensure that there is a Form 16 that is received from the employer. Mention of the permanent account number and the tax that has been deducted along with its payment to the government has to mentioned in the form.

No refund: What is also important is that the employer has to ensure that the exact amount of tax is paid to the government. However, there can be a situation where there are some reason why there is a small refund that has to be due to the individual. So, presence of the refund will automatically ensure that the benefit of the no filing process cannot be taken by the individual.

One employer: As if, all these conditions were not enough, there is one more thing that needs to be ensured in the entire process.

If the employee has changed his job then the non filing of the tax return will not apply because of the fact that this will be possible only when there is a single employer during the entire year. This is another of the condition that is likely to be violated especially as there are large scale job changes that are taking place in the economy and hence a lot of people will not be able to take the benefit of the position.

 

Popular posts from this blog

Understanding Your Cibil Credit Information Report

   WE ARE all familiar with the anxiety and uncertainty that we feel when applying for a loan. After all, it's the lender who decides whether we can own our dream home, our first car, or whether our children can pursue higher education. In a nutshell, a better life depends on the lender's decisions.    While other factors do play a part in the lender's decision, the Cibil Credit Information Report ( CIR ) plays a crucial role in a lender's decision to approve a loan application.    Previously, lenders would treat all loan seekers equally. Each applicant, if approved by the lender's internal credit policy, would be charged at the same interest rate for a particular loan size and purpose. The lenders would charge a higher interest rate to all the borrowers, in order to compensate for the possible default of a small portion of the loan disbursed. In other words, it's like a professor (the lender) punishing an entire class (borrowers) for the mischief played b...

How much to invest in gold ?

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India) Let your motivation dictate the share of the yellow metal in your portfolio Enough has been said and written about gold as an investment option. The latest argument is that the craze for gold among Indian households is endangering our country's balance of payments. The policymakers are busy trying to find ways of discouraging investment in gold, but if households keep the common good in mind, they would be paying the market price for gas cylinders as they do for, say, their mobile phone bills. After all, private decisions are driven by private motives. So, how should a household look at gold from its own perspective? Gold is primarily acquired for its merit as a store of value. Even if the worst crisis hits a family, the gold that it holds could be put to use anywhere in th...

Save Tax With Mutual 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       Mutual funds are ideal as long term investment avenues for retail investors. To encourage investments in this avenue, the Government of India offers investors a spate of tax benefits thus ensuring maximum benefit from mutual funds held beyond a year. Sample some of the key benefits and refer to the table for a detailed list of tax rates for different types of schemes ·        Avail deductions under Sec 80C of the Income Tax Act by investing up to a maximum of Rs. 1 lakh in designated Equity Linked Savings Schemes (ELSS). Such investments have a compulsory lock in period of 3 years. ·        First time retail investors in equity with a gross total income of up to Rs. 12 lakh can invest up to Rs. 50,000 in specific MF schemes un...

What are the factors affect the changes in Interest Rate of Fixed Deposits?

  What are the factors affect the changes in rate of Fixed Deposits? Fixed Deposits are now considered to be a very old fashioned method of saving, but still attract many investors since they have guaranteed returns at the end of the tenure of the investment at a decent interest rate. There are various factors that affect the rates of interest for a Fixed Deposit. Policies of the Reserve Bank of India   - The several norms and restrictions posed by the Reserve Bank of India , in order to gain optimum control over credit and inflow and outflow of fund throughout the country. The repo rate changes, cash reserve ration tends to change and these changes affect the banking products like Fixed Deposits, loans etc. Recession   - When unemployment in a country crosses the benchmark set Recession hits, and slowly the country faces an economic slow movement, affecting the purchasing power of the people in the country, forcing the Reserve Bank of India to release more funds in the financial marke...

Reliance Health Total

  Reliance Life Insurance has launched Reliance Health Total, a non-linked, non-participating and non-variable health insurance plan . It provides a fixed benefit cover for hospitalisation, critical illnesses and surgeries. The customer can also make a claim for over-the-counter health-related expenses. This is a regular-pay, five-year plan that can be renewed till the age of 99. The plan comes with two options: customers can choose a higher medical reimbursement benefit or a higher sum insured. Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015 1. ICICI Prudential Tax Plan 2. Reliance Tax Saver (ELSS) Fund 3. HDFC TaxSaver 4. DSP BlackRock Tax Saver Fund 5. Religare Tax Plan 6. Franklin India TaxShield 7. Canara Robeco Equity Tax Saver 8. IDFC Tax Advantage (ELSS) Fund 9. Axis Tax Saver Fund 10. BNP Paribas Long Term Equity Fund You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds Invest in Tax Saver Mutual Funds Online - I...
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