Skip to main content

File Income Tax Returns in time

 

IT IS again that time of the year when individuals need to file their tax returns. Fortunately, the tax authorities have simplified the tax return process over the past few years, especially by eliminating the filing requirement of annexures along with the return, facilitating online filing and introducing simplified forms for salaried taxpayers. Therefore, all one now need is some proper planning before preparing and filing the tax returns.

Requirement for filing the tax return: An individual, whose total income before allowing certain specified deductions under the Income-tax Act, 1961 (the Act), exceeds the maximum amount, which is not chargeable to income tax, is required to file the tax return on or before the due date in the prescribed form. Different dates have been specified under the act in order to file a tax re turn for different sets of taxpayers. In the case of salaried individuals, the tax return is to be filed by July 31 following the end of the relevant financial year. Therefore, for salaried individuals whose taxable in come exceeds Rs 1.6 lakh for men, Rs 1.9 lakh for women and Rs 2.4 lakh for senior citizens (more than 65 years) for the FY11, the due date of filing the tax re turn is July 31.

Filing of the tax return in a timely manner is also important to claim any re fund of tax due from the tax authorities and to carry forward any loss that the individual wants to set off against his future income.

Compiling various documents: To determine the taxable income and calculate the tax payable there on, one should start com piling the relevant documents, such as: Form 16: Certificate is sued by the employer to an employee detailing the taxable salary and tax deducted thereon.

Form16A: Certificate issued by banks, other deductors providing a summary of interest, rent, commission and professional fees paid and the tax deducted on such payments.

Bank statements: To calculate the interest that has been paid by the bank on the savings bank account and fixed deposits which is chargeable to tax.

Other income details: Documents in relation to income under any other head such as income from house property, short-term or long-term capital gain and income from other sources. The details of dividend income, which are tax exempt in the hands of the individual, are also required to be disclosed in the tax return.

Advance tax paid: Acknowledgement of advance tax paid during the year for computing the balance tax liability.

Proof of investment in specified saving schemes/ expenses: Copies of proof of investment in PPF , NSC, payment of life insurance premium and medical premium, details of expenses like payment of tuition fee for children to school are required for computing the deduction, in case not already submitted to the employer.

Copies of donation receipts: Copies of donation receipts would be required to compute the deduction in case of donations made to specify charitable and other institutions.

It is pertinent to note that once you compute your taxable income and the tax, thereon, you need to discharge the balance tax liability that has not been paid during the financial year, along with applicable interest before finally filing your tax return.

In order to avoid the last minute rush, it is prudent that taxpayers make a list of `to dos' required to be completed and obtain the relevant documents before actually commencing the return filing process.  

-----------------------------------------------------------------

 

Also, know how to buy mutual funds online:

 

1) DSP BlackRock Mutual Funds:

http://prajnacapital.blogspot.com/2011/05/buying-dsp-blackrock-mutual-funds.html

 

2) Reliance Mutual Funds:

http://prajnacapital.blogspot.com/2011/06/buying-reliance-mutual-funds-online.html

 

3) Reliance Mutual Funds:

http://prajnacapital.blogspot.com/2011/07/buying-hdfc-mutual-funds-online.html

 

4) Sundaram Mutual Funds:

http://prajnacapital.blogspot.com/2011/07/buying-sundaram-mutual-funds-online.html

 

5) Birla Sunlife Mutual Funds:

http://prajnacapital.blogspot.com/2011/06/buying-birla-sunlife-mutual-funds.html

 

6) UTI Mutual Funds:

http://prajnacapital.blogspot.com/2011/06/buying-uti-mutual-funds-online.html

  

7) SBI Mutual Funds:

http://prajnacapital.blogspot.com/2011/06/buying-sbi-mutual-funds-online.html

 

8) Edelweiss Mutual Funds:

http://prajnacapital.blogspot.com/2011/06/buying-edelweiss-mutual-funds-online.html

 

9) IDFC Mutual Funds:

http://prajnacapital.blogspot.com/2011/06/buying-idfc-mutual-funds-online.html

 

 

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...

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...

Myths about Exchange Traded Funds (ETFs)

1) ETFs Are Similar to Individual Stocks: Like MFs, ETF consist of an underlying portfolio of securities that's designed to follow a specific index or investment strategy. Hence, they are as diversified as various mutual funds. 2) ETFs Only Invest in Equity: Since they are listed on the exchange, the general belief is that ETF only consists of equity asset class. Globally, ETFs are available across asset classes – equity, debt, commodities, real estate and so on. In fact, over the past couple of years, India has also seen the emergence of Gold ETFs. 3) All ETFs Are Index Funds: ETF started as a fund which used to track indices and hence they were branded as index funds that are listed. However, ETFs have progressed rapidly and are no longer associated only with passive index funds. Globally, we have seen the launch of actively-managed ETFs. In India, also we recently saw the emer gence of fundamentally-weighted ETFs on Nifty, which busts the myth that ETFs are index funds and can...

REC Tax Free Bond Issue

Tax Saving Mutual Funds Online Current open Infra Bond Application form   Download REC Tax Free Bond Application Forms REC (Rural Electrification Corporation) is going to issue tax free bonds and the issue will open on March 6 2012 and will close on the 12th of March 2012 When you buy 80CCF infrastructure bonds, the amount you invest in those bonds get reduced from your taxable income but in these bonds that's not going to be the case. The interest on these bonds will be tax free and they are similar to the other tax free bonds like the HUDCO, NHAI and PFC issues. For the two of you interested in knowing this – these bonds are tax free under Section 10(15)(iv)(h) of the Income Tax Act. Now on to the issue itself and let's start with the high credit rating that the issue has got. The REC tax free bond issue has been given the highest rating by all issuers since the government owns the majority stake (66.8%) in REC, it has been consistently profit making,  this is a se...

Good Loan

Why Is It A Good Loan?: Loans against gold are cheaper and better than personal loans as the former are available at lower interest rates. In contrast, the interest rates on personal loans are not standardised and can vary from bank to bank. Also, a personal loan depends on a host of factors including, the borrower's salary, profession and the purpose for which the loan is being taken.      For instance, the interest rate on a personal loan of 5 lakh falls in a wide range of 15-30%. But loans against gold are available for as low as 11%. Secured borrowing such as a loan against gold, investments or property is cheaper because it is backed by some assets, which command a good value at any point of time. If the borrower defaults on the loan, the banks can liquidate the assets to settle the loan account.    Being a secured loan, the risk of default and credit losses is significantly lower in this loan compared to other forms of loan for personal use. Given the lower risk, gold loa...
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