INCOME TAX EXEMPTED FOR PEOPLE EARNING SALARY UP TO Rs 5 Lakh

Persons who are earning salary up to Rs 5 lakhs and interest income from savings bank account is less than Rs 10,000 , no need to file income tax return.
This exemption will only be valid if assessee has received a certificate of tax deduction in form 16 from the employer. The employees have to report income from interest on savings bank account to employer to become eligible for exemptions.

Earlier it was obligatory for all salaried persons to file income tax returns under Income Tax Act,1961.

This year instead of pragati maidan, New Delhi, return receipt counters will be set up at […] Read more

HOW TO DEAL WITH INCOME TAX REFUND DELAYS

Delay or non receipt of tax refund is the biggest grievance of many taxpayers. Some common reasons for delay are unintentional error in bank details, delay in processing of paper income tax return and change in residential address.

REFUND QUALIFICATION: Most companies ask their employees to declare the details of their tax planning at the beginning of the year, but some employees fail to make such declaration and it leads to higher tax deduction which in turn results in tax refund.
Some individuals pay advance tax on the capital gains they make during the year.

EFILING SPEEDS UP REFUND PROCESS: If return is […] Read more

INACCURATE RETURN CALCULATION CAN INCREASE TAX LIABILITY

These are the last days of filing income tax return. Earlier you just handed over your Form 16 to your Chartered Accountant or TRP to file your return but now efiling is compulsory for people having annual salary of more than Rs 10 Lakh.,
Generally, returns filed electronically would have all the information mandatory to be filled in. The ITR would be considered inaccurate if certain details mentioned in return are wrong or certain details are missing altogether.

-COMMON MISSES: The most common detail which tax payers forget to mention is the interest income from FDs. The second most important […] Read more

LONG TERM FIXED INCOME PRODUCTS

The State Bank’s decision of raising deposit rates has put investors in fix, as at this time everyone was expecting interest rates to come down. Thats why investors are asking the questions that should they wait for further increase in rates , etc.
Here is some information which can help investors in taking decision.

– FIXED DEPOSITS: Interest rate on fixed deposits are now almost same for tenure of 1-2 years and for 3-4 years. So people are going for short term fixed deposits as they are giving higher returns with early maturity but according to experts investors who can lock […] Read more

DEDUCTIONS TO CLAIM IN INCOME TAX RETURN

Most of us know about deductions under section 80C and about home loans only but there are few more deductions which can also be claimed.

1. GAINS FROM LOSSES IN STOCKS: You can set off your short term capital losses against long term capital gains from sale of property, gold or debt funds.

2. RENT IS DEDUCTIBLE IF NOT GETTING HRA: If you are not getting HRA from your employer then also you can claim deduction for rent under section 80GG. Maximum deduction under this section is 2000 per month.

3. CERTAIN DISEASES GET TAX BENEFITS: Illness including neurological diseases (dementia, chorea, […] Read more