It is compulsory to file return for salary earners up to Rs 5 lakh

From past two years salary earners up to Rs 5 lakh were given exemption by CBDT. This means that for assessment years 2011-12, 2012-13, these assesses were not required to file income tax return. Exemption was given considering paper filing and their manual processing.

But for the assessment year 2013-14, CBDT has made compulsory to file income tax return, & the exemption given is being withdrawn.

Efiling of income tax returns should be used to get speedy results. The processing of online returns is much faster than the manual returns. Efiling is fast, easy & secure method of filing income tax returns. […] Read more

Sections Under Income Tax where You can SAVE

As the last date of filing income tax is approaching, still many of us are not aware of deductions which we can claim. Most of us know about only the popular deductions, here are few which are either introduced this dear or are not very popular:

1. Section 80TTA: Interest on savings bank account will now be exempt up to Rs. 10,000 in a year.But income generated from the savings bank account should first be declared and then the exemption can be claimed.

2. Section QQB: For authors of certain specified books, royalty income or copyright fees up to Rs. 3 lakh […] Read more

Tax Planning for Current Financial Year

Today people are earning more so they need proper tax planning but most of us wait till the last month for planning our tax. We should plan it at the starting of the year so that we can also get benefit of returns from those investments. Most of us know the deductions under section 80C but today we are discussing deductions under section 80s( other than 80C).

1. Section 80D- for premium paid for medical insurance- Rs15000 or Rs 20000 in case of senior citizens

2. Section 80DDB- for expenditure incurred in respect of medical treatment- max. Rs 40,000 or Rs 60000 […] Read more

Which ITR is suitable to you in Assessment Year 2013-14?

ITR-1: It can be used for income from salary/pension, income from one house property(excludes the cases where loss is brought forward from previous years) , income from other sources (excludes winning from lottery & income from race horses)

ITR2: For those individuals or Hindu Undivided Family who has income from salary/pension, income from house property, income from capital gains or income from other sources (includes income from winning from lottery & income from race horses)

ITR3: For those individuals or Hindu Undivided Family who are partners in a firm or income from profits or gains of business or profession but should not […] Read more

Inflation Indexed Bonds- No Tax Exemption

As we all know that by investing in bonds we get exemption but Reserve Bank of India has cleared that there will be no special tax exemption for inflation indexed bonds.
The Finance Minister P.Chidambaram , announced that RBI would launch inflation indexed bonds to help public hedge themselves against price increases at a time real interest rates are still negative, hence crimping their savings.

But do these indexed bonds are really protecting our savings?
Firstly, from last six months inflation is easing so time is clearly favoring government.
Under the scheme, the principal amount of these 10-year bonds will be adjusted against […] Read more

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