SOME LAST MINUTE WAYS TO SAVE TAX

Now taxpayers are in a hurry to make tax saving investments before 31March,2015, here are few ways through which you can save tax even at last minute:

INVEST IN TAX SAVER DEPOSITS: You can invest in tax saver FD (Fixed Deposits). It is the simplest and most popular way of saving tax. Most of the banks now allow customers to open a tax-saver FD online, but don’t allow online facility for other FDs. You can get its exemption upto Rs1.5lakhs under Section 80C. Interest earned under tax-saver FD is taxable.

BUY HEALTH INSURANCE ONLINE: Many companies facilitate purchase of health insurance policies […] Read more

EFILING YOUR INCOME TAX RETURN- BE CAREFUL

One must file his income tax return and that too on or before last date. I have mentioned some consequences of not filing income tax return before last date. You must file tax returns as they may help you in getting loan from bank or financial institution.

If you are efiling your Income Tax Return then you must take care of the following things:

-> Fill your bank details very carefully as from this year onwards Income Tax Department has discontinued to pay refund through cheques. So to get your refund on time, fill your details with caution.

-> You must be clear […] Read more

WHAT TO DO WHEN YOU DON’T HAVE FORM 16?

First of all we must know what is FORM 16. It is the certificate of TDS issued by the employer. It is mandatory for the employer to issue Form 16 if TDS is deducted otherwise it is not mandatory on the part of employer.

Form 16 contains two parts, i.e., Part A and Part B. Part A contains the details of TAN, PAN and TDS deducted. Part B contains your salary details like Income from salary, deductions, etc.

Form 16 is required for filing income tax return but it is not mandatory as TDS details can also be obtained through Credit Statement […] Read more

LESSOR KNOWN DEDUCTIONS AND REBATES IN INCOME TAX

Here are the few deductions which are lessor known to common persons:

1) SECTION 80GG
This is the deduction related to Rent paid. If your employer is not giving your HRA (House Rent Allowance) then also you can claim deduction for rent paid. You can claim deduction maximum of Rs. 2,000 per month.

2) SECTION 80E
This section belongs to interest on loan taken for higher education and vocational courses. You can also claim any interest paid on loan taken for higher education of spouse, children or student for whom you are guardian.

3) SECTION 24B
Interest paid on second home loan is also fully deductible. […] Read more

Tackling Delayed Income Tax Refunds

The taxpayers who have filed their returns and sent their verification form in June or July, usually get the acknowledgment and refunds around this time of the year. But many taxpayers complain that they did not get the intimation of the receipt of their ITR-V on time. And some complain about delayed refunds. After filing the online income tax return, and ITR-V sent to income tax department, I-T department acknowledges the receipt of the ITR-V through SMS or email. Then the taxpayer is notified once the return is processed and after that refund process is initiated.

In many cases, taxpayers forgot […] Read more