Errors to be avoided while filing income tax return

1) Availing of deduction twice
This error is commonly committed by salaried taxpayers. If you had switched jobs during the previous financial year, you might have got the Form 16 from both employers. While the first company may have deducted the tax correctly, the second might have deducted very little. It would have considered only the income for the rest of the year and given you the basic exemption of Rs 2 lakh, as also the deduction under Section 80C. However, these must have already been factored in by the previous company.
But you cannot escape by ignoring the previous income in […] Read more

Income Tax Amendments for Assessment Year 2013-14

1.  The new amendment makes it very clear that the provisions relating to filing of Income-tax Return by the individuals in Form SAHAJ (ITR1) shall not be applicable to a person who is resident, other than not ordinarily resident in India specially if such person has assets (including financial interest in any entity) located outside India or such person has signing authority in any account located outside India.

2.  The SAHAJ Income-tax Return form also cannot be used by an individual claiming any double taxation tax relief under sections 90 or 90 A or 91 of the Income-tax Act, 1961.

3.  It is provided in […] Read more

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

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