Saturday, June 30, 2012

"A Complete Guide About Income Tax Return"

Income Tax:
Income tax is an instrument used by the government to achieve its social and economic objective.Simply put,tax is duty or tariff that income earning individual pay to the government in exchange of certain benefits such as law and order,health care,education and lot more.

Source Of Income:
 
Gross Total Income:
The sum of all source of Income that an individual has or the total income he earns in a financial year.

1.Income From Salary
Income can be charged under this only if there is an employer-employee relation ship between payer and payee.Salary Includes basic salary or wages,annuity,gratuity,advance of salary,leave encashment,commission,perquisites and in retirement benefits.   

Tax Benefits Tips:
  • Conveyance allowance upto Rs800 tax exempted.
  • House Rent allowance if more than 10% of your salary then tax exemption.
  • Leave travel allowances tax free for twice in block of four years(Travel with in India).
  • Medical allowances upto Rss 15,000 a year is tax free.
2.Income From House Property
Any residential or commercial property that you own will be taxed.Even piece of the land.

Tax Benefits Tips:
  • Tax deduction if you have rented the property.
  • A deduction of 30% of the annual value is permitted.     
3.Income From Profits And Gain Of Business Or Profession
Income earned from profession or business is charged under the this section.The Income Chargeable to tax is the difference between the credits received on running the business and expenses incurred.

Tax Benefits Tips:
  • Tax deduction available for rented premises,insurance,repair of machinery,furniture,advertisement,traveling and many more.   
4.Income From Capital Gain
Any profit or gain arising from transfer of capital asset held as investment are chargeable to tax.The Capital gain from a long term or short term investment.

Tax Benefits Tips:
  • Jewellery,Drawing,Painting,Agriculture land are exempted from Income tax.
  • Raw material is tax exempted.    
5.Income From Other Sources
Income earned from lottery,game shows,deposit,alum from other person are taxable.

Tax Benefits Tips:
  • If Such Is donated for trust,NGO or Organization its completely tax exempted.
Tax Deduction:
Deduction of Tax one can claim under various reason and section of Income tax act.Deduction of tax can vary from 2% to 30 % of the Income earned.

Section 80C
Section 80C provide upto 1 Lakh Investment in a financial Year which is tax free.The various financial activity comes under this benefits are:Life Insurance Premium,Home Loan Principle,EPF,Tuition fee children,PPF,Senior Citizens Saving Scheme,Post Office Savings,National Saving Certificate,Pension Plan 
Section 80D
Premium Payment to medical Insurance tax deduction upto Rs15,000.(Anyone in the family)
Section 24
Interest on home loan with Maximum deduction upto Rs1.5 Lakh.
Section 80E
Tax deduction on Interest payment for educational loan.
Section 80G
Donation to funds and charity free from tax ,but it should not cross 10% of the Income.
Section 80DD
Deduction of Tax up to Rs 50,000 or Rs 1,00,000 for Medical Treatment.
Section 80DDB
Tax deduction up to Rs 40,000 to 60,000 for senior citizen.
Section 80CCF
Investment in Infrastructure bonds up to Rs200000 a year qualify for tax exemption.     

When To Pay Income Tax?

An Individual having salary income and no business Income must file his return not later than 30th June of the assessment year.
An Individual having Business Income must fill return before 31st August(Not required to audited)
The return should be done in the prescribed form.
Its necessary to file a return to claim a refund of any excess tax.

Procedure:

It can payed through Nationalized bank or Online Banks.
The Filling can be done self or Auditor or online filling.
The mode of Payment can be cash or Cheque or Money transfer.
Form 16 important will filling Income tax return.
For online Filling  visit Income tax website=>https://onlineservices.tin.nsdl.com/etaxnew/tdsnontds.jsp 

Important Points:

Right tax computation
Right Detail such as PAN,bank account number,address and name.
Payment before due date   

8 comments:

  1. postingan yang bagus tentang"A Complete Guide About Income Tax"

    ReplyDelete
  2. The next time I read a blog, I hope that it doesnt disappoint me as much as this one. I mean, I know it was my choice to read, but I actually thought youd have something interesting to say. All I hear is a bunch of whining about something that you could fix if you werent too busy looking for attention.

    ReplyDelete
    Replies
    1. may be i disappointed you sir but this article only for first time tax payers and basic payers..........................

      Delete
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