Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: VAT Audit :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TAX RATES - GOODS TAXABLE @ 4% :: cpt :: due date for vat payment :: VAT RATES :: empanelment :: form 3cd :: list of goods taxed at 4% :: ACCOUNTING STANDARD :: TDS :: ACCOUNTING STANDARDS :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT
Direct Tax »
 Salaried taxpayers to get SMS alerts for TDS deductions
 Salaried tax payers to get SMS alerts on TDS deductions
 Mumbai zone direct tax collection flat in H1 FY17
 CBDT issues final rules for taxing share buy back by companies
 CBDT issues final rules for taxing share-buyback
 The direct tax collections up to September, 2016 are at Rs. 3.27 lakh crore which is 8.95% more than the net collections for the corresponding period last year.
 IDS is tremendous success: CBDT chief Rani Singh Nair
 Submit monthly data of appeals disposed of: CBDT to officers
 Direct tax mop-up jumps 9 per cent in H1, indirect tax up 26 per cent
 Income tax department slams notice on five Mumbai-based exporters over offshore accounts
 Redress TDS mismatch grievance of taxpayers: CBDT

Simplifying procedure for filing income-tax returns
July, 23rd 2013

The deadline for filing income tax returns, July 31, is just week away. Needless to say, many individuals dread the date with I-T department, as they find the entire process very confusing. However, according to experts, if an individual is clear about the basics, the entire procedure can be completed in an hour's time. "Tax payers earning over Rs5 lakh are now required to file their tax return electronically. This will reduce paperwork to a great extent," says Vineet Agarwal, director at KPMG.

Choose the right form

Tax consultants are divided over the applicability of forms ITR-1 (Sahaj) and ITR-2 for salaried individuals, drawing income from salary and interest. Going strictly by the new I-T rules, an individual cannot file returns using the simpler form ITR-1 (Sahaj) if the person has any taxexempt income above Rs5,000. Since the I-T department has not issued any clarification so far, there are numerous interpretations on the matter.

"Due to the change in rules, most salaried individuals will now have to use ITR-2. After all, typically, their remuneration includes tax-exempt components like house rent allowance (HRA), transport /conveyance allowance and leave travel allowance (LTA), which can easily exceedRs5,000 in a year," explains Vaibhav Sankla, director with tax consultancy firm H&R Block. However, many experts argue that ITR-1 (Sahaj) is the relevant form for this year. "Our view is that if the exempt income has been accounted for in Form 16, salaried individuals can continue to use ITR-1 (Sahaj). However, if they have earned an income of over Rs5,000 from, say, dividends, they will have to use ITR-2. Similarly, resident Indians, who may have been deputed abroad by their employers and are claiming a double tax avoidance treaty benefit, will have to use ITR-2," says Sonu Iyer, partner and national leader — human capital services, EY (formerly E&Y).Until last year, such additional, explicit disclosures were not sought by the I-T department.

Check your tax credit

Take a look at Form 26AS, which shows the amount of tax deducted from your salary that your employer has actually deposited with the I-T department, on the e-filing portal. "It is critical to ascertain whether the tax deducted from your income (as per your Form 16) matches the figures in Form 26AS. The two versions must tally. If you go ahead with filing the return without seeking clarity on the nature of the discrepancy, you are bound to get a notice from the I-T department later," says Iyer.
Simplifying procedure for filing income-tax returns Claim 80G, other deductions

You also need to figure out whether you want to claim any extra deductions you forgot to claim earlier. For example, if you have not submitted the relevant bills while making your investment declaration in January, your Form 16 might not have accounted for the deduction of up to Rs5,000 on preventive health checkups under section 80D. You have the option of claiming this deduction while filing returns. "ITR forms do not require you to enter any details of such bills. However, it is advisable to retain copies of these bills. If there is an enquiry from the tax department in future, these bills will serve as proof," says Sankla of H&R Block. Similarly, you can also claim deductions under section 80G on donations made to charitable institutions. "Typically, employers do not consider 80G deductions in Form 16. So, the individual can claim the benefit at the time of filing return. In the ITR form, you will be required to provide details like the amount donated as well as the charity's name, PAN and address," he adds.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Reengineering Software Re-engineering Software Reverse Engineering Software Reverse Development Software Change Modulation Software Conversion Software Re-creation Software Re-development

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions