INDIAN TAX SOURCE

Friday, 27 March 2015 Form 15G and Form 15H to save TDS on Interest Income Following up from our post about what to do when bank deducts excess  TDS  on interest income – let’s discuss today what to do when your Total Income is below the taxable limit and you don’t need to pay any tax, should the Bank still deduct  TDS  from your Interest Income? Since  TDS  is basically tax which is collected on your income by the one who pays you – no  TDS  should be deducted if your total income is not taxable. Though Banks are required to deduct  TDS  if your Interest Income is more than Rs 10,000 in a year, but if your total income is below the taxable limit you can submit Form  15G  and Form  15H  to the Bank requesting them to not deduct any  TDS  on your interest. Do note that these forms are valid for one financial year, therefore do...

Difference between Form 16 & Form 16A Some of our customers have written to us enquiring about the difference between Form 16 and Form 16A. In this article, we will tell you about both these forms and their importance while filing your income tax returns. Form 16 Form 16 is your  Salary  TDS Certificate.   If your income from salary for the financial year is more than the minimum exemption limit of Rs 2,50,000 your employer is required by the Income Tax Act to deduct TDS on your salary and deposit it with the government. If you have also disclosed your income from other heads to your employer, he will consider your total income for TDS deduction. If your income is below the minimum exemption limit your employer will not deduct any TDS and may not issue you this form. If you have worked with more than one employer during the year, you will have more than one Form 16. This Form 16 is a certificate, where the employer is certifying details regarding t...

Haven’t filed your Income Tax Return yet? 31st March is the last date to file If you haven’t filed your Income Tax Return for the past 2 financial years, do so before 31 st  March 2015. Return for financial year 2013-14  – Any individual who has a gross income of more than Rs 2,50,000 (before allowing any  deductions ) in financial year 2013-14 must file an Income Tax Return. If you did not file your Income Tax Return for financial year 2013-14 by 31 st  July 2014, you can still file your Return by 31 st  March 2015 without attracting penalty for late filing. If you do not file it by 31 st  March 2015 – the AO can levy a penalty of Rs 5,000 under section 271F for not filing on time. A Return which has not been filed within the due date cannot be revised. So be extra careful and double check your information so as to not commit a mistake. You cannot get an Income Tax refund or carry forward a loss unless you file your Return. You may need a  incom...

Don’t miss the   Adv ance Tax  Deadline! by my tax india   on   March 14, 2015   in   Advance Tax ,  Income Tax Return Advance Tax is simply your tax liability calculated in advance. If your tax liability in a year is more than Rs 10,000 the IT department wants you to pay tax on your income at regular intervals, instead of a lump sum payment. You should pay 100% of your tax liability by 15 th  March. To be able to pay 100% of your tax by 15 th  March, you must estimate your income for the whole year and  calculate  & pay tax on it. Usually salaried individuals do not need to worry about paying any advance tax. Your employer is already deducting TDS on your salary and depositing it with the government. However, if you have income which can trigger a shortfall in the taxes deposited against your PAN, you must pay advance tax. This shortfall may arise due to tax payable by you on interest income earned. Interest Income ...

Saturday, 7 March 2015 Guide to Section 80 Deductions Proposed changes in Budget 2015 Section 80CCD Additional deduction of Rs 50,000 on deposits in NPS. Section 80D The deduction limit on health insurance premium under this Section has been raised to Rs. 25,000 from Rs. 15,000 for self, spouse and dependent children. This limit has been raised to Rs. 30,000 from Rs. 20,000 for senior citizens. Section 80DDB Deduction towards medical treatment for senior citizens suffering from specified diseases raised to Rs 80,000 from Rs 60,000. If actual expenses incurred for treatment are lower, such lower amount shall be allowed as a deduction. Section 80DD and 80U Under Section 80DD and Under Section 80U – where disability between 40% and 80%, the deduction has been raised to Rs. 75,000 (earlier allowed was Rs 50,000). In case of more than 80% disability deduction is now raised to Rs. 1,25,000 from Rs. 1,00,000. Section...