Showing posts with label Income Tax. Show all posts
Showing posts with label Income Tax. Show all posts

Introduction to Income Tax Filing

3/25/2010 03:10:00 AM | By Mahi

Introduction

In this article I will be writing about the IT returns filing and why it is important to file the IT returns on correct time without fail. I have been receiving lot of questions related to the IT returns from our readers. This article will answer those questions and subsequently I will write another article about filing the IT returns through website. Please read this article and post your doubts in the comments section. If you like the article, please subscribe to free email updates.

Who has to file the IT Returns?

There is lot of confusion among the people about who are eligible to file the income tax returns and who are not required to file it?. The following conditions has to be met for filing the IT returns:

  • You need to file an Income Tax Return if your total taxable income exceeds the basic exemption limit before taking into account deductions
  • For the financial year 2009-2010, the basic exemption limit is Rs.1,60,000. For women, the limit is Rs.1,90,000, while for Senior Citizens it is Rs.2,40,000.
  • You do not need to file an income tax return if your total taxable income does not exceed the basic exemption limit before taking into account deductions, even though you may have a PAN.

What are the deductions?

You are required to pay the income tax only for your taxable income. There is certain sections providing the options to reduce the taxable income by investing your money into that specific category. For example section 80c specifies the investment on Insurance, Mutual Funds, Fixed Deposit, Home Loans, etc as the standard deductions. If you are looking for the more details, please read about the below topics:

  • Provident Fund(PF)
  • Public Provident Fund(PPF)
  • Tax Saving Fixed Deposit
  • National Savings Certificate(NSC)
  • Equity Linked Savings Scheme(ELSS)
  • Life Insurance
  • Principal Payment on Home Loans

What are the different ITR forms?

When you are filing the IT returns, depends on the income type your ITR forms will be different. If you want to know more about the each ITR forms, please read the official site.

Summary

I hope this article will be useful for those who want to file the it returns first time. It is necessary to file the IT returns and it will be good if you do it online.

Source: www.thinkplaninvest.com

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What is TDS & TAN ?

3/24/2010 06:38:00 PM | By Mahi
Introduction

In this article I will be writing about the Tax Deduction at Source (TDS) and the rate for some of the TDS. We all aware that we need to pay the Income Tax for our income. In some cases the employer will be taking care of paying the total tax amount to the government in behalf of all the employees by deducting the tax amount from their salaries. This process is called TDS or Tax Deduction at Source. This article will explore some of the facts related to TDS.

What is TDS?

Taxes are deducted at the time of calculating your income. For example, you are working for a company X. All the money they will be paying you the salary of Rs.350000. If you are looking into your pay slip there is a column name Income Tax which mentions the tax amount deducted from your salary. Actually the tax amount is deducted by your company and then pays to the government. Whereas if you are not working for any company or doing the professional jobs like Doctor, Charted Accountant(CA),etc. You are liable to pay the tax to the government.

Who is eligible for TDS?

Not everyone can deduct the tax at source. You have to apply for the Tax Deduction Account Number (TAN). TAN or Tax Deduction and Collection Account Number is a 10 digit alpha numeric number required to be obtained by all persons who are responsible for deducting or collecting tax. It is compulsory to quote TAN in TDS/TCS return (including any e-TDS/TCS return), any TDS/TCS payment challan and TDS/TCS certificates.

How to apply for TAN?

An application for allotment of TAN is to be filed in Form 49B and submitted at any of the TIN Facilitation Centres meant for receipt of e-TDS returns. Addresses of the TIN FC are available at www.incometaxindia.gov.in or http://tin.nsdl.com. TAN is allotted by the Income Tax Department on the basis of the application submitted to TIN Facilitation Centres managed by NSDL. NSDL will intimate the TAN which will be required to be mentioned in all future correspondence relating to TDS/TCS.

Summary

In this article I have explained about the TDS and how to obtain the TAN. This is the basic knowledge on TDS and TAN. Thank you for reading this article.

Source: http://www.paisaa.in/blog/?p=124
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