Income tax rebate under section 80 C
It is the time of the financial year when salaried people have to submit proof of all their investments qualifying for income tax rebate to their employers for accurate calculation of the tax which has to be deducted at source. Not to worry,even if you have missed the deadline set by your employer, you still have time till 31st March to decide and invest and claim an income tax refund while filing returns in case excess tax has been deducted.
HRA and its tax impact
House Rent Allowance or HRA is one of the main salary components of an individual. A salaried employee staying in a rented house can claim HRA from his employer and avail of an income tax exemption under section 10(13A) of the income tax act.
Understanding Wealth Tax and its applicability
What is Wealth Tax?
Wealth tax is a relatively lesser known direct tax which is levied if the total value of “unproductive assets” of an individual exceeds Rs 30 Lakhs in a financial year. The percentage of tax is 1 % of the value of the assets exceeding Rs 30 Lakhs. For eg. – If the assets covered under this tax are worth Rs 50 Lakhs, wealth tax payable is Rs. 20,000 – 1 % of ( 50 Lakhs-30 Lakhs).
Implications of late filing of income tax returns
The last date for filing of income tax returns by individuals has been extended by a month- to 31/08/2012 from the earlier 31/07/2012. Though filing Income tax returns has now become simple and hassle free, we usually have a tendency of postponing return filing to the last minute, as a result of which it is not uncommon for people to miss this deadline.
What happens if we are unable to file our returns on time? Let us understand the implications.
It is tedious to get a TDS refund!
This article is meant for people who are not liable to pay income tax but have fixed deposits or investments on which TDS is likely to get deducted.
What is TDS?
TDS stands for Tax Deducted at Source .It is an advanced tax deducted on earnings and is aimed at providing regular revenue to the government. The common investment avenues where TDS is deducted are-
- Interest on term/fixed deposits exceeding Rs 10,000/- an year
- Salary
- Commission income earned by mutual fund/insurance agents exceeding Rs 5000/- per annum
This makes perfect sense. But the problem arises when TDS is deducted on the fixed deposit interest or commission income earned by individuals who do not have a tax liability –either because they do not have a salary income or their total income is within the exemption limit or in some cases the rate of tax is lesser than TDS rate. And the only way these people can get a TDS refund is that they have to necessarily file their returns, specify the excess tax paid and ask for a refund. And wait for getting the elusive refund which could take months.
Beginners’ guide to online tax filing
It is time again for the annual filing of income taxes for the previous financial year 2011-2012 (Assessment year 2012-2013) with 31stJuly 2012 being the last date to do so. But gone the days when filing returns meant lot of paper work, looking for tax filing agents and waiting in queues outside the income tax office; thanks to the e-filing facility by the Income Tax Dept.
Here is a step by step guide for a new user
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