Relaxation from compulsory e-filing of return of income

Relaxation from compulsory e-filing of return of income

subject: Relaxation from compulsory e-filing of return of income for assessment year 2012- 13 - for representative assesses of non-residents and in the case of private discretionary trusts -reg

Rule 12 of the Income-tax Rules, 1962 mandates that an individual or Hindu undivided family, if his or its total income or the total income in respect of which he is or it is assessable under the Act, during the previous year, exceeds ten lakh rupees, shall furnish the return electronically for the assessment year 2012-13 and subsequent assessment years.

2. It has been brought to the notice of the Board that the agents of non-residents, within the meaning of section 160(1) (i) of the Income tax Act, are facing difficulties in electronically furnishing the returns of non-residents. This is because there may be more than one agent of the non-resident in India for different transactions or a person in India may be an agent of more than one non-resident. Such situations are not covered by the existing e-filing software which functions on the principle of one assessee-one PAN-one return.

3. It has also been brought to the notice of the Board that ‘private discretionary trusts’ having total income exceeding ten lakh rupees are facing problems in filing their return of income electronically in cases where they are filing their return in the status of an individual. This is because status of a private discretionary trust has been held in law as that of an ‘individual’. The existing e-filing software does not accept the return of a private discretionary trust in the status of an ‘individual’.

4. Accordingly it has been decided by the Board that: (i) it will not be mandatory for agents of non-residents, within the meaning of section 160(1) (i) of the Income tax Act, if his or its total income exceeds ten lakh rupees, to electronically furnish the return of income of non-residents for assessment year 2012-13; (ii) it will not be mandatory for ‘private discretionary trusts’, if its total income exceeds ten lakh rupees, to electronically furnish the return of income for assessment year 2012-13.

Non reporting of income tax mistakes

Non Reporting of income Tax Filing Mistakes

Non reporting of any kind of income is quite a common tax filing mistake. Here are the most

Commonly not reported types of income:

Not Reporting Exempt Income: Several incomes, such as dividends and long-term capital gains

on listed securities, are exempt from tax. Even though you do not need to pay any tax on these

incomes, you must report these in your tax return. Since these incomes are reported to income tax department by companies and brokerage firms, you must also make sure to provide these details in your tax return. Otherwise, data reconciliation by income tax department may lead to notice.

Tax and Penalty for Not Reporting Income from Previous Employer: Every employer deducts tax on the basis of annual salary of the employee. While computing the amount of tax to be deducted (TDS),employers provide the benefit of basic exemption and deductions to the employee. If one has changed jobs during the year, both the employers will give the tax benefit of basic exemption and deductions to the employee and hence less TDS would be deducted from salary. This leads to additional tax liability at the time of filing return. In case you do not report previous employer income in your tax return, you will get income tax notice when the TDS data is reconciled with your return data.

Income Tax Notice for Not Reporting Bank Interest Income: It is a common misconception

that either the interest income from savings or fixed deposit accounts is not taxable, or that tax

has already been deducted on interest income by bank. In fact, banks only deduct 10% TDS on

interest income, whereas you may be in the 30% tax slab. Income Tax department has recently

started reconciliation of TDS data received from banks and the interest income reported by individuals in their returns. Non-reporting of interest income in the income tax return is a sure

shot reason to receive a notice from income tax department.

Tax Form Collection

Download itr62 Form3CA

Download itr62 Form3CB

Download itr62 Form3CD

Download itr62 Form3CE

Download itr62 Form3CEB

Download itr62 Form3CF

Download itr62 Form3CI

Important Tax Form

Download Form 16 

Download Form Entry Tax
Download Form 24G

Download Form 27d
Download itr62 Form2B

Download itr62 Form3AAA

Download itr62 Form 3AC

Download itr62 Form3AD

Download itr62Form2BA

Tension free retirement by PF

Provident Fund

Regular income and a health cover are of priority while you plan retirement. Indians are

known for saving more than 25% of their incomes but they invest in low return assets

(deposits @ 3.5% to 8%). Post tax, the yield is not enough to cover the loss of value due to

inflation over the years. There are various options available depending upon the risk profile and required fund flow of individual.The factors which generally impact the retirement corpus are - years to retirement, risk profile, inflation and tax liability on income earned as well as withdrawals. You can have complete tax free retirement life if planned with low risk. There might be investment where funds are coming at their own pace instead of the needs and you are paying tax thereon.

Employee provident fund (EPF): The employee share gets deducted from the salary

and equivalent amount is added by the employer. The amount is generally 12% of the basic salary plus DA. The returns are 8.5% p.a. Fixed, safe and its 100% tax free. The best part of EPF is that it gets invested before the salary reaches you. Hence, no more action is required, and thus there are no delays. It starts from the very beginning of your career and your employers are getting it doubled, without rating your performance. The returns are guaranteed by Govt. of India. Post tax returns are better than fixed deposits @ 12% in terms of safety too. The banks are offering up to 10% however corporate deposits can get 12% .

Public Provident Fund: You can deposit from ` 500 to ` 70000/- during the financial year. The

returns are 100% safe and tax free. PPF account can be opened in your spouse’s or child’s name also. The account is opened for a term of 15 years and it can be further extended for 5 years. This is the best investment for investors looking safe and steady returns. The investment of ` 70000/- p.a. for 15 years will help you to create a corpus of ` 20 lakh for your retirement.

Voluntary retirement or termination money isexempt up to ` 5 lakh. Money received up to ` 5 lakh at voluntary retirement or termination is exempt. You can take voluntary retirement benefit from multiple employers, but the tax-free amount is limited to ` 5 lakh. For claiming exemption

employee must have completed 10 years of service or 40 years of age. Tax-free amount paid

at voluntary retirement is limited to minimum of

1) 3 months of salary x number of completed year of service, or

2) Balance months left before retirement age x monthly emoluments at the time of retirement.   Vacancy caused by voluntary retirement should not be filled up by replacement. It should be

a reduction in workforce.

You can have complete

tax free retir

Beware of Receive Money

Beware of Receive Money

Any gift received from or given to non relatives above ` 50,000 is taxable. If you receive more than ` 50,000 during a financial year without any consideration,then, the entire sum is taxable. Below mentioned points are some exceptions to the case:

• On the occasion of marriage

• Under a will or by way of inheritance

• Gift from a relative

• In contemplation of death

The limit of ` 50,000 is for the entire financial year (Apr 1, 2010 to Mar 31, 2011),irrespective of the number of people from whom you have received the money. For example if you received Rs. 10,000 from six persons, you will have to pay tax on the entire sum of ` 60,000.

Also a gift received in kind, such as property, paintings, bonds, debentures and jewellery without consideration is also taxable. If you are gifted a painting worth` 2 lakh, it will be included in your income and taxed as per your slabs.However if a property is received on consideration which is less than stamp duty value, then it will not be included in your income.

Do'nt Buy ULIP to Save Tax

DON’T Buy ULIP To Save Tax

The financial goals of an individual can be achieved through ULIP (Unit-linked Insurance Plan). However, high cost, complexity in policy and low transparency makes it a difficult choice for the common man. Some of the key points about ULIP are:

• Investment in ULIP saves tax u/s 80 C up to ` 1, 00,000. This limit will be reduced to ` 50,000 after the implementation of the Direct Tax Code (DTC). The minimum sum assured has been increased from 5 times of annual premium to 20 times to be eligible for deduction in proposed DTC.

 • ULIP gives insurance cover along with investment in equities. If you need a high value

insurance cover, term insurance is better as its cost has come down in the past. Also, buying

it online makes it cheaper.

• Daily NAV is declared as per IRDA rules and your investment is controlled by experienced

professionals.

• ULIP makes you invest regularly and for long term, just like SIP in mutual funds. Thus,

the chance of loss due to market fluctuations is reduced. The minimum lock-in period has

been raised from 3 years to 5 years. Premature withdrawals will become taxable after the

DTC implementation.

• There are a number of ULIP plans with multiple features offered by insurance companies.

The best ULIPs are those which give fund value plus risk cover in case of death.

• AVOID ULIP: If you do not want insurance cover or are already sufficiently insured,

ELSS is a good option.

• If you do not want to take high risk of share market and are happy with return around 8%,

PPF scores over it. ULIPs are more beneficial if invested for long term, at least for 10 years. There is no limit for minimum or maximum investment like PPF limit of ` 70,000

Tax Free Retirement

Tax Free Retirement by SWP

Mutual fund’s Systematic Withdrawal Plan (SWP) offers great value in terms of tax free monthly expenses after retirement. Systematic withdrawal plan is the opposite of system investment plan (SIP). You can receive commuted pension at retirement and put the money in SWP. It is convenient to manage SWP through ATMs/internet as compared to NSC or

post office deposits. A fixed amount will be withdrawn every month from your SWP and deposited to your account. The balance amount remains invested in Mutual fund. You can customise the cash flow as per your needs.

How to build it: If you are young, start SIP in diversified equity fund and start building your

retirement corpus. This category has given the best return over the long term among all investments. Last ten years average of top ten diversified funds is between 20% to 25% p.a. In case you want to take low risk, opt for balance funds. At the age of 25 years, if you start investing ` 5000/- p m in a fund that grows as low as 12% a year, even then your corpus at 60 will be ` 2,75,00,000/-. Start early and select the top performing mutual funds instead of new fancy names. The mutual fund management expenses are regulated by SEBI and maximum

limits are already there i.e. 2.25%. These expenses are already deducted from the NAV, and are hence very transparent. The next decade is projected for India’s best growth and wealth will be created.Don’t miss it. All this is 100% tax free!!