Some General Things in Income Tax:

Some general tips on income tax

How many of you know that the due date to file an Income Tax Return is 31st July. For the financial year ended on 31st March, 2014, the last date of filing return is 31st July, 2014. It’s not mandatory for individual to file an Income Tax return who already have a PAN ( PAN stands for permanent Account Number, is a ten digit alphanumeric number, issued in the form of a laminated card, by Income Tax department). Having a PAN is compulsory for all taxpayers. A PAN needs to be mentioned in tax returns, Challan’s for income tax payment and all other communications done with the Income Tax Department.Without PAN number you will not able to find your income tax return. If your total income exceeds the basic exemption limit before taking into account deduction then you need to file an Income Tax Return. If you do not pay due amount of income tax then you will be charged interest @ 1% per month from 1st April following the financial year, until you pay your tax.You can file a belated tax return by 31st March 2015, in case you miss the deadline. But if there is balance tax payable, you will have to pay interest on the balance at the rate of 1% per month. This can go up to 2 per cent if you have not paid the require advance tax.If you are entitled to a refund, you don’t have to pay any interest if you file late.

Individuals can claim payment of premium on life insurance policies of your spouse and children. Also gift of an immovable property like house between spouses is tax free. In case, the house being put on rent or any income that is earned on the property will be clubbed with your income and taxable.

In order to get tax refund, you need to file your tax return. It is advisable to tax help of income tax consultant/ Chartered accountants. To claim credit for TDS you need to obtain a certificate of Tax Deduction(TDS Certificate) from the person who deducted your tax. Enter the income and deduction details from the certificate in your Income Tax return There are also couple of sources from which you can earn income and don’t have to pay tax as well. They are:
(a)Agricultural Income.
(b) Dividends from equity mutual funds and stocks.
(c) Long-term capital gains on stock transaction are not taxed if you have paid the securities transaction tax on the sale.
(d) Interest earned on PPF.
(e) Amount received on Maturity of LIC Insurance Policy. (f)Gifts received from relatives.


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