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No TDS for PF withdrawals of up to Rs 50,000

tds-pf-withdrawal

Last updated : 7th October, 2016 The government has now changed the rule on  TDS deduction on PF withdrawal. Now, no tax would be deducted at source for PF withdrawals of up to Rs 50,000 from June 1 2016. So no TDS if your withdrawal is upto Rs 50000. The Finance Act , 2016 has amended section 192A of Income Tax Act, 1961 to raise the threshold limit of PF withdrawal from Rs 30,000 to Rs 50,000 for Tax Deducted at Source (TDS),” the notification stated. The provision will come into effect from June 1, 2016. Earlier in the budget, the ... Read More »

Home Loan Tax Benefits – Section 24, 80C, 80EE

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Last updated : 26th July, 2016 Buying a house without home loan is distant dream for most of the people.  But even if you have required funds to buy house, taking home loan can be tax efficient. You can save significant amount of tax on the principal repayment of home loan as well as Interest paid on home loan. In this post, I will try to explain the tax benefits associated with home loan. Section 80C – Deduction upto Rs 1.50 lakh for Principal repayment Under Section 80C, you can claim deduction upto Rs 1.50 Lakh by way of investment ... Read More »

Now prevalidate your bank account for online ITR filing

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Last updated : 7th May, 2016 The Income Tax department has launched another option for online validation of tax returns and to enhance paperless regime of filing the annual IT returns.  This new option is –  Bank account-based validation system for filing e-ITRs.  This option is helpful for taxpayers who donot have or use net banking facility.  Electronic Verification Code (EVC) can be generated by pre-validating your bank account on the e-filing website.  Punjab National Bank (PNB) is the first bank to do so and other banks are also “expected to launch this facility” for those taxpayers who have not availed e-banking ... Read More »

10% dividend tax only on dividend income above Rs 10 lakh

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Last updated : 7th May, 2016 The new 10% Dividend Tax will be payable only on dividend income over and above Rs 10 lakh threshold in a year, according to an amendment to the Finance Bill 2016 approved by Lok Sabha. It is clarified that tax shall be chargeable on dividend income only to the extent it is in excess of Rs 10 lakh in aggregate as received from a domestic company or companies. This essentially means, tax payers whose dividend income crosses Rs 10 lakh would now have to pay an additional dividend tax on the excess income besides ... Read More »

New Income Tax form 12BB for claiming HRA, LTA, 80C deductions

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Last updated : 4th May, 2016 CBDT vide its notification no 30/2016 dated 29-04-2016 has inserted new rule 26C in the Income tax rules and notified form 12BB for furnishing to the employer. The income tax department has come out with a standard Form 12BB for salaried taxpayers to claim tax deduction on leave travel allowance concession (LTA/LTC), house rent allowance (HRA) and interest paid on home loans. claiming tax deduction under Chapter VI-A. (that includes popular 80C deduction) Sl. No. Nature of claims Evidence or particulars 1 House Rent Allowance. Name, address and permanent account number of the landlord/landlords ... Read More »

How to pay TDS on Property (Form 26QB & 16B)

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Last updated : 3rd May, 2016 From June 2013, when a buyer buys immovable property costing more than Rs 50lakhs, he has to deduct TDS @1% when he pays the seller.  Read more details in my other post – TDS on buying/selling of property Buyer has to deduct TDS @1% on the entire sale amount (if the property value is more than Rs 50 lakhs) This TDS has to be deposited along with Form 26QB within 7 days from the end of the month in which TDS was deducted. After depositing TDS to the government, the buyer is required to furnish ... Read More »

Received notice from the income tax department for non-filing of Form 26QB (TDS on property)

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Last updated : 30th April, 2016 Taxpayers are receiving notice from Income tax department for non filing of Form 26QB which is for TDS deducted when buying property. The income tax department has received Annual Information Return (AIR) submitted by registrar/sub-registrar, that you have done a property transaction exceeding Rs 50lakhs. Buyers of property must deduct TDS from payment made to seller, if the sale price exceeds Rs 50lakhs. TDS has to be deducted @1% at the time of making payment to the seller. (as per section 194IA of the income tax act) – Read my previous post on – ... Read More »

Taxation on Sale of Shares – Business Income or Capital Gain? – new CBDT circular

taxation-shares

Last updated : 1st April, 2016 Over the past few years, there were lot of uncertainly and litigation around this point – whether the sale of shares is treated as Capital gain or Business Income. Despite of various court rulings as well as CBDT clarifications, disputes continues to exist on the facts related to individual case since the taxpayers find it difficult to prove the intention in acquiring such shares/securities. In a recent CBDT circular, tax payers are allowed to decide whether their gains/losses from sale of listed shares/securities should be treated as business income or as capital gains for ... Read More »

How to pay balance Income Tax online

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Last updated : 15th August, 2015 As you know the last date for filing income tax returns for AY 2015-2016 (FY 2014-2015) is 31st Aug 2015. For many Individual salaried taxpayers, the TDS is deducted by employer. Bank also deduct TDS on interest payment.You can check how much TDS is deducted by them by checking your Form 26AS online. However, at the time of filing IT returns, when you add all your incomes and you may realise that there is a tax due which needs to be paid. In that case, you should NOT submit the return before filing the ... Read More »

How to quick e-file ITR 1 & ITR 4S online – Step by step guide

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Last updated : 15th August, 2015 You can file ITR 1 & ITR 4S online (without using the excel ITR file). In this post, I am providing step-by-step guide to file these returns on Income tax efiling website. Filing returns on Income tax wesbite is completely free and easy. Must Read –  Step by Step Guide to file Income tax returns online Things to note: Make sure that you choose right ITR form. ITR forms depends on what kind of Income you have. See my other post on Which ITR form to use? Check your Form 26AS to see the ... Read More »

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