Taxation - Wealth18.com

Apr262015 by wealth18.comNo Comments

TDS on PF withdrawal before 5 years – Budget 2015 – new Section 192A

News, PF, Taxation

Update - May 2016 - No tax would be deducted at source for PF withdrawals of up to Rs 50,000 from June 1 2016. https://wealth18.com/no-tds-for-pf-withdrawals-of-up-to-rs-50000/ In Budget 2015, new Section 192A of Income Tax Act is proposed to deduct tax (TDS) on PF withdrawal before 5 years. To discourage premature withdrawal of provident fund by subscribers, Union Finance Minister Arun Jaitley has proposed a tax deduction on such early closures. Under the proposed tax law (new Section 192A of Income Tax Act), provident fund withdrawal before five years of continuous service will attract a TDS (tax deducted at source) of 10%. Changes Proposed (new Section 192A is proposed under Income Tax Act) TDS will be deducted if the withdrawal is more than Rs.30,000. If the PAN is updated, T...

Apr252015 by wealth18.comNo Comments

New TDS rules on fixed deposit interest (Budget 2015)

Taxation

Budget 2015 has made TDS rules on fixed deposit interest more stringent. Till now, TDS was deducted by bank or post office when the interest is more than Rs 10000.There was a loophole as the limit of Rs 10000 was calculated with reference each of the branch and not all the branches together. So many taxpayers were using this option to create FD in different branches of same bank, so that the interest per branch doesnot exceed Rs 10000 and thereby no TDS is deducted. Now, in Budget 2015, this loophole is plugged. The budget proposes to make this limit for tax deduction applicable in respect of deposits with ALL the branches taken together in case the bank or the Company has core banking solution. So now you cannot escape the TDS even if you open your bank fixed deposits with different ...

Mar192015 by wealth18.comNo Comments

How to Apply for a PAN Card

Taxation

PAN card is required for almost all major financial transactions. In this post, I will quicly explain how to get / apply a PAN card. You can apply for PAN card by yourself. Income tax department has ensured that getting PAN is a simple procedure. You just need to submit a Form, passport size photo, fees & ID & Address proof. You can submit the form either manually or online. 1. Form : Get the Form 49A . Download the form 2. Where to Submit: Submit the Form at locations near to your area. Check out the office near you where you can submit the form : See UTI Locations OR See NSDL Locations 3. Charges : There is a processing fees of Rs 105 (Rs 971 for NRI card dispatched outside India) 4. Documents: You have to submit the following documents with the application form: ...

Jul102014 by wealth18.comNo Comments

Budget 2014 : Debt Funds LTCG & holding period increased – less tax efficient now

Taxation

In the Budget today, following changes have been proposed for Taxation of Debt Funds Long term capital gains tax is increased from 10% to 20% Withholding period for long term is changed from 12 months to 36 months These amendments would be effective from April,1 2015 and will accordingly apply, in relation to the assessment year 2015-16 and subsequent assessment years. ----------- Confusion regarding - from when this is applicable : Alhough the Finance Minister said that it is applicable from April, 2015 but the assessment year is 2015-16. This means such investments will be taxed from the current ongoing financial year itself. That's an issue," Revenue Secretary Shaktikanta Das on Friday said that - The effective date of the increase in long-term capital gains tax on debt m...

Jul82014 by wealth18.comNo Comments

13 things to know before filing Income Tax returns

Taxation

Last date for filing returns in 31-July. Here are some tips & important points you should take care while filing your income tax returns. (Link to all articles below open in New Window, so you can click directly without leaving this post) 1) E filing of income tax return is mandatory – if your total Income is Rs 5 lakhs or more, you need to file Income Tax return online / electronically. Digital signature is not required to file e-returns. Read this post to see when efiling is mandatory 2) Enter Email Id and Mobile number - Now, you need to mention your email id and mobile number compulsory while filing IT return. Read more details on this 3) Any Refund mandatory via ECS – So if you are claiming any refund, you need to provide bank Account number for direct credi...

Jul82014 by wealth18.comNo Comments

Mobile Number & EMAIL ID must for filing online tax returns : CBDT

Taxation

The Central Board of Direct Taxes (CBDT) has made mobile number and email address mandatory for filing income-tax returns. This additonal contact details is expected to improve efficiency and add an extra layer of security. "A valid email ID and mobile number has to be registered/updated on the e-filing website of the Income Tax Department so that drect communication with taxpayer can be possible," the CBDT said in a release issued. A one-time password will be sent to the email address and mobile phone to be entered by the taxpayer after logging into his account for authentication. The password will be valid for 24 hours. One mobile number or email id can be used for 10 accounts as primary contact. This will help file returns of family members who may/may not have a personal e-mail id Ho...

Jul82014 by wealth18.comNo Comments

eFiling of Income Tax returns ITR is must – For Whom ?

Taxation

e-Filing of Income Tax Returns/Forms is mandatory for : If Total income is Rs 5 Lakhs and above (from AY 2013-14 and subsequent Assessment Years.) A resident who has signing authority in any account located outside India. A person who claims relief under sections 90 or 90A or deduction under section 91. Individual/ HUF, being resident, having assets located outside India from AY 2012-13 and subsequent Assessment Years. READ - 13 things to know before filing Income Tax Returns this July ----------- All companies. Firm (to whom provisions of section 44AB is not applicable), AOP, BOI, Artificial Juridical Person , Co-operative Society and Local Authority required to file ITR 5 from AY 2014-15 and subsequent Assessment Years. An assessee required to funish...

Jul72014 by wealth18.comNo Comments

Important Changes in ITR for AY 2014-2015

Taxation

In this post, we are listing some important changes made in Income Tax Return ITR Forms for AY 2014-2015. last date for filing returns is 31-Jul. Direct Credit of Tax Refund via ECS - All refunds to be now received via ECS – no refunds via cheques 87A rebate - Space added to claim relief under section 87A – Read this to check - if you are eligible to claim Rs 2000 80EE deduction - Space added to claim deduction under section 80EE – Read this to check - if you are eligible Income from Salary - Allowances - Details of Allowances or Exempt Income under section 10 under the head Short Term and Long Term Capital Gains details to be now bifurcated between Immovable Property – Equity Shares or Mutual Funds – Bonds Debentures. Detailed information about capital gains ...

Jul32014 by wealth18.comNo Comments

Taxation on Sweep in FD Interest

Taxation

Many of our site visitors has this query - What is the Tax treatment for Interest earned on Sweep in FD ? When the Swep-in FD is matured or pre-matured at the time of withdrawal, the amount is credited to the Savings Account alongwith interest for that period. Sweep-In FD is a time deposit like any other Fixed Deposit. The only difference is that it is created automatically & matured / prematured automatically. The interest from such Sweepin FD will be treated the same way as interest from another regular FD. The interest earned on fixed deposit (including Sweep in ) will be added to your income under the head 'Income from other sources' and taxed as per your slab rate. As it is a term deposit, Section 80TTA is not applicable to Sweep-In FD. Section 80TTA is applicable only to sav...

May82014 by wealth18.comNo Comments

Which Income Tax Forms / ITR Forms to use for AY 2014-2015

Taxation

As Last date for filing Income tax returns is approaching (31-July), you must to looking into your financials to prepare returns. It is important to check in which ITR form you should file your IT return. You should check , which Income Tax return (ITR) Form is applicable for you ? Salaried employees will normally need to file their Income Tax returns in ITR 1 or ITR 2 (depending on the conditions below). So please read the specific conditions to determine whether you need to file your returns in ITR 1 or ITR 2 ITR 1 You can file return in ITR 1if you have Salary income If you have income from ONE house property (excluding cases where loss is brought forward from previous years.) if you have income from other sources (except income from lottery or from horse races) ...