Taxation

As per Section 80TTA of Income Tax Act 1961, Individuals & HUF can claim deduction upto Rs 10000 for Interest earned on their Savings Bank Accounts. Summary of Section 80TTA of Income tax Act 1961 Through Finance Act, 2012, section 80TTA under Income Tax Act, 1961 is introduced to give additional income tax deduction upto Rs 10000 for Interest on Saving Account with Bank, Co-operative Bank or Post Office. The section is applicable with effect from April 01, 2013 and will apply from AY 2013-14 and onwards. Only Individual and HUF are eligible to claim deduction under this section.  As, nowhere in the section mentioned that this benefit is available for Residents Only.  So, it is assumed that even NRI can claim this benefit. (on their NRO Interest) Points to Note 1.  Interest earned f...

If you are filing online Income Tax retuns & not using Digital Signature, you need to take print of ITR V (Acknowledgement), sign it & send it by post to IT Processing Centre. Once you submit your return, ITR V is emailed to your on your registered email.  Else, you can downoad the ITR V or ITR Form via Income Tax efiling website. After Login , Go to My Acount --> My returns / Form --> Cick on Acknowledgement Number However, ITR V pdf file is passwod protected. To open the PDF, please enter your PAN in lower case and date of birth in DDMMYYYY format without any space between the PAN and date fields. For example, if your PAN is ABCDE1234A and date of birth / incorporation is November 17, 1985 then the password will be abcde1234a17111985 . You need to send ITR V to “Income T...

The Income Tax Department has released the  ITR (Income Tax Return) Forms for Financial Year 2017-2018 (i.e. Assessment Year 2018-2019). These ITR forms will be applicable for income tax returns for income earned from 1st April 2017 to 31st March 2018 i.e. FY 2017-18 (AY 2018-19).  The due date of submission of these ITR Forms will be 31st July 2018. Key Points regarding IT Forms: ITR 1 is just ONE Page, Mandatory to quote Aadhaar number,  mandatory to disclose bank deposits of more than Rs 2 lakh post demonetisation. ITR 2 and ITR 3 have a Schedule AL requiring assessees to declare their assets and liabilities at the end of the fiscal. The existing ITR Forms ITR-2, ITR-2A and ITR-3 have been rationalised and a single ITR-2 has been notified in place of these three forms, IT...

  Update 2018 -   March 31, 2018 was the deadline to file income tax returns (ITR) for the financial year 2015-16 and 2016-17. In case you haven't filed your ITR for FYs 2015-16 and 2016-17, you cannot file a belated return anymore. Update June 2015 -  As per new circular, you can file application to claim refund for last 6 years. Read the post at the link.    You must be aware that due date for filing your income tax returns in 31st July. However, sometimes taxpayers fail to file their returns on time.  But you can file the belated returns for last 2 years by 31-3-2016. If you have received compliance notice for non-filing of returns, please read the post below https://wealth18.com/notice-received-from-income-tax-department-what-to-do/ What are your options, if you have not fi...

Many people are now receiving notice from Income tax department regarding non filing of income tax returns for last few years ( 2012-2013, 2011-2012, 2010-2011, 2009-2010.) . Income tax department asks them to reply within 10 days . Income tax department is collating information from various sources and sending notices to non-filers. they are requested to submit the Compliance Form on efiling website. Also Read News - Income Tax Dept to send notices to further 21.75 lakh “non-filers” There is no need to Panic just because you have received the notice. A notice does not necessarily mean you have committed a crime and even a minor error in tax return can invite a notice from the tax department. When you can get an IT Notice? Also Read -  How to File Income Tax return (ITR) online – Step by...

  In Budget 2018, Finance Minister Arun Jaitley has re-introduced the Long Term Capital Gains (LTCG) tax on Stocks / Shares. What has changed? Since 2001-2005, LTCG was exempt from tax. If the investor is selling stick after 1 year (long term) , then no tax is payable on the profits made from such investment . But now, the LTCG tax on shares has been re-introduced - Investors will have to pay 10% tax on profit exceeding Rs 1 lakh made from the sale of shares or equity mutual fund schemes held for over one year. This is applicable for shares as well as equity mutual fund scheme as well.  For dividend mutual funds -  Budget has also proposed 10% dividend distribution tax on dividend declared under Equity Schemes. Currently, DDT is not applicable for equity-oriented mutual funds...

The Income Tax Department has released the  ITR (Income Tax Return) Forms for Financial Year 2016-2017 (i.e. Assessment Year 2017-2018). These ITR forms will be applicable for income tax returns for income earned from 1st April 2016 to 31st March 2017 i.e. FY 2016-17 (AY 2017-18).  The due date of submission of these ITR Forms will be 31st July 2017. The Government has made changes to the ITR forms and tried to make it simple. The number of ITR Forms have been reduced from the existing nine to seven forms.  Some changes to IT Forms ITR 1 is now just ONE Page, Mandatory to quote Aadhaar  number,  mandatory to disclose bank deposits of more than Rs 2 lakh post demonetisation. ITR 2 and ITR 3 have a Schedule AL requiring assessees to declare their assets and liabilities at the end...