Taxation - Wealth18.com

Apr92014 by wealth18.comNo Comments

[How to] Change PAN Card Address – Online & Offline Process

Have you moved house recently or joined in new company in new city, make sure you also update your current address in your PAN Card. Address on your PAN Card is your primary contact address for Income Tax department, so it is important that you keep it updated. Updating PAN card address is simple - You just need to submit the prescribed form with ID & address proof and nominal fees. Below are the steps / process for updating the address in your PAN Card. You an submit the PAN Change Form either Online or Offline 1. Submit PAN Address Change Form Online a) Use the form - Online Application for Changes Or Correction in PAN Data (PAN Change Request Form) https://tin.tin.nsdl.com/pan/correction.html b) IMP: Make sure than you “TICK” the Box at Left Hand in Point No 7 – Address for Co...

Apr82014 by wealth18.comNo Comments

Who can submit Form 15G / 15H to avoid TDS on Bank FD ?

Taxation

Banks are required to deduct Tax (TDS) @ 10 % if the interest earned on FD exceeds Rs 10,000 in a financial year. However, if you meet certain conditions, you can submit Form 15G / Form 15H to the Bank & they will not deduct any TDS. Read my post - How to avoid TDS on Bank FD. Form 15G can be submitted by Resident, non-senior citizen investor if following conditions are fulfilled: 1) The final tax on his estimated total income should be NIL ; and 2) The aggregate of the interest etc. received during the financial year should not exceed the basic exemption slab Form 15H can be submitted by Resident senior citizen investor if following condition are fulfilled: 1) The final tax on his estimated total income should be NIL ; and Senior Citizen is person who is atleast 60 years of ...

Apr72014 by wealth18.comNo Comments

Mutual Funds – Taxation Aspects

Mutual Funds, Taxation

In this post, I will explain the Taxation aspects of Income / Returns from Mutual Funds. The taxation depends on type of Mutual fund scheme you have invested in. The taxation will be different for equity schemes, and non equity schemes ( for e.g debt schemes, money market etc) Broadly, there can be following 2 type of Income from Mutual Funds: Dividend Capital Gains A. Dividend Received - Tax Free in hands of investor Any dividend received from Mutual Funds is exempt from Tax in hands of investor. So , if you have selected Dividend Option while investing in MF, then any dividend received is tax free for you. Actually, the interest on such dividend is already paid by Mutual fund company via Dividend Distribution Tax (DDT) . Paying such tax impact returns of your MF scheme. DD...

Apr22014 by wealth18.comNo Comments

Now you need to send ITR V by “Speed Post” only

Taxation

Income Tax Departmet has now asked assessees filing returns online to send ITRV by "speed post" only. Earlier, ITR V could be send by either Ordinary Post or Speed post. When you file return online, ITR V (Acknowledgement) is generated, which needs to b signed by you and send it to Central Processing Centre (CPC) of the department in Bengaluru. IT department has now changed the procedure and has disallowed sending the paper statements through ordinary post or to a designated post box number. You need to send ITR V by Speed Post only. In order to prevent the hassle of sending by post a hard copy of e-filed return, the Income Tax department is also planning to bring in the facility of electronic signatures for taxpayers to endorse their bonafides.

Mar272014 by wealth18.comNo Comments

List of banks registered with TRACES for providing view of Tax Credit Statement (Form 26AS)

Taxation

See my previous Post on - How to check Form 26AS (Tax credit Statement) List of banks registered with TRACES for providing view of Tax Credit Statement (Form 26AS) are as below 1. Allahabad Bank 2. Andhra Bank 3. Axis Bank Limited 4. Bank of Baroda 5. Bank of India 6. Bank of Maharashtra 7. Canara Bank 8. Central Bank of India 9. Citibank N.A. 10. City Union Bank Limited 11. Corporation Bank 12. Dena Bank 13. HDFC Bank Limited 14. ICICI Bank Limited 15. IDBI Bank Limited 16. Indian Overseas Bank 17. Indian Bank 18. Karnataka Bank Limited 19. Kotak Mahindra Bank Limited 20. Oriental Bank of Commerce 21. Punjab National Bank 22. State Bank of Bikaner & Jaipur 23. State Bank of Hyderabad 24. State B...

Mar142014 by wealth18.comNo Comments

No TDS on Service Tax portion of the bill

Taxation

As per new CBDT circular 01/2014 dated 13 Jan 2014, tax shall be deducted at source under Chapter XVII-B of the Income Tax Act on the Amount paid / payable without including Service Tax, if such service tax is shown separately. This is applicable for amount payable to a resident whatever be the terms of agreement / contract between payer & payee. No TDS is required to be deducted on Service tax portion of the bill. In 2008, CBDT had issued Circular No 4/2008 dated 28-4-2008 wherein it was clarified that TDS under Section 194-I should be deducted on rent paid / payable without including the service tax component. But it was not extended to other TDS provisions. Then in case of CIT(TDS) Jaipur Vs Rajasthan Urban Infrastructure (Income Tax Appeal No 235,222,238, 239 / 2011) dated 01-...

Mar122014 by wealth18.comNo Comments

Income Tax Rates / Tax Slab for AY 2014-2015 (FY 2013-2014)

Taxation

Income Tax Slab / Rates applicable in India for Individuals, Hindu Undivided Family (HUF), Association of Persons (AOP) and Body of Individuals (BOI): For Individuals below 60 years age (including Woman Assessees) upto Rs 2 Lakh NIL Rs 2 lakh - Rs 5 Lakh 10% on amount exceeding Rs 2 lakh Rs 5 lakh - 10 Lakh Rs 30000 + 20% of amount exceedng Rs 5 Lakh above Rs 10 akh Rs 130000 + 30% of amount exceeding Rs 10 lakh For Individuals aged 60 years and above but below 80 years (Senior Citizen) upto Rs 2.50 Lakh NIL Rs 2.50 lakh - Rs 5 Lakh 10% on amount exceeding Rs 2.50 lakh Rs 5 lakh - 10 Lakh Rs 25000 + 20% of amount exceedng Rs 5 Lakh above Rs 10 akh Rs 125000 + 30% of amount exceeding Rs 10 lakh For Individuals aged 80 yea...

Mar12014 by wealth18.comNo Comments

Last date for filing ITR-V extended for 3 AY till 31-March-2014

News, Taxation

CBDT Circular 04/2014 dated 10-Feb-2014 CBDT has extended the Last date for filing ITR-V for 2 assessment years AY 2009 - 2010, 2010 -2011, 2011-2012 for returns which were filed electronically & any refund was due. Please note that this extension is only for returns where REFUNDS were due. The taxpayer need to send a duly signed copy of ITR-V to the CPC by Speed Post. Normally, when the tax payer files his Income tax returns online without digital signature, he need to take the print it of ITR V acknowledgement, sign it & send it to IT CPC. So if you have filed return online and are waiting for your refund for last few years, just check whether your ITR V was received by CPC or not. if not, then you can send it again by Speed post. How to check if CPC has received your ITR V or ...

Mar12014 by wealth18.comNo Comments

Section 87A Tax rebate / Tax credit of Rs 2000

Featured, Taxation

In Budget 2013, a new Section 87A was introduced under Income tax Act to allow for tax credit / rebate of Rs 2000 to taxpayers whose taxable income is upto Rs 5 lakhs. Persons whose taxable income is upto Rs 5 lakhs will get a tax credit / tax rebate of Rs 2000 under Section 87A of Income Tax Act 1961. As per new section 87A, “An assessee, being an individual resident in India, whose total income does not exceed five hundred thousand rupees, shall be entitled to a deduction, from the amount of income-tax (as computed before allowing the deductions under this Chapter) on his / her total income with which he/she is chargeable for any assessment year, of an amount equal to hundred per cent of such income-tax or an amount of two thousand rupees, whichever is less.” Key features This tax re...

Jan62014 by wealth18.comNo Comments

Rules to check before making annual Tax / Investment Declaration to employer

Taxation

In January, most employers ask their employees to submit the investment declaration along with the proof every year. If you do not submit this declaration, the employer may deduct higher TDS amount. What needs to be declared? Employees should declare the tax saving investments and other deductions which they intend to claim in current financial year. What will happen if the declaration & proofs are not submitted? If you fail to submit the investment details & proof, the employer will not give you tax benefit for such investments and will deduct higher TDS Amount in coming month’s salary. You will then need to claim the refund later from Income Tax dept by filing Income tax return. Can I claim refund from Income Tax department later? Yes, you can file Income Tax return and c...