Taxation - Wealth18.com

Jan12014 by wealth18.comNo Comments

NRI – How to claim Income Tax refund

NRI, Taxation

Any interest earned in NRO Account is taxable and TDS of 30% flat is deducted by the Bank. There are few ways by which you can reduce this tax amount. 1) Check for DTAA - If the DTAA between India and country of your residence allows a lower rate of TDS India has Double Taxation Avoidance Agreement (DTAA) with many countries under which a lower rate of tax is deducted. For e.g. if you are residing in US or UK, a concessional rate of 15% will de deducted (instead of 30%) provided you complete the documentation formalities. You will need to submit : PAN Card Copy DTAA Declaration form Original or certified true copies of the ‘Tax Residency Certificate’ (TRC) from the income-tax authorities. For tax residents of countries where there is no income tax, a “Self-declaration” shall be su...

Dec152013 by wealth18.comNo Comments

New Rule for HRA exemption – Landlord’s PAN must when rent paid per annum is Rs 1 lakh

Taxation

Till now, employees were required to submit the rent agreement / stamped rent receipts etc, to their employer to get HRA exemption. In FY 2011-2012, Landlord’s PAN was made mandatory if rent paid was more than Rs 180000 per annum (Rs 15000/ month). But now from FY 2013-2014, if annual rent paid is more than Rs.1 lakh per annum (i.e. Rs 8333 per month) , it is mandatory for the employee to give PAN of the landlord. What is this new circular ? “” In a recent circular from Central Board of Direct Taxes (CBDT) NO 08 2013 F No 275 192 2013 IT B; if annual rent paid by the employee exceeds Rs. 1,00,000 per annum, it is mandatory for the employee to report PAN of the landlord to the employer. In case the landlord does not have a PAN, a declaration to this effect from the landlord along ...

Jun12013 by wealth18.comNo Comments

1% TDS deduction on Property over Rs 50 Lakhs – Section 194IA

Taxation

Now, you will have to deduct tax when you make the payment to the seller if the cost of the immovable property exceeds Rs 50 lakh. The Central Board of Direct Taxes has notified the new provision of tax deducted at source, or TDS, on immovable property exceeding Rs 50 Lakhs. What is the New Rule ? A new Section 194IA was introduced in Budget 2013-2014 / Finance Act 2013 which require the purchaser of an immovable property (other than agricultural land) worth over Rs 50 lakh to deduct TDS at the rate of 1% from the amount payable to a resident transferor. From when it is Applicable ? This new Section 194IA is applicable from 01-June-2013 At what rate TDS needs to be deducted ? TDS needs to be deducted @ 1% , but it would go up to as high as 20% if the seller does not disclose his perma...

May92013 by wealth18.comNo Comments

Which ITR Forms to use for FY 2012-13 (AY2013-14) to file Income tax returns in India?

Taxation

So we are now in Income Tax return filing month - July. Last date to These Income-tax Returns in most cases for AY 2013-2014 (FY 2012-2013) is 31-July-2013. However, for the Corporate Sector as well as for persons who are having the requirement of tax audit, the last date of filing Income-tax Return happens to be 30th September 2013. Now, you must be thinking, 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. Form Conditions ITR 1 You can file return in ITR 1 if you have Salary income If you have income from ONE house property (excluding...

Jan12013 by wealth18.comNo Comments

When do you need a PAN Card?

Taxation

1. What is PAN PAN is short form of "Permanent Account Number" . It is a 10 digit alpha-numeric unique number allotted by Indian Income Tax Department. It is issued in the form of a laminated card. The PAN is unique, national, and permanent. It is unaffected by a change of address, even between states. 1a. PAN Structure PAN structure is as follows: ABCPG9999K: First five characters are letters, next 4 numerals, last character letter First 3 characters - are running series - AAA to ZZZ Fourth character - depends on catergory og PAN owner C — Company P — Person H — HUF(Hindu Undivided Family) F — Firm A — Association of Persons (AOP) T — AOP (Trust) B — Body of Individuals (BOI) L — Local Authority J — Artificial Juridical Person G — Govt Fifth character - Surname init...

Jul312012 by wealth18.comNo Comments

Last date for filing income tax return extended to 31 Aug 2012

Taxation

As 31-July is last date of filing Income tax returns, most of the people faced difficulties in the past week due to major power outage in North India. CBDT has extended the ‘due date’ of filing of returns of income for the Assessment Year 2012-13 to 31 August 2012. Due to collapse of Northern Grid, there was a massive power outage in Northern India affecting more than 300 million people. Services like metro, trains, airlines were also affected. CBDT has issued a notification to extend the last date of filing returns to 31 August 2012. The Notification said "On consideration of the reports of disturbance of general life caused due to failure of power, the CBDT in exercise of powers conferred under section 119 of the Income Tax Act, 1961, hereby extends the ‘due date’ of filing of returns...

Jul52012 by wealth18.comNo Comments

Have a Bank Account outside India ? e-Filing of IT return mandatory

Taxation

Are you an Indian professional who has worked abroad on assignment and opened a bank account outside India ? Even if you have $1 in that bank account, it is now mandatory to file Income Tax return online. Latest Income Tax circular has made it mandatory to file Income tax return online, if an individual or a Hindu Undivided Family (HUF), being a resident, having assets (including financial interest in any entity) located outside India or signing authority in any account located outside India. All resident people with bank account, financial interest in any entity, immovable property, any other asset and singing authority of any account outside India need to file Income tax return. They are required to furnish the return in Form ITR-2 or ITR-3 or ITR-4. You will need to file return onli...

Jul52012 by wealth18.comNo Comments

e-filing of Income tax return mandatory if income exceeds Rs 10 lakhs

Taxation

Whether your income for the Financial Year 2011-12 i.e for period of April 2011 - March 2012 (Assessment Year 2012-13) is more than Rs 10 lakhs ??? If yes, You need to compulsorily file the Income tax return electronically. E-filing of Income tax returns has been made compulsory for the person who is an individual or a Hindu Undivided Family, if his or its total income exceeds Rs 10 lakhs. E-filing for such individuals was optional till 2010-11. For filing the return online, having Digital Signature is NOT Compulsory. Returns can be filed with or without digital signature. In case the returns are filed with digital signature, no further action is required. In case returns are filed without using a digital signature, tax payer needs to send ITR-V (Acknowledgement) to the Income Tax depart...

Mar12012 by wealth18.comNo Comments

Comparison of Online Income tax filing / efiling sites

Taxation

There are two options to file returns online. File your Income Tax return online for FREE at Income Tax Department website. Using an online e filing Service provider. If you need any help, there are online service providers / websites which helps & allows you to file your return online. The charges varies from Rs 150 - Rs 3000. Here is the comparison- Website For Fees TaxSpanner Individuals, NRI, Businessmen Rs. 249 - Rs 2499 TaxSmile Individuals, NRI Rs 250 - Rs 3100 TaxShax Individuals Rs 181 - Rs 524 myITreturn Individuals, NRI FREE - Rs 999 IncomeTax Department All FREE See my other post on - How to file your Income Tax returns online for FREE. SBI has recently tie-up with TaxSpanner and they are offering promotional discount with charges starting from Rs 15...