HOME ABOUT PERSONAL FINANCE FINANCIAL PLANNING INSURANCE LIFE INSURANCE HEALTH INSURANCE INVESTMENTS STOCKS MUTUAL FUNDS STOCK STRATEGIES IT RETURNS
PLANNING YOUR TAXES
|
|
|
ALL YOU WANT TO KNOW ABOUT
ONE NATION ONE CARD/RUPAY CONTACTLESS CARD CLICK HERE HAPPY TO RECORD
www.plannprogress.com has crossed 300,000 PAGE VIEWS THANK ALL READERS , WELL WISHERS WHO HAVE HELPED US TO REACH THE MILESTONE BUDGET PROPOSALS FOR FY 2018-19 AFFECTING PERSONAL FINANCE , CLICK HERE BUDGET HIGHLIGHTS FOR 2019-20 ,CLICK HERE IT FORMS for FY 2019-20 ( AY 2020-21 ) already Released For Details CLICK HERE New Updated Article TAX PLANNING FOR FY 2020-21 (AY 2021-22) Comprehensive Article on Income tax changes in Rules, Rates , Slabs , Rebates and Estimation CLICK HERE TO READ UNION BUDGET 2020-21 AND SENIOR CITIZENS
In our new blog article , we have explored what the new IT regime means to senior citizens and what extent senior citizens / retirees / pensioners are gaining / losing from the new regime .As the new regime is optional , one can take studied decisions before opting either of the new or old scheme . Have you submitted Form 15G / 15 H if you are eligible ?
Go to Section " All about TDS and Form 15G / 15 H and find out whether you are eligible to submit the forms to avoid Tax Deduction at source. If you are eligible Download the forms and submit to your bank immediately.As year end is approaching , Banks will deduct tax on their interest payment before the year end if you have not submitted the forms . Act earliest to avoid TDS . KEEP YOUR FINANCIAL RECORDS PROPERLY Keep the records of all your financial transactions . Money borrowed from friends , Jewelry inherited / purchased ,Gifts received , wedding expenditures cash remitted to your account etc can be questioned by IT officers and can be taxed up to 83 % of the value if IT Officer is not satisfied about your explanation . As per amended section 115BBE , an assessing officer can invoke 60 % tax , 15 % surcharge , 3 % cess with an added penalty of 10 % . To avoid such hefty payment of tax , keep records of your transactions to enable yourself to explain sources of funds . FOR INCOME TAX NEWS CLICK HERETWEAK YOUR TAX USING TIME EXTENSION
Dated 02.04.2020 : Now through an ordinance , Finance Ministry has extended time limit for investing in various tax savings instruments under 80C, 80 D & 80G up to 30.06.2020 . You may use this opportunity to optimize your tax liability for FY 2019-20 . You know already your income from various heads like salary / pension , interest income or capital gains for FY 2019-20 . You also know what tax savings instruments you have invested so far up to March 2020 . Using the above information , you may calculate what will be your total tax liability now for the given income and rebates . Then you can go to tax rebate section and review your present position of rebates you have used against allowed and check whether you have room for investing more under any tax rebate head . If you have room for the same under any head , you can invest more up to 30.06.2020 and reduce tax liability for FY 2019-20 . If you have already invested maximum allowed , then whatever you have to make payment during the next three months , like insurance premium due etc , can be used for the FY 2010-21 instead of FY 2019-20 . For the investments up to 30.06.2020 , you may use them for making claim of rebates either in FY 2019-20 or FY 2020-21 according to your need . For calculating tax liability , CLICK HERE . To know about Tax rebates , CLICK HERE HIGHLIGHTS OF CHANGES IN INCOME TAX RULES FROM FY 2018-19 TO FY 19-20There is no change in Tax rates for the financial year 2019-20 . 1. The existing rebate of Rs 2500 under section 87 A to the Resident individuals earning up to Rs 5.00 lakhs is enhanced to Rs 12,500 . Hence effectively no income tax if total taxable income is under Rs 5.00 lakhs and no benefit under 87 A if taxable income is beyond Rs 5 .00 lakhs 2. Standard deduction is increased to Rs 50,000 from Rs 40,000 on salaries / pensions 3. TDS threshold is increased to Rs 40,000 from Rs 10,000 for interest on Bank / post office deposits 4. Second self-occupied house is exempted from tax and there will be no notional rent . 5. The benefit of rollover of capital gains under section 54 of the Income Tax Act will be increased from investment in one residential house to two residential houses for a tax payer having capital gains up to ` 2 crore. This benefit can be availed once in a life time. 6. Additional income tax deduction up to Rs 1.5 lakh on the interest paid on loans taken for purchase electric vehicles. 7. Additional deduction of up to 1,50,000/- for interest paid on loans borrowed up to 31st March, 2020 for purchase of an affordable house valued up to 45 lakh. Therefore, a person purchasing an affordable house will now get an enhanced interest deduction up to 3.5 lakh. 8. Surcharge enhanced for individuals having taxable income from 2 crore to 5 crore and for persons with income of 5 crore as below : A. The amount of income-tax shall be increased by a surcharge at the rate of 25% of such tax, where total income exceeds two crore rupees but doesn’t exceed five crore rupees. However, the surcharge shall be subject to marginal relief (where income exceeds two crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of two crore rupees by more than the amount of income that exceeds two crore rupees). B. The amount of income-tax shall be increased by a surcharge at the rate of 37% of such tax, where total income exceeds five crore rupees. However, the surcharge shall be subject to marginal relief (where income exceeds five crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of five crore rupees by more than the amount of income that exceeds five crore rupees). 9 . The business establishments with annual turnover more than 50 crore shall offer such low cost digital modes of payment to their customers and no charges or Merchant Discount Rate shall be imposed on customers as well as merchants. RBI and Banks will absorb these costs from the savings that will accrue to them on account of handling less cash as people move . 10. TDS of 2% on cash withdrawal exceeding 1 crore in a year from a bank account . Some business models, where large cash withdrawal is a necessity, are proposed to be exempted . TAX RETURNS 1. It is proposed to make return filing compulsory for persons, who have deposited more than Rs. 1 crore in a current account in a year, or who have expended more than Rs. 2 lakh on foreign travel or more than Rs. 1 lakh on electricity consumption in a year or who fulfills the prescribed conditions, in order to ensure that persons who enter into high value transactions also furnish return of income. It is also proposed to provide that a person whose income becomes lower than maximum amount not chargeable to tax due to claim of rollover benefit of capital gains shall also be required to furnish the return. 2. PAN and Aadhaar interchangeable and allow those who do not have PAN to file Income Tax returns by simply quoting their Aadhaar number and also use it wherever they are required to quote PAN 3. Pre-filled tax returns will be made available to taxpayers which will contain details of salary income, capital gains from securities, bank interests, and dividends etc. and tax deductions. Information regarding these incomes will be collected from the concerned sources such as Banks, Stock exchanges, mutual funds, EPFO, State Registration Departments etc. This will not only significantly reduce the time taken to file a tax return, but will also ensure accuracy of reporting of income and taxes 4. The existing system of scrutiny assessments in the Income-tax Department involves a high level of personal interaction between the taxpayer and the Department, which leads to certain undesirable practices on the part of tax officials. To eliminate such instances, and to give shape to the vision of the Hon’ble Prime Minister, a scheme of faceless assessment in electronic mode involving no human interface is being launched this year in a phased manner. To start with, such e- assessments shall be carried out in cases requiring verification of certain specified transactions or discrepancies. 5. Cases selected for scrutiny shall be allocated to assessment units in a random manner and notices shall be issued electronically by a Central Cell, without disclosing the name, designation or location of the Assessing Officer. The Central Cell shall be the single point of contact between the taxpayer and the Department. This new scheme of assessment will represent a paradigm shift in the functioning of the Income Tax Department THE ARTICLES FOR PREVIOUS YEARS FOR FY 2018-19 CLICK HERE FOR FY 2017-18 CLICK HERE FOR FY 2016-17 , CLICK HERE FOR FY 2015-16 , CLICK HERE FOR FY 2014-15 , CLICK HERE If you have earned from stock market or from sale of properties to know tax liability Read the NEW ARTICLE ON
CAPITAL GAIN AND TAX CLICK HERE TO READ ALL ABOUT TDS AND FORMS 15G AND 15H
When Banks will deduct TDS for interest paid ?
The bank will deduct tax at source once the amount of interest to be credited in respect of all the fixed deposits taken together exceeds Rs. 40,000 in a financial year. WHAT IS A 15G FORM AND FORM 15H ? FORM 15G is the declaration that a Bank Deposit holder can submit to the banker if he/ she want exemption from Tax Deduction at Source ( TDS ) on the interest paid on the deposits .
A resident senior citizen who is above sixty years of age or completes sixty years during the financial year can submit form No. 15H , in lieu of FORM 15G . WHO ARE ELIGIBLE TO SUBMIT FORM 15G / FORM 15H ?
Who is eligible to submit Form 15G A resident person or HUF , whose tax on the estimated income for the year is nil and the amount of interest income from all the sources does not exceed the minimum exemption limit ( presently Rs 2,50,000/- ), can submit the Form.15G . Please note that both conditions are to be fulfilled to become eligible to submit the form 15G. Who can submit form No. 15H? A resident senior citizen who is above sixty years of age or completes sixty years during the financial year can submit form No. 15H provided his estimated tax liability is nil for the financial year though the total amount of interest from all sources may exceed Rs. 2.50 lacs, the minimum amount liable for tax. Caution : Any wrong or false / wrong declaration attracts penalty under section 277 . A person can be prosecuted and can be liable for 3 months to 7 years of imprisonment for such false declarations . Hence please check your eligibility before submitting the forms . DOWNLOAD FORM15H DOWNLOAD FORM 15G Employers will issue Form 16 ,( Certificate under section 203 of the Income-tax Act, 1961 for tax deducted at source from income chargeable under the head “Salaries” ) for all the tax deducted at source while disbursing salaries . The certificate can be used for computing actual income and tax deducted at source . Format of Form 16 can be downloaded here DOWNLOAD FORM 16 |
HAVE CAKE AND EAT IT TOO
Plan your Expenses and Credit Card use and Tweak your Bank Accounts to earn Extra Income Click to set custom HTML
Click to set custom HTML
|
PROOF TO BE SUBMITTED FOR AVOIDING TDS ON SALARY / PENSION
14.01.2019 : On Jan1, 2019 , Central Board of direct Taxes ( CBDT ) has issued an exhaustive circular regarding Tax Deducted at source ( TDS ) on salaries explaining various aspects and nitty-gritties of TDS with example cases . The circular also asks pension paying offices / banks to treat Pension paid by them as equivalent to salaries and deduct TDS for the financial year 2018-19 as being deducted for the salaries .
The salaried persons / pensioners who have utilized any rebates available to them under various sections like 80C , 80D etc have to submit a form 12 BB to their employers / ex-employers to enable them take note of the rebates availed by them while calculating TDS and remitting to the government . The employers / pension payers are expected to collect proof of evidence while allowing the rebates ,
In view of the above circular , many employers / bankers are allowing their employees / pensioners to upload the tax rebate claim details on-line also . However in such cases also , proof of evidence for claiming rebate is to be given by the employees / pensioners .
Each of the person claiming rebate has to produce concerned receipt / statement . Some of such proofs normally required for claiming under 80C / 80D etc are as follows :
1. Life Insurance Premium receipt
2. Health insurance premium receipt ( In case of group insurance , show the relevant debit in your account )
3. PPF Passbook entries / receipt
4. Interest paid certificate on Housing loans
5. Interest paid certificate on education loan taken
6. Tuition fee receipts from schools / colleges
7. National Savings Certificates Purchased during the current year
8. Housing loan statement .
9 . Investment Statement in eligible Mutual funds
10. Sukanya Samruddhi yojana Receipt / statement
Please verify each of the claim you make is eligible for rebate and enter in the appropriate column showing section under which it is eligible .You may fill form 12BB and submit to the relevant authority along with copies of proof so that they will recognise the rebates you have availed . Obtain an acknowledgement from them on submission of 12BB To print Form 12BB , CLICK HERE
To read the CBDT CIRCULAR , click on the link below :
Circular No 01/2019 dated 01.01.2019 .
The salaried persons / pensioners who have utilized any rebates available to them under various sections like 80C , 80D etc have to submit a form 12 BB to their employers / ex-employers to enable them take note of the rebates availed by them while calculating TDS and remitting to the government . The employers / pension payers are expected to collect proof of evidence while allowing the rebates ,
In view of the above circular , many employers / bankers are allowing their employees / pensioners to upload the tax rebate claim details on-line also . However in such cases also , proof of evidence for claiming rebate is to be given by the employees / pensioners .
Each of the person claiming rebate has to produce concerned receipt / statement . Some of such proofs normally required for claiming under 80C / 80D etc are as follows :
1. Life Insurance Premium receipt
2. Health insurance premium receipt ( In case of group insurance , show the relevant debit in your account )
3. PPF Passbook entries / receipt
4. Interest paid certificate on Housing loans
5. Interest paid certificate on education loan taken
6. Tuition fee receipts from schools / colleges
7. National Savings Certificates Purchased during the current year
8. Housing loan statement .
9 . Investment Statement in eligible Mutual funds
10. Sukanya Samruddhi yojana Receipt / statement
Please verify each of the claim you make is eligible for rebate and enter in the appropriate column showing section under which it is eligible .You may fill form 12BB and submit to the relevant authority along with copies of proof so that they will recognise the rebates you have availed . Obtain an acknowledgement from them on submission of 12BB To print Form 12BB , CLICK HERE
To read the CBDT CIRCULAR , click on the link below :
Circular No 01/2019 dated 01.01.2019 .
You have gone through PART 1 OF The Article which contains 5 PARTS . Remaining parts are
PART 2 : TAX RATES / SLABS FOR FY 2019-20 CLICK HERE
PART 3 : TAX REBATES FOR FY 2019-20 AND POPULAR TAX SAVING SCHEMES CLICK HERE
PART 4 : INCOME TAX CALCULATOR FOR FY 2019-20 CLICK HERE
PART 5 : TAX ON RETIREMENT BENEFITS CLICK HERE
PART 2 : TAX RATES / SLABS FOR FY 2019-20 CLICK HERE
PART 3 : TAX REBATES FOR FY 2019-20 AND POPULAR TAX SAVING SCHEMES CLICK HERE
PART 4 : INCOME TAX CALCULATOR FOR FY 2019-20 CLICK HERE
PART 5 : TAX ON RETIREMENT BENEFITS CLICK HERE
FOR NEWS ON DEMONETIZATION AND NEW CURRENCY FEATURES CLICK HERE
FOR BANKING TIPS , CLICK HERE FOR INCOME TAX NEWS , CLICK HERE FOR SAFE BANKING TIPS , CLICK HERE
FOR INCOME TAX RETURN FORMS AND INFORMATION , CLICK HERE
FOR BANKING TIPS , CLICK HERE FOR INCOME TAX NEWS , CLICK HERE FOR SAFE BANKING TIPS , CLICK HERE
FOR INCOME TAX RETURN FORMS AND INFORMATION , CLICK HERE
FOR DETAILS ON AAYKAR SETHU , NEW MOBILE APPLICATION FROM INCOME TAX DEPT , CLICK HERE
NEW ARTICLES ON
SMALL FINANCE BANKS PAYMENT BANKS
UNIFIED PAYMENT INTERFACE BHARAT BILL PAYMENT SYSTEM
BHIM APP AADHAR
e-INSURANCE Account ( eIA )
NEW ARTICLES ON
SMALL FINANCE BANKS PAYMENT BANKS
UNIFIED PAYMENT INTERFACE BHARAT BILL PAYMENT SYSTEM
BHIM APP AADHAR
e-INSURANCE Account ( eIA )
FOR AUTHENTIC INFORMATION AND TIPS ON INCOME TAX MATTERS
Income tax dept of Govt of India has a very useful portal which churns out valuable guidance for tax payers . One can go through and understand the basics .
Link to the portal is http://india.gov.in/spotlight/filing-income-tax-returns#itr2
Further there are practical tips for computing tax which can be read and used . For example , the link how to compute other income. One can make use of the portal in understanding law, making payment and also to file returns .
Link to the portal is http://india.gov.in/spotlight/filing-income-tax-returns#itr2
Further there are practical tips for computing tax which can be read and used . For example , the link how to compute other income. One can make use of the portal in understanding law, making payment and also to file returns .
FOR INFORMATION ON BITCOINS , NEW AGE DIGITAL CURRENCY , CLICK HERE