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The ITR (income tax return) forms for the the financial year ended 31st March 2016 have been notified by the government well in time this time. Generally, the forms are on the same lines as that of the previous forms except that the tax payers either an individual or an HUF have to furnish additional details of the assets and liabilities in case the taxable income exceeds Rs. 50 lacs in the year. Let us discuss what details are required to be submitted and how to comply with this requirement.
Provisions relating to filing of income tax returns- At present, an Individual or an HUF has to file its income tax return, before the due date which is generally 31st July of the subsequent year, if the total income before deducting various deductions available under Chapter VIA exceeds the basic exemption limit.
The present tax laws of India provides for taxation of income under specified heads. Any income for which a specific head is specified has to be taxed under the head and cannot generally be taxed under any other head. However since law cannot provide for every eventually, disputes arise as to whether a particular income shall be taxable under one head or the other head like the cases of profits on dealing in shares, rentals received on letting out of various assets.
I have been reading a few posts by the new generation complaining about improper way the service tax, service charges and VAT (Value Added Tax) is levied. It is not only the youngsters who are ignorant about the extant law on service tax but even few of the journalists are also not aware about the exact law on service and have written misleading articles .
So the finance Minister has ultimately decided to give level playing field in respect of pension products and has proposed withdrawal from employee provident fund balance, created with employee’s contribution made after 1st April 2016, taxable to the extent of 60% and 40% exempt. In my opinion these provisions have either been drafted in a hurry or have deliberately been made to be unjust to salaried people. I have a feeling that the government treats the most honest class of tax payers i.e. salaried as second class citizens. Here is why I feel so.
The Finance Minister has presented his third budget in parliament toady containing various direct and indirect tax proposals. In this article I intend to discuss some of the proposals which are beneficial to individual tax payers. Please note that at present these are only proposal until are passed by the parliament.
This is taxing time of the year. All of us have to make good the shortfall in the investment required to be made for availing the tax benefits available for investments. Since the equity are very volatile and since the time left is very short a lump sum investment is not advisable in Equity Linked Saving Schemes.
Raising the limit for eligible deduction under Section 80C, 80CCC and 80CCD- Presently the Section 80 CCE provides for a cap of Rs. 1.50 lacs for deduction available under Section 80C, 80CCC and 80 CCD(1) taken together. The present limit of Rs. 1.50 lacs was raised from Rs. 1 lacs in the budget of 2014. The erstwhile limit of Rs. 1 lacs was fixed in 2003 for these benefits. It has been almost 14 years during which the limit has been just increased by 50% which works out to just 2.98% annually.
The income tax return filing season in on. The government believes in the philosophy of Pay as your earn. This objective is achieved through two pronged strategy. The first strategy is to ensure that the income is paid to the recipient after deduction of tax at the time of payment of the income. Which is implemented through tax deduction at source (TDS) or Tax collected at source (TCS).
Every person who owns a property is taxed under the head Income from House property on annual basis. The basis of taxation is annual value of the property which in turn is derived from the rent received or reasonable rent for which the property is expected to be let. In respect of the only one self occupied house property, the annual value is taken as nil.
