Indian Personel Income Tax Rates for Financial Year 2012-2013

Income tax rates for the financial year 2012-2013:-

Applicable Income tax rates for Indian individual persons (Men/Women/HUF) having age less than 60

Income from all sources Income tax rate ( Percentage ) Applicable Education cess on Income tax  ( percentage ) Effective tax rate
0 to 200000 0 0 0
200000 to 500000 10 3 10.3
500001 to 1000000 20 3 20.6
1000001 and above 30 3 30.6

Applicable Income tax rates for Indian individual persons having age more than 60 and less than 80 (Senior citizens)

Income from all sources Income tax rate ( Percentage ) Applicable Education cess on Income tax  ( percentage ) Effective tax rate
0 to 250000 0 0 0
250001 to 500000 10 3 10.3
500001 to 1000000 20 3 20.6
1000001 and above 30 3 30.6

Applicable Income tax rates for Indian individual persons having age more than 80 (Very Senior citizens)

Income from all sources Income tax rate ( Percentage ) Applicable Education cess on Income tax  ( percentage ) Effective tax rate
0 to 500000 0 0 0
500001 to 1000000 20 3 20.6
1000001 and above 30 3 30.6
Posted in Income Tax, Income tax Rate | Comments Off

Online Rectification request for Errors in Income Tax Returns in Response to Intimation.

Step 1: Make sure you have received an intimation under section 143 (1) from CPC Bangalore for the E-returns filed by you for AY 2009-10 or later.
Step 2: Carefully examine the intimation to see if the computation by CPC is correct even if different from what was expected by you. It may be that you may have computed tax liability or interest incorrectly.
Step 3: Carefully review the Common Error guide and the table above to understand as the basic reason for the variation.
Step 4: Since the Rectification Request is to be submitted by uploading the complete xml file similar to uploading the original return, it may be preferable to start with the saved e-return data that was prepared by the return preparation utility/software (Department provided excel software or other software), in case it is available with the taxpayer.
Step 5: All errors in data entry should be completely corrected and schedules or fields left blank should be filled accurately as explained in the guide. The complete return should be filled including TDS and Tax payment schedules and not only schedules that need change or the fields that need correction. This is because the entire return with corrected data would be re-processed under rectification.
However, there should not be any revision in income figures or new claims since then the rectification request would be rejected or rectification would be delayed. It may be clearly noted that this facility is only for correcting mistakes apparent from record.
Step 6: After the Return data is corrected then the xml can be generated. This is the Rectification XML file.
Step 7: Log in to http://incometaxindiaefiling.gov.in and go to My Account-> Rectification-> Rectification upload
Step 8: Fill in details from the intimation sheet which will be verified to ascertain that only the taxpayer in possession of the Intimation from CPC would be able to submit a rectification request.
Step 9: Fill in details of Schedules where changes have been made and reasons for seeking rectification.
Fill in due date for filing return, if incorrect as per intimation sheet. Leave blank if not applicable.
Fill in details which are not available in the return form such as details of 80G donations (not available in ITR forms for 1, 2 and 3) and Quarter-wise details of Capital Gains (all four types- which is not available in ITRs 2, 3, 4, 5 and 6 for AY 2009-10) only if applicable. Leave blank if not applicable
Please note if your address has been changed in the rectification XML file, you should check the address changed checkbox to ensure that the new address is updated else the old address as per e-return only will be used.
Step 10: Now upload the Rectification XML file. Validations will be done to ascertain that only mistakes apparent from record are sought to be rectified
Step 11: Upon successful upload, Rectification Request number and acknowledgement will be displayed.
In case Bank Account Number is changed in rectification XML as compared to Bank Account number as per e-return then the rectification request is only PROVISIONALLY uploaded. A response sheet will be displayed, which has to be filled and a cancelled cheque attached and sent to CPC Bangalore. Only upon receipt of this response sheet at CPC Bangalore will the Rectification Request be finally accepted and acknowledgement generated.
Step 12: The rectification request can be withdrawn within 7 days if uploaded by mistake or the request needed to be amended. Only one rectification request can be submitted at any time. Any rectification request after submission has to be processed at CPC before the next rectification request for the same PAN and AY can be submitted.
Step 13: The rectification request will be processed at CPC and either the rectification order under Section 154 will be issued or the request would be rejected.

Please refer the document How to Rectify Online Income Tax Returns in response to Intimation U/S 143(1)

Posted in IT Returns, Income Tax, Income Tax Returns Acknowledgement, Income Tax returns India, Intimation, Online Tax Filing | 4 Comments

File Income Tax Returns through Easyitfiling.com

After introduction of Online Filing Income tax returns by income tax department, it becomes very easy and simple task to file income tax returns online. I would like to provide seven simple steps to File Income Tax Returns Online.

  1. Indentify the sources of income
  2. Collect all documents to prepare tax returns
  3. Register in easyitfiling.com to start your income tax returns filing
  4. Choose Sources of income , Tax Payments, Savings options applicable
  5. Review Total Income & Tax payable
  6. Enter Bank details for Refund
  7. Confirm Income Tax Filing

Identify the Sources of Income:-

Based on the source of income, we can categorize income against the various heads u/s Income tax Act.

  • Income from Salary / Pension
  • Income from Business/Profession
  • Income from House Property / Housing Loan ( Loss from Housing loan)
  • Income from Capital Gains
  • Income from Other Sources
  • Income Exempt from Income tax

Collect all documents to Prepare Income Tax Returns:-

Collect all the documents that support your sources of income, Tax Payments, Savings Certificates and Tax Deducted Certificates.

Income from Salary

  • Form 16 (Provided by Employer)
  • Form 12 BA (Provided by Employer)

Income from Business/Profession

  • Balance sheet
  • TDS (Tax Deducted at Source) Certificates
  • Advance tax challans
  • Bills/vouchers

Income from House Property

  • Tenants Details
  • TDS certificate Gross rent received
  • Advance tax challans

Income from Capital Gains

  • Contract notes
  • Advance tax challans
  • Sale/purchase documents of moveable/immoveable assets

Income from Other Sources

  • All documents related to income
  • TDS certificates
  • Advance tax paid

Register in http://easyitfiling.com :- Go to website http://easyitfiling.com and click the link Register & File Tax Returns. Enter login details to create account for easyitfiling.com. It is your doorway to file as many as you wish income tax returns. It acts as single window login to prepare income tax returns for self and your relatives free of cost.  Once you successfully logged into the system using your login credentials, Easyitfiling.com opens a Income Tax Returns Desk, where users can find status of all his income tax returns filled though us. Users can modify the income tax returns that are in status of Progress.

Click the button Start New Income tax Returns Filing to start new income tax returns filing online.

Posted in Free IT Filing India, Free Tax Filing, Free Tax Returns, Free Tax Returns India, IT Filing, IT Filing India, IT Returns, Income Tax Returns Acknowledgement, Income Tax returns India, Online Tax Filing, Tax Returns India, Tax returns | Comments Off

Income Tax Calculation – Residential Status

Determination of Residential status of Individual has to be done to ascertain which income is to be included in computing the total taxable income in India. There are 3 Types of Residential status.

1.      Resident & Ordinary Resident

2.      Resident But not Ordinary Resident

3.      Non –Resident

income tax calculation, residential status, non-resident, tax returns, indian income, foreign income

Residential Defination

Based on the duration for which individual present in India determine the residential status.

Resident: An individual is said to be resident in India in any previous year if he fulfills any one of the following two conditions:

i) He is in India in that year for a period of 182 days or more; (Should be determined total no days stay)

ii) He is in India for a period of 60 days or more during the previous year and 365 days or more during the 4 years preceding that previous year.

Resident and ordinarily resident: If any individual fails to satisfy below both conditions he will be treated as Resident and ordinary resident.

1.      He has been a non-resident in India in 9 out of the 10 preceding previous years;

And

2.      He has been in India for a period not exceeding 729 days during the last 7 years before the assessment year.

Resident, But not ordinarily resident: If an individual satisfy the conditions for Resident But does not fall under Ordinary resident defined above treated as not Ordinary resident.

Non-resident: If an individual does not satisfy any of the conditions that require to be qualifying as resident, will be considered as non-resident.

Income Tax Calculation and Residential Status: -

Taxability of income depends on Residential status of the individual and Income Nature. There are two type of income nature based on where you earned.

i)                   Indian Income

ii)                   Foreign Income

Indian Income: – If you earn or accrue income as follows treated as Indian income.

  • Income received and accrued in India during the previous year.
  • Income received in India and accrued in out side India during the previous year.
  • Income is received outside India during the previous year but it accrues in India during the previous year;

Foreign income: – Income neither received in India nor Accrued is treated as foreign income.

Indian Income is always taxable irrespective of the residential status.

Posted in Foreign Income, Income Tax, indian Income | Comments Off

House Property & Income Tax Savings

Does your home, saving your income tax? Buying a house for self occupation can be biggest tax saving instrument.  It saves your income tax in two ways.   You can save maximum Rs 75750 per year on your home.

Introduction:

There are two main benefits which are available under Income Tax Act, 1961 in relation to Purchase or Construction of House Property which are described as under:

  1. Deduction of Interest on Capital borrowed for purchase or construction of House Property under Section 24 (b) of the Income Tax Act, 1961. (Interest paid by house owner on housing loan)
  2. Principle amount paid towards Housing loan for  purchase or construction of House Property under Section 80 C of the Income Tax Act, 1961.
  3. The amount stamp duty/ Registration charges paid while acquiring property will be allowed deduction U/s 80C.

Interest Paid towards housing loan:-

The house property has been acquired, constructed, repaired, renewed or reconstructed with borrowed capital, the amount payable towards interest on borrowed capital is allowed as deduction under u/s 24(b) of Income tax act.

  1. We have to note here Interest payable on barrowed capital is allowed (Interest paid is irreverent here).
  2. In case of under construction property, Interest will aggregated from the date of borrowing till the end of the previous year prior to the previous year in which the house is completed and allowed in five successive financial years starting from the year in which the acquisition or construction was completed.
  3. In case Assesses is owner of more than one residential property, he may exercise an option to treat any one of the houses to be self occupied and the other houses will be deemed to be let out and annual value of such house will be determined as per Section 23(1)(a) of the Income Tax Act, 1961.

How much Interest Deduction allowed U/s 24(b) :-

  1. In case of self occupied house

(a)   In case property is acquired or constructed with capital borrowed on or after 01-04-1999 and such acquisition or construction is completed within 3 years of the end of the financial year in which the capital was borrowed:

Minimum of Actual Interest payable or Rs 1, 50,000/- .

(b)   In case property is acquired or constructed with capital borrowed before 01-04-1999

Minimum of Actual Interest payable or Rs 30,000/- .

  1. In case of Rental / Deemed to be let out House Property.

Interest payable on barrowed capital for the previous year is allowed as deduction under U/s 24(b).

Principle Amount paid towards Housing Loan:-

Any payment made for purchase or construction of a residential house property which is chargeable to tax under the head “Income from House Property” towards any installment or part payment due to any Bank, Financial Institution, Company or Co-Operative Society towards the cost of the house property allotted to him is allowed as deduction U/s 80 C of the Income Tax Act, 1961 to the extent of Rs. 1,00,000 along with other Specified Investments mentioned under Section 80 C of the Income Tax Act, 1961.

Stamp Duty and Registration Charges for a home:-

The amount you pay as stamp duty or registration fee  when you buy a house  can be claimed as deduction under section 80C in the year of purchase of the house.

Posted in Hosuing Loan, House Property, Income Tax, Income Tax Savings, Income tax U/S 80C, Tax Savings, stamp duty - income tax | 5 Comments

A whopping jump in Income tax collections for 2010-2011

Income tax department sources tell that Direct tax collections( Corporate tax, Personnel Income tax, Security Transaction Tax)  for the period April 2010- February 2011 jumped to Rs 3,36,177 Crore compare to Rs 2,78,411 core for the same period in the year 2009-2010.

The individual direct tax collection as follows

Direct Tax Type Tax Collections for April 2010-February 2011 (crore) Tax collections in same period 2009-201(crore) % Increase in Tax collection over last year
Corporate Income Tax collections Rs.2,23,612 Rs.1,80,318 24.01
Personnel Income Tax Rs.1,12,114 Rs.97,692 14.76
Securities Transaction Tax Rs.6,078 Rs.5,975 1.72

As per income tax department, they processed income tax returns refunds   Rs.59,602 crore for the period  April to February as compare to Rs 41,741 crore for the same period last year a over all jump 42.79%.

Posted in Free IT Filing India, Free Tax Filing, Free Tax Returns, Free Tax Returns India, Income Tax, Income Tax Payment, Income Tax Refund, Income tax collections | Comments Off

Income tax returns filing after Due date

If you miss the filing income tax returns this year?  Still you can file your income tax returns.

As per CBDT, due dates for filing of income tax returns for assess who are required to audit their account under income tax act is September 30.

For all others assess ( the assess who will have income from Salary, Interest, House property, Capital gains, Pension )  due date for filing  income tax returns is July 31st of the corresponding assessment year. (This has been extended to 4th August for the assessment year 2010-11.).

Assess who are not liable to audit their accounts under income tax act can file income tax returns with in assessment year without any penalty. That is if you would like to file income tax returns for the assessment year 2010-2011 (Income earned in financial year 2009-2010), you can file your income tax returns before 31st March 2011 without any penalty, before 31st March 2012 with Rs 5000 penalty.

What difference does it matter to file income tax returns before or after Due date:-

As per Indian Income tax Act, the following loses cannot be forwarded to subsequent assessment year if you did not file your income tax return before due date.

  1. Capital Loss
  2. Loss from business / Profession

You are subject to pay Interest on Total Income tax due u/s 234A at the rate of 1% for every Rs 100 per month. That is Remaining tax liability is 0, then you need not require to pay Interest.

Posted in Income Tax, Income Tax Payment, Income Tax Returns Acknowledgement | Tagged , | Leave a comment

How to Open Intimation u/s 143(1) Letter from Income Tax

How to Open Intimation u/s 143(1)

Income tax department will communicate the tax refund/ tax Due of tax assessment through Intimation u/s 143(1).Intimation letter is protected with password. You can follow below logic to open the document.
To open document, enter your PAN No (In small letters) and Date of Birth/ Date of Incorporation in ddmmyyyy format.
For example if you PAN No is AHNPP4096G and date of Birth is 01-April-1970, you have to enter password as ahnpp4096g01041970

**In case if you are facing difficulty in opening the file by using your PAN No and Date of Birth; write an email to ask@incometaxindia.gov.in mentioning your PAN No and date of birth and your Intimation.

Posted in Income Tax, Income Tax Payment, Income Tax Refund, Intimation | 5 Comments

INTIMATION U/S 143(1) OF THE INCOME TAX ACT

INTIMATION U/S 143(1) OF THE INCOMETAX ACT:-

It is very positive step that income tax department to assess all income tax returns filed online quickly. After successful assessment of tax returns by income tax department, issues Intimation u/s 143(1). Normally these intimations will be received through email to the Email address provided in filing income tax returns online. This Intimation u/s 143(1) should be treated as completion of assessment income tax returns for the year unless there is tax due from the tax payer.

We treat this as Intimation of completion of assessment of income tax returns, Intimation of Income tax refund in case refund is due from income tax, India. If net taxable income is more than total tax paid, this Intimation u/s 143(1) will be treated as demand notice for payment of income tax due to income tax department.

We have to interpret the Intimation u/s 143(1) as follows:-

  1. If “NET AMOUNT REFUNDABLE” mentioned in Intimation u/s 143(1) letter more than Rs 100, there is a tax refund due from income tax department to tax payer. Refunds amounting less than Rs 100 won’t be refunded. You can check refund status online https://tin.tin.nsdl.com/oltas/refundstatuslogin.html
  2. If “NET AMOUNT DEMAND” mentioned in Intimation u/s 143(1) letter more than Rs 100, there is tax amount due from tax payer. This will be treated as demand notice for the payment of income tax due. This Intimation letter encloses challan form to pay income tax if the due is more than Rs 100.

If “NET AMOUNT REFUNDABLE /NET AMOUNT DEMAND”  is less than Rs 100, you can treat this Intimation u/s 143(1) as completion of income tax returns assessment under Income Tax Act. It can be useful for the proof of Income/ Completion of income tax returns assessment.

Posted in Income Tax, Income Tax Payment, Income Tax Refund, Intimation | Tagged , , , | 6 Comments

Income tax rates for the financial year 2011-2012

Income tax rates for the financial year 2011-2012:-

Applicable Income tax rates for Indian individual persons (Men/HUF) having age less than 60

Income from all sources Income tax rate ( Percentage ) Applicable Education cess on Income tax  ( percentage ) Effective tax rate
0 to 180000 0 0 0
180001 to 500000 10 3 10.3
500001 to 800000 20 3 20.6
800001 and above 30 3 30.6

Applicable Income tax rates for Indian individual women having age less than 60

Income from all sources Income tax rate ( Percentage ) Applicable Education cess on Income tax  ( percentage ) Effective tax rate
0 to 190000 0 0 0
190001 to 500000 10 3 10.3
500001 to 800000 20 3 20.6
800001 and above 30 3 30.6

Applicable Income tax rates for Indian individual persons having age more than 60 and less than 80 (Senior citizens)

Income from all sources Income tax rate ( Percentage ) Applicable Education cess on Income tax  ( percentage ) Effective tax rate
0 to 250000 0 0 0
250001 to 500000 10 3 10.3
500001 to 800000 20 3 20.6
800001 and above 30 3 30.6

Applicable Income tax rates for Indian individual persons having age more than 80 (Very Senior citizens)

Income from all sources Income tax rate ( Percentage ) Applicable Education cess on Income tax  ( percentage ) Effective tax rate
0 to 500000 0 0 0
500001 to 800000 20 3 20.6
800001 and above 30 3 30.6
Posted in Income Tax, Indian Budget income tax proposal | Tagged , , | 27 Comments