Share |
Tips & Tricks In Income Tax
Q-21. What are Tax Saving Schemes eligible u/s 80C ?

Saving Instrument

Rate of Int. p.a.

Lock-in Period
( in Yrs.)

Max. Limit (Rs.)

Aggregate Tax Exemption Limit U/s 80C

Bank Depsoit-Tax Saving

8 - 9 %

5

No Limit

1 Lakh

Employee Provident Fund (EPF) 8.5% * 12% of B.P. 1 Lakh
Equity Linked ( ELSS) Fund Scheme Market Defined 3 No Limit 1 Lakh
NABARD Rurla Bonds 8.25% 5 No Limit 1 Lakh
Nationa Saving Certificate (NSC) 8% 6 No Limit 1 Lakh
Post Time Depsot Account ( 5 Yrs.) 7.50% 5 No Limit 1 Lakh
Public Provedent Fund (PPF) 8% 15 70,000 70,000
Unit Linked Insurance Plan ( ULIPs) Market defined variable No Limit 1 Lakh
Prem. paid on Life Insurance Policies including Pension Plan 5 - 7% 3 No Limit 1 Lakh
Senior Citizen Saving Scheme 9% 5 15 Lakhs 1 Lakh
 
Q-22. What are the Documents to be prepared by the Assessee in support of the Return ?

DOCUMENTS TO BE PREPARED BY THE ASSESSEE IN SUPPORT OF THE RETURN.

New return forms have dispensed with the requirement of enclosing any documents in support of the return. However, in the opinion of board of Editors, even though not required to be submitted along with the return, it is advisable that the documents be prepared! obtained beforehand, since the Assessing Officer may, as per section 139C, require an assessee to furnish this documents at any time after the tiling of returns.

1. Statement of Computation of Income and Tax.

2. T.D.S. Certificate in Form 16 or l6Aas applicable.

3. Certificate/Receipts of payment of Insurance Premium, Provident Fund, Purchase of NSCs New equity shares, Mutual Funds, NSS, Medical Insurance, Donations, etc. in support of deductions claimed.

4. Audit report, Balance Sheet, Trading, Profit and Loss account, Personal account of Proprietor or Partners.

5. Statement of receipts and payments, where no regular books of account are maintained.

6. Tax-Audit report obtained under section 44AB, wherever required.

7. Accountants report under section 80-lA, 80-lAB, 80-lB or 80-IC, 80-ID or 80-fE.

8. Certificate of interest on housing loan from the lender, in support of deduction from house property income.

9. Other documents! statements in support of income.

Q-23. How to Save Tax on your Home Loan ? ?

BUYING A HOUSE

Owning a house is not just a dream but a necessity and there are several tax benefits as well. However, when buying a house, you would do well to consider the following…

(a)     Its always advisable to go in for a housing loan. Interest paid on home loans can be deducted from your  taxable income up to a maximum of Rs 1.5 lakh. This can be doubled in the case of joint ownership. If the joint owners equally bear the interest  burden,  each gets a deduction up to Rs. 1.5 lakh. However, the total deduction cannot exceed the actual interest paid by the joint owners. So, if the total yearly interest liability is, say Rs. 4,05,000, and the property is equally owned by three people, then each gets a deduction of Rs 135,000.

(b)     Principal repayment upto Rs 1 lakh is allowed as a deduction from your taxable income u/s 80C, provided the loan is borrowed from a Nationalised Bank / Recognised financial institution.

 
Q-24. How to choose the Right Tax Returns Form ?

CHOOSE THE RIGHT FORM

New tax returns form:

ITR-1: Can be used by individuals having salary, pension, family Pension or interest income

ITR-2: Can be used by individual/HUE having income from any source except from business or profession.

ITR-3: Individuals/HUE’s, being a partner in a firm, not having any income from business/profession under any proprietorship except interest, salary, bonus, commission/remuneration etc. from the firm

ITR-4: To be used by individuals or HUE having proprietary business or profession.

ITR-5: Combined Form for Return of Income for Eirms/AOP’s/BOI’s Form 49A: PAN Application Form

Form 49B: Application form for Tax Deduction Account Number allotment.

Form 60 : Declaration form to be filed by a person who does not have either a PAN or GIR number & makes payments in cash in respect of specified transactions.

Form No. 61: Declaration to be filed by a person who has agricultural income, and no other income chargeable to tax in respect of transactions specified in clauses (a) to (h) of Rule 1148.

 
Q-25. TDS Table & their Limits.

1.

Int. on Debentures & Bonds

10% over Rs. 2,500

2.

lnt. on FD’s in Banks/Hsg. Finance Cos. & 8% taxable bonds

10% over As. 10,000

 3.

lnt. other than lnt. on securities

10% over As. 5,000

4.

Insurance Commission to Agents (Individuals)

10% over As 5,000

5. 

Insurance Commission to Agents (Domestic Cos.)

20% over Rs 5000

6. 

Winnings from Lotteries/Cross-word/Game Shows

30% over As. 5,000

7. 

Commission earned on sale of Lottery Tickets

10% over As. 1,000

8. 

Winnings from Horse Races

30% over As. 2,500

9. 

Payments to Advertising Agency

1% over As. 20,000

10. 

Payments to Contractors (per contract)

2% over Rs.20,000

11. 

Payments to Sub-contractors

1% over As.20,000

12. 

Commission & Brokerage (other than transactions relating to Shares & Securities

10% over As.2,500

13. 

Payment of fees to Professionals / Technical Services p.a.

10% over As.20,000

14. 

Payment of Rent to Individuals/HUF

10% over As.1,20,000

15. 

Payment of Rent to other than Individuals/HUE

10% over As.1,20,000

16. 

Payment of Rent on Plant & Machinery or Equipments

2% over As.1,20,000

 
Q-26. 10 Investments under the Taxman's scanner.
  1. Unsecured loans above Rs. 25 lakh.

  2. Loss shown from house properly above 2.5 lakh.

  3. If investments in property more than 5 timesof gross income.

  4. Sum of short term and long term capital gain is over Rs. 25 lakh.

  5. Sale of property shown in AIR but capital gains not declared.

  6. Commission paid in excess of - Rs. 10 lakh.

  7. Realty business with gross turnover exceeding Rs. 5 Cr.

  8. Hotel and tour operations with gross turnover of Rs 5 crore but net profit shown is less than 0.05%.

  9. Depreciation claims in excess of Rs 25 Iakh,

  10. Net agricultural income more than Rs. 10 Iakh.

 
 
Get Updated ....
Tax Tutorials
E-Payment Of Direct Taxes
Filing Of Return Of Income
Interest for Delay in Filing the Return of Income [Section 234 A]
Interest for default in Payment of Advance Tax [Section 234B]
Provisions Of 'Income-Tax Law' Useful For Non-Residents
MAT (Minimum Alternate Tax)
AMT ( Alternative Minimum Tax)
Tax On Long-Term Capital Gains (LTCG)
Tax On Short-Term Capital Gains (STCG)
Exemption[ Section-54] For Capital Gains Arising On Transfer Of Residential House Property
Tax Treatment Of Gifts Received By An Individual Or HUF
Set Off And Carry Forward Of Loss Under The Income-Tax Act
Interest For Delay In Payment of TDS/TCS And For Non-Payment Of Tax Demanded
Tax Deduction/Collection Account Number (TAN)
How to apply for PAN ?
Refund Of Excess Tax Paid By The Taxpayer (Sections - 237 to 245 )
Presumptive Taxation Scheme of Section 44AD
Presumptive Taxation Scheme of Section 44ADA
Presumptive Taxation Scheme of Section 44AE
Deduction in respect of Life Insurance Premium, PPF, NSC, etc. [Section 80C]
Deduction in respect of Medical Insurance Premium [Section 80D]
Tax Deducted at Source (TDS) from Interest, other than Interest on Securities (Section-194A)
Tax Deducted at Source (TDS) from Interest on Securities (Section 193)
Late Filing Fees And Penalty For Failure To Furnish/Delay In Furnishing The TDS/TCS Statements
LIBRARY @ Tax Management
TAX & INVESTMENT GUIDE FOR "NRI"- Non-Resident Indians !
GUIDE & FAQ @ TAX
GRAPHICAL PRESENTATION @ TAX
TIPS & TRICKS @ TAX
MANAGERIAL & FINANCIAL DECISIONS @ TAX
5 GOLDEN RULES OF TAX PLANNING
FAMILY TAX PLANNING
DEDUCTIONS FROM YOUR INCOME
EXEMPTED INCOMES
HUF - FORMATION, MANAGEMENT & TAX PLANNING
COMPUTATION OF GROSS TOAL INCOME
INCOME TAX @ GLANCE
MULTIPLE KNOWLEDGEBASE ON TAX
51 TIPS ON TAX PLANNING
APPEALS UNDER INCOME TAX
ASSESSMENTS
PENALTIES UNDER IT DEPATMENTS
TAX SAVING SCHEMES
TAX READY RECKONER
TAX RATES
PROSECUTIONS UNDER INCOME TAX DEPARTMENT
TAXATION SYSTEM IN INDIA
CHARITABLE & RELIGIOUS TRUST - TAXATION
PRESCRIBED FORMS WITH with Section / Rules
KNOWLEDGE BASE !
New Topics @ Tax KnowledgeBase...
 
 

Most Popular Topics :

Corporate Tax ( Taxation in Companies)
FAQ on TDS on Salaries
FAQ on Taxable Income
FAQ on Filing of Income Tax Return
Graphical Chat Presentation of Provision of Motor Car / Other Vehicles [Rule 3(2)(A)&(B)]
'Appeals' Under Income Tax Act. 1961.
'Assessments' Under Income Tax Act. 1961.
List of Exempted Incomes (Tax-Free) Under Section-10
Income Under the Head ' Business and Professions' [Section 28 to 44]
Income Under the Head ' Capital Gain'
Income Under the Head ' House Property '[Section- 22 - 25 ]
Income Under the Head "Salary"
[Section 15-17]
Income Tax on 'Partnership Firms'
PENALTIES Under Income Tax Act. 1961.
Tax Saving Schemes for Individual -Instant Guide
New Tax Rates For FY 2017-18 & AY 2018-19
"Exempted Incomes" under Income Tax Act.
Charitable & Religious Trust :Formation, Registration, & Taxation
Hindu Undivided Family [HUF] - Formation, Management and Taxation
 

Most Popular Links :

Clubing of Income Deduction U/s 80C
Allowances Us-17(3) Exemption-Salary
Tax Amendment-2015 Taxable Income
Clubing of Income Tax Deductions
HUF Deduction HUF Investment
Gift by HUF HUF Tax Planning Tips
Tax Saving Schemes Tax Planning Tips
Refund of Tax Fringe Benefit Tax-FBT
Return Filing Assessment / Scrutiny
Notice from I.T. Dept. Incomes Types @ TDS
Exemptions-Tax Returns “Summon” U/s 131
'Black Money' @ I.Tax Big Gifts To Be Taxed
'Appeals' under I.Tax Assessment @ I.Tax
Exempted Incomes Capital Gain
Business & Professions House Property
Salaries @ I.Tax Partnership Firm
'Penalty' under I.Tax Act. Tax Ready Reckoner
Charitable Trust Useful Links @ I.Tax
 
Guide & FAQ on Tax Knowledgebase @ Taxation Income Tax @ Glance HUF - Formation, Planning & Taxation
Charitable & Religious TRUST NRI (Tax Planning,Saving,Investemnt) Budget 2017-2018 GST (FAQ, Law, Act. Rules, Schedule, Enrollment)
FAQs - Income Tax India Tax Tutorials    

Disclaimer:
All efforts are made to keep the content of this site correct and up-to-date. But, this site does not make any claim regarding the information provided on its pages as correct and up-to-date. The contents of this site cannot be treated or interpreted as a statement of law. In case, any loss or damage is caused to any person due to his/her treating or interpreting the contents of this site or any part thereof as correct, complete and up-to-date statement of law out of ignorance or otherwise, this site will not be liable in any manner whatsoever for such loss or damage.

The visitors may click here to visit the web site of Income Tax Department for resolving their doubts or for clarifications