Where a taxpayer is interested in making some contributions for a genuine charity, then he can contribute up to 10% of his taxable income and get 50% of the donations so paid as a deduction under the provisions of Section 80G of the Income Tax Act in respect of certain trusts. For funds like Prime Minister’s Relief Fund, etc., the deduction is admissible @ 100%. Hence, a taxpayer desiring to make a donation can take advantage of the provisions of Section 80G in the remaining weeks of this financial year.
Claim Mediclaim Deduction
Under the provisions of Section 80D of the IT. Act, a deduction up to ` 15,000, in addition to the sum of ` 1 lakh deductible under Section
80C, is permissible in respect of premium paid on mediclaim policy.
For a senior citizen, the maximum amount deductible is ` 20,000. As
per the Finance Act, 2008, w.e.f. the A.Y. 2009-10 an additional sum of as 15,000 can be claimed for medical claim policy for parents. Where the parent is a senior citizen, the deduction could be up to ` 20,000.
Apply for Tax Refund in Time
Where a taxpayer is eligible to get refund due to higher deduction of tax at source, or due to an excess payment of advance tax, or for any other reason, then the application for refund in Fonn No. 30 should be filed as early as possible. The application should be accompanied by the I.T. Return. At the later, the application for refund should be made within one year from the end of the relevant assessment year. For example, for a refund for the FY 2010-2011, i.e., for the relevant assessment year 2011-2012, the last date for filing the application for refund would be 31.3.201 3. If the application is not made in time, then no refund would be granted. Hence, pending applications, if any, particularly for the assessment year 2011-2012 should be filed as early as possible, and latest by 31.3.2013.
Apply for PAN
One of your important duties under the Income Tax Act is to apply for a permanent account number to your assessing officer in Form No. 49A. The failure to apply for a permanent account number entails a penalty of ` 10,000 under the provisions of Section 272B of the I.T. Act. There are many types of financial transactions for which it is now compulsory for every person to quote his PAN, i.e. permanent account number, e.g. sale or purchase of any immovable property valued at ` 5 lakh or more, and sale of shares, securities, bonds, debentures, government securities above stipulated amounts, for opening a bank account, having a demat account, etc. Hence, the application should be made for PAN in time. The authorized agency to allot the permanent PAN account number is, UTI Service Centre where a PAN Card can normally be delivered within the 15 days on payment of a fee of approximately ` 60.
The finer nuance of tax planning as well as the voluntary compliance for the important dates as outlined above would enable a taxpayer to save himself from unnecessary worries, income tax penalty and penal interest and would also help in saving a good deal of tax.