Tuesday, February 26, 2013

Section 80c of Income Tax

Section 80C of the Income Tax Act allows certain investments and expenditure to be deducted from total income up to the maximum of Rs 1,00,000.
  • Contribution to approved superannuation fund/public provident fund/recognized provident fund/statutory provident fund. Provident fund contribution should not exceed 1/5th of salary & public provident fund.
  • Payment of life insurance premium. It is allowed on premium paid on self, spouse and children even if they are not dependent on father or mother subject to a maximum of 20% of sum assured.
  • Payment in respect of non-commutable deferred annuity.
  • Unit linked Insurance policy of UTI/LIC.
  • Subscriptions to National Savings Certificates VIII issues.
  • Deposits with National Housing Bank.
  • Principal part of loan taken for acquiring Residential House Property; provided that the house should not be transferred within 5 years. Loan for land cost for residential house is also qualified.
  • Subscriptions to schemes of PSU's providing long term finance for housing, or of housing boards constituted in India for infrastructural development of cities/towns.
  • Notified annuity plan of LIC or of any other approved insurer.
  • Units of Mutual Fund or UTI.
  • Notified pension fund by UTI or approved mutual fund.
  • Tuition fees (not including donation or development fees) towards full-time education including play-school activities, pre-nursery & nursery classes, of any 2 children of an individual, paid to University, College or School in India.
  • Investments in shares or debentures with a lock-in-period of 3 years, of approved public company exclusively engaged in infrastructure facility or power sector.
  • Subscription to the bonds issued by NABARD as specified by Central Government.
  • Any sum deposited as 5 years time deposit under Post Office Term Deposit.
  • Any sum deposited in Senior Citizen Savings Scheme.
  • Any sum deducted from salary of Government employee (subject to maximum 20% of salary) towards deferred annuity plan for benefit of self, spouse or any children.
  • Term deposit with scheduled bank for a period of not less than 5 years as per scheme notified by Central Government.
  • Investing in units of notified mutual fund investing in approved public companies engaged in infrastructure facility or power sector.

Thursday, February 21, 2013

Income Tax Slab for year 2012-2013

India Income tax slabs 2012-2013 for General tax payers

Income tax slab (in Rs.)Tax
0 to 2,00,000No tax
2,00,001 to 5,00,00010%
5,00,001 to 10,00,00020%
Above 10,00,00030%

India Income tax slabs 2012-2013 for Female tax payers

Income tax slab (in Rs.)Tax
0 to 2,00,000No tax
2,00,001 to 5,00,00010%
5,00,001 to 10,00,00020%
Above 10,00,00030%

India Income tax slabs 2012-2013 for Senior citizens (Aged 60 years but less than 80 years)

Income tax slab (in Rs.)Tax
0 to 2,50,000No tax
2,50,001 to 5,00,00010%
5,00,001 to 10,00,00020%
Above 10,00,00030%

India Income tax slabs 2012-2013 for very senior citizens (Aged 80 and above)

Income tax slab (in Rs.)Tax
0 to 5,00,000No tax
5,00,001 to 10,00,00020%
Above 10,00,00030%

Monday, February 4, 2013

Income Tax Return in 16 Simple Steps

  1. Access the income tax website http://www.incometax-india.gov.in/ and click on ‘File Returns Online’ and then ‘Income Tax Return' 
  2. Download the preparation software for the relevant return form under ‘Downloads’. You can save the zipped file and extract the return file.
  3. Fill out all the particulars in the downloaded software and validate entries by clicking on ‘Validate’ on the last sheet. Access the ‘Generate XML’ link; save the generated XML file. 
  4. Register on the IT Department website (mentioned above). 
  5. Enter your PAN, name, father’s name, date of birth, e-mail address and contact number.
  6. You will receive an automated link on your registered e-mail ID. Click on it to activate your account. 
  7. Your PAN is the user ID to access the link. Choose your password as per the specifications. 
  8. Save the password for your future reference. In case of lost password, reset it with the help of your PAN and the secret question chosen during registration. 
  9. If already registered, click on ‘Existing User’ login and keep your PAN and password handy. 
  10. After logging into your account, select the relevant Assessment Year (2012-13) under the ‘Submit Return’ tab and upload the generated XML file (refer to Step 3) 
  11. Acknowledgment in the form ITR-V is generated. The password to open it is your PAN followed by your date of birth. Save a copy. 
  12. If your return was digitally signed, the process is over.
  13. If your return was not digitally signed then, Take a printout of the generated ITR-V. 
  14. Sign it in blue ink in the space provided. Send the signed acknowledgment via post within 120 days to the IT Dept - CPC, P.B. No. - 1, Electronic City Post office, Bengaluru - 560100.
  15. Keep checking the receipt status on the site using the acknowledgment number on ITR-V. 
  16. Once the ITR-V is received, check if the return has been processed by logging into your account.

This completes your return filing process....