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Important 5 Setps of e-Filing.

Filing of Income Tax Returns could be quite a task for many, owing to plethora of paperwork and lengthy procedures. In this era of technology, no longer is this going to be a daunting task. You could now file your Income Tax Returns online without having to spend hours at the Income Tax office, or pay exorbitant fees to a chartered accountant. Read on to know about the hassle free process of “E-filing” of returns.

Dou you know, What is E-filing?

E-filing is a process of filing your returns the electronic way using the help of the internet. Various web portals have been designed and designated to help you file returns. So, without being bogged down by lengthy procedures, you could now use the internet to file your returns in the comfort of your home or office, at any time of the day.

Where do you E-File your Returns?

The Income Tax of India website lets tax payers of all kinds, to file their returns online, free of cost. The steps involved are explained in the main home page of the website. This free version however is not very user friendly for novice users. For someone not familiar with ITR-1, ITR 2 etc, understanding and using the excel based utility could be quite difficult. Also, the site has no provision for online help and could get slow at times.

Sites such as www.taxyogi.com and some of the other portals which, at a nominal fee, not only guide you through the e-filing process, but also offer value added services.

Tax Yogi offers users two tax packages, Basic and Advance. One need not have to worry about any form numbers such as ITR-1 or ITR-2. Tax Yogi’s ITR tool takes care of it all. It takes just 10 minutes to fill in the details and complete the process. The advance package of Tax Yogi additionally offers expert advice on tax saving options and, tax planning services for the future.

How do you E-file Returns?

Before you begin, keep all relevant information such as your Form 16, your investment details, your income from other sources etc., ready at hand.

Step 1: You would need to register with the portal through which you desire to file your returns. Most tax return filing sites are user friendly and help you through the process in a step by step manner. You can achieve the same task by downloading Excel utility from the It department website. However it may be difficult to use.

Step 2: Details such as name, address, PAN, total salary, deductions etc are collected in a digital format.

Step 3: An ITR XML file is generated which is your electronic income tax return. Do not try to make sense of it as it’s a bit technical.

*Step 4: You would need to upload this ITR XML file on the Income Tax website. For doing this, an account needs to be created in the Income Tax website using your Permanent Account Number. Once uploaded, an acknowledgement receipt called ITR Form-V would be generated. This needs to be signed and sent to “Income Tax Department – CPC, Post Box No.1, Electronic City Post Office, Bangalore – 560100, Karnataka” within 120 days of e-filing.

Step 5: You would receive a confirmation from the IT Department, acknowledging the receipt of ITR-V. This is your final acknowledgement that concludes your e-tax filing.

How to earn Tax Benefit on the part Salary Arrears ?

Any income due or received by an employee from his employer or former employer is taxable under the head `salaries’ as per the provisions of the Income Tax Act, 1961. It is pertinent to note that the salary earned in respect of a particular financial year is subject to tax as per the tax rates applicable for that financial year.

There are occasions when an employee may receive income in a particular financial year, which relates to earlier financial years, i.e., as arrears of salary or he may receive certain payments in advance for future financial years, i.e., as advance salary.

In such an event, it is possible that if the entire income is added to the salary income of that financial year, then the tax payer may have to pay tax at a higher rate depending on the slab rates under which his income is otherwise taxable.In such a case, there is a relief provided under the Act to ensure that the employee is not worse off. Email me in case of queries.

Do you know what is Arrears and Advance Salary?
Where a tax payer receives a sum in the nature of salary being paid in arrears or in advance or receives in any financial year salary for more than twelve months or receives profits in lieu of salary or family pension paid in arrears due to which his total income is taxable at a rate more than the rate at which it would otherwise had been taxable then he may claim relief in respect of tax rates. Besides, certain other receipts like gratuity received for past services, compensation received from the employer or former employer on termination of the employment, payment received in commutation of pension, etc are also eligible for the purposes of said relief, subject to certain conditions.

The said relief is to be claimed in the financial year in which the extra payment by way of arrears, advance is taxed. Broadly, the tax relief under these provisions is arithmetic in nature, as it involves finding out two rates of taxes. The first is the rate of tax applicable to the total income including the extra amount in the year of receipt. Second is finding out the rate by adding the arrears to the total income of the year to which they relate.

What is you did not claim ?
No such relief can be availed in respect of the amount received by the tax payer on his voluntary retirement or termination of service if an exemption in respect of the same has been claimed otherwise by the tax payer under some other provision.

Claim Relief Procedure:
The tax payer is required to furnish the particulars in Form 10E supplied by Income Tax dept. which has annexures for arrears in salary,gratuity etc. fill it up, compute the tax relief going back to your respective financial years return data and tax slab rates and submit to employer fo him to make tax calculations.

Maharashtra State: 6th Pay Dearness Allowance Rates.

Friends, most of employee dose not know about Dearness Allowance Rate. Now I provide you the latest Dearness Allowance rates from 01.05.2011. As you already well know about Dearness Allowance but, on demand of some regular visitors I provide latest Dearness Allowance Rates as per Government Resolutions and regularly upgraded Dearness Allowance Rate whenever it increases.

The latest Dearness Allowance Rate as on 01.05.2011 as per Pay Commission as bellow:

Date of D.A. as per 6th Pay

Date

D.A. Rates

01 Jan-2006

0.00%

01 Jul-2006

2.00%

01 Jan-2007

6.00%

01 Jul-2007

9.00%

01 Jan-2008

12.00%

01 Jul-2008

16.00%

01 Jan-2009

22.00%

01 Jul-2009

27.00%

01 JUN-2010

35.00%

01 Nov-2010

45.00%

01 May-2011

51.00%


















For 103% D.A. G.R. is Click Here as per 5th Pay.
For 51% D.A. G.R. is Click Here as per 6th Pay
Most Important Information reg. Dearness Allowance Click Here


Submit Income Tax Return via Mobile Phone.

Friends, Today TaxSpanner Online Income Tax Return Filing Company announced that a Mobile Version of Income Tax Return submission is launch which solved your e-filing of Income Tax Return for A.Y. 2011-12.

The CEO of TaxSpanner Company Mr. Ankur Sharma assured the Taxpayee enjoying faciltiy that i.e.“After introducing the eFile by eMail option where customers need to just send us an email with a few details, e-filing of taxes through mobile is the next obvious step for the company,”.

He further aded that, “Our new mobile site will make it easy for the taxpayer to file his ITR using the mobile phone,”.

At the first week of July 2011, the new Movile Vertion will be launch by the company and this new solution from the company will offer taxpayers service to file ITR through their mobile phones.

TaxSpanner has developed eFile by mobile solution using open source technologies namely Linux, apache, postgres, python, django which it has used for the service from its website.

To access the service, a mobile user will have to visit TaxSpanner site on his handset from the browser present on the device. After this he will be automatically directed to “eFile by eMail” application page of the TaxSpanner mobile site.

The user is not required to be registered for this. Only he will need to fill up a form with some personal details and upload Form 16 on the same page. Thereafter, the ITR will be filled and generated automatically, the statement said.

Education loan facility for Studying Abroad.

Length of study can range from one week, usually during a domestic break, to an academic year, encompassing a couple academic terms, to an entire degree program that spans several years. The most common are semester long programs that cover either the spring or fall semester. There are also winter and summer semester programs. The winter semester programs, for public, 4-year universities, are usually more focused on a specific area of the countries culture due to the shortened time students have in the country.

Some students choose to study abroad to learn a language from native speakers. Others may take classes in their academic major in a place that allows them to expand their hands-on experience (e.g. someone who’s studying marine biology studying abroad in Jamaica or a student of sustainable development living and studying in a remote village in Senegal). Other students may study abroad in order to get a credential within the framework of a different educational system (e.g. a student who goes to the United States to study medicine), or a university student from Albania who goes to Germany to study mechanical engineering.

Before you opt for studying abroad; you need to take care of certain factors like:
  • Quality of education of the concerned country you are planning to travel.
  • Cost of living
  • Scholarship Programs
  • Course Fees
The following points are to be taken care of:
  1. Consulting the study abroad advisor is a must as you get to know the different university programs you will be offered.
  2. Taking help of the academic advisor will let you know the type of credit you can receive.
  3. To ensure the facility of education loans for the students studying abroad, you need to take help of the financial advisor.
  4. Apply for your passport and visa and make sure the type of Visa you require.
  5. Do some homework and get a better picture of the country you are about to travel.
  6. Apply for the travel insurance and make sure that it should cover migration and homecoming.
  7. Chalk out a budget and find out how much will be the cost of living and what are things you cannot afford to do in that foreign land.
Study abroad programs have a spectrum of integration, from those that offer the greatest integration into host institutions to those offering the most assistance to students.
  • Integrated - Complete (or nearly complete) integration into the host academic programming; the director is often a citizen of the host country; students take regular university courses with locals. Examples include interstudy.
  • Peninsula - Mix of selected local resources and provider-managed resources. Some courses may only be available to program participants, others may be taught by local university faculty.
  • Island - Strong support services enhance the local experience and give it context. This allows an overseas experience without diverging from the home school's degree program.
Costs for a study abroad program include:
  1. Health insurance
  2. Living costs incurred during the program
  3. Passport and visa fees
  4. Round-trip transportation for the approved program
  5. Tuition and fees for the program
Students who wish to study abroad fund their studies through a variety of sources, including gifts or loans from family, grants from their home governments, grants from host nations or host universities, scholarships and bank loans.

Financial aid for U.S. students who wish to study abroad may include a combination of scholarships, government student loans, and private student loans.

Due date 30th June 2011 for Income Tax Return, Form No. 16 & 16A.

Friends, Due date to deposit the tax deducted on amount/Income paid in March 2011 and Tax deducted on provisions created in March 2011 is 30.04.2011. This is as per notification 41/2010 dated 31.05.2010. (download complete notification from link given at the end)

Old rule :
Many people have a doubts regarding the due date for tds payment in March month. In old rules due date for tax deducted in month of march was 7 April and date to deposit tds deducted on provision on last day of financial year was 31.05 of next financial year.

But the these rule has been amended and as per latest rule for tds deducted in march 2011 ,due date to deposit tax is 30.04.2011. (read text in red in rule 30 Given below)

So enjoy for next three weeks and deposit tax on or before 30.04.2011.

New rule is reproduced here under.

“Time and mode of payment to Government account of tax deducted at source or tax paid under sub¬ section (1A) of section 192.

Rule :30.
(1) All sums deducted in accordance with the provisions of Chapter XVII B by an office of the Government shall be paid to the credit of the Central Government

(a) on the same day where the tax is paid without production of an income‐tax challan; and
• (b) on or before seven days from the end of the month in which the deduction is made or income tax is due under sub‐section (1A) of section 192, where tax is paid accompanied by an income‐tax challan.

(2) All sums deducted in accordance with the provisions of Chapter XVII‐B by deductors other than an office of the Government shall be paid to the credit of the Central Government
• (a) on or before 30th day of April where the income or amount is credited or paid in the month of March; and
• (b) in any other case, on or before seven days from the end of the month in which‐
o (i) the deduction is made; or
o (ii) income‐tax is due under sub‐section (1A) of section 192.

(3) Notwithstanding anything contained in sub‐rule (2), in special cases, the Assessing Officer may, with the prior approval of the Joint Commissioner, permit quarterly payment of the tax deducted under section 192 or section 194A or section 194D or section 194H for the quarters of the financial year specified to in column (2) of the Table below by the date referred to in column (3) of the said Table.

For more

Apply the followings to save Money, Income Tax & Time.

Friends, as per the Income Tax Law, it is mandatory to pay the income tax for every citizen, whose annual Income over Taxable Limit. The Income Tax assessment takes place every calendar year in the month of March. The Government of India has been given so many benefits to the taxpayers. Tax payment is applicable for a person who is generating profit by any mode either by the business or from the job. In any of the public or private limited company, there are shareholders then the tax will not be exempted on the individual basis. The calculation is based on the annual profit generated by the organization.

In India, there are various tax slabs for the male and female and as per the annual salary, the tax deduction takes place. If a male individual earns (in Rs) 180,001 to 500,000, the tax would be 10% if it exceeds from 500,000 to 800,000 the tax would be 20% if it exceeds from 800,000 the tax would be 30%. Tax slabs for the female individual is different from the male individual, the tax limit for the female start from 190,001. For 190,001 the tax is 10%, from 500,000 to 800,000 tax is 20% whereas for above 800,000 tax would be 30%.

To get the tax benefit, it is important to show the investment proof. Tax waiver is applicable if the investment has done in the following:

Mutual funds There are several government and private mutual funds available in the market such as State Bank of India mutual funds, Franklin Templeton, Kotak Mahindra and ICICI. Investor has to take care that tax waiver is available only on those mutual funds that have a locking period; a fund without a locking period is not eligible for the income tax benefit.

Home Loan – If an individual has purchased any property on loan, a tax waiver is applicable on it.

House Rent – House rent is another mode to save the income tax. While filing for income tax, tax receipt should be attached.

Insurance Policy- Government has given tax benefit on different type of insurance policies such as life insurance policy and health Care. This should be noted that no tax benefit is given for the General insurance like motor insurance etc.

While filing for the income tax it is useful to attach the receipt of the documents as per the above list.

Calculate here your Income Tax

Tips here on Income Tax & Money Saving

Importance of Income Tax Return & Guidelines for eFiling or Online Filing ?

Regarding Income Tax Return, the most important things I will share with you as and hereafter. But on the contrary most of Taxpayee not watch or read the post carefully. So due to this problem I will try to my level best to clarify & escape from Problem of online Income Tax Return Filing for Assessment year 2011-12.

Some are very easy task for layman even you don’t required any software. However you need to know about scrolling of computer mouse. There are lots of benefits to file income tax return online. No need to stand in long queues at the income tax department. No fear of lost any document, one can print and download whenever you wants after log-in your account.
Filing Income Tax Return:
  1. Select appropriate type of Return Form
  2. Download Return Preparation Software for selected Return Form.
  3. Fill your return offline and generate a XML file.
  4. Go to Income Tax Department website.
  5. Register and create a user id/password
  6. Login and click on relevant form on left panel and select “Submit Return
  7. Browse to select XML file and click on “Upload” button
  8. On successful upload acknowledgment details would be displayed. Click on “Print” to generate printout of acknowledgment/ITR-V Form.
  9. In case the return is digitally signed, on generation of “Acknowledgment” the Return Filing process gets completed. You may take a printout of the Acknowledgment for your record.
  10. In case the return is not digitally signed, on successful uploading of e-Return, the ITR-V Form would be generated which needs to be printed by the tax payers. This is an acknowledgment cum verification form. The tax payer has to fill-up the verification part and verify the same.
  11. Update: Now you have to send ITR-V to the “Income Tax Department , CPC, Post Box No – 1, Electronic City Post Office, Bangalore – 560100, Karnataka”. They’ll send the acknowledgment receipt at your email address.
  12. For any assistance in filing the paper copy of the return please contact by comment form given below.

OFFICIAL NOTIFICATION OF NO INCOME TAX RETURN INCOME UPTO 5 LAKHS OF SALARIED PERSON

AN INDIVIDUAL HAVING INCOME NOT EXCEEDING RS. 5 LACS FROM SALARIES/OTHER SOURCES FOR A.Y. 2011-12 IS NOT REQUIRED TO FILE RETURN U/S 139(1)

NOTIFICATION NO. 36/2011 [F. NO. 142/09/2011 (TPL)], DATED 23-6-2011

In exercise of the powers conferred by sub-section (1C) of section 139 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby exempts the following class of persons, subject to the conditions specified hereinafter, from the requirement of furnishing a return of income under sub-section (1) of section 139 for the assessment year 2011-12, namely :—

Class of Persons

1. An Individual whose total income for the relevant assessment year does not exceed five lakh rupees and consists of only income chargeable to income-tax under the following head,—

A. "Salaries";

B. "Income from other sources", by way of interest from a savings account in a bank, not exceeding ten thousand rupees.

Conditions

2. The individual referred to in para 1,—

i. has reported to his employer his Permanent Account Number (PAN);

ii. has reported to his employer, the incomes mentioned in sub-para (B) of para 1 and the employer has deducted the tax thereon;

iii. has received a certificate of tax deduction in Form 16 from his employer which mentions the PAN, details of income and the tax deducted at source and deposited to the credit of the Central Government;

iv. has discharged his total tax liability for the assessment year through tax deduction at source and its deposit by the employer to the Central Government;

v. has no claim of refund of taxes due to him for the income of the assessment year; and

vi. has received salary from only one employer for the assessment year.

3. The exemption from the requirement of furnishing a return of income-tax shall not be available where a notice under section 142(1) or section 148 or section 153A or section 153C of the Income-tax Act has been issued for filing a return of income for the relevant assessment year.

This notification shall come into force from the date of its publication in the Official Gazette.