Some FAQs answered for hassle free filing of income

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Some FAQs answered for hassle free filing of income Powered By Docstoc
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           Some FAQs
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              returns
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The last date for filing returns is not far away and there are still some questions in the
mind. Below are answers to some frequently asked questions that can help you file
your tax returns.

I have earned interest from a savings bank. Am I supposed to report it in the
income-tax returns?

Interest earned from savings bank account is taxable and is required to be reported in
your income-tax returns under the head, 'income from other sources'. You can contact
your bank and check the amount of interest they have paid to you in the financial year.

I have not claimed LTA exemption from my employer. Can I still make claim in
my return?

It is always advisable to claim your LTA exemption from the employer. However, if
you have not claimed it, you can claim it in the tax returns. As no hard copies are
required to be filed with the tax returns, you should keep the proof of travel and
expense incurred in your files for future use.

Will I be eligible to claim HRA benefit in my returns if I have forgotten to submit
the rent receipts to my employer earlier?

Exemption for HRA can be claimed at the time of filing the returns if the same is not
claimed earlier. As in case of LTA, it is advisable that the proof of actually incurring
the expenditure on payment of rent should be retained in your file for future reference.
This could be in the form of rent receipts, copy of lease deed, etc.

Am I exempt from filing tax returns as per the recent tax department's
notifications?

An individual whose taxable income does not exceed Rs.5,00,000 and consists of only
income from salary and interest up to Rs.10,000 from a savings bank account are not
required to file tax returns, subject to certain additional conditions.

What are the additional conditions?

The additional conditions that an individual is required to satisfy are:

They should have reported the PAN to their employer. Interest income should be
stated to the employer and TDS discharged. Form 16 should be issued by the
employer. Salary should be received from one employer only. There is no claim of
refund.

                       Prepared by IndianTaxUpdates.com
If my CTC is Rs.8,00,000, am I still exempt from filing tax returns?

The notification issued by the CBDT provides that the total income threshold is
Rs.5,00,000. The total income is computed after taking tax deductions. Thus, if your
CTC is Rs.8,00,000 and there is in an HRA exemption of Rs.1,80,000, LTA
exemption of Rs.30,000 and 80C deduction of Rs.1,00,000, then the total income will
be computed after reducing the above amounts.

In the current example, the total income will be Rs.4,90,000 and you need not file tax
returns.

Total income will be computed after providing all exemptions in the Act and
deductions under Chapter VI-A.

I have taken loan for purchase of a house. What tax breaks are available on the
interest payment?

Any person who has taken a loan for purchase or construction of a house property
shall be entitled to a maximum deduction of Rs.1,50,000 for interest paid if the house
is self-occupied. This result in a loss from house property and such loss can be set off
against other incomes. In case of a let-out property, the entire amount of interest paid
is allowed as deduction with no upper limit.

Can I carry forward my capital losses and business losses even if I file the
returns after the due date?

Taxpayers who have suffered losses from business and profession or capital gains can
carry forward and set off such losses from incomes earned in subsequent years only if
they have filed the returns within the due date.

I have paid taken an education loan for higher studies. Can I get some tax breaks
on interest paid?

Interest paid on a loan taken for pursuing higher education is eligible for deduction for
eight successive years, beginning with the year in which payment of interest is first
made. There is no limit for the amount up to which the deduction is available. The
deduction can be availed even if the loan is taken for higher education of a specified
relative.




                      Prepared by IndianTaxUpdates.com
What is Form 26AS?

Form 26AS is a consolidated tax statement, which provides the details of tax
deposited in your name. It summarizes the TDS, advance tax, self-assessment tax, etc.
It is advisable to check your taxes paid in this statement before filing your tax returns.

Do I have an option to file tax returns online after July 31?

The rules for offline and online filing remain same even after July 31. You can file tax
return after July 31 either online or offline.

What if I file my income-tax returns after the due date? Will it be considered
valid?

Your returns will be considered valid even they are filed after July 31. However, you
will not be able to revise your return. Secondly, business losses or capital losses
cannot be carried forward and set off from future years. Additionally, non-filing of tax
returns may attract interest liability and also a penalty of Rs.5,000.




                      Prepared by IndianTaxUpdates.com

				
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Description: Some FAQs answered for hassle free filing of income