CBDT Press Release on Tax collections during first quarter

PRESS RELEASE
Net direct tax collections during first quarters of the present fiscal (up to June 2010)
stood at Rs.68,675 crore, up from Rs.59,465 crore in the same period last fiscal, registering a
growth of 15.49 percent. Growth in Corporate Taxes was 21.65 percent (Rs.43,439 crore as
against Rs.35,709 crore), while Personal Income Tax (including STT, and residual FBT and
BCTT) grew at 1.24 percent (Rs.24,075 crore as against Rs.23,780 crore).
Corporate advance tax for the first quarter, at Rs.26,876 crore in FY 2010-11 against
Rs.20,456 crore in FY 2009-10, grew at 31.4 percent, fastest since 2005. The corresponding
growth in corporate advance tax stood at –3.4%, 25.1%, 30% and 26.9% for FY 2008-09, 2007-
08, 2006-07 and 2005-06, respectively.
Securities Transaction Tax, however, recorded a negative growth at 25.21 percent during
the first quarter (Rs.1,094 crore in FY 2010-11 as against Rs1,462 crore in FY 2009-10).

Source* Income Tax Department

Revised Agreement between Republic of India and the Republic of Finland with respect to taxes on DTAA.

The revised Agreement and the Protocol between the Republic of India and the Republic of Finland for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income (DTAA) was signed by the Chairman, CBDT on behalf of Government of India and the Ambassador of Finland on behalf of Government of Finland on 15th January, 2010 and has come into force on 19th April, 2010.

Source* Income Tax Department

New Facility added for Registered E-filers

New facility added in "My Account" for registered e-filers at www.incometaxindiaefiling.gov.in to view the Tax Credit Statement (Form 26AS) to verify if the tax payments made by you or TDS deducted from salary or interest etc. are correctly reported to the Department.

Source* Income Tax Department

Order of Jurisdiction of Commissioner(s) of Income Tax.

The Chief Commissioner of Income Tax, Chandigarh have issued Order of Jurisdiction for Commissioner(s) of Income Tax and Ranges of North West Region.
Source* Income Tax Dept

Draft Citizen's Charter 2010

The process of drafting a new Vision document - Vision 2020 is nearing completion. An important component of the Vision 2020 document is the Citizen's Charter 2010. As a part of Vision 2020, the Citizen's Charter 2007 was revisited by a Working Group constituted by the CBDT.

source* - http://www.incometaxindia.gov.in

CBDT released revised discussion paper on the Draft Direct Taxes Code

The draft DTC along with the Discussion Paper was released in August, 2009 for public comments. The response from various stakeholders has been overwhelming and a number of valuable inputs have been received. CBDT has released the revised Discussion Paper on the draft Direct Taxes Code (DTC), which is being placed in the public domain to seek responses on the modified proposals. The major issues which have been addressed relate to Minimum Alternate Tax (MAT) on gross assets, tax treatment of savings - Exempt Exempt Tax (EET) vis-a-vis Exempt Exempt Exempt (EEE) basis, status of Double Tax Avoidance Agreements vis-a-vis the domestic law, the administration of the General Anti-avoidance Rule (GAAR), taxation of income from house property on a presumptive basis, tax treatment of capital gains and tax treatment of non-profit organizations, etc. The response on the revised Discussion Paper may be submitted electronically on the website 'http://finmin.nic.in' or may be sent to e-mail address 'directtaxescode-rev@nic.in' on or before 30th June, 2010.

source* http://www.incometaxindia.gov.in

WISH YOU A HAPPY DIWALI

Taxsmile wishes all it's users a happy and prosperous DIWALI

Let's celebrate the festival of light and hope with safety and security...ONLINE and OFFLINE

Cheers!

Vodafone vs Income Tax Dept, India

Vodafone is fighting a tax bill in India, which tax authorities say is more than $2.7 bn including interest.

Vodafone said on Friday it had filed a writ with the Bombay High Court defending itself against a new step by Indian tax authorities to treat the company as an agent of the seller in its 2007 purchase of Hutchison Whampoa Ltd's mobile business in the country.

Vodafone is fighting a tax bill in India, which tax authorities say is more than 120 billion rupees ($2.7 billion) including interest, on the $11.1 billion deal.

Tax authorities have said Vodafone's deal was liable for tax because most of the assets were based in India and buyers must withhold capital gains tax liabilities and pay them to the government. Vodafone has said Indian law did not require it to deduct tax and that the tax is usually paid by the seller.

In a statement on Friday, Vodafone said the tax office has now initiated a "different process", treating Vodafone as an agent of the seller and termed it an "unusual development."

Vodafone has appealed to the Supreme Court over the tax authorities' jurisdiction to tax the deal, after the Bombay High Court dismissed its petition and ruled that the tax office had jurisdiction.

The Supreme Court will set a date on Oct 25 for hearing Vodafone's appeal challenging the lower court ruling, the world's largest telecommunications operator by revenue said last month.

"Vodafone contends that the key issue of jurisdiction (as to whether the Indian tax office can tax the transfer of a foreign company's shares between two non-residents) is currently under appeal to the Supreme Court of India," the company said in Friday's statement.

"Hence any action which seeks to treat Vodafone as an 'agent' of Hutchison is misguided and premature," it said.

The Supreme Court had asked the tax office to determine potential tax liability by Oct 25, Vodafone said last month.

The company reiterated on Friday that it believed it had no tax liability on the transaction.

Direct Tax Code

The much talked about Direct Tax Code (DTC) bill was introduced today in the parliament by the finance minister Pranab Mukherjee. DTC bill was cleared by the cabinet and will know be subjected to the parliamentary committee for scrutiny. The scrutiny and replacement of the current tax norms is the need of the hour as India is marching to be the third largest economy. The purpose of the bill will be to modernise India’s direct tax laws, mainly its income tax act which is now nearly 50 years old, the government through the bill seeks to simply procedural laws and build a investor friendly atmosphere. It aims at phasing out multiple tax exemptions and deductions. The DTC bill proposed to raise the exemption limit on income tax from the current Rs1.6 (for male)lakh to Rs2 lakh. The bill seeks to fix corporate tax at the current 30% but without surcharge and cess. With surcharge and cess, the current tax liability on corporate comes to over 33%. The legislation also proposes to increase MAT from 18% to 20% of book profit of a company. It seeks to levy dividend distribution tax at 15%. The bill, introduced by finance ministry, seeks to widen income tax slabs to levy 10% rate on income between Rs2 lakh to 5 lakh, 20% on between Rs5-10 lakh and 30% above Rs10 lakh.

DTC bill was cleared by the cabinet and will know be subjected to the parliamentary committee for scrutiny. The legislation is expected to be taken up for discussion when the parliament reconvenes for the winter session in November. ‘The tax norm is also expected to update tax rates and administration for foreign institutional investors, for whom India is a top destination.

TAX Consultant

A person who is specialist in tax laws and is an expert in financial matters is known as a tax consultant. In some nations tax consultants are required to verify the balance sheets of firms so that it doesn’t cross certain limit.
Tax consultants are required for following
reasons:

• Teach and give basics about tax
• Help individuals to minimize taxation
  
• Accounting to reduce the tax of a person.
• In some cases the tax knowledge about the salaried employee
• Tax on clubbing of income

There are various categories of tax consultants. Depending on the tax applied on various things various tax consultants or tax consultant firms are available. The various kind of tax consultants are as follows:

1. Direct tax consultant:

If a person pays a certain amount to the government directly which was imposed on him then that tax is called direct tax. The various type of direct tax is income tax, corporate tax, transfer tax, gift tax, etc. This is a compulsion for all citizens because the amount paid is used by the residential government. The various tax consultants help in the calculations and tax planning for this kind of tax.

2. Indirect tax consultant:

An indirect tax is collected by the intermediary from a person who has used the services of the intermediary. The middleman later does the formality of filing the tax return and submits to government. The examples of indirect tax are Sales tax, Value added tax (VAT) or goods or service tax. There is no need for consultancy if there is normal hotel bill or small super markets or shopping bills but it is very important for big companies who takes services from other firms to have an Indirect tax planner.

These are further classified as:

1. Income tax consultant:

It is applied to an individual, corporations or other entities for their financial incomes. This is direct tax. The various consultants who help in income tax planning are:

2. Corporate tax consultant:

The income tax applied to a company, firm or a corporation is known as corporate tax. It is basically applied on profit made by the company.

3. Sales/Service tax consultant:

When a person uses a facility or purchase goods sales tax is applied. This tax can be included in the tax-inclusive price or else tax exclusive and later a person has to pay. The consultants in this case are usually for the sales concerned with a company or else the services used by company not for small sales or services i.e. if an individual has shop or visited hotel or bought an item then you don’t need a consultant. The various consultancies are:

4. VAT consultant:

Value added tax avoids the merger effects of the sales tax and this is done by adding the tax only at the stages of production.

Save Tax with Your Relationship!

A child and his parents share a unique and natural bond, across cultures, the world over. Parents take care of a child until she/he grows up and when the parents grow old the child takes care of them, thus making the cycle complete.

Even income-tax laws recognise this reciprocity and provides for tax benefits in respect of expenses incurred in taking mutual care.
In this article, I have touched upon some of the important provisions of the present income-tax laws affecting tax treatment of the amount spent while taking care of each other. For the purpose of claiming these benefits, the term ‘child’ also covers the ‘step’ child as well as the ‘adopted’ child.

Benefits available for the expenses incurred on bringing up a child.

* Leave Travel Assistance:
Any amount received from one’s employer as travel concession or assistance, popularly known as leave travel allowance (LTA), which is spent on journey undertaken with your child and spouse, siblings and parents is exempt from income tax two times in a block of four years is exempt from income tax.

* Education allowance:
Education allowance received from your employer is exempt up to Rs 100 per month for a maximum of two children. Moreover, any hostel allowance received for your children from your employer is exempt up to Rs 300 per month per child.

* Amount paid for life insurance, etc:
The Income Tax Act provides for an aggregate deduction of Rs 1 lakh from your income in respect of the following payments made for the benefit of your child under Section 80 C together with other amounts paid by you.

i. Any amount paid towards life insurance premium on the life of any child;
ii. Any amount paid for the purpose of buying deferred annuity plan on the life of any child;
iii. Any amount deducted from the salary of a government employee towards securing deferred annuity or for making provision for your child up to 20% of your salary;
iv. Any contribution paid for buying unit linked insurance plans in the name of your child;
v. Any amount paid towards tuition fee to any university, college, and school or to education institution located in India in respect of two children for the purpose of full-time education;
vi. Contribution towards Public Provident Fund account in the name of any child.

* Amount spent for taking medical treatment and health
insurance of your child:
The Income Tax Act also allows you a deduction up to Rs 15,000 from your income in respect of any amount paid for medical insurance for yourself together with your spouse and your dependent children u/s 80 D.

You can also claim deductions in respect of expenses incurred for medical treatment, rehabilitation or training of a child with special needs or for paying for life insurance in order to provide for maintenance of a child with special needs. The deduction available is for Rs 50,000. However, if the child is suffering from severe disability, the claim can go up to Rs 1,00,000.

In addition to the cost of purchasing medical health insurance and treatment of a child with special needs, the income-tax laws also allow you deduction in respect of amounts spent for medical treatment of your child for specified diseases. Deduction is available for up to Rs 40,000 under Section 80DDB

* Amounts paid in respect of interest on education loan for your child:
Income-tax laws also allow you a deduction of interest paid on a loan taken from specified institutions for your child, for pursuing higher education. This deduction, unlike other deductions mentioned above, is available without any monetary limits. Hence, the entire interest paid by you in respect of a loan taken by you for education of your child is tax deductible to you.

Now, for the payback.
Now your child is taking care of you and he too is getting tax deduction benefits for taking care of his parents.

Any amount of LTA money received from your employer for the purpose of travel of your dependent parents with you is exempt from income tax subject to certain conditions.

The major cost to be incurred by an earning child on his parents in addition to the day-to-day expenses is the cost in respect of medical care. The Income Tax Act provides for deductions in respect of various items related to medical expenses.

First of all, the Income Tax Act provides for a separate deduction in respect of amounts paid in respect of buying medical insurance for the parent or parents for Rs 15,000. This amount of deduction goes up to Rs 20,000 in case the parents are senior citizens.

The Income Tax Act also allows deduction in respect of any expenditure incurred on medical treatment, training and rehabilitation of parents with disability. Deduction is available for up to Rs 50,000. However, in case a parent suffers from severe disability, the deduction claimed can be up to Rs 1 lakh.

The tax laws also provide for deduction up to Rs 40,000 for medical treatment of parents who are suffering from specified diseases. The deduction goes up to Rs 60,000 in case the parents are senior citizens.

From the above discussion, it is clear that the income-tax laws recognize the need to support the parents as well as the child and grant tax benefits accordingly. The provisions of the proposed Direct Tax Code have not been discussed here since they are proposed to be introduced only from April 1, 2012 and may undergo a lot of changes by then.

Easy guide to filing your income tax returns!

It’s that time of the year again when all your income for the current financial year is in and you need to file your income tax returns. With July 31 just a few days away, here’s how you can do it without any hassles.

It is time to file your income tax returns. Filing of tax returns is compulsory for everyone whose gross total income exceeds the basic exemption limit, which is Rs 1.90 lakhs for women below 65 years of age, Rs 2.40 lakhs for senior citizens and Rs 1.60 lakhs for any other individual, for the financial year 2009-10 (for income earned between April 2009 and March 2010). The due date for filing the tax returns for financial year 2009-10 in case of individual tax payers is July 31, 2010. The current tax returns don't require any documents to be annexed.

The Income Tax Department has opened special counters for the purpose at Gayatri Vihar, Palace Grounds. The counters will remain open until July 31, the last day for filing returns. Walk in to the Palace Grounds and get all the assistance you need with your income tax returns, as the special counters will operate between 9.30 am and 5.30 pm. This time, the IT department is all set to put up nearly 90 counters at Palace Grounds.

Nearly 200 personnel from the department will be manning these counters. The idea behind this effort is that all those who seek help with filing returns find all they need at the location; they will then not have to seek anything beyond these premises — help desks, IT return forms, PAN verification counters, kiosks from where you can photocopy any documents that you need copies of — these will all be available to those seeking to utilize these services. But in case you plan to do it yourself, here’s what you need to know:-

Why should we file IT returns?
There is a misconception among some salaried individuals that because the employer has deduced tax at source, they are not required to file tax returns. Even though tax has been deduced and there is no other source of income, or liability to pay tax, you have to file income tax returns. It is necessary to file income-tax returns if the total income, before allowing any deduction, exceeds the exemption limit.

Even if your income is below the exemption limit, which is bound to happen at the beginning of one’s career, filing income tax returns will help in the documentation process if you are taking a loan or an insurance policy or when you are applying for a visa.

What documents are required?
All you need is Form 16 and 16A along with the summary of all your bank accounts. And of course your PAN Card number.

Which form to choose?
There are eight Indian Income Tax Return (ITR) forms. Depending on the various streams of income you earn, you have to select the return form accordingly. E.g. If you have income from salary, pension and interest income, then ITR-1 is the form for you. If you have capital gains or rental income or you’re paying off a home loan in addition to interest income and salary income, then you need to fill ITR-2. Make sure you select an appropriate form after taking into consideration, the flow of income from various streams.

How to file your returns?
There are two possible ways to file your returns—online and offline.

Though many are contemplating whether it’s worthwhile shifting from the old fashioned method of filing returns physically to a modern method i.e. e-filing which was introduced in the assessment year 2006-07, but the fact remains that with the last day for filing Income Tax returns coming close, whatever means you choose—offline or online, what matters is that it is done before its too late.

What is E-Filing of returns?
It means filing your Income tax returns electronically through the internet. It’s a simple, easy and convenient process. You can log on to www.incometaxindia.gov.in and file returns for free. However the process involved is complicated, which might be confusing for a lay man as it includes downloading of an XML file.

To save you of this complication, many websites like www.taxsmile.com, today offer easier online tax filing services which do not involve any downloads, but they do charge you a minimal amount varying from Rs 250-400.

You also can go to your Chartered Accountant and submit all required documents, paying a consultation fee, which could go up to as high as Rs 2500, varying from CA to CA. However, the online mode is said to be a faster, quicker and easier way to file your returns. The return form, along with copies of necessary supporting documents, has to be filed at the appropriate income tax office or special counters set up for this purpose by Income Tax Department of India.

E-filing of tax returns made mandatory for corporates

The Finance Ministry on Monday made it mandatory for all companies to file income tax returns electronically with digital signatures, a move that will facilitate faster filing of I-T returns by India. The ministry indicated that the online filing of income tax returns could touch one crore-mark in the current financial year from 55 lakh in the last fiscal year.

All business entities and Hindu undivided families (HUFs) with a business income of over Rs. 40 lakh per annum will also be required to mandatorily file income tax returns in the electronic format, but the digital signatures will not be mandatory. Under the Income Tax Act, the individuals and HUFs are required to get their accounts audited if the turnover or gross receipts from business exceeds Rs. 40 lakh (Rs. 60 lakh from assessment year 2011-12) or receipts from the profession exceeds Rs. 10 lakh (Rs. 15 lakh from assessment year 2011-12).

Although, e-filing of income tax returns has been getting momentum lately, a large number of Indian masses are unaware of its benefits. The best advantages of filing your income tax returns online is that you can file your returns anytime, anywhere, away from the prying eyes of others and within the confines of your own home.

At the same time you need to ensure you protect your personal information online as the identity theft rate related to tax return filing rises in keeping with the increasing popularity of online tax filing. The web links you get on your emain can be dangerous as the fraud links can steal your sensitive personal information, from PAN numbers to credit card account information. If you need to log in, do so independently and through the log-in Web page, not by clicking on a link. It should be kept in mind that the Income Tax Department will never request personal information via fax.

There are many web sites which do provide this service today. Taxsmile.com is one of such sties which offers free tax preparation to people up to 3 lakhs of income. People can then review their tax calculations instantly and proceed with filing their returns online without need to visit the income tax office. Taxsmile.com covers almost complete set of deductions allowed by income tax department so that tax payers who have invested in any approved schemes for tax savings can get the benefit of the same and prepare accurate returns. As part of their corporate social responsibility.

The government had introduced the system for mandatory e-filing of income tax returns by corporates from assessment year 2006-07. The due date for submitting income tax returns for assessment year 2010-11 is July 31, 2010.

Filing Return made a Little Easier

Inauguration of Income Tax Office at Raghunathgunj, Jangipur,
District Murshidabad, West Bengal by Honorable Union Finance Minister Shri Pranab Mukherjee on 10.07.2010.

Here's how to file tax returns without pain

It's that time of the year again. July is the month that most of us come up with excuses, either at work or at home, to spend time with that person who assumes special importance this month. You guessed it right: it's your chartered accountant!

But if you have all the papers intact, why wait for him, just get started. Yes, tax filing could be as simple as that, thanks to the Internet and tax norms getting simpler every year.

This simplicity, clubbed with a little understanding of how the process works, could save you from those long, winding queues and last-minute tension outside Aayakar Bhavan.

Here are some tips on how you can help yourself with just a few clicks and be a responsible citizen of the country. Read on . . .

Due date

July 31 is the deadline for filing tax returns if you don't have to get your account audited. In other words, people whose income is not subjected to tax audit under the Income Tax (IT) Act, have just a month to file tax returns.

Other assesses have that bit of extra time. They will have to get it done by 30 September. Now that you have figured out the applicable due date, let's get started with the calculations. Don't sweat. It's not that tough a task.

Source - Rediff Business

Taxsmile goes with inditrade

Taxsmile is a simple “Do it yourself” tax return preparation portal which will take you through an intuitive and step by step process for preparing your return. Once you have prepared you can efile your income tax return in just one click.

You don’t need to know any taxation laws, any Finance jargon etc. as a simple and transparent mechanism guides you through the whole process. Taxsmile.com is an Electronic Return Intermediary (ERI) certified by Income Tax Department of India and has been recognized as the “Best Website for Online Filing of Taxes by the PC World Web Awards 2008”!!

Filing Solutions:

· File by eMail: Just send your form 16 to Taxassist@taxsmile.com and Taxsmile will prepare your return.

CBDT Press Release on Tax collections during first quarter.

Net direct tax collections during first quarters of the present fiscal (up to June 2010) stood at Rs.68,675 crore, up from Rs.59,465 crore in the same period last fiscal, registering a growth of 15.49 percent.

Revised Agreement between India and Finland

Revised Agreement between Republic of India and the Republic of Finland with respect to taxes on DTAA.

The revised Agreement and the Protocol between the Republic of India and the Republic of Finland for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income (DTAA) was signed by the Chairman, CBDT on behalf of Government of India and the Ambassador of Finland on behalf of Government of Finland on 15th January, 2010 and has come into force on 19th April, 2010.

New Facility added for Registered E-filers

New facility added in "My Account" for registered e-filers at www.incometaxindiaefiling.gov.in to view the Tax Credit Statement (Form 26AS) to verify if the tax payments made by you or TDS deducted from salary or interest etc. are correctly reported to the Department.

CBDT released revised discussion paper on the Draft Direct Taxes Code

The draft DTC along with the Discussion Paper was released in August, 2009 for public comments. The response from various stakeholders has been overwhelming and a number of valuable inputs have been received. CBDT has released the revised Discussion Paper on the draft Direct Taxes Code (DTC), which is being placed in the public domain to seek responses on the modified proposals. The major issues which have been addressed relate to Minimum Alternate Tax (MAT) on gross assets, tax treatment of savings - Exempt Exempt Tax (EET) vis-a-vis Exempt Exempt Exempt (EEE) basis, status of Double Tax Avoidance Agreements vis-a-vis the domestic law, the administration of the General Anti-avoidance Rule (GAAR), taxation of income from house property on a presumptive basis, tax treatment of capital gains and tax treatment of non-profit organizations, etc. The response on the revised Discussion Paper may be submitted electronically on the website 'http://finmin.nic.in' or may be sent to e-mail address 'directtaxescode-rev@nic.in' on or before 30th June, 2010.
The information provided is synced with Income Tax Department, India.

Direct Tax

Tax Collection
Direct Taxes, now the major resource provider to the Central Government, have grown at
an average annual rate of 24 percent in the last five years and have nearly trebled from
Rs.1,32,771 crore in financial year 2004-05 to about Rs.3,78,000 crore in financial year 2009-
10, increasing its share from 4.1 percent to 6.1 percent of the Gross Domestic Product (GDP).
This tremendous growth has been made possible not only due to rationalisation of tax structure
and improvement in tax administration leading to better tax compliance, but also persistent and
unrelenting efforts of employees of the Income Tax department. File your Income Tax Return to ensure the Government has the documents to prove the same.

Tax Reforms
2. To improve compliance further, tax laws need to be simple, stable and robust; tax rates
should remain moderate; and multiplicity of tax exemptions and deductions should be gradually
phased out in order to widen and deepen the tax base. Tax administration needs to be further
toned up by appropriate use of technology on the one hand, and improving professional
competence and responsiveness of the employees on the other.
3. A major tax reform initiative has already been announced in the proposed ‘Direct Taxes
Code 2009’ to simplify, rationalize and consolidate the laws and procedure, relating to direct
taxes. Its draft is under revision, taking into consideration the areas of concern expressed by
various stakeholders, and the discussion paper will be shortly in the public domain before
introduction in Parliament in the forthcoming monsoon session. It will indeed be legislation for
the 21st century, which will witness the emergence of an economically strong and vibrant India. I
anticipate that the new code will usher in major changes in procedures and practices of Direct
Tax. The Department, therefore, needs to draw a roadmap for administratively meeting the
challenges and the changes that will be introduced by the new Code. The Human Resource
Directorate of the Department should draw up plans for training in cooperation with tax training
institutes for capacity building for implementation of the Direct Tax Code. The transition from
existing law to DTC would require completion of delegated legislation in a time bound manner.
CBDT should ensure smooth transition by planning the activities schedule well in advance.

Ammendments in TDS

Notification about Amendments in TDS

Filing Return was Never so Easy

Technology advancements have made our life easier and fast. The idea of technology is to streamline the human requirements and provide solutions which results in saving time by reducing human efforts.

Taxsmile.com adopted the same ideology and offer a range of solutions to help you file your income tax return online without requiring expert knowledge on Income Tax regulations.

You can choose to file your taxes online, or you can e-mail your eForm 16 (PDF) to taxassist@taxsmile.com, or you can walk up to your nearest Citizen Service Center* and submit your Form 16 and Taxsmile will help you file your returns.

Filing Tax Return is a socio-economical responsibility of every citizen in each country. Taxsmile helps in adhering this responsibility. Not only this, you can save a lot of trees and protect our environment. Watch out this video to learn more...

* BangaloreOne, eSeva for Hyderabad and Jeevan for Delhi.

File Tax Return Online - E-Mail and File

Modern World with Modern Technology helps us streamline and re channel our requirements in a sophisticated way, or the e-way to be appropriate. With advancement of technology, solutions for the day to day requirements along with any other personal and professional needs have been smoothed.

File Tax was done earlier with a hard copy of Form 16 and preparing a Tax Return manually with the help of a Tax Consultant. Now technology helps us prepare and file our tax return online. To Further streamline the process, now we can even file our tax return online by sending an e-mail with the e-form 16 (PDF Format). just send the e-mail and Tax Return would be prepared for You. You just need to review it and File it online with your User ID and Password. if you have a digital Signature you can even get the acknowledgment in minutes of filing tax return.

The Income Tax department with the Centralized processing center is taking due care to process the refunds faster for the returns filed through online. This is a new beginning for the tax payer. Now you don't have to wait longer to get your refunds.

Visit us at www.taxsmile.com for more information.

Finance Minister Dedicates Centralised Processing Centre (CPC) to Nation

Honorable Finance Minister Shri Pranab Mukherjee, dedicated Centralised Processing Centre (CPC), Hosur Road, Bengaluru - 560100 to the Nation on 29-05-2010.

This is the next Big Step to Streamline the Tax Return Filing Procedure. The Initiative was taken to promote online Tax Return Filing which is completely environment and user friendly.

In the similar fashion Taxsmile.com has launched and dedicated the online tax filing solutions to strengthen the Go Green Initiatives. Taxsmile.com offers two solutions for it's users to make the tax return filing simple, hassle-free and environment friendly.

Are you Ready for the Next Revolution? Sign Up Today!

New Return Forms For Assessment Year 2010-11

Form No.	Heading	Instructions
Notification
ITR-2	For Individuals and HUFs not having Income from Business or Profession	ITR-2 - Instructions
ITR-3	For Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship	ITR-3 - Instructions
ITR-4	For individuals and HUFs having income from a proprietory business or profession	ITR-4 - Instructions
ITR-5	For firms, AOPs and BOIs	ITR-5 - Instructions
ITR-6	For Companies other than companies claiming exemption under section 11	ITR-6 - Instructions
ITR-7	For persons including companies required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D)	ITR-7 - Instructions
ITR-V	Where the data of the Return of Income in Forms Saral-II (ITR-1), ITR-2, ITR-3, ITR-4, ITR-5 & ITR-6 transmitted electronically without digital signature	ITR-V – Instructions
Acknowledgment

Tax and Income from Life Insurance

Life insurance is a part of one’s investment portfolio and is therefore considered to be an asset. It can be used as a handy tax planning tool. In fact, any amount received by the policy holder from the insurance company, including any bonus on the policy, is totally exempt from being taxed. There are a few exceptions, though:

A) Where the policy holder takes the policy for a disabled dependent and this dependent dies before the policy holder does; and the policy holder receives the amount from the insurance company.

B) Any amount received under Key Man Insurance Policy.

C) Where the Life Insurance Policy is issued on or after 01.04.2003 and the premium payable on the policy in any year is more than 20% of the capital sum assured in the policy, any amount received by the policy holder under such a policy (including bonus) is not exempt; e.g. Bima Nivesh, Jeevan Dhara Plans.

In all the above situations, receipts from life insurance are taxable. But if the receipts are in the form of claims due to the policy holder’s death, then these are not taxable. Also, if the policy was issued before 01.04.2003 in the last scenario above, the receipts from the policy will not be taxable.

Tax on receipts from a Life Insurance Policy is levied not on the entire amount, but only on the difference between the total amounts paid over the years as indexed (i.e. the total cost of the policy); and the receipts from the policy. This is because a life insurance policy is an asset, as we saw earlier. So tax is levied only on the capital gain and not on the entire income.

Deduction Limit of Medical Insurance Premium

There is some good news on the Medical Insurance Premium front for the Financial Year 2009-10. Where earlier you could claim a maximum deduction (under Section 80D of the Income Tax Act )of Rs.15,000 for medical insurance premium paid for self (the taxpayer), spouse, dependent children and parents combined; now you can claim up to Rs.15,000 for self, spouse and dependent and another Rs.15,000 separately for parents. And if your parents are senior citizens, this limit is Rs.20,000. This was introduced in FY 2008-09.

“I am 67 years old and working. My parents are still around. Do I get the Rs.20,000 limit each for myself and my parents?”
The answer is yes, although this is a rare scenario.

A couple of conditions need to be satisfied to avail of this benefit:

1. The premium amount should not be paid by cash.
2. The insurance policy must be from any of the following companies:
a) General Insurance Corporation of India in a Scheme approved by Central Government.
b) Any other Insurance Company in a Scheme approved by Insurance Regulatory & Development Authority.

Note that the limits are also applicable to Hindu Undivided Families (HUF), when the health of any of its members is insured. When the member insured is 65 or above, the limit increases to Rs.20,000. For the literally inclined, from the Financial Year (2008-09) onwards, the deduction for medical insurance premium is to be termed as deduction for Health Insurance Premium. The name-change, however, will not have any bearing on how the scheme operates.

File Your Income Tax Return in an easy and hassle-free way with Taxsmile.com

START INVESTING EARLY AND SAVE TAX

July 31 signifies the deadline for filing your income tax return. It also reminds you that four months of the current financial year—April, May, June and July—are already gone. To plan your investments from the tax point of view, you have only 8 months left!

Although there is no need to panic, it is better to start checking out the various options available to you that allow you to save tax based on Section 80C of the Income Tax Act. Under this section, you can invest a total of up to Rs.1 lakh and deduct the invested amount from your gross annual income. You can consider investing in unit-linked life insurance plans (ULIP) that offer you life cover as well as decent returns and/or growth. Or if you prefer stability, Public Provident Fund (PPF) is a good, safe option, with tax-free interest on the investment. Or if you do not mind parking your funds for 6 years, you can get the same safety (but with interest earned being taxable) from National Savings Certificates (NSC).

What is important is to assess your short term and long term financial needs first. Then look at the amount of funds you have. If you have a small capital base but decent, regular income, you can opt for a Systematic Investment Plan (SIP) option, if available. Conversely, if you have a decent capital base with good earnings from it but have low savings due to inflation or increased needs; you can plough your capital gains or interest earnings into appropriate investments and derive the tax benefit.

For detailed financial planning and counseling, it is advisable to approach a professional, who can guide you personally, looking at your unique requirements.

Income Tax Tips - Financial Year (FY) 2009 - 2010

Financial Year 2009-10 has ended. As we move into F.Y. 2010-11, there are 3 things we need to do when it comes to taxes:, pay off whatever income tax we still owe the exchequer, file our tax returns and plan our taxes for the new financial year. Let us look at each of these in brief:

Pay off outstanding tax:

One of the benefits of preparing an income tax return is that while doing so, you need to calculate you final tax liability. Preparing tax returns online can give you an accurate figure that tells you if you still owe any income tax. If you do, pay it off immediately, before you file your return. Like filing returns online, you can pay your taxes online too.

File your income tax return:

Beginning 1st April, you have 122 days to file your tax return, with the last date (before interest is charged) being 31st July. Ask your employer for your Form 16, if they do not voluntarily give it by the end of April. Form 16 gives you most of the information you will need to file your tax return. Once you have all the data ready, do not delay. Prepare and file your return as soon as possible. If you choose to e-file, all you need is to organise your data for ready reference, and a few minutes to type it into a website like www.taxsmile.com. You will get the amount of tax payable by you or refundable to you, displayed onscreen. You can then generate you return at one click and file it online itself.

Plan your taxes:

The last year may be remembered as the "Year of Worldwide Recession" for many years to come. India was affected in a moderate way. The good news though, is that we are steadily coming out of it. So as you earn your money, be conscious of where it is going; this will help you avoid any mistakes you might have made during the rough phase last year. Save money, but invest it judiciously, especially in industries that are less likely to see a drop in demand. Make your investment planning transparent to your employer early so that they begin deducting tax from your salary sooner in the financial year. This will spread your tax liability evenly through the year. That, in turn, will leave you with more cash towards the end of the year, which you can spend, donate or invest as per the need of the hour.

An early start can help you make the most of tax benefits which you might miss out if you leave things for the end of the year.

Income Tax Slabs for FY 2010 - 11 and 2009 - 10

Income Tax Rates/Slab for Assesment Year 2011-12 (F Y 2010-11)	Rate (%)
Up to 1,60,000 Up to 1,90,000 (for women) Up to 2,40,000 (for resident individual of 65 years or above)	NIL
1,60,001 – 5,00,000	10
5,00,001 – 8,00,000	20
8,00,001 upwards	30
Few amendments made to the taxation system for the FY 2010-11: From now onwards there will be only 2 pages in the IT filing form for individuals. More cases can now be appealed against. Rs. 20,000 tax exemption will be provided for investments in certain investment bonds. This is in addition to the already allowed exemption (Rs. 1,00,000) in certain savings instruments. Tax Exemption will be given for contribution to the Central Government Health Scheme (CGHS). New fields have been added to the e-TDS/TCS form. These new fields are Ministry name; PAO / DDO code; PAO / DDO registration no.; State name; and Name of the utility used for return preparation.

Income Tax Rates/Slab for Assesment Year 2010-11 (F Y 2009-10)	Rate (%)
Up to 1,60,000 Up to 1,90,000 (for women) Up to 2,40,000 (for resident individual of 65 years or above)	NIL
1,60,001 – 3,00,000	10
3,00,001 – 5,00,000	20
5,00,001 upwards	30*
*A surcharge of 10 per cent of the total tax liability is applicable where the total income exceeds Rs 1,000,000. Note : - Education cess is applicable @ 3 per cent on income tax, inclusive of surcharge if there is any. A marginal relief may be provided to ensure that the additional IT payable, including surcharge, on excess of income over Rs 1,000,000 is limited to an amount by which the income is more than this mentioned amount. Agricultural income is exempt from income-tax.

Tax Calculator and Filing Income Tax Return Online

Welcome to the world of Income Taxes, where each of us are our own bosses and employees.

How - "It is my own money, still I have to plan to save tax through intelligent investment options promising a good return on investment, reduce the tax burden, and increase my take-home pay." - "Am I not my own Boss and Employee"?

Anyways during this time of the year most of us remain focused yet tensed and pre-occupied with the thought of Income Tax, ways to save tax, calculate actual tax payable and identify various channels of investments offering maximum tax benefit.

Income from Salary, Income from Business or Profession, Income from House property, Income from Capital Gains, Income from other Sources are all taxable. Once you pay the taxes the next is Filing the Returns with the Income Tax Department. This is also a tedious method.
So overall the first four months of a financial Year in India remains busy in Calculating Tax, Planning for Investments, Choosing the right investments, then paying the Income tax and at last Filing the Income Tax Return with Income Tax Department. It is a long enough duration that gets wasted with the hassles of Income Tax and Tax Saving Strategies. This impacts our performances, our peace of mind and overall our health and environment.

That's the time when Taxsmile.com devised a simple, fast and hassle free yet environment friendly solution for all your tax related requirements. At Taxsmile.com you can calculate your tax, plan your investments with our suggestions based on your inputs, invest and file Income Tax Return Online, which is more easy and environment friendly too.

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Tax Planning and Filing Income Tax Return Online

Feb 28 2010 was the day we all were eagerly waiting for the Finance Minister's declaration on Taxes. Now that it is clear to all of us about the direct and in-direct tax structures, it is time for planning and implementation of our tax saving strategies.

For most of us it is near to impossible to to avoid tax, except by the way of deduction under chapter VI A of the Income Tax act. However there are ways to tackle this situation - with careful planning and implementation.

Keeping in mind the individual requirements we devised a tool popularly known as Taxsmile.com. Plan your tax saving strategies with Taxsmile.com, an online portal to help you assist in the tough task of tax planning. It offers suggestions to plan your investments under various schemes that are being devised to help you minimise your tax burden. Taxsmile.com also offers the most environment friendly way to calculate your taxes, plan your taxes and File your Income Tax Return Online with your own Digital Signature making the entire process completely paper-less, simple, fast and hassle-free.

So you not only release your tax burden but also become an integral part of the initiative by Taxsmile.com to save trees and protect environment.

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