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.
Sunday, June 27, 2010
Sunday, June 13, 2010
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!
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.
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
Wednesday, June 9, 2010
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.
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.
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.
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:
| |
| 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 : -
| |
Tuesday, June 8, 2010
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.
Just register for free and be your own boss!
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.
Just register for free and be your own boss!
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.
Register for free, start calculating and planning your taxes.
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.
Register for free, start calculating and planning your taxes.
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