Return is not mandatory whose income below Rs. 250000/-. Apart from this
if you have pan card must file income Tax
Return before due date, even if your Taxable Income is less
than Rs. 250000/-.
Heads of Income:
Perquisites: Salary and allowance (House Rental Allowance,
Hardship allowance) and benefits (such as Rent free accommodation, car, stock
options etc.) provided by employer either free or at a concessional rate.
House Property: Rental income from House Property.
Gains of business or profession: Business Income
Capital Gains: Profit/loss on sale of shares,
mutual funds, Property etc.
other sources: Interest on fixed deposit, dividend, Gifts etc.
Tax levied State govt. from salary is deducted,
- Transport allowance is deducted from salary up-to
Rs. 800/- per month,
- Children education allowance is deducted from
salary up-to Rs.100/- per month per child,
- Insurance Premium u/s 80C up to 1 lac,
- Payment of medical insurance premium. Deduction
is available up-to Rs.15,000/ for self/ family and also up to Rs. 15,000/-
in respect of parent/ parents of the assessee,
- Donation to certain funds, charitable
institutions u/s 80G,
- Deduction of up to Rs.10,000/- for interest on savings bank account or post office savings account,
- Rebate of Rs. 2000/- is available if Total income
is less than Rs. 5 lacs
- Deduction of Rs. 1 lac u/s 80C is allowed on
Payment Basis if construction of house property is completed.
For Interest on
- If Property is constructed/bought within 3 years
then For self occupied Property : up-to Rs. 2 lacs, For Let out Property:
- If Property not constructed/bought within 3 years
then Deduction up-to Rs. 30,000/- only.
- Pre-construction interest is allowed after
completion in 5 equal installments without any limit.
joint filing of tax return does not exist. There exists clubbing provisions for
income of minor children and spouse in certain circumstances.
by spouse: Spouse salary from a concern where individual has a substantial
interest ( > 20% stake)- Salary due to technical/professional expertise
asset to spouse: Transfer of asset to spouse for inadequate consideration or otherwise
than in connection with an agreement to live apart.
All Income of
minor child: Exclusion available for manual work and Activities involving application of skills
Modes of tax
- Tax to be withheld from the remuneration paid by
the employer even after departure if income exceeds maximum threshold limit not chargeable to tax .
- Annual certificate to be issued by the employer
for salary and benefits.
- Withholding at prescribed rates on personal
- Advance tax payable on
income, where it is liable to tax in India. (Tax Limit
- Advance tax payable on personal income in three
- 30 per cent by 15 September
- 60 per cent by 15 December
- 100 per cent by 15 March
Income Tax slab
Disadvantages of filing Return.
- Return filing is mandatory for getting any loan,
- Return filing is mandatory for getting VISA,
- For getting Credit Card,
- Standard proof of income,
- For quick registration of immovable properties,
of filing Return. If Return is not filed
- Penalty of Rs. 5000/- will be levied & also
interest u/s 234A is required to be paid,
- Losses can not be carried forward to next year,
- No Revise Return can be filed,
- Interest up-to 1% per month will be levied.