Income Tax Exemption limit increased by 50000 Budget 2014-15

To Provide marginal relief to tax payer.Tax limit from income tax has been rasied from currently 2Lakh to 2.5 Lakh.For senior citizen the exemption limit will be Rs 3Lakh..Further Investiment under section 80C of income act being increased from currently 1 lakh to 1.5 lakh .Deducation limit for interest on housing loan has been increased from 1.5 lakh to 2lakh

Tax Slab for an individual( below 60year)

Total income upto 2.5 Lac ————————-0%
Total income above 2.5 lac and below 5Lakh——-10 % on amount exceeding Rs 2.5 Lac
Total income above Rs 5lac and below Rs 10 Lac—20% on income exceeding Rs 5 Lakh +Rs 25000
Total income more than Rs 10 Lac ——————30% on income exceeding Rs 10 Lakh +Rs 1,25,00

Tax Slab for an individual( above 60year)

Total income upto 3.0 Lac —————————-0%
Total income above 3.0 lac and below 5Lakh———10 % on amount exceeding Rs 3.0 Lac
Total income above Rs 5lac and below Rs 10 Lac—-20% on income exceeding Rs 5Lakh+Rs 20000
Total income more than Rs 10 Lac ——————–30% on income exceeding Rs 10 Lac+Rs 1,20,00

Income Tax slab for FY 2013-14 and AY 2014-15

As March is approaching everyone is worried about their Income tax and Tax saving .Here is quick look of Income tax slab for Financial year 2013-14 and Assessment year 2014-15.If you want to calucalute your Income tax there is widget provided on footer of page which will easily let you know how much tax you have to pay in FY 2013-14

File your TAX Return online

For online filing of  e-tax return.get resister with your valid PAN card on https://incometaxindiaefiling.gov.in/
After registration follow these steps:

Step 1: On homepage of  https://incometaxindiaefiling.gov.in/ GO TO ‘Downloads’ section and select applicable Income Tax Return Form of the relevant Assessment Year OR Login to e-Filing application and GO TO ‘Downloads’.’Income Tax Return Forms’ and select applicable Income Tax Return Form of the relevant Assessment Year.

Step 2: Download the excel utility of the Income Tax Return (ITR).

Step 3: Fill the excel utility and Validate. (You can pre-fill the Personal and Tax Information in your Income Tax Return. To pre-fill, Login to e-Filing application and GO TO  Download Pre-filled XML to the desired path/destination in your desktop/system. Open the Excel utility (ITR) and click the “Pre-fill” button. This will require you to select the path/destination where you have saved the XML and click OK. The details will be uploaded into your utility. You may edit the tax details, if needed).

Step 4: Generate an XML file and save in desired path/destination in your desktop/system.

Step 5: LOGIN to e-Filing application and GO TO  e-File and Upload Return
Step 6: Select the Income Tax Return Form and the Assessment Year.

Step 7: Browse and Select the XML file
Step 8: Upload Digital Signature Certificate, if available and applicable.
Step 9: Click ‘SUBMIT’
Step 10: On successful upload, Acknowledgement details would be displayed. Click on the link to view or generate a printout of Acknowledgement/ITR-V and send it to CPC, Post Bag No. 1, Electronic City Post Office, Bangalore – 560100 by Ordinary Post or Speed Post (without Acknowledgment) ONLY, within 120 days from the date of e-Filing.

Yet there is another option for taxpayer has the option of submitting ITR 1 by way of Uploading XML OR by Online submission

Step 1: Login to e-Filing application
Step 2: GO TO ‘e-File’  ‘Prepare and Submit Online’
Step 3: Select the Income Tax Return Form ITR 1 and the Assessment Year.
Step 4: Fill in the details and click the SUBMIT button
Step 5: On successful submission, Acknowledgement detail is displayed. Click on the link to view or generate a printout of Acknowledgement/ITR-V Form.

If the return is not e-Filed with a DSC (digitally signed), an ITR-V Form will be generated. This is an Acknowledgement cum Verification form. A duly verified ITR-V form should be signed and submitted to CPC, Post Bag No. 1, Electronic City Post Office, Bangalore – 560100 by Ordinary Post or Speed Post (without Acknowledgment) ONLY, within 120 days from the date of e-Filing.
On receipt of the ITR-V at CPC, the return will be further processed and the Assessee will be notified accordingly by email or SMS

Diffrence between Financial year and Assessment year

Financial year
Financial year is the Year is termed as year in which a indiviadual  has earned  income. for eg. you have been employed from 01st of April 2009 to 31st of March 2010, then this period is termed as your Financial Year.
Assessment Year’ is the period of 12 months commencing from the 1st date of April and ending on the 31st day of March next year. `Previous Year’ is the financial year immediately preceding the assessment year. As the income of the previous year is to be taxed in the assessment year, the income of financial year 2000-2001 will be taxed in Assessment Year 2001-2002. Likewise, income of F.Y.2001-2002 will be taxed in A.Y.2002-2003

Assessment year

Assessment year is the year in which you file your returns for the Income earned for the financial year, which had just ended. The income earned in a year is always assessed and taxed in the next year. The year in which income is earned is called Financial Year and the year in which it is assessed and taxed is called Assessment Year. As an example, the income of Financial Year 2011-12 will be assessed for the taxes to be paid and will be taxed in Assessment Year 2012-13.

So, the whole concept is to earn income in a particular year and pay tax on it and file your return the next year . Also remember that all tax laws are framed for Assessment Year and not for Financial Year i.e. reference to any year in Tax laws will means reference to Assessment Year. If we are in  in Financial Year 2012-13 and then Assessment Year will be 2013-14. This means that we are earning income in the year 2012-13 and we will be paying taxes on this income in the Assessment Year 2013-14.

HOW INDIAN BUDGET 2013-14 AFFECTS US

Finance minister Palaniappan Chidambaram presented his eighth budget trying to strike a balance between reviving India’s growth trajectory and putting no extra burden on aam aadmi. Let’s have a glance over it how its going to affect us.

• Tax slabs have remained unchanged. However, there will be a gain of Rs 2000 by way of tax credit for those earning up to Rs 5 lakhs per annum by way of tax credit. 

• 10% surcharge on for those who earn  over 1 crore per annum. This will impact 42,800 Indians. 

• Good news for home buyers who plan to buy their first home .Mr Finanace minster has announced an additional deduction of Rs 1 lakh on payment of interest (besides. the 1.5 lakh deduction available now).The value of house should not exceed Rs 40 lakh and the loan should be up to 25 lakh.The loan should be taken in fiscal year 2013-14.This will help to save up to Rs 30000.

• Mr. Chidambaram has proposed a 1% tax deducted at source (TDS) on high value transactions of over Rs. 50 lakh on immovable properties. 

• Leather products get cheaper

• SUV”s will be costlier Excise duty on SUVs raised from 27% to 30%.  Import tax on luxury vehicles hiked to 100 per cent from 75 per cent, and on motorcycles with an engine capacity above 800cc to hiked 75 per cent from 60 per cent.

• Mobile phones costlier Handsets with a price tag of over Rs. 2,000 will attract 6 per cent excise duty.

• Eating out will be costlier  service tax on AC restaurants.

• Another reason to quite smoking excise duty on cigarettes has been hiked by 18 per cent.

• Good news for gold buyers gold import duty unchanged. The Budget also raised to Rs. 1 lakh the maximum value of jewellery that may be brought home by Indian women who have lived abroad for more than a year, or who are changing residence, from Rs. 20,000 earlier.

• Rajiv Gandhi Equity Savings Scheme  First time investors investing  in mutual funds and listed shares will get tax benefits to three successive years.  Also, the limit for investors wanting to invest in RGESS has been raised to Rs. 12 lakh from Rs. 10 lakh earlier.

• Reduce securities transaction tax on equity futures to 0.01 per cent from 0.017 per cent currently

• However, it has imposed a commodities transaction tax (CTT) of 0.01 per cent of the price of every trade on futures contracts of non-agricultural commodities like gold, silver and base metals.

• Surcharge hiked to 10 per cent on domestic companies with annual income of more than Rs. 10 crore. For foreign companies, who pay the higher rate of corporate tax, the surcharge will increase from 2 per cent to 5 per cent.

• PSU banks to have ATMs at all their branches by March 31, 2014

• Mr. Chidambaram has proposed to set up the country’s first women’s bank as a public sector bank.

NATIONAL MASCOT DESIGN CONTEST 2012 by Income Tax Department,GoI

Income Tax Department invites all artists and designers, both professionals and amateurs, to develop a Mascot to be used in all advertising and communications of the Department. Make sure that the Mascot you develop captures the vision and values of the Income Tax Department and exhibits a definite brand recall value. The Mascot should be captivating and inspiring, particularly to the young and future taxpayers. Don’t miss this rare opportunity of exercising your creativity and bagging a cash reward of Rs. 1, 00,000/-.Contest last date of entry is 23rd Sept 2012
 Click here for guideline to be follow for MASCOT
Cick here for submission form

CRITERIA FOR SELECTION:

The Mascot should visually unify the vision and values that Income Tax Department wants to promote,     such as: Payment of tax as a value norm in the society and a core duty of every citizen. Payment of tax as a contribution of citizen in Nation building and ensuring a better future for coming generations. Depiction of Income Tax Department as an enforcement agency as well as a facilitator for voluntary tax compliance Depiction of Income Tax Department as a friend to every honest taxpayer. The design must be original, visually appealing and distinct. It must be easily adaptable to various means     of communications. Mascot can be sent in any pose, however, design in front, back and side views with colour schemes are     preferred. Use different sheet of A4 size paper for different posture. Design along with suggestions like size, pedestal details is welcome. A brief concept note in support of the design may also be provided. More than one design can be sent, however, each design must be sent separately, as a separate entry. TERMS AND CONDITIONS: Entry can be sent in two ways:     1. By Post Send your entry on an A4 size paper in an envelope superscribed as “Mascot Design for Income Tax Department” by ordinary post to Post Box No. 6005, New Delhi-110001. Every entry must carry the entrant’s name, address, phone number, e-mail address on front or back of the ‘Mascot Design’ in BLOCK LETTERS.     2. By Email Entry in high resolution JPEG format can be sent by email to mascot_contest@incometaxindia.gov.in The subject of the email must mention “Mascot Design for Income Tax Department” and the e-mail must contain the entrant’s name, address and phone number. Every entry must be sent along with the “Submission Form” which can be downloaded from the website     www.incometaxindia.gov.in by clicking the link “Download Submission Form”. Any entry without     “Submission Form” shall be rejected. There is no entry fee for the contest. This contest is open to Indian citizens only. Both amateurs and professionals can participate. Income Tax Department will not be responsible for any damage or loss in transit. No entry will be returned and all entries will remain the property of the Income Tax Department. No digital manipulation/tampering of an original design will be accepted. Entries conforming to given specifications will only be accepted. Employees and family members of the executing agency and Income Tax Department are not eligible to     participate in this competition. Entries received after the last date will not be accepted. The decision of the Selection Committee appointed by the Income Tax Department will be final and no     questions or objections will be entertained. Prize will be given only after the receipt of the original award winning Mascot design and the winning     participant will be informed by the Income Tax Department. No payment other than the prize money will be made to the winning contestant. The Income Tax Department will retain the right to use the winning Mascot in any manner it deems to fit.     The winner shall have no right to claim or share any gain, financial or otherwise, arising out of the Mascot. Income Tax Department reserves the right to change or alter the terms and conditions or to withdraw the     contest whenever it desires. CONTEST IS OPEN TILL 23rd SEPTEMBER, 2012

 Souce:Income Tax Department,Govt. of India

Income Tax Rates Slab for financial year 2012-2013

Income Tax Rates for financial year 2012-2013 (Assessment year: 2013-14)

Men
Upto Rs. 2,00,000	Nil
Rs. 2,00,001 to Rs. 5,00,000	10%
Rs. 5,00,001 to Rs. 10,00,000	20%
Above Rs. 10,00,000	30%

Women
Upto Rs. 2,00,000	Nil
Rs. 2,00,001 to Rs. 5,00,000	10%
Rs. 5,00,001 to Rs. 10,00,000	20%
Above Rs. 10,00,000	30%

Individual of 60 years or above (Senior Citizens)
Upto Rs. 2,50,000	Nil
Rs. 2,50,001 to Rs. 5,00,000	10%
Rs. 5,00,001 to Rs. 10,00,000	20%
Above Rs. 10,00,000	30%

Individual of 80 years or above (Very Senior Citizens)
Upto Rs. 5,00,000	Nil
Rs. 5,00,001 to Rs. 10,00,000	20%
Above Rs. 10,00,000	30%

 As per budget presented on 28th Feb, 2011, Pranav Mukherjee proposed changes forincome tax rate slabs as per below.Apart from current one lakh investment, additional 20,000 Rs will be non-taxable, if it is invested in long term infrastructure bonds.

Income Tax Rates Slab for financial year 2012-2013

Income Tax Rates for financial year 2012-2013 (Assessment year: 2013-14)

Men
Upto Rs. 2,00,000	Nil
Rs. 2,00,001 to Rs. 5,00,000	10%
Rs. 5,00,001 to Rs. 10,00,000	20%
Above Rs. 10,00,000	30%

Women
Upto Rs. 2,00,000	Nil
Rs. 2,00,001 to Rs. 5,00,000	10%
Rs. 5,00,001 to Rs. 10,00,000	20%
Above Rs. 10,00,000	30%

Individual of 60 years or above (Senior Citizens)
Upto Rs. 2,50,000	Nil
Rs. 2,50,001 to Rs. 5,00,000	10%
Rs. 5,00,001 to Rs. 10,00,000	20%
Above Rs. 10,00,000	30%

Individual of 80 years or above (Very Senior Citizens)
Upto Rs. 5,00,000	Nil
Rs. 5,00,001 to Rs. 10,00,000	20%
Above Rs. 10,00,000	30%

 As per budget presented on 28th Feb, 2011, Pranav Mukherjee proposed changes forincome tax rate slabs as per below.Apart from current one lakh investment, additional 20,000 Rs will be non-taxable, if it is invested in long term infrastructure bonds.

Know more about your PAN(Permanent Account number) number Structure

The Permanent Account Number under new series is based on following constant permanent parameters of a taxpayer and uses Phonetic Soundex code algorithm to ensure uniqueness :-
 i. Full name of the taxpayer;
 ii. Date of birth / Date of Incorporation;
 iii. Status;

 iv. Gender in case of individuals; and
 v. Father’s name in case of individuals (including in the cases of married ladies)
 These five fields are called core fields, without which PAN can not be allotted

The fourth character of the PAN must be one of the following, depending on the type of assesse:
C — Company
P — Person
H — HUF(Hindu Undivided Family)
F — Firm
A — Association of Persons (AOP)
T — AOP (Trust)
B — Body of Individuals (BOI)
L — Local Authority
J — Artificial Juridical Person
G — Govt

The fifth character of the PAN is the first character (a) of the surname / last name of the person. In the case of Personal Pan card, where the fourth character is “P” or (b) of the name of the Entity/ Trust/ Society/ Organisation in the case of Company/ HUF/ Firm/ AOP/ BOI/ Local Authority/ Artificial Jurdical Person/ Govt, where the fourth character is “C”,”H”,”F”,”A”,”T”,”B”,”L”,”J”,”G”

The phonetic PAN (PPAN) is a new concept which helps prevent allotment of more than one PAN to assessees with same / similar names. AIS works out the PPAN based on some important key fields of an assessee using an internal algorithm. At the time of PAN allotment, the PPAN of the assessee is compared with the PPANs of all the assessees to whom PAN has been allotted all over the nation. If a matching PPAN is detected, a warning is given to the user and a duplicate PPAN report is generated. In such cases, a new PAN can only be allotted if the Assessing Officer chooses to override the duplicate PPAN detection.

A unique PAN can be allotted under this system to 17 crore taxpayers under each alphabet under each status (i.e. individual, HUF, Firm, Company, Trusts, Body of Individuals, Association of Persons etc.)

Objectives sought : PAN was introduced keeping in view the following objectives :-
i.  to facilitate linking of various documents and information, including payment of taxes, assessment, tax demand, arrears etc. relating to an assessee.
ii.  to facilitate easy retrieval of information.
iii.  to facilitate matching of information relating to investment, raising of loans and other business activities of taxpayers collected through various sources, both internal as well as external, for widening of tax base and detecting and combating tax evasion through non-intrusive means

If you want to know the PAN card just click here and fill this form and get your PAN card info . If you want to know about TAN then click here
 PAN can be verified online by filling out the core details mentioned in the PAN Card like NAME,DOB,FATHER’s name click here

IF you have applied for PAN/TAN then you know your status at TAX INFORMATION NETWORK site or at UTI site

Know more about your PAN(Permanent Account number) number Structure

The Permanent Account Number under new series is based on following constant permanent parameters of a taxpayer and uses Phonetic Soundex code algorithm to ensure uniqueness :-

 i. Full name of the taxpayer;

 ii. Date of birth / Date of Incorporation;

 iii. Status;

 iv. Gender in case of individuals; and

 v. Father’s name in case of individuals (including in the cases of married ladies)

 These five fields are called core fields, without which PAN can not be allotted

The fourth character of the PAN must be one of the following, depending on the type of assesse:
C — Company
P — Person
H — HUF(Hindu Undivided Family)
F — Firm
A — Association of Persons (AOP)
T — AOP (Trust)
B — Body of Individuals (BOI)
L — Local Authority
J — Artificial Juridical Person
G — Govt
The fifth character of the PAN is the first character (a) of the surname / last name of the person. In the case of Personal Pan card, where the fourth character is “P” or (b) of the name of the Entity/ Trust/ Society/ Organisation in the case of Company/ HUF/ Firm/ AOP/ BOI/ Local Authority/ Artificial Jurdical Person/ Govt, where the fourth character is “C”,”H”,”F”,”A”,”T”,”B”,”L”,”J”,”G”

The phonetic PAN (PPAN) is a new concept which helps prevent allotment of more than one PAN to assessees with same / similar names. AIS works out the PPAN based on some important key fields of an assessee using an internal algorithm. At the time of PAN allotment, the PPAN of the assessee is compared with the PPANs of all the assessees to whom PAN has been allotted all over the nation. If a matching PPAN is detected, a warning is given to the user and a duplicate PPAN report is generated. In such cases, a new PAN can only be allotted if the Assessing Officer chooses to override the duplicate PPAN detection.

A unique PAN can be allotted under this system to 17 crore taxpayers under each alphabet under each status (i.e. individual, HUF, Firm, Company, Trusts, Body of Individuals, Association of Persons etc.)

Objectives sought : PAN was introduced keeping in view the following objectives :-

i.  to facilitate linking of various documents and information, including payment of taxes, assessment, tax demand, arrears etc. relating to an assessee.
ii.  to facilitate easy retrieval of information.
iii.  to facilitate matching of information relating to investment, raising of loans and other business activities of taxpayers collected through various sources, both internal as well as external, for widening of tax base and detecting and combating tax evasion through non-intrusive means.

If you want to know the PAN card just click here and fill this form and get your PAN card info . If you want to know about TAN then click here
 PAN can be verified online by filling out the core details mentioned in the PAN Card like NAME,DOB,FATHER’s name click here

IF you have applied for PAN/TAN then you know your status at TAX INFORMATION NETWORK site or at UTI site