Interest from Savings Bank Account is Taxable !!!

I find that there is a general assumption that Interest accumulated in your Savings bank account i.e the Salary Account is NOT taxable up to the limit of 12K.

AFAIK, as per the revised IT Guidelines, there is no such limit that qualifies for exemption.

Please look for "Common mistakes people make while filing tax returns" HERE

I see that there was a 12,000 limit under a section called 80L.
This is now no longer applicable, so you pay full tax on all interest received.

If you have received interest of more than Rs. 5,000 banks will deduct TDS,
and give you a Form 16A. In that form the "Interest earned" will be mentioned - total up all the interests received if you have more than one source, and put the total in this field.

Refer to this Link

Insurance Coverage - Adequate ?

Term Insurance Plans..

http://www.personalfn.com/insurance/termplan.html
http://www.personalfn.com/insurance/termplan1.html

SBI's Shield - Term Insurance Plans..

http://www.sbilife.co.in/sbilife/application?pageid=Insurance&InsuranceId1=products&InsuranceId2=Shield

ICICI's Iprotect - Online Term Insurance Plans.

Pay taxes online

You can pay your self-assesment tax online..

The procedure for payment of taxes online is simple and the user-friendly instructions make it even more attractive. To start with, you need to log on to NSDL-TIN website (www.tin-nsdl.com) and click on the ‘e-Tax-online payment’ option. You will then be directed to a list of banks that provide the e-tax payment facility. Click on the option for your bank and choose the applicable tax challan.

For more details, have a look at this Article.

Few updates - IT Returns Filing 07/08 !

If you are filing the returns by paper (using paper printouts of ITR1/2 forms),
you need to fill the Acknowledgement forms too.

The Ack form is available
here.

This has added recently in IT Website.

For e-Filing of the returns, the special software for ITR2 has been added recently
to the IT dept site.

Visit the following link..

Happy filing IT returns !!!

e-Filing IT Returns makes life easy !

IT Department has come up with a initiative to make life easy for us. We can file the IT returns electronically i.e Online via IT Dept Website.

Visit the following link.
http://incometaxindiaefiling.gov.in


For the assesment year 2007-08, the IT Department has come up with an option to file the returns online in their website. Click HERE

The steps are very simple and easy to follow.

1) You need to download the applicable ITR1 or ITR2 PDF file - Adobe Reader 8.1 is needed.
2) Fill the downloaded PDF file offline and save it after you enter some data - Based on Form16 issued to you recently.
3) The amount for the lines marked in Blue in the PDF will be calculated automatically. (similar to excel sheet formula).
4) Once you are done, verify with "Check Form" option and press Export to XML button at the bottom of the PDF.
5) Register yourself in IT Website link given above.
6) Press "Submit Return" Button and upload the XML file generated.
7) Up on completion, the ITR V form will be generated.
8) Take a printout of ITR V - 2 copies - Fill them & Sign them as required and submit the forms in Income Tax Office. Retain one copy with IT office seal as a Ack.

Step 7 and 8 are applicable when you do not have a digital signature.

Note : The Return Preparation Software is currently
available only for ITR-1, ITR2 . For other forms, the respective software is yet to be released.

The following link lists the different forms and whom each of them is applicable for.
http://incometaxindiaefiling.gov.in/portal/html/individual_huf.htm

Filing IT Returns - New forms this year !!!

Finally the month of July has come.. Its time to file our IT returns.. And we have some news for you.. yes.. From Assessment Year 2007-08, tax filing for year 2006-07, We will have to use new IT return forms.

Visit the following link for all the details.. There is step-by-step guideline on filling out the new IT Retunrs form..


http://blog.investraction.com/2007/06/filling-out-it-return-forms.html

The following adds more clarity on the AIR - Annual Info Report.

http://rasoni.blogspot.com/2007/06/basic-guidelines-for-filing-new-income.html

Special thanks to Deepak & Rajesh for all the time and efforts in compiling the articles !!!

Before you start Investing..

Just came across this good collection of articles written for those who had just begun INVESTING..


http://journeytowealth.blogspot.com/search/label/Beginning%20Investing

Thanks to Amit for all his efforts !!!