Long Term gains in Debt Mutual Funds - Calculate tax with Cost Inflation Index !

For fellow Indian Investors, who have long term gains with the sale of Debt Mutual Fund Units, you got to pay either 10% of LT Gains (or) 20% of  LT gains post Indexation benefits - whichever is lower as Tax (along with applicable cess, surcharge).

Given the higher inflation range these days, typically 20% of  LT gains post Indexation benefits will be the lower one compared to the other.

To know Cost Inflation Index for the year 2010-11, 2011-12 please refer to the following link

http://taxguru.in/income-tax/cost-inflation-index-meaning-and-index-for-all-the-years.html

Open letter to Income Tax Department

Open letter to Income Tax Department (posting a mail for which I did not receive any response from them)

I have THREE different issues to report here.

1. For my PAN, my latest IT Efiling was done from a Bangalore based address.
   But the IT efiling website still shows my old Chennai based address.
   How do I make sure that the latest address gets updated for my PAN ?.

2. With respect to latest Communication Reference No : CPC/<>, dated 19th Oct 2011,
    I have been asked to pay Arrears for the following years.

a)  Year   2005 :  Rs 240 as Arrear.
     Only few weeks back, I got a refund notice of Rs 240 for the same year.
     My latest Form26-AS for the current year shows the same.
     May I know  Why the refund was done followed by a Arrear demand for the same ?.

b)  Year 2007 : Rs. 2311 as Arrear.
     Year 2008 : Rs 4650 as Arrear.
     I have paid the Self-assesment tax for AY 2007 & 2008.
     Form26-AS for AY 2008-09 has the details for the same.
     I am wondering why these arrears are being demanded now.
                   
3. As per the latest Communication Reference No :<>,
    dated 19th Oct 2011,
    I have been asked to meet the current AO. Since the IT Efiling website doesn't have my
    bangalore based address, I am not able to find the right AO in Bangalore.
   When I call CPC Customer care, they are asking me to contact AO in Chennai who made
    the arrear demand. Can you please help to find the correct AO for communication.

Thank you.

Regards,
Poor Indian from Salaried class who needs to break the head even after paying all the taxes and filing returns on time.

Income Tax Efiling Process for FY 2009-10 , AY 2010-11

Source : Income Tax Site

Select appropriate type of Return Form

2 Download Return Preparation Software for selected Return Form.

3 Fill your return offline and generate a XML file.

4 Register and create a user id/password

5 Login and click on relevant form on left panel and select "Submit Return"

6 Browse to select XML file and click on "Upload" button

7 On successful upload acknowledgement details would be displayed. Click on "Print" to generate printout of acknowledgement/ITR-V Form.

8 Incase the return is digitally signed, on generation of "Acknowledgement" the Return Filing process gets completed. You may take a printout of the Acknowledgement for your record.

9 Incase the return is not digitally signed, on successful uploading of e-Return, the ITR-V Form would be generated which needs to be printed by the tax payers. This is an acknowledgement cum verification form. The tax payer has to fill-up the verification part and verify the same. A duly verified ITR-V form should be mailed to “Income Tax Department – CPC, Post Bag No - 1, Electronic City Post Office, Bangalore - 560100, Karnataka, ” BY ORDINARY POST OR SPEEDPOST ONLY within 120 days after the date of transmitting the data electronically.

ITR-V sent by Registered Post or Courier will not be accepted.

No Form ITR-V shall be received in any other office of the Income-tax Department or in any other manner. In case, Form ITR-V, is furnished after the above mentioned period, it will be deemed that the return in respect of which the Form ITR-V has been filed was never furnished and it shall be incumbent on the assessee to electronically re-transmit the data and follow it up by submitting the new Form ITR-V within 120 days. This completes the Return filing process for non-digitally signed Returns.

10 For any assistance in electronic filing please contact the Public Relations Officer of the local Income Tax Office

India : Income Tax - Efiling - Process Change.

For E-filing returns
https://incometaxindiaefiling.gov.in/portal/index.do
A note from IT Dept Website :
Dear TaxPayers,
Please furnish the Form ITR-V to the Income Tax Department , CPC, Post Bag No - 1, Electronic City Post Office, Bangalore - 560100, Karnataka BY ORDINARY POST ONLY within thirty days after the date of transmitting the data electronically .
ITR-V sent by Speedpost, Registered Post or Courier will not be accepted.
No Form ITR-V shall be received in any other office of the Income-tax Department or in any other manner.
Please refer to CBDT Press Release dt 30/06/2009 regarding deferment of Notification No. 31 dt 25/03/2009. Release of Schema, utility and upload of Form 24C has accordingly been deferred.
Please check "My Account" -> "E-filing Process Status" for status of receipt of ITR-V at CPC, Bangalore.
Taxpayers are advised that copy of ITR-V sent by them to CPC Bangalore will be scanned after stamping receipt number and date of receipt and the same shall be made available to taxpayers on request through email shortly. Please await further information on procedure for the same. Income Tax Department

India : Free Tax Calculator for Salaried Individuals !!!

Please refer to,

http://www.ynithya.com/taxcalc/

Good job Nithyanand !

Looking for Financial Planning tool

I have been looking for a Financial Planning tool which helps to find,

1. Amount I need to invest today based on expected amount after "n" years
(assuming x% annual returns in each investment type)

Please let me know if you have one.

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

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.

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 !!!