Category Archives: Income Tax

E-Filing of Returns for Financial year 2011-2012 for Salaried Professional

Last date for filing returns is 31-Jul-2011

Currently there are many paid and free services for filing the returns. Some of the paid services are as follows:

  1. http://www.taxmunshi.com/
  2. http://www.taxspanner.com/

There are various other paid services but I found these to be the lowest Rs. 199 and Rs. 249 respectively.
If you are like me, who is not interested to spend a paisa on the filing the tax return then you have to visit the following site:
https://incometaxindiaefiling.gov.in
First Step: Login to the portal. If you don’t have the log in then register and create your id. It requires your PAN card details so keep them handy. If you don’t have PAN card with you at the moment, then don’t worry. Here is the link which you can access to know your PAN Card details.
Second Step: Download the excel utility or pdf Utility from the following link. For salaried professional download ITR-1. My suggestion would be to download the excel utility.
Third Step: This step requires you to have your Form 16 from your employer. Once you have that with you, you can go ahead with filling the excel utility or pdf utility. I am assuming that excel is what you have downloaded based on my suggestion since it is very easy to fill. Continue reading

Questions Regarding HRA

The following information is for educational purposes only and please consult your financial adviser or financial planner for further details.

These were some of the questions that I wanted answers and I am glad that I found them.

1. Can I pay to rent to my father if he owns a house? Is it legal? Continue reading

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Should I pay Taxes?

I am writing articles regarding taxes. I don’t preach others that it is bad to pay taxes or advice them not to pay taxes. I believe that Taxes have to be paid by the citizens for the welfare of the nation.

The only thing I want to emphasize is that, why does government gives tax break? It should serve some purpose right? I am certain that most of the rules does make sense even today which was formed way back before my birth. 🙂 Continue reading

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Insurance Policy

This time of the year, most of my friends prefer to go and get Insurance policy just because they have to buy one so that they can save tax. I get calls from various Insurance agents to take up policies from January to March time frame and the prominent reason they give me to buy the policy is “Tax Benefit”. I am not very keen on taking a policy just because I get a tax break. I know that it does not work that way.

I don’t mind taking a insurance cover for the purpose of insurance rather than “Tax Benefit”. But the fact is that most of us prefer to take the policy thinking it will reduce our tax bracket. I have done that in the past. I have taken a policy and I do pay a yearly premium. I did not know much about tax at that time and for tax benefit I did take a policy only to learn that it does not make sense. Continue reading

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House Rent Allowances

The maximum amount of House Rent Allowances (H.R.A.) permitted to be enjoyed by an employee tax-free is up to 50% of the salary in the metros namely Delhi, Kolkata, Mumbai and Chennai and 40% in other cities.

If you notice carefully, there is a clause of “up to” and not flat. This was quite interesting to me when I figured that out. Why not keep it flat? The following is the reason. The government wants some amount of money to be paid by the employee from his pocket which does comes back to exchequer. According to 2A section of the Income Tax Act, the employee has to bear a minimum of 10% of the salary as Rent so that he can get the full benefit of 50% or 40% depending on where he is located. Continue reading

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