Missed To File Income Tax Return In Time…. You Missed These Benefit

Missed To File Income Tax Return In Time…. You Missed These BenefitDid you missed to file Income Tax Return in Time or thinking that I have Refund / Zero Tax so I can file my ITR upto 31st March. Failing this you are also loosing some benefit / facility also provided by Income Tax Department. For your information some important points are highlighted here:-

Avoiding interest under section 234A
Though interest under 234B and 234C is levied if there is tax due and taxpayer did not pay advance tax. Taxpayers can avoid paying interest under section 234A by filing their return on time. This interest is charged @ 1% per month. It is calculated from the due date till the date on which you actually file your return.


*Loss of Interest on Refund
If your calculation shows Refund and did not file ITR in its due course then you will loose interest @1% per month on the Refund Amount which is calculating from April to date on which your refund get process  .

Faster Refund Process 
Income tax department has been processing refunds faster for returns filed on time. Delays in filing also mean delay in receiving refund. Last year, the department processed refunds within 2-3 weeks of filing. So if excess TDS has been deducted on your income, do not delay your filing.

Revise Return Filing is Possible
Many times; taxpayers commit mistakes while submitting their returns. Forgetting to claim a deduction is common errors. Sometimes an income may not have been included. Filing your returns by due date makes revision possible.

Carry Forward of Losses
A lot of taxpayers have short term losses from equity shares. These losses can carried forward in your tax return and set off from capital gains in succeeding 8 years. To be able to do this, your return must be filed within the due date. Losses from business and profession are also allowed to be carried forward when return is filed on time. So remember to file on time if you have losses.


Paying Tax Dues Timely
A lot of taxpayers see a tax due in their return after they consolidate their incomes and prepare their submission. This may happen due to inclusion of interest income. If there is a tax due, interest keeps accumulating until it is paid. So filing on time makes sure taxes are paid in time and interest (under sections 234B and 234C) does not keep adding up. Why shell out extra money when you can file on time and save on penal.


Star Family Health Optima (Family- Floater)

One of the best family floater plans available in cashless health insurance (Mediclaim) sector : -

Star Health Family Health Optima

Some Points to Know before buying this policy :-

Single policy, wider coverage for whole family at an affordable premium.

* Get extra sum insured (auto recharge) at no extra cost, up to 30%  of sum insured.

* Health Checkup costs up to Rs.5,000/- for every block of 3 years of policy coverage.

* Donor expenses for organ transplantation.

* Domiciliary Hospitalization Expenses for treatment exceeding 3 days.

* Cover for over 400 day care procedures.

* Entry age 16 days to 65 years.

* Restoration benefits you can claim 100% of your sum insured
  E.g. if sum insured is 5 lac  is exhausted  we can provide you claim of 5 lac on different  
  disease..

* New born baby covered after 16 days without any extra premium..

* Pre hospitalization 60 days before

* Post hospitalization 90 Days after

* No claim bonus
  1st year 25%
  2nd year 10%

* Recharge Benefit
  On 3 lakh - 25%
        4 lac - 25%
        5 lac - 15%

* No Third Party (Direct claim settlement)

* Ambulance facility covered

* Health Checkup after 3 claim free year

* 7000 cashless hospital facility in all over India

* Tax Benefit - Under Section 80D

*  Document Require to Avail this plan :
   1Passport size photo of each family members
   1DOB Proof
   1Address proof



**  Payment mode by cheques / credit card/ cash

Read Brochure Here

If you are interest & living in Delhi then call/contact Pradip @ 9958781151.

Deduction U/s 57 for LIC Agents

Deduction U/s 57 for LIC AgentsDeduction U/s 57 of Income Tax Act, 1961 for Income earned by LIC agent as Income From Other Sources :-

The benefit of adhoc deduction to Insurance agents of the Life Insurance Corporation having total commission (including first year commission, renewal commission and bonus commission) of less than Rs. 60,000 for the year, and not maintaining detailed accounts for the expenses incurred by them, may be allowed as 
follows :  
(i)  where separate figures of first year and renewal commission are available, 50 per cent of first year commission and 15 percent of the renewal commission;
(ii)  where separate figures as above are not available, 100/3 per cent of the gross commission. In both the above cases, the adhoc deduction will be subject to a ceiling limit of Rs. 20,000.



The “gross commission” in (ii) above will include first year as well as renewal commission but will exclude bonus commission. The complete amount of bonus commission is taxable and will be taken into account for purpose of computing the total income, and no adhoc deduction will be allowed from this amount. The benefit of ad hoc deduction will not be available to agents who have earned total commission of more than Rs. 60,000 during the year. The admissibility of the expenditure claimed by such agents will be decided by the Assessing Officers as per the provisions of the Income-tax Act. —Circular No. 648, dated 30-3-1993 

How to Maintain Safe Distance from Income Tax Department?

How to Maintain Safe Distance from Income Tax Department?In day to day transaction, we do some transaction which may attract Income Tax Department to serve you a notice ask about. But we always want to keep an Arm’s Length Distance from the Income Tax Department!

But the question here is HOW???
Here are lists of expenses/ investments, which at any point of time performed by you may invite undue attention from the Income tax Personnel.

1) Depositing Cash aggregating to Rs.10 Lacs p.a. in your Savings Bank Account.


2) Making Credit Card Payments of more than Rs.2 Lacs p.a.

3) Investment in Mutual Fund Units worth more than Rs. 2 Lacs.

4) Investment in Debentures/ Bonds, amounting more than Rs. 5 Lacs

5) Investment in Shares worth more than Rs. 1 Lakh.

6) Investment in Gold ETF worth more than Rs. 1 Lakh.

7) Investment in RBI Bonds worth more than Rs. 5 Lacs.

8) Purchase / Sale of any Immovable Property exceeding Rs.30 Lacs.

9) Receipt of Cash Payment exceeding Rs.2 Lacs for sale of any goods/ services.

10) Cash deposits or withdrawals aggregating to Rs 50 lakh or more in a financial year in one or more Current Account.

The Next question which may strike us is how does the Income tax Personnel get to know about all these activities.

To keep an eye on such high value transactions of the tax payers, the IT Department has developed a statement of financial transactions called Annual Information Report (AIR).
On the basis of this AIR, the department shortlists their targets and further sends them a notice.

What do you mean by a Annual Information Report (AIR).

Annual Information Return (AIR) of ‘high value financial transactions’ is required to be furnished under section 285 BA of the Income-tax Act, 1961 by ‘specified persons’ in respect of ‘specified transactions’ registered or recorded by them during the financial year.
Who provides the high value transaction information to prepare the AIR?

     Banks
       Mutual Fund Companies
     Companies Issuing Bonds/ Debentures
     Companies issuing shares
     Credit Card Companies
     Sub- registrar offices on real estate deals.


How can I trace my High Value Transactions reported under AIR?

The assessee can trace his/ her high value transactions reported under AIR, in their 26AS Report under AIR section. Any transaction of the assessee which has been categorized as a High Value Transaction will be reflected therein.

In the end, one last question which everyone might have. 

How to avoid receiving a notice from the IT department?

The most important step is to file your Income Tax returns on time and file them correctly.

Always re-check your Tax Credit with the 26AS statement.

Disclose all your Taxable as well as Exempt income under the right head.

Service Tax Effect As on 19th April & From 01st June 2016

Dear LIC Agent

Please note that from 1st June 2016 Service Tax Rate has been changed on life insurance premium of diffrent LIC product. Details are as follows :


                          Existing          Revised
New Business       3.625%          3.75%
Renewal.              1.8125%       1.875%
Term/Health.        14.50%         15.00%
Jeevan Akshay      1.45%           1.50%

So please take care of your customers.

Complete all booked business on or before 31st May 2016.

Contact customers and guide them to pay renewal on or before 31st May 2016 to save a little Service Tax. 

Saving is Saving, size of saving is not necessary but saving is necessary. 

Start from yourself and guide others.

All The Best.

Income Tax Slabs & Rates for Assessment Year 2016-17

Income Tax Slabs & Rates for Assessment Year 2016-17Knowing tax rates will help to invest proper to save tax and save money. Here it is listed for your help. Check your taxable limits and tax exemption limits. Income Tax Slabs & Rates for Assessment Year 2016-17 pertaining to F. Y. 2015-16.


I. Individual resident aged below 60 years(i.e. born on or after 1st April 1956)
Income Tax :

Income Slabs

Tax Rates
1
Where the taxable income does not exceed Rs. 2,50,000/-.

NIL
2
Where the taxable income exceeds Rs. 2,50,000/- but does not exceed Rs. 5,00,000/-.

10% of amount by which the taxable income exceeds Rs. 2,50,000/-.
Less ( in case of Resident Individuals only ) : Tax Credit u/s 87A – 10% of taxable income upto a maximum of Rs. 2000/-.
3
Where the taxable income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-.

Rs. 25,000/- + 20% of the amount by which the taxable income exceeds Rs. 5,00,000/-.
4
Where the taxable income exceeds Rs. 10,00,000/-.

Rs. 125,000/- + 30% of the amount by which the taxable income exceeds Rs. 10,00,000/-.

Surcharge : 12% of the Income Tax, where taxable income is more than Rs. 1 crore.
Education Cess : 3% of the total of Income Tax and Surcharge

II Senior Citizen(Individual resident who is of the age of 60 years or more but below the age of 80 years at any time during the previous year i.e. born on or after 1st April 1936 but before 1st April 1956)
Income Tax :

Income Slabs

Tax Rates
1
Where the taxable income does not exceed Rs. 3,00,000/-.

NIL
2
Where the taxable income exceeds Rs. 3,00,000/- but does not exceed Rs. 5,00,000/-

10% of the amount by which the taxable income exceeds Rs. 3,00,000/-.
Less : Tax Credit u/s 87A – 10% of taxable income upto a maximum of Rs. 2000/-.
3
Where the taxable income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-

Rs. 20,000/- + 20% of the amount by which the taxable income exceeds Rs. 5,00,000/-.
4
Where the taxable income exceeds Rs. 10,00,000/-

Rs. 120,000/- + 30% of the amount by which the taxable income exceeds Rs. 10,00,000/-.

Surcharge : 12% of the Income Tax, where taxable income is more than Rs. 1 crore.
Education Cess : 3% of the total of Income Tax and Surcharge.

III. Super Senior Citizen(Individual resident who is of the age of 80 years or more at any time during the previous year i.e. born before 1st April 1936)
Income Tax :

Income Slabs

Tax Rates

Where the taxable income does not exceed Rs. 5,00,000/-.

NIL

Where the taxable income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-

20% of the amount by which the taxable income exceeds Rs. 5,00,000/-.

Where the taxable income exceeds Rs. 10,00,000/-

Rs. 100,000/- + 30% of the amount by which the taxable income exceeds Rs. 10,00,000/-.
Surcharge : 12% of the Income Tax, where taxable income is more than Rs. 1 crore.
Education Cess : 3% of the total of Income Tax and Surcharge.

IV. Any NRI or HUF or AOP or BOI or AJP
Income Tax :
Income Slabs

Tax Rates
i.
Where the taxable income does not exceed Rs. 2,50,000/-.


NIL
ii.
Where the taxable income exceeds Rs. 2,50,000/- but does not exceed Rs. 5,00,000/-.

10% of amount by which the taxable income exceeds Rs. 2,50,000/-.
iii.
Where the taxable income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-.

Rs. 25,000/- + 20% of the amount by which the taxable income exceeds Rs. 5,00,000/-.
iv.
Where the taxable income exceeds Rs. 10,00,000/-.

Rs. 125,000/- + 30% of the amount by which the taxable income exceeds Rs. 10,00,000/-.

Surcharge : 10% of the Income Tax, where taxable income is more than 
Rs. 1 crore.
Education Cess : 3% of the total of Income Tax and Surcharge.

V. Co-operative Society
Income Tax :
Income Slabs

Tax Rates
i.
Where the taxable income does not exceed Rs. 10,000/-.


10% of the income.
ii.
Where the taxable income exceeds Rs. 10,000/- but does not exceed Rs. 20,000/-.

Rs. 1,000/- + 20% of income in excess of Rs. 10,000/-.
iii.
Where the taxable income exceeds Rs. 20,000/-

Rs. 3.000/- + 30% of the amount by which the taxable income exceeds Rs. 20,000/-.
Surcharge : 12% of the Income Tax, where taxable income is more than 
Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)
Education Cess : 3% of the total of Income Tax and Surcharge.

VI. Firm : 

Income Tax : 30% of taxable income.
Surcharge : 12% of the Income Tax, where taxable income is more than 
Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)
Education Cess : 3% of the total of Income Tax and Surcharge.

VII. Local Authority :

Income Tax : 30% of taxable income.
Surcharge : 10% of the Income Tax, where taxable income is more than 
Rs. 1 crore.  (Marginal Relief in Surcharge, if applicable)
Education Cess : 3% of the total of Income Tax and Surcharge.

VIII. Domestic Company :

Income Tax : 30% of taxable income.
Surcharge : The amount of income tax as computed in accordance with above rates, and after being reduced by the amount of tax rebate shall be increased by a surcharge
  • At the rate of 7% of such income tax, provided that the taxable income exceeds Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)
  • At the rate of 12% of such income tax, provided that the taxable income exceeds Rs. 10 crores.
Education Cess : 3% of the total of Income Tax and Surcharge.

IX. Company other than a Domestic Company (Foreign Company 
Income Tax :
  • @ 50% of on so much of the taxable income as consist of (a) royalties received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st day of March, 1961 but before the 1st day of April, 1976; or (b) fees for rendering technical services received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 29th day of February, 1964 but before the 1st day of April, 1976, and where such agreement has, in either case, been approved by the Central Government.
  • @ 40% of the balance
Surcharge :
The amount of income tax as computed in accordance with above rates, and after being reduced by the amount of tax rebate shall be increased by a surcharge as under
  • At the rate of 2% of such income tax, provided that the taxable income exceeds Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)
  • At the rate of 5% of such income tax, provided that the taxable income exceeds Rs. 10 crores.

Education Cess : 3% of the total of Income Tax and Surcharge.

Marginal Relief in Surcharge
When an assessee’s taxable income exceeds Rs. 1 crore, he is liable to pay Surcharge at prescribed rates mentioned above on Income Tax payable by him. However, the amount of Income Tax and Surcharge shall not increase the amount of income tax payable on a taxable income of Rs. 1 crore by more than the amount of increase in.

Example In case of an individual assessee (< 60 years) having taxable income of 
Rs. 1,00,01,000/-

1.
Income Tax
  Rs. 28,25,300
2.
Surcharge @12% of Income Tax
  Rs. 3,39,036
3.
Income Tax on income of 
Rs. 1 crore
  Rs. 28,25,000
4.
Maximum Surcharge payable
(Income over Rs. 1 crore less 

income tax on income over 
Rs. 1 crore)
  Rs. 700/- (1000 – 300)
5.
Income Tax + Surcharge payable
   Rs. 28,26,000
6.
Marginal Relief in Surcharge
   Rs. 3,38,336/- 
   (339036 – 700)




Suggestion : Kindly refer Income Tax website for more info. 

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