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Showing posts with label Income Tax. Show all posts
Showing posts with label Income Tax. Show all posts

How To Check Income Tax Refund Status ?

Did you file your income tax return for the assessment year? Does it has any Refund amount ! And you did not receive your refund yet. Here I am telling you how to check Income Tax Refund online.

First you have get register yourself at Income Tax efiling Website with details like PAN No. Name of the Assessee (As per PAN Card); Date of Birth; Mobile No. and Email ID.

Check your ITR, Is there are any Refund Amount as per your income tax return? Then you need to LOGIN Income Tax efiling website. Go to click My Account  drop down and check Return/Form 
How-To-Check-Income-Tax-Refund-Status
Check if it is processed or not. If it is yes then then check Refund/Demand Status in My Account tab. It will redirect to Tin-NSDL Website. Fill all details and get the status.
Tin-NSDL-Income-Tax-Refund-Status

Fill all Details like your PAN No. and select Assessment Year & fill Captcha Code of which you want to check your Income Tax Refund Status. 

If it is showing that Refund processed but you have not received any refund cheques/ ECS then again LOGIN Income Tax efiling website. You can only raise a request of Refund Re-issue if your refund failed to reach you and was return to Income Tax Department. Go to My Account  drop down Select REFUND RE-ISSUE REQUEST
Income-Tax-Refund-Re-Issue-Request


Select the mode of Refund you want to receive, if selected ECS then provide your correct bank account details or if wish to receive thru DD/Banker's Cheque then provide correct address. If your address has been changed then update your Contact Details at Profile Setting tab. 
Hope the above will help you to track your Income Tax Refund Status. You can track directly here, CLICK HERE.



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Top Investment Idea U/s 80C

Many of us start investment only in February or March, i.e. just before the Financial Year getting over. This could be a big mistake. You may invest your money without proper planning. You may lose interest/appreciation for the whole year. Right time to start planning to invest is start of the financial year. This way you would not only make well informed decisions but also can earn interest for the whole year.

Where_to_InvestHere we will discuss about investment and tax deduction under section 80C of Income Tax Act. Section 80C replaces Section 88. Section 80C has become effective from 1st April 2006. Section 80CCC on Pension Scheme also merged with this section. Section 80C of IT Act allows certain investment and expenditure to be tax exempt. 

The maximum limit of deduction under section 80 is Rs.1.50 lakh from F Y 2014-15 / A Y 2015-16. Before F Y 2014-15 the limit was Rs.1.00 Lakh.

Most of the Income Tax payer try to save tax by saving under section 80C. Must note that under this section you can not only just save tax on investment bust also save tax on certain Expenditure.

Top Investment idea U/s 80C:-

1. Life Insurance Premium: Any amount that you pay towards life insurance premium for yourself, your spouse or your children can also be included in this section deduction.

2. Unit Linked Insurance Plan: ULIP covers life insurance with benefits of equity investments. They have attracted the attention of investors and tax-savers not only because it help us to save tax  but also give decent returns in long-term.

3. Provident Fund: PF is deducted from your salary every month and both you and your employer contribute to it. While employer's contribution is exempt from tax, your contribution will come under section 80C. This deduction is compulsory, so this has to be the first and also apart from tax saving, it builds a long term, tax free retirement corpus for you.

4. Public Provident Fund (PPF): Public Provident Fund  is one of the best investment. Interest is compounded yearly and the normal maturity period is 15 years. You can deposit minimum Rs.500.00 and maximum Rs.1.50 Lakh. Remember rate of interest may vary by govt. notification.

5. Equity Linked Saving Scheme (ELSS): This is a mutual fund (MF) specially designed to save tax. The investments that you make in ELSS are eligible for deduction under section 80C.

6. National Savings Certificate (NSC): It is good investment option with a maturity period of Five years and Ten Years. Compounded Interest accrued Half Yearly. Minimum investment in NSC is Rs.100.00 and No Maximum limit. You can withdraw NSC before maturity period in case of certificate holder. Remember Investment in NSC are eligible for deduction but accrue interest income is chargeable to tax in the same year.

7. Pension Fund: In this Section 80CCC investment limit is clubbed with the limit of Section 80C. It means total deduction limit under section 80C and 80CCC is Rs.1.50 Lakh. This means that your investment in Pension Funds upto Rs.1.50 Lakh can be claimed as deduction under section 80C.

8. Five Year Bank Fixed Deposit (FD): Tax Saving fixed deposits with tenure of 5 years are also entitled for section 80C deduction.

9. Five Year Post Office Time Deposit: This is similar to bank's fixed deposit scheme. Interest is compounded quarterly but paid annually. Interest is totally taxable.

10. Home Loan Principal Repayment : The Equated Monthly Installment (EMI) that you pay every month to repay your home loan consists of two components- (i) Principal Amount (ii) Interest Amount. The principal component qualifies for deduction under section 80C. And interest component save your tax under section 24 of IT Act. If you have taken home loan this is an automated EMI deduction cum investment. 

11. Sukanya Samriddhi Account: If you have blessed with girl child then it is for you only. You can open account under this scheme from the birth of a girl child till she attains the age of 10 year with minimum deposit of Rs.1000.00 and maximum deposit of Rs.1.50 lakh per year. Accrued interest under this scheme is fully exempt from tax in that year as well as in the year of receipts. For more you can read details in Notification No. G.S.R.863(E) Dated 02.12.2014.

Decide and Analyze which investment idea suite you to save tax and save your money with good return. Decision is yours. Have a happy investment.
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Tax benefit on Payment and Maturity of Life Insurance Premium

Tax_benefit_on_Payment_and_Maturity_of_Life_Insurance_Premium
People are using Life insurance policies as tax planning tool as premium paid on Insurance Policies are eligible for tax benefits under Section 80C of the Income Tax Act 1961 (Act) and Maturity Proceeds are also eligible for exemption under section Section 10(10D)  and  Section 10(10A)(iii)
Life Insurance helps Assessee in saving tax, achieving their long term goals and it also provides Comprehensive financial protection against unforeseen events of their family.
Deduction U/s. 80C in respect of life insurance premium
Maximum Limit – Maximum Deduction allowed under this Section is Rs. 1.50 Lakh and the sum includes payment on other allowable investment option available Under Section 80C of the Income Tax Act,1961. It is to be further noted that combined Maximum limit of deduction under Sec 80C & 80CCC & 80CCD (1) is Rs 1,50,000.
Restriction on Deduction limit: Deduction will be allowed only for premiums upto a maximum of 10% of the sum assured for policy issued on or after April 1, 2012. In case of policy issued before March 31, 2012, deduction will be allowed only for premiums upto a maximum of 20% of the sum assured.
Allowable on Payment- Only life insurance premium paid or deposited during the year are allowable as deduction under Section 80C. 
Disallowance: 
The deductions claimed earlier will be taxable as income if the policy is terminated either by notice or by failure to pay any premium in case of,

Single Premium Policy : within 2 years after the commencement date
Regular Premium Policy : before premiums have been paid for 2 years.
Individual and Hindu undivided family (HUF) can take tax deduction's benefit u/s 80C. It can be paid :-
(i) in the case of an individual (Resident or Non Resident)
- On his own life
- On Wife/Husband (Dependent or Not)
- Child
- Major or Minor (Dependent or Not
- Married or Unmarried Daughter / Son (Dependent or Not)
(ii) in the case of a Hindu undivided family (HUF), any member thereof;
Please note that life insurance premium paid by you for your parents (father / mother / both) Brother, Sisters or your in-laws is not eligible for deduction under section 80C.
If you are paying premium for more than one insurance policy, all the premiums can be included.
It is not necessary to have the insurance policy from Life Insurance Corporation (LIC) – even insurance bought from private players can be considered here.
Tax-ability on Maturity
Section 10(10D)
The proceeds under a life insurance policy are exempt under Section 10(10D) of the Act, subject to the provisions of the said section.
Section 10(10A)(iii)
Commuted Pension received from Pension fund (Pension Plans approved by IRDA) would be tax-free.
Goods And Service Tax (Earlier Service Tax) on Life Insurance Premium
All premiums and charges are subject to applicable taxes (i.e. GST) as applicable under the prevailing tax laws.


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Documents Require To File IT Return & Claim Deductions

Financial Year is going to close. All Income tax Assesses are in hurry about their tax assessment. Getting sure about done adequate investment (Limit U/s 80C Rs.1,50,000/-) to  claim & save maximum tax rebate. Arranging documents pertaining to investment and tax return. 

First, all you need to know about Form 26AS. It is a summary of taxed deducted on your behalf and taxed paid by you. This summary is provided by Income Tax Department. It shows all details of deducted on your behalf by deductors, details of tax deposited by taxpayers and tax refund received in the Financial Year. This form can be accessed from Income Tax Department's Website.

Second, All Salaried Tax Assess needs to get Form 16 issued by their employer to get file their Income Tax Return.

Third, Documents Require for Interest Income, 
> Assesses needs to update his bank statement/pass book for interest on 
   saving bank account.
> Interest Income Statement (accrued or credited) on their Fixed Deposits.
> TDS certificate (Form 16A), if any, issued by banks or other financial 
    institution.
> Interest Accrue Certificate on NSC / Kishan Vikas Patra etc.

Fourth, Proof for Investment in Section 80C, Investment made under PPF, NSC, ULIPS, ELSS, RGESS are qualifies for deductions Under Section 80C.

Last Minutes Checklist to File Your IT Returns :
1. Pan Card
2. Bank Statement 
3. TDS Certificates
4. Tax Payment Challans (Advance Tax or Self Assessment Tax)
5. Form 16 / Salary Certificate received from the Employer.
6. Interest Certificates issued on your deposits
7. Rent Receipts copy (If You Are on Rent)
8. Life and Medical insurance payment receipts.
9. Tuition Fees Receipts.
10. Stock statement in case of trading in shares 
11. PPF Passbook for interest
12. Dividend warrants /amount
13. Interest Certificates on bonds
14. Details of interest accrue on NSC during the year.
15. Sale and Purchase deed of the property including Stamp Valuation of the           property (for land/building)
16. Repayment/Interest Certificate for Interest paid on housing loan and                 Principal amount Paid.
17. Donation Receipts for Section 80G (with PAN details of donnee)
18. Details of Expenses incurred on transfer of Re-Investment in property.
19. Any Other Tax Saving Investment receipts/proof.
20. Aadhar Card Copy (Mandatory for e-filing)

Remember all above documents are proof of income require for ITR filling purposes only does not require to attache along with ITR.
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Tax Relief For Agents

Tax-Relief-To- LICAgentLIC agents main earning is commission. So, Income Tax Department allows some relief to favour Insurance agent. But this relief is for small commission earning agent. If commission earned from LIC insurance business is below Rs.60,000/- p.a. and if no separate books of accounts maintained then the entitlement for deduction is as follows:

i) On First Year Commission - deduction is 50%  

ii) On Renewal Commission - deduction is 15%

The LIC Commission after claiming deduction was mentioned above will be included and can be disclose with other source of income for tax purpose.

The benefit of Adhoc deduction will not be available to agents who have earned total commission of income more than Rs.60,000/- during the year.

In case gross commission earned by an Agent from LIC exceeds Rs.60,000/- per annum  then, he will be not entitled for claiming deduction referred above. He has to maintain books of accounts as required under the Income Tax Act. The following books and documents are recommended to be maintained :

1) Cash Book
2) Bank Book
3) Ledger Book
4) Journal Book
5) Vouchers And Bills
6) LIC Commission Statement
7) TDS Certificates Received from LIC
8) Bank Pass Book, Cheques Book, Deposit Voucher
9) All Other Connected Documents 


LIC Agents are entitled to claim all expenses incurred for generating LIC Commission such as :
a) Salary to Staff
b) Rent for Office Premises, in case own office then maintenance for the same
c) Fuel Expenses and maintenance for maintaining vehicles.
d) Books, Publications, Periodicals expenses connected to business
e) Printing And Stationery
f) Electricity Expenses
g) Travelling / conveyance Expenses
h) Telephone / Mobile / Internet Expenses
i) Postage Expenses
j) Depreciation Expenses on Vehicles, Computers and Other Office Equipment
k) Gifts, Diaries, Calenders Expenses etc.
l) Staff Welfare Expenses
m) Any Other Expenses related to generate commission.
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Health Insurance And Tax Benefit

Health is Wealth or You may say Health is the greatest assets for a human being. Our overall health is severely affected by our lifestyle. Unhealthy Eating Habits, Lack of Adequate Sleep, Stress can affect our health. A Mediclaim policy acts as savior & it protect you from facing a financial crunch in a medical emergency. Since Inflation has made medical bills costlier, having a heath insurance policy is necessary as other necessities.

There are dual benefits of the health insurance. First it ensures your financial stability and give coverage against expensive medical bills and also offer you benefit of Tax Deduction under section 80D upto Rs.25,000/- to Rs.30,000/- (for Senior citizen).

In order to enjoy tax deductions along with health coverage, you need to check which policy suits you & your family and how much premium required for. The premium amount paid by you can be utilize as Tax Rebate Tool. Remember, if the premium paid by your employer, you will not be eligible for tax rebate. Under the IT Act, 1961 medical allowance is not considered as an allowance, which is exempted. 

Generally, medical allowance is confused with medical reimbursement. Medical reimbursement is paid by an employer to their employees when they submit medical bills. 

When it comes to tax planning, people generally don't consider their parent's health insurance as a tax saving tools. If you are paying for your parents health insurance, you can claim upto Rs.30,000/- as tax deduction benefit in your annual income tax return. 
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Service Tax Paid on Insurance Premium U/s.80C

Service-Tax-Paid-on-Insurance-Premium-U/s.80C
Many question arise about "can we take benefit of paying service tax paid on Insurance Premium!" If we check insurance premium receipts properly we get that the we pay three cost heads; Net Premium + Service Tax + E. Cess. On this basis final gross premium is calculated.

Now question is "can we take claim under section 80C of service tax paid along with insurance premium?"

The current tax rules states that "any amount paid to keep in force a life insurance policy qualifies for a tax deduction under section 80C." It is a common perception that Premium Paid all Life Insurance Policies are qualifies for deduction under section 80C of Income Tax Act, 1961. 

As per Section 80C(2) of the Income Tax Act, 1961 any amount paid to an insurer to buy or to keep a life insurance policy in force can be claimed as a deduction from gross total income by the policy holder. This implies that premium paid for a life insurance policy can be deducted from gross total income before arriving at taxable income subject to certain condition.

Section 80C(2) also clarifies that in order to claim the deduction from gross total income for a particular year the gross amount of premium must be paid or deposited in that particular financial year itself.

But when you ask insurance provider to provide Total Insurance Premium Paid Statement then they will provide you only statement of net premium paid

Tax experts interpret this to mean that the entire premium inclusive Service Tax and Cess, qualifies for a tax deduction.

Ideally, you need to mention the entire premium or gross premium for the purpose of availing a tax deduction under section 80C.

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Financial Duties Of An Individuals

Every citizen have some financial duties and rights that they should know but most of them are unknown to it. We have listed some are here Financial Duties here for your information.
Financial-Duties-Of-An-Individuals
(1) Duty to Pay Tax On Due Date:-
If your income is above taxable limit then you should consult a tax consultant and pay tax as per given slab. Income  Tax paid by you is used by the Government to build the infrastructure of the nation. you can be shock after knowing that only approx 3% of the population file Income Tax Returns and pay taxes. 

(2) Duty to be Truthful with Financial Planning:- 
Now a days livelihood is very expensive. Calculate your insurance cover properly to take adequate amount of insurance. Less or More may misplan your financial future needs. Declare true fact while you are filling proposal form of insurance, any incorrect information can result in your claim being reject.

(3) Duty to Nominate in Time:- 
Mentioning Nomination at the time of filling proposal form is better than later because unexpected risks may happen any time and dependent may come in problem in your absence.

(4) Duty to Sign Filled Form Only:- 
You should know that only you are responsible for the form you signed. So, don't handover any blank form. Fill out the form you are signing yourself or have it done in your presence. Self attested documents are good to prevent frauds.

(5) Duty To Pay Your Dues On Time:- 
Late payment of your dues may impact your credit ability in market. Some time late payment of credit card dues or loan installments can derail your financial planning. Late payment fees are hefty and so always try to avoid it.

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Income Tax Rate Slab For F. Y. 2017-18 ( A.Y. 2018-19)

As per Budget 2017 proposed by our Fin. Minister  on 01.02.2017 new revised income tax rates in case of every individual (other than those mentioned in (ii) and (iii) below or HUF family or every Association of Persons or Body of Individuals, whether incorporated or not, or every Artificial Judicial person referred to in Sub-clause (VII) of Clause (31) of Section 2 of the Act (not being a case to which any other Paragraph of Part III applies) are as under : -


BUDGET 2017-  PROPOSED

INCOME TAX RATE CHART FOR F.Y. 2017-18

INCOME LIMIT
TAX RATE
SAVE
AMOUNT
F.Y. 2016-17
F.Y. 2017-18

INDIVIDUAL TAX PAYERS     (BELOW 60 YEARS)
UPTO 2.5 LAKH
NIL
NIL
NIL
2.5 LAKH – 5 LAKH
10%
5%
12500
5 LAKH – 10 LAKH
20%
20%
12500
10 LAKH - ABOVE
30%
30%
12500
In the case of every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years at any time during the previous year -

BUDGET 2017-  PROPOSED

INCOME TAX RATE CHART FOR F.Y. 2017-18

INCOME LIMIT
TAX RATE
SAVE
AMOUNT
F.Y. 2016-17
F.Y. 2017-18

INDIVIDUAL TAX PAYERS     (BETWEEN 60 YRS –
80 YRS
UPTO 3.0 LAKH
NIL
NIL
NIL
3.0 LAKH – 5 LAKH
10%
5%
10000
5 LAKH – 10 LAKH
20%
20%
10000
10 LAKH - ABOVE
30%
30%
10000


In the case of every individual, being a resident in India, who is of the age of 80 years or more at anytime during the previous years -
BUDGET 2017-  PROPOSED

INCOME TAX RATE CHART FOR F.Y. 2017-18

INCOME LIMIT
TAX RATE
SAVE
AMOUNT
F.Y. 2016-17
F.Y. 2017-18

INDIVIDUAL TAX PAYERS     (ABOVE
80 YRS
UPTO RS.5 LAKH
NIL
NIL
NIL
5 LAKH – 10 LAKH
20%
20%
NIL
10 LAKH - ABOVE
30%
30%
NIL

The amount of income tax computed in accordance with the preceding provisions of he Paragraph shall be increased by a surcharge at the rate of :-
(1) 10% of such Income Tax in case of a person having a total income exceeding Rs.50.00 Lakhs but not exceeding Rs.1.00 Crore.


(2) 15 % of such Income Tax in case of a person having a total income exceeding Rs.1.00 Crore.

*Rebate U/s 87A is applicable as earlier for those whose income is below Rs.5.00 Lakh.

From AY 2018-19, this rebate shall be available only for individuals having income up to Rs. 3,50,000/-

Further up to AY 2016-17, rebate u/s 87A was restricted to Rs. 2,000/- . 

Rebate was later increased to Rs. 5,000/- w.e.f. AY 2017-18. 

Now, w.e.f. AY 2018-19, rebate has been deflated to Rs. 2500/-.

It means, having regard to exemption limit of Rs. 2,50,000/-, tax could have bill NIL for Income up to Rs. 2,70,000/- up to AY 2016-17. 

For AY 2017-18, tax could be NIL on Income up to Rs. 3,00,000/-. 

For AY 2018-19, tax again would be NIL up to 3,00,000/-, because of tax rate being reduced to 5%.
Hence the reduction in tax rate by 5% has been compensated by reducing rebate u/s 87A.
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SAVE TAX SAVE MONEY With Insurance
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