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Showing posts from July, 2009

Bad news for salaried person: FBT abolished

Bad news for salaried person: FBT abolished

Employees enjoying perks such as rent-free accommodation, cars, chauffeurs, credit cards and club memberships may have to pay tax on the value of these benefits, with the government proposing a shift in the tax burden on perquisites (perks) from the employer to the employee.

Prior to FY06, employees paid tax on certain perquisites. However, with the introduction of Fringe Benefit Tax (FBT), the onus of paying tax on perks shifted to the employer. But this is set to change yet again, with the proposed scrapping of the FBT. This time, the government plans to cast the tax net wider. “More items will now come under perquisite taxation than what was covered prior to 2005-06,” said a senior government official.

Perks are benefits over and above the normal salary received by an employee. The Finance Bill 2009 says that employees will have to pay tax on Employee Stock Option Plans (ESOPS) and employers’ contribution to the superannuation fund, if the a…

Wealth Tax Exemption Limit Raised

Enhancement of the limit for payment of wealth tax under the existing provisions of section 3 of the Wealth-tax Act, wealth tax is charged every year in respect of net wealth, on the valuation date, of every individual, Hindu undivided family and company at the rate of one per cent. of the amount by which the net wealth exceeds Rs.15.00 lakhs. This limit was fixed in 1992.

With a view to providing for inflation-adjustment, it is proposed to raise the threshold limit for payment of wealth tax from Rs.15.00 lakhs to Rs. 30.00 lakhs.

The proposed amendment will apply for the valuation of net wealth as on 31st March, 2010 and will, accordingly, apply in relation to assessment year 2010-11 and subsequent years

DTAA - Salary taxed in India & also In US

This is Rajesh. Couldn't get any expert advice anywhere so reaching you in despairity. I work for an Indian company & had stayed in US from 25 April 2008 – 05 Dec 2009 on deputation.I came back to India on 07 Dec. 2009. My Company used to give me salary in US in two parts. Part Iis my Indian Salary which gets converted to dollars & remitted to my US bank account. Part II is US allowance in dollars credited to my US bank account. US govt did TDSon both of these components .My company had done TDS on my entire Indian Salary. As my US salary has two components Indian salary & US allowance both . I understand that I have paid TAX on my indian salary in both the coutries (US & India). From where I can get double Taxation Benefit?Answer-Your Indian Salary has been taxed in both the countries, b’coz your Indian salary was paid from India and was taxed In US also b'coz u have received there and ware employed there.All global income is subject to tax in the country in …

Presenting Budget 2009-10

Making Tax Payment Online

Making Tax Payment Online for Individual Assessee’s
1. Log on at http://blog.taxkiller.in
2. Go Blog Roll on the right panel
3. Click on e-payment tax on line
4. Find your bank in the list, if it is there then only u can make online payment otherwise not
5. Select the relevant Chillan for Individual assessee it is ITNs 280
6. Check (0021)INCOME-TAX (OTHER THAN COMPANIES)
7. Fill in all your details like PAN name address …..
8. Assessment year for the financial year ending March 10 is 10-11
9. Type Of Payment>check>(300)SELF ASSESSMENT TAX
10. Select your bank name
11. Go ahead now it will take u to your bank portal
Please post your comments

I don’t have the old company’s Form-16

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Q. I don’t have the old company’s Form-16, I got the form 16 from new company. Can I fill the ITR without old company's form -16?

Ans. You will need a copy of Form 16 from your previous employer also. This is because in case tax has been deducted on your salary by such employer you need to disclose certain additional details. It is better that you have all the Form 16 with you. You are required to disclose the income/ salary earned during the period from 1st April to 31st March whiling filing the Income Tax Return not disclosing the complete income may result into penal actions from Income Tax Authorities.

Also read post - More than one form 16

More than one form 16

Q. I switched over my company last year July. So I have two Form16 one is from my previous company and other one is of my current company..In my previous company Form16 there is refund amt around 8000. How do I claim this and how do I submit both this form 16

Ans.During the Financial year 2007-2008, the salary income from both the employers will be clubbed together. Thereafter, you will be granted a deduction u/s 80C for investments (maximum Rs. 1,00,000) made by you. Income Tax will be payable on the total salary income from both the employers. Out of tax payable, please deduct the tax deducted at source by both the employers and then pay the balance tax. When both the form 16 are added, This might result into tax payable or refundable. Generally results into tax PAYABLE as you might have taken deduction u/s 80C for the same investments in both the form 16 and a sure cause is that the basic exemption limit of Rs. 110,000/-(Rs.145,000 in the case of female) is given in both the form 16…

Wrong information in form 16

Query - During the starting of this year when my Company was collecting proof of doc. for HRA, by mistake I have given some wrong doc. So they didn’t accept and disqualified the amount of exemption for HRA.
I want to claim the same HRA now while filing the ITR, is it possible now?

Ans - Form 16 information can be updated at the time of filing the ITR.
If you have not given or have given some wrong information/documents to the employer company.
Then at the time of filing the Income tax return you can change/alter the calculations shown in the form 16 by providing a supplement sheet known as ‘statement of statutory Income’.

Here You can provide the correct details of HRA and rent receipts to tax professional, so that correct income tax return can be prepared and filed. Based on the revised calculation you can claim the refund if any or pay tax liability if arises.

Furnish Form ITR-V- BY ORDINARY POST ONLY