One of the mysteries for an income taxpayer is how income tax department comes to know about high-value transactions? The answer is very simple, through Annual Information Return or AIR. Besides Annual Information Return, the information is also collected through TDS (Tax Deducted at Source), TCS (Tax Collected at Source) and various other sources. As the reader's on my blog keep posting this query to me so i thought of sharing a separate post on Annual Information Return or AIR. Though it is a no-brainer that it is mandatory to quote PAN for certain high-value transactions. One of the ... Read More
How to Claim Tax Refund of Excess Tax Paid by the Taxpayer
To claim Tax Refund of excess tax paid by the taxpayer is both easy and difficult. It is easy if you claim tax refund at the time of filing of Income tax Return i.e. ITR. For example, the last date of filing of Income Tax Return for FY 2015-16 or AY 2016-17 is 31st July 2016. The tax refund for excess tax paid by me for FY 2015-16 can be claimed at the time of filing of ITR i.e. on or before 31st July 2016. In fact, the system automatically calculates the Tax Due and Tax Paid. Any excess amount is shown as a tax refund in the ITR and can be claimed provided all other details are correct. ... Read More
26QB Challan Correction – 7 Imp Points
26QB Challan Correction is one of the most frequently asked queries on my blog. There is a lot of confusion related to 26QB Challan Correction process. In fact, the readers who called helpline of Income Tax department could not get a proper response in this regard. A property buyer is left in a lurch. Before you go through this post, i suggest you to check my post How to deduct TDS u/s 194IA?. Reason being, it will help to understand the background. Also, it is always advisable to file the correct details in challan. You can collect the information beforehand. The form 26QB challan is not that ... Read More
7 Common Mistakes in Income Tax Return
Every year, 31st July is the last date to file your Income Tax Return for previous Financial Year. It is equally important as your birthday or anniversary date. I remember 10 year ago it was next to impossible to file Income Tax return without any help but Income Tax Department has done a commendable job to simplify the Income Tax Return Process. E-filing of income tax return through official portal of Income Tax Department is very easy, convenient & most important it's FREE. To avoid last minute rush, i always file my income tax return in the month of May or June. I keep receiving ... Read More
Tax Saving FD
Tax Saving FD (Fixed Deposit) is another popular tax saving scheme for risk averse investors. As financial year is coming to an end and its time for income tax investments therefore based on request from my readers i am writing posts related to income tax savings schemes. This article on Tax Saving FD is third in series as i received 3rd highest queries on this particular tax saving scheme. Prime facie Tax Saving FD looks very lucrative investment option to save Income tax under section 80C but we have to take 360 degree approach. The biggest advantage of Tax Saving FD is its maturity ... Read More