Having Pleasure on the Plate but Safety in the Mind Rajesh Choudhary

THE HONEYMOON IS OVER WHEN THE BRIDE BEGINS TO FEEL LIKE SHE WAS NEVER ANYTHING BUT A TAX DEDUCTION TO HIM. content... Why Tax ? Basic Knowledge/Terminology on Income Tax? Tips For Income Tax Computation Of Salary Income (F.Y ) ? How to Compute Tax on such Income? Tips For Computing Income From House Property ? How(eg.Tricks) to Save Tax ? Refund Funda? How to file Return ? ***

PLAN YOUR FAMILY’S FUTURE.NOT JUST YOUR TAXES WHY TAX ? PUBLIC EXPENDITURE ? DEBT National Debt, Public Debt DIRECT TAX INCOME TAX FBT,GIFT TAX WELATH TAX,BCTT INDIRECT TAX (EXCISE DUTY,CUSTOMS CST,VAT,EXPENDITURE TAX, LUXURY TAX,ENTERTAINMENT TAX, OCTROI,CESS,SERVICE TAX)

NOTHING IS CERTAIN BUT DEATH & TAXES contd… Basic Terminology FINANCIAL YEAR: Beginning from 1st April and ending on subsequent 31st March. PREVIOUS YEAR : Financial Year in which the Income is earned. E.g ASSESSMENT YEAR :Next financial year of Previous Year eg for Previous year ASSESSEE :Tax Payee I.e.Individual/Firm/Company etc. HEADS OF INCOME :Key heads:Salaries,House/Property Income,Business/Professional Income,Income from Purchase & Sale of assets (Capital Gain),Other Source like Lottery,Dividend & Interest etc

A Fine is a Tax for doing something wrong.A Tax is fine for doing something Right. contd… Basic Terminology PAN (PERMANENT ACCOUNT NUMBER) UNIQUE NUMBER 10 CHARACTER ALLOTTED BY INCOME TAX DEPTT- PERMANENT IN NATURE IN SPITE OF CHANGE IN ADDRESS/STATION/ASSESSING OFFICER. PAN SHOULD BE QUOTED BY EVERY PERSON IN RELATION TO FOLLOWING TRANSACTION: Deposit in cash/Preparation of DD for ( =>Rs.50000/=) with a Bank on one day. Installation of Telephone including Cellular Connection. Sale or Purchase of Land/Buliding/Vehicle. A person required to apply for PAN shall furnish an application in Form.49A alongwith proof of Identity and proof of address. Form.49 A can be obtained from offices of UTI Investor Services Ltd. Or IT PAN Service Centres.Multi-purpose laminated PAN card can be issued from the said offices within 15 days of application. IT IS MUST FOR SALARIED EMPLOYEES FAILING TO ATTRACT PENALTY OF RS.10000/=.

Basic Terminology SUVIDHA & SAHAYATA :’Helpline-Income Tax’ & ’ Help Centres’ to assist Tax Payers in preparing returns of Income Challan and filing PAN applications. SAMPARK : Aayakar Sampark Kendra (ASK) will enable tax payers to obtain information and forms. Just dial for : - Information for forms for PAN. - Status of your PAN Applications. -Return of Forms. - Help on payment of Taxes. Forms or challans shall be sent by FAX or . A POLITICAL PROMISE TODAY MEANS ANOTHER TAX TOMORROW

[A] TOTAL SALARY=[BASIC+DA+HRA+CCA+AREA ALLOWANCE+OT+EPI+PPI+INCENTIVE+(LTA - EXPENDITURE OF FAMILY RESTRICTED TO AC IST CLASS AGAINST PROOF OF EXPENDITURE)+PDA+HONOURARIUM+LEAVE ENCASHMENT+INT_SUBSIDY+LUNCH SUBSIDY+CREDIT CARD ALLOWANCE+ENTERTAINMENT ALLOWANCE+GARDENER CHARGES+CONVEYANCE (I.E.MONTHLY REIMBURSEMENT-800 PM)+PF INTEREST>7.5% CREDITED IN PF BALANCE+MEDICAL EXP.>15000 INCURRED IN HOSPITAL OTHER THAN BEL/GOVT.APPROVED HOSPITAL+OTHER TAXABLE ALLOWANCES+CONCESSIONAL INTEREST ON LOANS >20000+Colony Charges at Bangalore (i.e.15% of former elements-Rent Paid) [B] HRA EXEMPTION LEAST OF THE FOLLOWING :1ACTUAL HRA RECEIVED 2.RENT PAID (-) 10% SALARY (I.E.BASIC+DA]. 3.50% OF SALARY (FOR ACCOMODATION SITUATED AT MUMBAI/CHENNAI/KOLKATA/DELHI) 4.40% OF SLARY (FOR ACCOMODATION AT OTHER PLACES)

Contd… [C] SALARY INCOME =[A] -[B] [D[PROFESSIONAL TAX [E[ GROSS SALARY INCOME=[C] - [D] [F] OTHER INCOME=HOUSE PROPERTY+ CAPITAL GAIN+ OTHER SOURCES I.E. INTEREST(BANK+NSC/NSS/KVP+DEBENTURE)+ GIFT>50000+Lottery etc.. [G] GROSS TOTAL INCOME=[E] + [F] [H] DEDUCTION: [I] SAVINGS (Restricted to Rs )[U/S 80C]: PF CONTRIBUTION (UPTO 42% OF (BASIC+DA),PPF,NSC, INTEREST ACCRUED ON NSCS, LIC/LIC'S JEEVAN SURAKSHA/INS.PREMIA,ULIP,MF, HOUSING LOAN TOWARDS PRINCIPAL, TUITION PER CHILD (MAX. 2 CHILDREN), INFRA. BOND, (AT LEAST) 5 YEARS FIXED DEPOSIT IN SCHEDULED BANK+ [II] MAXIMUM OF RS.15000/= FOR MEDICLAIM OF LIC/ANY INS.CO+ DONATION AS PER 80G OF I.TAX ACT / RS.50000/= U/S 80DD./INTEREST ON LOAN FOR HIGHER EDUCATION OF SPOUSE/CHILD/OTHERS [I] NET INCOME =[G]-[H] [J] TAX ON TAXABLE INCOME=ADDITIONS OF COL.(2)+(3)+(4) MENTIONED IN TABLE OF NEXT SLIDE.

INCOME TAX TARIFF [F.Y ] TAXABLE INCOME LIMIT INCOME TAX RATESURCHARGEEDU_CESS [I] [2][3][4] UPTO (FOR MEN) & (FOR WOMEN) & (FOR CTIZEN>=65 YEARS)NIL 3% %NIL3% %NIL3% %NIL3% PLUS30%10%3%

PARTICULARSLET OUTSELF OCCUPIED (A) RENT RECEIVED/RECEI VABLE DURING THE YEAR LESS MUNICIPAL TAXES TO BE CONSIDEREDNOT TO BE CONSIDERED (B) LESS:DEDUCTION S: NOT REPAIRS [30% OF (A)] TO BE CONSIDERED (C )INTERST ON HOUSING LOAN (i) Upto Rs for on/after 01/04/1999 TO BE CONSIDERED (ii) Upto Rs for loan before 01/04/1999 (D) INCOME FROM HOUSE PROPERTY=(A)-(B)+(C )=(C )

IT Calculation for Individual Man BASIC (30000*12) DA (24000*12) GROSS SALARY LESS: DEDUCTION U/S 80 C FOR PF TAXABLE INCOME TAX CALCULATION FIRST NIL NEXT 10%4000 NEXT 20%20000 NEXT 30%89400 TOTAL TAX EDUCTIONAL 3% OF TOTAL TAX 3402 TOTAL TAX LIABILITY[F.Y ]

How to Save Tax ? A MAN HAVING AGGREGATE INCOME OF Rs NOT TO PAY ANY TAX INCOME FROM SALARY/BUSINESS/OTHER SOURCES INCOME FROM HOUSE PROPERTY(FULLY SELF- OCCUPIED)Nil Less:INTEREST ON FUNDS BORROWED FOR ACQUIRING PROPERTY (Note:1) Less:Deduction u/s 80C(Life Insurance Premia,PPF etc.) Deduction u/s/80D for Medical Insurance Total Income Tax Payable Nil (Note:1) :Funds for acquiring the house may be borrowed from any family members,who do not have taxable Income

PLAN YOUR FAMILY’S FUTURE.NOT JUST YOUR TAXES REFUND FUNDA IF AMOUNT OF TAX PAID(TDS BY BANK ON INTEREST INCOME ( EG. >10000) IS MORE THAN AMOUNT CHARGEABLE TO TAX FOR A YEAR.REFUND OF THE EXCESS TAX PAID CAN BE CLAIMED BY ASSESSEE FROM INCOME TAX DEPTT. REFUND CAN BE CLAIMED IN I.TAX FORM(.30/ITR-1/2) WITHIN ONE YEAR. ******************************

Pay Tax – Karo Relax File by July 31 st.: That’s all…..!!! CRITERIA OF FILING IT RETURN (in Return form ITR-2) ALONG WITH FORM.16 LATEST BY JULY’31ST [ -APPLICABLE FOR FOLLWING PERSONS.] FILING OF RETURN IS COMPULSORY IF THE TAXABLE INCOME EXCEEDS THE BASIC EXEMPTION LIMIT (110000(FOR MEN) & (FOR WOMEN) & (FOR CTIZEN>=65 YEARS) EVEN IF THE TAX PAYABLE IS NIL OR REFUNDABLE. ANYONE OF SIX PARAMETERS TO JUDGE ECONOMIC CONDITIONS 1.HOUSE IN SPECIFIED CITY 2.MOTOR CAR 3.CREDIT CARD 4.CLUB (ENTRANCE FEE >25000/=) 5.CONSUMER OF ELECTRICITY FOR 50000/=.p.a. in previous year. 6.TRAVEL TO FOREIGN COUNTRY (OTHER THAN PILIGRIMAGE TO HAJ,MANSAROVAR & NEIGHBOURING COUNTRIES)