TAX STRUCTURE IN INDIA In todays India three tier federal structure. The central government, state governments, and local municipal bodies make up this structure. Article 256 of the constitution states that “No tax shall be levied or collected except by the authority of law”. Hence, each and every tax that is collected needs to backed by an accompanying law. Taxes in India are levied by the Central Government and the State Governments.  Some minor taxes are also levied by the local authorities such as the Municipality and the Local Governments.  While direct taxes are levied on taxable income earned by individuals and corporate entities, the burden to deposit taxes is on the assessees themselves. On the other hand, indirect taxes are levied on the sale and provision of goods and services respectively and the burden to collect and deposit taxes is on the sellers instead of the assessees directly.

Section 80TTA is the deduction on saving bank or post office interest up to Rs. 10,000/- applied for INDIVIDUAL or HUF and non-senior citizen. The Maximum limit should be claimed under this section is Rs. 10,000/- Some features of   Deduction Under Section 80TTA is- ·   The tax exemption from interest income in the savings account is limited up to ₹10,000 per annum ·   This deduction is for the savings accounts held by individuals and Hindu Undivided Family (HUF) ·   A person can have multiple savings accounts with different banks. But the cumulative interest income from all those accounts together should be under ₹10,000 to get a complete exemption ·   In case, the total cumulative interest-earning exceeds 10,000 from savings accounts, then tax exemption could be claimed for ₹10,000 only. The additional income in this respect will be subject to income tax.   ·   The tax deduction under Section 80TTA  is over and above the deduction of ₹ 1.5 lakhs, which is de

The finance ministry has extended the due date for filling INCOME TAX RETURN  for INDIVIDUAL'S AND HUF'S  for the assessment year 2019-2020 from 31ST JULY 2019 to 31ST AUGUST 2019. "The Central Board of Direct Taxes (CBDT) extends the 'due date' for filing of Income Tax Returns from July 31, 2019 to August 31, 2019 in respect of the said categories of taxpayers," the finance ministry said in a statement. CBDT (CENTRAL BOARD OF DIRECT TAX) also extend the due date for TDS RETURN Form 16 for the employer which is issued to there employee from JUNE 15 TO JULY 31 of 2019. Taxpayers (Individual and HUF) should have pay maximum of Rs.5000 fine for late filing of INCOME TAX RETURN if the missed to submit their TAX RETURN within the due date of 31st August 2019 but before 31st December 2019 and from 1st January 2020 to 31st March 202 the fine will be doubled.

Section 80GG Deduction – Income Tax Act Section 80GG deduction under Income Tax is available for taxpayers who do not have HRA. As the majority of individuals taxpayers file for income tax return claiming HRA, Section 80GG deduction is applicable only for a select amount of taxpayers.  Section 80GG Deduction Eligibility Section 80GG deduction can be claimed by individuals who do not receive House Rent Allowance or HRA. For a taxpayer to claim Section 80GG deduction, the following conditions must be satisfied HRA has not been claimed by the taxpayer. The taxpayer or spouse or minor child should not own a residential house property which is also a place of business. If the taxpayer is a member of a HUF then the HUF should not own a residential house property which is also a place of business. If the taxpayer owns a residential house property at any other place, then the taxpayer should not claim any benefits under the Income Tax A

SECTION 80DD DEDUCTION FOR DISABILITY:-   Section 80DD deduction can be claimed by individuals who are resident in India and HUFs for maintenance and medical treatment of a disabled dependent. The maximum deduction under section 80DD is Rs.75,000 for disabled dependants. In case the disabled dependent is a person with severe disability, the maximum deduction allowed is Rs.1.25 lakhs. Deduction under Section 80DD is not dependant on the sum of expenses incurred. Hence, even if the actual expenses on the above mentioned disabled dependent relative is less than the amount mentioned, a full deduction can be claimed under Section 80DD.

Section 80D refers to deduction on premium paid for medical insurance for self, spouse, dependent children or parents. You can claim maximum Rs. for .15,000, towards spouse,dependent children and for parents Rs.25,000 , for senior citizen and super senior citizen the sum is Rs.50,000.

What is Capital Gain ? Capital Gain is a major head of Income under Indian Income Tax Act 1961. Its relate to Profits or Gain occurs by Sale of capital Assets Like Building, Land, any major property or Equity Shares. Types  of Capital Gain- There is two types of Capital Gain  i) Short term Capital Gain ii) Long term Capital Gain. i) Short term Capital Gain - Short Term Capital Gain is two types For Fixed Assets Like Land and Building or Gold:  If Profit or Gain arise  from this kind of assets you held less then 36 month that will be considered under Short Term Capital Gain. For Variable Assets Like Equity Share or Debenture:  If Profit or Gain arise  from this kind of assets you held less then 12 month that will be considered under Short Term Capital Gain. ii) Long term Capital Gain - Long Term Capital Gain is two types For Fixed Assets Like Land and Building or Gold:  If Profit or Gain arise  from this kind of assets you held Mor

INDIAN TAX SLUP OF AY 2019-2020 For normal citizen aged below 60 year RS. 0 to RS. 2,50,000/+  tax =Nil Rs. 2,50,001 to 5,00,000  = 5% tax + 4% cess Rs. 5,00,001 to Rs. 10,00,00 = 20% tax +  4% cess Rs. 10,00,000   and above = 30% + 4 % cess This slab is for normal citizen of India. For Senior citizen  aged from 60 years but below 80 years RS. 0 to RS. 3,00,000/+  tax =Nil Rs. 3,00,001 to 5,00,000  = 5% tax + 4% cess Rs. 5,00,001 to Rs. 10,00,00 = 20% tax +  4% cess Rs. 10,00,000   and above = 30% + 4 % cess This slab is for senior citizen of India. For Super senior citizen aged more then 80 years Rs. 0 to 5,00,000  = 5% tax + 4% cess Rs. 5,00,001 to Rs. 10,00,00 = 20% tax +  4% cess Rs. 10,00,000   and above = 30% + 4 % cess This slab is for Super senior citizen of India.   Hope this will be helpful to  you.

  LAST DATE OF IT FILE SUBMISSION WITH OUT PANALTY FOR THE A.Y. 2019-20        The l ast date to file your income tax return (ITR) for FY 2018-19. By filing your ITR on time, along with certain benefits such as carry forward of losses, you will also avoid paying late filing fees. If you file your ITR after the deadline you will have to pay late filing fees of up to Rs 10,000. Now, everyone has to file ITRs digitally except for super senior citizens (i.e., aged 80 years and above) who are allowed to file their ITR in paper format. From    Filling After July 31st every one has to give a penalty U/S 234F FROM RS .1000/- TO RS. 10,000/- Now, everyone has to file ITRs digitally except for super senior citizens (i.e., aged 80 years and above) who are allowed to file their ITR in paper format.  The Income-Tax department has now announced a few key changes that a taxpayer must know while filing their Income Tax Return (ITR). The department sent i

In which year you assess your tax called ASSESSMENT YEAR. And for which year we assess the tax called Financial Year or Previous Year- IN THE YEAR 2019–20 WE ARE ASSESSING THE TAX OF 2018–19. SO WE CALLED 2019- 20 AS ASSESSMENT YEAR AND 2018–19 IS CALLED FINANCIAL YEAR. Assessment Year- The year immediate succeeding Financial year . The Year in which you file ITR. Financial year- The year immediate preceding Assessment year. The year in which you pay income tax. Example of F.Y. and its A.Y. Lets take a example to understand the concept of Financial Year (F.Y.)  and Assessment Year (F.Y.),  If we take an example of Year  2018-19 which is from 1st April 2018 to 31st March 2019 and if it the year for which you calculation your income and tax on total income, then year 2018-19 is your Financial Year, for that the calculation period start from 1st April 2019  and you can submit your Income tax File for FY 2018-19 FROM 1st April 2019 to 31st March 2020. So, Year 2019-20

    Some benefits of timely INCOME TAX filing BEFORE DUE DATE OR BEFORE TIME- Any losses happen in business/ house property/ capital losses can be carried forward if ITR is filed timely. Else these losses lapse, if filed after due date. Any refunds of excess TDS deducted can be claimed  After due date filing will give a burden of penalty  U/S 234F i.e. Rs 1,000 to 5,000. Tax planning and tax saving opportunities can be optimized if ITR filed in timely. Late filing or files after due date will increase tax burden like interest and late fees. If any one file his income tax declaration in time then his profile in view of income tax department and his CIBIL rating also get heavy. Visa documentation is facilitated (authorities ask for previous 3 year ITRs) Timely filing of income tax declaration will help to get bank loan and other facilities from bank and it will also enlarged your profile in view of bank when you do loan application in any ba

   WHO SHOULD FILE INCOME TAX RETURN ? According to income tax act it is mandetary for every individual if there income crossed Rs.2,50000 before giving any deduction. So if your income crossed Rs 2.5lakh then its mandatary for you. But if your annual income dose not crossed Rs 2.5 lakh then also you need to submit your income tax file , as filing of income return is an declaration to words central govt. about your annual return because if you start submitting income tax file before you enters tax slabs then in future if you purchase some luxury product like flat or car from your savings then income tax department dose not ask you about source of money though if they ask you then you can show them that documents as a proof of your income .

  TAX DEDUCTION UNDER SECTION 80C Hi friends our todays todays topic of discuss is tax deduction under section 80C of Indian Income Tax act 1961. Under Section 80 C of the Income-tax, you can claim deduction up to Rs 150000 in one financial year. Section 80 C offers many options for investors. ·          ELSS fund  - Equity Linked Saving Scheme is one of the best options under section 80 C to earn more return with a minimum lock-in period. This investment can generate market returns of 12 to 15 %. Lock in period is only 3 years. Returns and liquidity make this one of the preferred options. ·          PPF  is one of the most favorite debt products in India. The Public Provident Fund (PPF )  Scheme was started by the National Savings Organization in 1968 to promote small savings and investments. It is mainly used for long term investment. It has 15 years locking period. It gives Compounding Interest benefit.  PPF enjoys   EEE status . Contribution to PPF account is eligible

For individual India tax slab started from yearly income 250000/- then 250000 to 300000 -- 5% then 500001 to 1000000 -- 10% then above rs 1000000 it charged 20% but any individual income less then 350000 after deduction u/s 80, will get rebate on U/S 87A of rs 2500 maximum. So if your income after deduction of section 80 is Rs. 3,12,000/- then u will pay                             Then your tax amount = Rs. 3,100/-.              Less Rebate U/S 87A you get  =Rs. 2,500/- So total Tax in this case is Rs. 600/- + Cess 4% = Rs. 624/- But if your total income after deduction Rs. 3,51,000/- and  as u have crossed rs 350000 slab so u pay Tax =Rs. 5,050/- + Cess  @ 4% = Rs.202/-. There after total tax = Rs. 5,252/- But if your total income is Rs.  3,00,000/- after deduction U/S 80                                                                             Then your Tax = Rs.2,500/-                                                 

  REQUIREMENT FOR SUBMISSION  OF INCOME TAX RETURN Hi Friends our today's topic is what is the requirement of INCOME TAX RETURN, and who should submit ITR?   Income Tax Return is a declaration towards govt. of anyone yearly income, So, it's required for every person or individual or any kind of firm who has to earn any amount of income it may be the taxable amount or not but he should liable to submit his return. If you submit your return in regular basis you can make you clear to Central Govt. that your total income is not more than that and Govt. should not ask u about any amount you deposit in your bank or any Property you purchase but if you did not submit your return on time or not in regular basis then Govt have to ask u any time about any amount you or anyone deposited in your bank or any property you purchase or any property you own. So more then liability it is a question of clarity of your total yearly income towards govt. of India. So in my s