Wednesday, 26 August 2015
Wednesday, 15 July 2015
INCOME TAX RATES Financial year 2013-14 Assessment year 2014-15
TAX RATES
* Financial year 2013-14
* Assessment year 2014-15
1) Male/ Female (Individual)
Zero to 2 Lac = Nil
2 Lac to 5 Lac = 10%
5 Lac to 10 Lac = 20%
10 Lac - Above = 30%
2) Senior Citizen (Above 60 age)
Zero to 2.5 Lac = Nil
2.5 Lac to 5 Lac = 10%
5 Lac to 10 Lac = 20%
10 Lac - Above = 30%
3) Super Senior Citizen (Above 80 age)
Zero to 5 Lac = Nil
5 Lac to 10 Lac = 20%
10 Lac - Above = 30%
In addition to above TAX, there is an additional levy of 2% Education Cess and 1% Secondary and Higher Education Cess.
PLEASE NOTE : If income is above Rs. 1,00,00,000 then Surcharge of 10% will be charged on calculated Income Tax
* Financial year 2013-14
* Assessment year 2014-15
1) Male/ Female (Individual)
Zero to 2 Lac = Nil
2 Lac to 5 Lac = 10%
5 Lac to 10 Lac = 20%
10 Lac - Above = 30%
2) Senior Citizen (Above 60 age)
Zero to 2.5 Lac = Nil
2.5 Lac to 5 Lac = 10%
5 Lac to 10 Lac = 20%
10 Lac - Above = 30%
3) Super Senior Citizen (Above 80 age)
Zero to 5 Lac = Nil
5 Lac to 10 Lac = 20%
10 Lac - Above = 30%
In addition to above TAX, there is an additional levy of 2% Education Cess and 1% Secondary and Higher Education Cess.
PLEASE NOTE : If income is above Rs. 1,00,00,000 then Surcharge of 10% will be charged on calculated Income Tax
INCOME TAX RETURNS DOCUMENTS NEEDED
DOCUMENTS NEEDED
1. TO file ITR 1 of any individual you need to ask your client to provide you the following DOCUMENTS:
i) FORM 16 (salary certificate)
ii) Bank pass Book (Other Income)
iii) Loan Certificate (House Property)
* FORM 16 gives details of Salary Income which is issued by employer/company however,
* Bank Pass Book will give all details of income earned from other source such as Bank interest etc.
* Loan Certificate issued by Bank for loan taken to purchase House Property.
2. TO file ITR 2 of any individual you need to ask your client to provide you the following DOCUMENTS:
i) FORM 16 (salary certificate)
ii) Bank pass Book (Other Income)
iii) Loan Certificate (House Property)
iv) Share brokers Statement (Capital Gain)
v) Agreement of property sold (Capital Gain)
* FORM 16 gives details of Salary Income which is issued by employer/company however,
* Bank Pass Book will give all details of income earned from other source such as Bank interest etc. *
* Loan Certificate issued by Bank for loan taken to purchase House Property.
* Shars Broker Statement will give you full details of SHARES purchased and sold during the period along with Capital Gain
* Agreement of property sold will give you details of DATE and AMOUNT at which house property is purchased and sold through which you can calculate long Term or Short Term Capital Gain/Loss
3. TO file ITR 3 of any PATNER of patnership you need to ask your client to provide you the following DOCUMENTS:
i) Details of Remuneration
ii) Details of Interest on Capital
iii) Return Filed by Patnership Firm
iv) Profit & Loss a/c of Firm
4. TO file ITR 4 of any Individual you need to ask your client to provide you the following DOCUMENTS:
i) FORM 16 (salary certificate)
ii) Bank pass Book (Other Income)
iii) Loan Certificate (House Property)
iv) Share brokers Statement (Capital Gain)
v) Agreement of property sold (Capital Gain)
vi) Balance sheet (Business)
vii) Profit & Loss a/c (Business)
* FORM 16 gives details of Salary Income which is issued by employer/company however,
* Bank Pass Book will give all details of income earned from other source such as Bank interest etc. *
* Loan Certificate issued by Bank for loan taken to purchase House Property.
* Shars Broker Statement will give you full details of SHARES purchased and sold during the period along with Capital Gain
* Agreement of property sold will give you details of DATE and AMOUNT at which house property is purchased and sold through which you can calculate long Term or Short Term Capital Gain/Loss
* Through Balance sheet and profit and Loss account you can compute Businees sheet and Profit & Loss account etc.
5. For AOP and BOI you require you need to ask your client to provide you the following DOCUMENTS:
From FIRMS you require Deed, Balance Sheet and Profit & Loss Account etc.
for AOP and BOI you require Trust Deed Copy Pan Card Copy, Income / Expenses Account / Receipt / Payment Account along with Balance sheet.
1. TO file ITR 1 of any individual you need to ask your client to provide you the following DOCUMENTS:
i) FORM 16 (salary certificate)
ii) Bank pass Book (Other Income)
iii) Loan Certificate (House Property)
* FORM 16 gives details of Salary Income which is issued by employer/company however,
* Bank Pass Book will give all details of income earned from other source such as Bank interest etc.
* Loan Certificate issued by Bank for loan taken to purchase House Property.
2. TO file ITR 2 of any individual you need to ask your client to provide you the following DOCUMENTS:
i) FORM 16 (salary certificate)
ii) Bank pass Book (Other Income)
iii) Loan Certificate (House Property)
iv) Share brokers Statement (Capital Gain)
v) Agreement of property sold (Capital Gain)
* FORM 16 gives details of Salary Income which is issued by employer/company however,
* Bank Pass Book will give all details of income earned from other source such as Bank interest etc. *
* Loan Certificate issued by Bank for loan taken to purchase House Property.
* Shars Broker Statement will give you full details of SHARES purchased and sold during the period along with Capital Gain
* Agreement of property sold will give you details of DATE and AMOUNT at which house property is purchased and sold through which you can calculate long Term or Short Term Capital Gain/Loss
3. TO file ITR 3 of any PATNER of patnership you need to ask your client to provide you the following DOCUMENTS:
i) Details of Remuneration
ii) Details of Interest on Capital
iii) Return Filed by Patnership Firm
iv) Profit & Loss a/c of Firm
4. TO file ITR 4 of any Individual you need to ask your client to provide you the following DOCUMENTS:
i) FORM 16 (salary certificate)
ii) Bank pass Book (Other Income)
iii) Loan Certificate (House Property)
iv) Share brokers Statement (Capital Gain)
v) Agreement of property sold (Capital Gain)
vi) Balance sheet (Business)
vii) Profit & Loss a/c (Business)
* FORM 16 gives details of Salary Income which is issued by employer/company however,
* Bank Pass Book will give all details of income earned from other source such as Bank interest etc. *
* Loan Certificate issued by Bank for loan taken to purchase House Property.
* Shars Broker Statement will give you full details of SHARES purchased and sold during the period along with Capital Gain
* Agreement of property sold will give you details of DATE and AMOUNT at which house property is purchased and sold through which you can calculate long Term or Short Term Capital Gain/Loss
* Through Balance sheet and profit and Loss account you can compute Businees sheet and Profit & Loss account etc.
5. For AOP and BOI you require you need to ask your client to provide you the following DOCUMENTS:
From FIRMS you require Deed, Balance Sheet and Profit & Loss Account etc.
for AOP and BOI you require Trust Deed Copy Pan Card Copy, Income / Expenses Account / Receipt / Payment Account along with Balance sheet.
INCOME TAX RETURNS FORMS
INCOME TAX RETURNS
There are 7 income tax returns available and the same are stared as under :
ITR NO. 1
Is filed by individual having :
1) Salary Income
2) Having Only One House Property
3) Income From Other Source
ITR NO. 2
Is filed by individual having :
1) Salary Income
2) Having two or more House Property
3) Income From Other Source
4) Capital Gain
ITR NO. 3
1} Partner's Remuneration and
2) Interest on Capital
****PLEASE NOTE****
If a parther gets any other income such as salary from ABC company as employee then income received from patnership firm will be considered as his Business Income and he has to file ITR NO.4 instead of ITR NO. 3
In short a patner should not have any other income (such as House Property Income, salary from other company, Other Business or Profession Income or Capital Gain etc)
ITR NO. 4
Is filed by individual having :
1) Salary Income
2) Having two or more House Property
3) Income From Other Source
4) Capital Gain
5) Business / Profession Income
ITR NO.5
Is filed by FIRMS, AOP, and BOI
i) AOP means Association of Person such as Private Trust and CO-Op. Housing Societies etc.
ii) BOI Means Body of Individuals such as Public Trust Act.
ITR NO. 6
Is filed by private LTD. companies and Public LTD. Companies
ITR NO. 7
Is filed by Assessees who is required to fulfil provision of TAX AUDIT
There are 7 income tax returns available and the same are stared as under :
ITR NO. 1
Is filed by individual having :
1) Salary Income
2) Having Only One House Property
3) Income From Other Source
ITR NO. 2
Is filed by individual having :
1) Salary Income
2) Having two or more House Property
3) Income From Other Source
4) Capital Gain
ITR NO. 3
1} Partner's Remuneration and
2) Interest on Capital
****PLEASE NOTE****
If a parther gets any other income such as salary from ABC company as employee then income received from patnership firm will be considered as his Business Income and he has to file ITR NO.4 instead of ITR NO. 3
In short a patner should not have any other income (such as House Property Income, salary from other company, Other Business or Profession Income or Capital Gain etc)
ITR NO. 4
Is filed by individual having :
1) Salary Income
2) Having two or more House Property
3) Income From Other Source
4) Capital Gain
5) Business / Profession Income
ITR NO.5
Is filed by FIRMS, AOP, and BOI
i) AOP means Association of Person such as Private Trust and CO-Op. Housing Societies etc.
ii) BOI Means Body of Individuals such as Public Trust Act.
ITR NO. 6
Is filed by private LTD. companies and Public LTD. Companies
ITR NO. 7
Is filed by Assessees who is required to fulfil provision of TAX AUDIT
RESIDENTIAL STATUS
Residential status are classified under two categories:
1) Resident
2) Non- Resident
However, in case of Individuals and Hindu Undivided families (HUFs) the category Resident is further divided into two categories:
3) Resident & Ordinarily Resident (ROR)
4) Resident But Not Ordinarily Resident (RNOR)
Determining Status
1) Resident :
An Individual is said to be Resident in INDIA if he/she satisfied atleast one condition of the following two:
i) He/She has stayed in india for 182 Days or more in the P.Y (Previous Year)
OR
ii) He /she has stayed in INDIA for 60 Days in previous year plus has stayed for 365 days in four preceding the previous year
if he/she doesn't stayed above , then he /she will be treated as Non - Resident
2) Non Resident :
Non Resident means, any person who is not a Resident
Means an individual who satisfied none of the condition (i or ii) stated under "RESIDENT"
3) Resident & Ordinarily Resident (ROR)
An individual is said to be Resident & Ordinarily Resident (ROR) in INDIA if he/she satisfied atleast ONE the basic condition (i or ii)
stated under "RESIDENT" along with BOTH THE ADDITIONAL CONDITION (iii and iv) stayed below :
iii) He/she has stayed in INDIA for atleast 2 years out of 10 years preceding the P.Y (Previous Year)
AND
iv) He/she has steyed in INDIA for 730 Days during the 7 years preceding the P .Y (Previous Year)
4) Resident & Not Ordinarily Resident :
An individual is said to be Resident But Not Ordinarily (RNOR) in INDIA if he/she satisfies atleast one of the basic condition (i or ii) stayed under "RESIDENT"
but doesn't satisfy any ADDITIONAL CONDITIONS (iii and iv) stated under "RESIDENT & ORDINARILY RESIDENT "
Special Category individual :
Special category individual are given special concessions while calculating his / her Residential status such special category individula are those who,
Leaves india as crew member of an indian ship or
Leaves india for taking employment outside india or
Being outside india, he/she comes on a visit to india
In such case individual is deemed to be a person of tndial orgin, only if he/she, or either of his parent or any of his grandparents were born in undivided india ( before
the partition of india)
`
if he doesn't satisfy the first Basic Condition (i.e. stays in india for less then 182 days) then he/she will be treated as Non - Resident
Examples NO. 1
What is the Residential status of Mr. Rahul who does not satisfies the BASIC CONDITIONS (i or ii )
SOLUTION : Mr Rahul is Non - Resident
Examples NO. 2
What is the Residential Status of Mr. Rahul who doesn't satisfies the BASIC CONDITIONS (i or ii) but satisfies only ONE the ADDITIONAL CONDITIONS (i.e condition iii)
SOLUTION : Mr Rahul is Non - Resident
Examples NO. 3
What is the Residential Status of Mr. Rahul who doesn't satisfies the BASIC CONDITIONS (i or ii) but satisfies only both the ADDITIONAL CONDITIONS (iii or iv) ?
SOLUTION : Mr Rahul is Non - Resident
Examples NO. 4
What is the Residential Status of Mr. Rahul who satisfies only ONE BASIC CONDITIONS (i or ii) and satisfies both the ADDITIONAL CONDITIONS (iii or iv) ?
SOLUTION : Mr Rahul is Resident & Ordinarily Resident
Examples NO. 5
What is the Residential Status of Mr. Rahul who satisfies BOTH the BASIC CONDITIONS (i and ii) and satisfies both the ADDITIONAL CONDITIONS (iii or iv) ?
SOLUTION : Mr Rahul is Resident & Ordinarily Resident
Examples NO. 6
What is the Residential Status of Mr. Rahul who satisfies BOTH the BASIC CONDITIONS (i and ii) and satisfies ONLY ONE of the two ADDITIONAL CONDITIONS (i.e.iii) ?
SOLUTION : Mr Rahul is Resident & Not Ordinarily Resident
Examples NO. 7
What is the Residential Status of Mr. Rahul who satisfies BOTH the BASIC CONDITIONS (i and ii) But doesn't satisfies any ADDITIONAL CONDITIONS (i.e.iii or iv) ?
SOLUTION : Mr Rahul is Resident & Not Ordinarily Resident
1) Resident
2) Non- Resident
However, in case of Individuals and Hindu Undivided families (HUFs) the category Resident is further divided into two categories:
3) Resident & Ordinarily Resident (ROR)
4) Resident But Not Ordinarily Resident (RNOR)
Determining Status
1) Resident :
An Individual is said to be Resident in INDIA if he/she satisfied atleast one condition of the following two:
i) He/She has stayed in india for 182 Days or more in the P.Y (Previous Year)
OR
ii) He /she has stayed in INDIA for 60 Days in previous year plus has stayed for 365 days in four preceding the previous year
if he/she doesn't stayed above , then he /she will be treated as Non - Resident
2) Non Resident :
Non Resident means, any person who is not a Resident
Means an individual who satisfied none of the condition (i or ii) stated under "RESIDENT"
3) Resident & Ordinarily Resident (ROR)
An individual is said to be Resident & Ordinarily Resident (ROR) in INDIA if he/she satisfied atleast ONE the basic condition (i or ii)
stated under "RESIDENT" along with BOTH THE ADDITIONAL CONDITION (iii and iv) stayed below :
iii) He/she has stayed in INDIA for atleast 2 years out of 10 years preceding the P.Y (Previous Year)
AND
iv) He/she has steyed in INDIA for 730 Days during the 7 years preceding the P .Y (Previous Year)
4) Resident & Not Ordinarily Resident :
An individual is said to be Resident But Not Ordinarily (RNOR) in INDIA if he/she satisfies atleast one of the basic condition (i or ii) stayed under "RESIDENT"
but doesn't satisfy any ADDITIONAL CONDITIONS (iii and iv) stated under "RESIDENT & ORDINARILY RESIDENT "
Special Category individual :
Special category individual are given special concessions while calculating his / her Residential status such special category individula are those who,
Leaves india as crew member of an indian ship or
Leaves india for taking employment outside india or
Being outside india, he/she comes on a visit to india
In such case individual is deemed to be a person of tndial orgin, only if he/she, or either of his parent or any of his grandparents were born in undivided india ( before
the partition of india)
`
if he doesn't satisfy the first Basic Condition (i.e. stays in india for less then 182 days) then he/she will be treated as Non - Resident
Examples NO. 1
What is the Residential status of Mr. Rahul who does not satisfies the BASIC CONDITIONS (i or ii )
SOLUTION : Mr Rahul is Non - Resident
Examples NO. 2
What is the Residential Status of Mr. Rahul who doesn't satisfies the BASIC CONDITIONS (i or ii) but satisfies only ONE the ADDITIONAL CONDITIONS (i.e condition iii)
SOLUTION : Mr Rahul is Non - Resident
Examples NO. 3
What is the Residential Status of Mr. Rahul who doesn't satisfies the BASIC CONDITIONS (i or ii) but satisfies only both the ADDITIONAL CONDITIONS (iii or iv) ?
SOLUTION : Mr Rahul is Non - Resident
Examples NO. 4
What is the Residential Status of Mr. Rahul who satisfies only ONE BASIC CONDITIONS (i or ii) and satisfies both the ADDITIONAL CONDITIONS (iii or iv) ?
SOLUTION : Mr Rahul is Resident & Ordinarily Resident
Examples NO. 5
What is the Residential Status of Mr. Rahul who satisfies BOTH the BASIC CONDITIONS (i and ii) and satisfies both the ADDITIONAL CONDITIONS (iii or iv) ?
SOLUTION : Mr Rahul is Resident & Ordinarily Resident
Examples NO. 6
What is the Residential Status of Mr. Rahul who satisfies BOTH the BASIC CONDITIONS (i and ii) and satisfies ONLY ONE of the two ADDITIONAL CONDITIONS (i.e.iii) ?
SOLUTION : Mr Rahul is Resident & Not Ordinarily Resident
Examples NO. 7
What is the Residential Status of Mr. Rahul who satisfies BOTH the BASIC CONDITIONS (i and ii) But doesn't satisfies any ADDITIONAL CONDITIONS (i.e.iii or iv) ?
SOLUTION : Mr Rahul is Resident & Not Ordinarily Resident
Friday, 10 July 2015
Basic Concept of Income Tax
1) Previous Year (P.Y)
A Completed Financial year i.e. (1st April to 31st March) is known as Previous Year
Suppose today date is 5th April then previous year will be completed financial year
i.e. 1st April 2013 till 31st march 2014
2) Assessment Year (A.Y)
Is incomplete financial year or running financial year between ( 1st April to 31 st March
Suppose today date is 5th April then Assessment year will be running financial year
i.e. 1st April 2014 till 31st march 2015
3) Gross Total Income
1)Salary Income
2)House Property Income
3)Capital Gain
4) Income From Other Source
5) Business/Profession Income
Gross Total Income
In short Gross Total Income is total income completed under above 5 heads of income before deduction under chapter VI i.e. 80 C to 80U
A Completed Financial year i.e. (1st April to 31st March) is known as Previous Year
Suppose today date is 5th April then previous year will be completed financial year
i.e. 1st April 2013 till 31st march 2014
2) Assessment Year (A.Y)
Is incomplete financial year or running financial year between ( 1st April to 31 st March
Suppose today date is 5th April then Assessment year will be running financial year
i.e. 1st April 2014 till 31st march 2015
3) Gross Total Income
1)Salary Income
2)House Property Income
3)Capital Gain
4) Income From Other Source
5) Business/Profession Income
Gross Total Income
In short Gross Total Income is total income completed under above 5 heads of income before deduction under chapter VI i.e. 80 C to 80U
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