Return of income/ Tax Returns for FY 2010-11 – Changes and things to do

The Income Tax Provision casts a responsibility on all individuals to file their return of income/ tax returns, having taxable income exceeding the basic exemptions before allowing deduction and exemptions. The due date for filing return of income is 31st July 2011 (i.e. for period April 2010 to March 2011). The return of income can be filed either manually or online also online tax filing or online return filing. The online income tax filing scores over the historic manual filing of return of income as it is much more hassle free and simple, there is lesser risk to filing in wrong due to its validation process, returns can be filed any time and from anywhere. The government has made two major changes for the FY (April 2010 to March 2011), Assessment Year 2011-12, which are noted below: • New Forms for Return filing – ITR1 (SAHAJ) for salaried individuals has been introduced for FY 2010-11. Individual taxpayers are required to file their income tax returns for the FY 2010-11 (AY 2011-12) in the latest introduced forms. SAHAJ is the newly designed ITR 1, which replaces SARAL Income Tax Return. Further, this Return form is to be used by an individual whose total income for the assessment year 2011-12 (FY 2010-11) includes: (i) Income from Salary/ Pension; or (ii) Income from One House Property (excluding cases where loss is brought forward from previous years); or (iii) Income from other sources (excluding winning from lottery and income from Race horses) It is to be noted that this return form can not be used by an individual whose total income for the assessment year (FY 2010-11) includes; (i) Income form more than one house property; or (ii) Income from Winning from lottery or income from Race horses; or (iii) Income under the head “Capital Gains”, which are not exempt from tax; e.g. short-term capital gains or long term capital gains from sale of house, plot, etc; or (iv) Income from agriculture in excess of Rs. 5000; or (v) Income from Business or profession. Every individual who have income from sources as said above and if their Taxable Total Income exceeds basic exemption limit as given below would be obligated to file SAHAJ : For resident woman below 65years – Rs. 190000, For any other individual (below 65 years) and every HUF – Rs. 160000, and For resident senior citizen (who is 65years or more) – Rs. 240000. • Exemption for small salaried individuals from filing ITR- Taxpayers with annual income of up to Rs. 5 lakh will not be required to file returns, a move that will provide relief to around 70 to 80 lakh people. This will apply from the current assessment year (2011-12) for the income earned in 2010-11. However, people in this category (income up to Rs. 5 lakh) will have to file return if they seek refund, he added. However, a formal notification is still awaited from government in this regard. Further, the deadline for filing of return of income is fast approaching, and in this regard, we have listed a check list to help you to prepare yourself for the same: Avail deduction u/s 80C- Gather all your investment documents to avail the full deduction u/s 80C. You can claim deduction upto Rs. 1,00,000 by making investment in specified schemes like life insurance premium, deposits made in public provident fund (PPF) account, investment made in National savings certificates (NSC), Payment of Children’s tuition fees etc. Claim other deduction beyond section 80C – An investment in long term Infrastructure Bonds upto a maximum of Rs.20000 u/s 80CCF would be deductible over and above the existing limit of Rs.1 lakh under section 80C of the Act. If you have paid health insurance premium other than cash for self and for your family, you can claim deduction u/s 80D of the Act of Rs 15,000 (Rs 20,000 in case of senior citizens). Further deduction of Rs 15,000 is allowed for your parents (Rs 20,000 if either of your parent is a senior citizen). You can also claim deduction u/s 80E for payment of interest on education loan for higher education for self or family. For claiming such deduction must ensure that you have the necessary records to substantiate the same. Collect your TDS Certificates- To claim the right amount of Tax Deducted at Source (TDS); you need to collect all your TDS certificates from banks, your employer & from other sources from which tax has been deducted from your income. Collect home loan certificate- Repayment of home loan interest/principal will also help you to reduce your tax liability. You must ensure that you have taken the full benefit of Interest payment u/s 24(b) and principal repayment u/s 80C of the act. Collect valid receipts for donation- If you have made donation to any charitable or religious institution then collect the valid receipts for donation so that you can claim deduction under section 80G of the Act to reduce your tax outgo. It is a necessary to take such action now to avoid any last minute rush in filing your return and ensuring that all the available exemptions/deductions are claimed. offers most comprehensive income return filing/ income tax returns service with the sole object of making your life easy. We just require your salary certificate/ other income details to file return of income. offers excellent tax support in addition to filing of return of income and comprehensive tax planning. At we do not put you at pain by asking to fill in long tax forms. You just need to fill in a form with basic details after attaching your salary certificate/ other income details, after which we take care to online tax return filing in most hassle free manner.

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