The CBDT has issued a notification regarding mode of filing of New Income Tax return form for assessment year 2015-16 vide notification number 41/2015 dated 15/04/2015. Existing Rule: E filing of Income tax return mandatory if “Total Income” exceeds Rs. Five Lakhs. This Rule States that an Individual or HUF who have taxable income more … Continue reading Provision regarding Filing of New Income Tax Return Form for Assessment Year 2015-16
About form 15G/15H We invest money in fixed deposits to get better returns. If you go through the instructions mentioned on your FD certificate, it usually mentions: “If the depositor is not liable to pay income tax and the interest to be paid in a financial year does not exceed the maximum amount which is … Continue reading About Form 15G/15 H
The ITR-2 is a Form used by Income Tax Assessees in India. The process of filing Tax Returns in India involves the use of various forms for different categories of Assessees and the ITR-2 is one such form.
WHAT IS THE ITR-2 FORM?
The ITR-2 is the Income Tax Return form for individuals and HUFs who do not have any income from Business or Profession.
PERSONS LIABLE TO FILE ITR-2
The use of the ITR-2 Form is applicable to the following means of income only. This form is available for both Individuals as well as Hindu Undivided Families.
Individuals earning an income only through the following means are eligible to fill and submit the form to the Income Tax Department.
- Income from salary/pension.
Income from one House Property (Excluding cases where loss is brought forward from previous years).
Income from Other sources (Excluding winning from Lottery & Race Horses).
- Income from more than 1 House Property
- Income under the head P.G.B.P, Capital gains, etc.
- Any resident having any asset or financial interest outside India.
Section 192 of the I.T.Act, 1961 provides that every person responsible for paying any income which is chargeable under the head ‘salary’, shall deduct income tax on the estimated income of the assessee under the head salaries. The tax is required to be calculated at the average rate of income tax as computed on the basis of the rates in force. The deduction is to be made at the time of the actual payment. However, no tax is required to be deducted at source, unless the estimated salary income exceeds the maximum amount not chargeable to tax applicable in case of an individual during the relevant financial year. The tax once deducted is required to be deposited in government account and a certificate of deduction of tax at source (also referred as Form No.16) is to be issued to the employee. This certificate is to be furnished by the employee with his income tax return after which he gets the credit of the TDS in his personal income tax assessment. Finally, the employer/deductor is required to prepare and file quarterly statements in Form No. 24Q with the Income-tax Department. Continue reading “TDS On Salary – Section 192”
Tax Deducted At Source (TDS) as the name implies aims at collecting revenue at the very source of income. It is essentially an indirect method of “collecting tax which combines the concept of pay as you earn” and “collect as it is being earned.” Such collection of tax is effected at the source when income arises or accrues. Hence where any specified type of income arises or accrues to any one, the Income-tax Act enjoins on the payer of such income to deduct a stipulated percentage of such income by way of Income-tax and pay only the balance amount to the recipient of such income.
1. It Prepones the collection of tax.
2. Ensures a regular source of revenue.
3. Provides for a greater reach and wider base for tax.
To Tax Payer
1. It Distributes the incidence of Tax.
2. Provides for a simple and convenient mode of payment.