Ready Reckoner for Tax Planning

Filing of income tax returns is a civil responsibility of all eligible citizens of the country. However the procedures involved bog down even the best of professionals. We at ETIG make an effort to ease the task of filing return of income (ROI) for our readers. Some of the basic queries and rules that individuals must bear in mind while filing their tax returns are highlighted below.

LAST DATE FOR FILING ROI
For all other assessees who have to get their books of account audited under Income Tax law the last date of filing return of income is Sept 30, 2009, else July 31, 2009.
    *If individuals file their returns after the last date mentioned above, they will be charged a penal interest at the rate of 1% per month of delay. However, if such a return is filed after March 31, 2010, apart from the penal interest, they will also be liable for a penalty of Rs 5,000 PHYSICAL FILING OF ROI
The return should be filed with the Assessing Officer (AO) who assessed taxpayer in
the preceding assessment year or to whom the records have since been transferred. The new assessee should file return to the AO, who has territorial jurisdiction over the residence or the principal place of business of the assessee FILING OF E-RETURN
An individual having PAN and who has income from 'salaries' but does not have income from 'profit and gains of business or profession' and who is assessed in any of the specified city may, at his option, may furnish his income tax return on internet. However it is compulsory for companies to file electronic returns ROI OF MINOR CHILD
A minor child is not required to file a separate return of income. However, this income has to be included in the hands of either of the parents, although it might be a small amount of bank interest EDUCATIONS LOANS See Study Now, Save Tax Later FORM TO USE Refer to Box Number: 1
TDS -NOT A SUBSTITUTE FOR ROI
Even though tax has been deducted and there is no further liability to pay tax, an employee has to compulsorily file his/her income tax return. Form No. 16 received from employer is not their income tax return HOUSE PROPERTY See Ek Mahal Ho Sapno Ka TAX SAVING AVENUES See Tax Planning: A Cut Above The Rest INSURANCE & MEDICLAIM See Health Bhi, Wealth Bhi TAX ON BANK INTEREST
Employees do not
include the interest
that they receive on their savings bank account. The entire interest earned on your savings bank account is taxable
Checklist for documents to be maintained post-filing ROI
The Income Tax department does not require additional documents to be submitted along with the ROI. Nonetheless taxpayers must maintain them incase the documents are called upon at some later point of time Detailed calculation of taxable income and amount of tax payable / refundable Form No. 16 / 16A (original). Counterfoil of all the tax payments made during the year Copy of documents concerning sale of investments and properties. Copy of bank statements Copy of proof for all the deductions and exemptions claimed in the return of income.
Compiled by Supriya Verma Mishra