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Tax Payer

A Taxpayer is a Person that pays Tax. Taxpayers have an Permanent Account Number, issued by MOF, Government of India.

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Tax Consultants

We are Specially Trained Income Tax Return Preparer by the Income Tax Department, Government Of India, Ministry of Finance

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Learning Centres

We offer variety of courses of Income Tax Planning and Return Preparation. Tax planning is one of the main objective of the institute.

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Common Questions of Income Tax

Question 1) I have paid excess Tax from my salary now I want to get an Income Tax Refund. What should I do?

Answer :: The best thing for you is to efile your Income Tax return as soon as possible. The earlier you submit, the sooner you'll get the tax refund.

Question 2) What documents should I keep with me while filing my Income Tax Return ?

Answer :: Typically you'll need to have the following items at hand. This might vary on a case by case basis.

  • PAN number
  • Form-16 issued by your employer
  • Bank statements / passbook for Interest Income on bank deposits.
  • Statements of Interest Income besides Bank deposits
  • TDS certificates issued to you by your bank and others
  • Form 26AS - The Income Tax department of the Indian government shows you the tax credit you have received for Tax deducted at source. This typically should match all your TDS certificates.
  • Section 80C investment statements. Investments done under LIC, NSC, PPF qualify for Section 80C deductions.
  • Charitable donation statements. Donations that can be claimed for tax deductions under Section 80G. Typically the receipt issued by the institute you donate to mentions the eligibility under Section 80G.
  • Interest paid on housing loan. Interest on housing loan is eligible for tax saving upto Rs 1,50,000. This is for a self-occupied house.

The following documents may also be needed for tax filing

  • Stock trading statement. The stock trades that were made during the year may be taxed under Capital Gain.
  • Section80CCF investments. Upto Rs. 20,000 can be claimed as tax deduction under this section
  • Education loan interest payments.

 

Question 3)How can I change/choose the Assessment Year for e-Filing on ClearTax ?

Answer :: Let this Job be done by the Person filing your IT Return.

Question 4) I owe taxes to the government, what should I do ?

Answer :: The Income Tax department does not like to accept Tax returns which have taxes due. They like to give you a nice little refund. Use ClearTax to figure out how much you precisely owe. Then pay the government what you owe.
Once you are done paying, use our site to quickly efile your tax return.

 

Question 5) How do I pay taxes which are due

Answer :: There are two ways. One online, the other offline. Most banks (almost all) will accept your income tax payment. So if you find that convenient, use our nifty FREE tool to generate a challan. This challan (Challan 280) has all the details you need for making the payment to the bank. Print it and you are done. If you don't know how much you owe, find out that first by creating a free account.
If you wish to make the payment online, go to this government website and make the payment! Select Challan 280.

Question 6) How do I calculate the Income tax that I owe to the government?

Answer :: Besides the regular calculation of sum of all Income - Tax deductions - Tax slab exemption; you still have to calculate the Interest under section 234 which might be due. That is somewhat non-trivial to do. We highly recommend you use our free income tax calculator to do it. It also handles interest due under section 234. We don't charge for this service and we stand behind the tax calculator's correctness.

Question 7) Can I save on taxes if I have a housing loan?.

Answer :: Interest paid on a housing loan is eligible for tax deduction for self occupied property. The loan amount should be spent on either acquisition or construction of the house property.If the loan is taken after April 1, 1999, then you may claim upto Rs. 1,50,000 as tax deduction on interest paid every year.If the loan is taken before April 1, 1999, then you may claim upto Rs. 30,000 as tax deduction on interest paid every year.

Question 8) Can I claim a tax deduction if I spent money on renovations for my house?

Answer :: You can save upto Rs. 30,000. Slightly tricky so pay attention. If you take a loan for doing the renovation, then you can claim the interest paid on this loan as a tax deduction (subject to a max of Rs. 30,000). Note that this house has to be occupied by you

Question 9) On a housing loan: How do I claim a deduction for interest paid during pre-construction period?

Answer :: Eligibility rules for this deduction: A deduction on a self occupied house property is available only after you occupy it. But typically a loan is taken before you take possession of the house property. This period (from borrowing until possession of the house) is termed as the "pre-construction period". Any interest paid during this pre-construction period is claimable for a tax deduction after you acquire/construct the house property. For 5 successive years after pre-construction, every year you can claim One-Fifth (1/5) of the interest amount you paid during pre-construction. So for example if you paid Rs 1,00,000 interest during pre-construction. You can claim Rs. 20,000 every year for 5 years. What do you need to provide: •The previous financial year when construction completed. Basically if construction completed on 17th July 2010, you need to specify 2009-10 •The total interest amount you paid during the pre-construction period. So from date of borrowing till 31st March of previous financial year. Note that 31st March is when financial year ends in India.

Question 10) How do I find out the Assessing officer (AO) for my PAN Card application(Form 49A?

Answer :: Actually leaving the field blank in the application is not a bad idea. At least in Delhi the department assigns the correct AO and issues the PAN card.
If you want to figure out the AO - you can use the Income Tax Government website: Go to this link. Select your state and go from there. (Note that only Internet Explorer worked for me, so use IE). The AO assignment is based on the first initial of your last name.

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NRI Taxation

Question 1) Who is considered as a NRI ?

Answer :: An Indian Citizen who stays abroad for employment/ carrying on business or vacation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a non-resident. ( persons posted in U.N. organisations and officials deputed abroad by Central/ State Government and Public Sector Undertakings on temporary assignments are also treated as non-resident) Non-resident foreign citizens of Indian Origin are treated on par with non-resident indian citizens.

Question 2) I am going out of India. Who will file my income tax return for this period?

Answer :: You can authorize any person by way of a Power of Attorney to file your return. A copy of the Power of Attorney should be enclosed with the return.

Question 3) What is the Tax Liability of a Non-Resident.

Answer :: Liability to pay tax in India does not depend on the nationality or domicile of the Tax payer but on his residential status. Residential Status is determined on the basis of physical presence i.e. the number of days of stay in India in any year.
Resident:
An individual is resident if any of the following conditions are satisfied:
(i) he stayed in India for 182 days or more during the previous year, or (ii) he stayed in India for 365 days or more during the four preceding years and stays in India for atleast 60 days 9 182 days in case of an Indian citizen or a person of Indian Origin coming on a visit to India or 182 days in case of an Indian citizen going abroad for an employment ) during the previous year. Stay in India for the above criteria may be continuous or intermittent.
Hindu Undivided Family (HUF) or firm or other Association of persons is resident of India except in cases where the control and management of its affairs is wholly situated outside India in the previous year

Question 4) Should NRI File a Income Tax Return in India.

Answer :: If you are a NRI, you need to file Income Tax Return in India for any kind of Income gererated or arise or accrue in India whether it is small or any amount. For example Bank interest , Profit Loss from Shares and Mutual Funds, Bonds , Rental Income or any Capital Gains from sale of Property.

Question 5) How can NRI save Tax on Income generated in India?

Answer :: By Investing in any eligible investments under 80C
By Taking Health Insurance Policies
By investing in Capital Gain Bonds

Click here to by Online LIC Products under Section 80C

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