Tax season is on! And so every individual (salaried or businessman), needs to do proper tax planning to ensure that excessive money is not lost or wasted. Tax planning sometimes can be tricky, especially if you don’t know how to file it properly.
Here are some basic queries most Indians do have while filing their tax
Very basic, but very pertinent question while Income tax Planning, lets understand the various sections under which you can basically file your tax:
Income Tax Department usually is a streamlined process so the refunds are usually processed within 120 days if not more. However remember to file your ITR on time and provide proper bank details.
If you have a turnover of more than Rs. 1 crore as a business person or you have a turnover less than 1 crore but your profit is less than 8% of turnover you will be audited u/s 44 AD. You will also be audited, if you are CA/Doctor/Lawyer and you have receipts more than Rs. 25 lakhs.
You can get deductions in your home loan under section 80C only up to the extent of your principle amount paid but that also in your early stages of your home loan cycle is hard to receive full. Let’s say amount deducted for PF and insurances are Rs. 80,000. You can only receive tax deductions up to Rs. 70,000 only (Upper cap being Rs. 1, 50,000 U/s 80C), no matter how much more you pay.
In new ITR forms, introduction of Electronic Verification Code, easy filing for super senior citizens, detail listing of all bank accounts in FY with details of both domestic and foreign travels, domestic and foreign assets etc. will be the new provisions which will be added for making the process more transparent for both users and the authority.