ITR filing: How to claim HRA in Income tax return

House rent allowance (HRA) is one in every of the most usually received allowances by the salaried category. If you are paying rent for accommodation to a landlord which can mean your parents also, then you are eligible to claim tax exemption for the rent paid.

In a departure from the previous year, this year ITR-1 is in sync with the Form-16 received by salaried persons from employers as a TDS certificate. Therefore, it is easier to claim the HRA exemption as you are required to copy the details from the Form-16 and paste it in ITR-1.

If you have forgotten to submit the documents such as rent agreement or rent receipts to your employer, then worry not, as you can still claim the tax-exemption benefit available on HRA while filing your income tax return (ITR).

However, remember in such a case you will be required to manually calculate the amount of HRA received by you which is exempted from tax.

As you have got not submitted the HRA documents to your employer, your Form-16 will show the HRA portion of your salary as fully taxable.This will mean that the taxable amount of your salary as shown in Form-16 will be higher than the calculations made by you.

How to claim tax exemption on HRA?

1.If rent agreement or rent receipts submitted to employer

If you have submitted rental agreement or rent receipts to your employer, then in such a case, the tax-exempt portion of HRA received by you can be seen in Form-16. It is possible that either the entire HRA received by you during the FY 2018-19 is exempt from tax or only part of it is exempted, depending on which of the conditions/criteria set down for claiming HRA exemption you meet.

Remember while submitting rent agreement or rent receipts to your employer, you are also required to submit PAN of your landlord if the annual rent exceeds Rs 1 lakh.

Read More...

AIAT Pvt. Ltd

Add:- 15 Bhande Plot, Umred Road Nagpur.

Email:- info@aiatindia.com

Cont:- 9604121000

Visit Us

Got a tax notice? Here’s what you should do

You can respond to tax notice by logging in to www.incometaxindiaefiling.gov.in.

Different types of notices can be found under options on the dashboard in your account.

Types of notices and how to respond to them

1.       131(1A)

What is it for?

Assessing officer suspects you have concealed income.

How to respond

If you are unable to gather all the documents sought, send whatever you have within the deadline, along with an application seeking more time.

2.       

139(9)

What is it for?

Notice for defective return if wrong form is filled, or income details of a refund claim are missing, or there are multiple mistakes in filing.

Read More...

AIAT Pvt. Ltd

Add:- 15 Bhande Plot, Umred Road Nagpur.

Email:- info@aiatindia.com

Cont:- 9604121000

Visit Us

ITR filing: Pre-validate your bank account to claim income tax refund

To claim your income tax refund this year, then apart from filing income tax return (ITR), you might have to do one more additional step. This is because the process of claiming income tax refund has been tweaked a bit by the tax department.

From this year, you will have to make sure that you have pre-validated your bank account in which you wish to receive the income tax refund once your return is successfully filed or when filing your ITR.

Apart from pre-validating your bank account, you are also required to link your PAN with your bank account as well. If your PAN is not linked with the bank account, then you will not be able to get the income tax refund in your bank account.

If you want to claim the refund in the ITR then make sure you link your PAN with your bank account and pre-validate it on the income tax e-filing website. Now onwards, the income tax department will issue only e-refunds. Thus, refunds will be credited only to those bank accounts which are linked with PAN."

The income tax department had previously announced that from March 1, 2019, it will issue only e-refunds. These tax refunds will be credited only to those bank accounts which are linked with PAN and are also pre-validated on the income tax e-filing website, i.e., www.incometaxefiling.gov.in.

Read more...

AIAT Pvt. Ltd

Add:- 15 Bhande Plot, Umred Road Nagpur.

Email:- info@aiatindia.com

Cont:- 9604121000

Visit Us

How to compute your total taxable income

How to compute your total taxable income

In order to file your income tax return (ITR), you first need to collect all the information required to file it. The next necessary step is to figure your total taxable financial gain. After this, final tax due or refundable is calculated by applying the applicable tax rates effective so deducting taxes already paid by method of TDS/TCS or Advance tax from the tax due amount arrived at.

Here's a step by step orientate the way to calculate one's total taxable income:

As per the taxation laws, a person can have a total of 5 sources of income which are: Income from salary, Income from House Property, Income from Business or Profession, financial gain from Capital Gains, Income from Other sources. All income of a tax-assessee has to be categorized as one of the above.

Income from Salary

You can work out financial gain from your wage victimisation the TDS certificate in kind sixteen issued by your leader.

This is to be done as follows:

1.       Collect your salary slips and Form 16 for the financial year.

-currently add all of your emoluments like (Basic wage, DA, TA, DA on TA, HRA, all other allowances, and reimbursements) which will be mentioned in your salary slips and

Form 16 (Part B).

2.       Add the Bonus (TVP- Ex gratia) received in the FY for which income is being computed.

3.       The total will be termed as your gross salary.

4.       Deduct the following from your gross salary :

5.       Exempted portion of HRA, - Transport Allowance (maximum exemption can be upto Rs19200 per annum) - All reimbursements subject to the furnishing of actual bills i.r.o expenditure incurred (Medical reimbursement can be maximum upto Rs 15000)

6.       The result will be your net income from salary.

Note: From FY 18-19, deduction in respect of transport allowance of Rs19,200 per annum and medical reimbursement of Rs 15,000 per year have been withdrawn.

Further, a typical deduction of Rs 40,000 a year will be allowed from your gross salary.

Read More...

AIAT Pvt. Ltd

Add:- 15 Bhande Plot, Umred Road Nagpur.

Email:- info@aiatindia.com

Cont:- 9604121000

Visit Us

Form 26AS: what's it and the way will it help in filing tax return?

The maturity date for filing your income tax return (ITR) is quick approaching One of the most necessary documents that you just ought to verify before filing your ITR is your type 26AS.http://aiatindia.com/blog

What is Form 26AS

This form is AN annual consolidated tax statement which will be accessed from the income-tax web site by all taxpayers exploitation their Permanent Account variety (PAN).

If you've got paid taxes on your financial gain or tax has been subtracted from your financial gain, the Income tax department already has these details in their database.

You could refer to your Form 26AS for the details of your income (on which taxes have been deducted) as well as the taxes that have been paid by oron your behalf by the deductor (could be your employer, bank etc) to the Government treasury.

In addition, Form 26AS also contains details of your deductors such as their names and Tax Deduction Account number (TAN).

Details of taxes paid by you and tax refunds

Form 26AS not solely contains the small print of your taxes paid however conjointly contains details of any tax refunds that are received by you throughout the relevant fiscal year

Read More...

AIAT Pvt. Ltd

Add:- 15 Bhande Plot, Umred Road Nagpur.

Email:- info@aiatindia.com

Cont:- 9604121000

Visit Us

Tax deducted at source (TDS) below goods and service Tax

1. What is TDS?

Tax deducted at source (TDS) is one in all the ways that to gather tax supported sure percentages on the amount collectable by the receiver on goods/services. The collected tax could be a revenue for the government.

2. Who can be liable to deduct TDS under GST law?

1.       A department or an establishment of the Central Government or State Government; or

2.       Local authority; or

3.       Governmental agencies; or

4.       Such persons or category of persons as may be notified by the Government.

As per the most recent Notification dated 13th Sep 2018, the following entities also need to deduct TDS-

1.                   An authority or a board or any other body which has been set up by Parliament or a State Legislature or by a government, with 51% equity ( control) owned by the government.

2.                   A society established by the Central or any State Government or a Local Authority and the society is registered under the Societies Registration Act, 1860.

1.                   3.Public sector undertakings.

3. Once can the liability to deduct TDS be attracted?

What is the rate of TDS?

TDS is to be deducted at the speed of two % on payments created to the provider of taxable goods and/or services, where the total value of such supply, under an individual contract, exceeds two lakh fifty thousand rupees.

Read More...

AIAT Pvt. Ltd

Add:- 15 Bhande Plot, Umred Road Nagpur.

Email:- info@aiatindia.com

Cont:- 9604121000

Visit Us

ITR verification: Here are six method that to try and do it

The last step in filing your taxation come (ITR) is to verify it. If you have got filed your ITR however haven't verified it, then the come won't be thought-about valid in keeping with taxation laws.

Once you have got uploaded your ITR on the e-filing web site, you get a hundred and twenty days to verify your come. There ar 6 ways that to verify your taxation come. Out of those, 5 ar electronic ways and one may be a physical technique. These ways are often used provided that you're filing tax returns that aren't needed to be audited, i.e., sometimes ITR-1, ITR-2 and ITR-4 for FY 2018-19. However, if you're filing your tax returns that are needed to be audited, then you have got to verify it victimization the Digital Signature Certificate.

Six  ways  which you'll verify your ITR:

1.      Via Aadhaar-based OTP

To verify your ITR victimization the Aadhaar-based one-time secret (OTP), your mobile variety should be joined to Aadhaar and registered in and of itself within the distinctive Identification Authority of Republic of India (UIDAI) info and your PAN should be joined with Aadhaar..

Read More...

AIAT Pvt. Ltd

Add:- 15 Bhande Plot, Umred Road Nagpur.

Email:- info@aiatindia.com

Cont:- 9604121000

Visit Us