Annual Income Tax Activities in India

By gunnalagFinancial, Legal, Self Management

 

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Activity Description

TimeLine

Comments

1

Tax declaration

1st Week April or 4th month of every year

  

2

Provide Tax Savings proofs to the Payroll

Mid of February or 2nd month of every year

  

3

Collect Form 16

mid-to-end of June or 6th month of the year

 

4

File IT Returns

July or 7th month of the year

  

5

      

 

  1. Individual has to provide a Tax declaration form at the start every financial year, that is April or 4th month of every year
    1. This declaration will have your planned tax saving investment details, HRA, House Loan EMI, etc.,
    2. Based on the declaration HR/Payroll will calculate your tax for every month of the year
  2. As per your declaration, you need to make the investments and provide the proofs to the Payroll, by a month before the end of financial year, that is February or 2nd month of every year. Say 15th of February.  
    1. You can even opt for a different investment options and amounts
    2. If you fails to make the investments or submitting their proofs then your whole amount will be considered for tax calculation
    3. If you make partial or small investments than the projected amounts, only the invested amount will be deducted from the tax calculation of your earnings
  3. Below are the list of the current tax saving options for Indians
    1. HRA,
      1. You need to quote the owners PAN number if you are paying rent Rs. 15000 or more
      2. You need to have owner name, address and sign on the rental receipt
      3. The sign should be half cross over on Revenue stamp
      4. You need to provide receipts for complete year of period, few companies would ask you to provide at least three months  receipts in random with one covering in each quarter of the year
      5.  
    2. Medical Bills Exemption  (FLEXIBLE BENEFITS EXEMPTED  U/s. 10)
      1. You need to provide original medical bills max upto Rs. 15,000
      2. Bills can be on your name and or your dependents
    3. Mediclaim Premium (CHAPTER VI A)
      1. Maximum upto Rs. 15000 for all dependents

    4. INVESTMENTS (u/s.80C)

      1. Contribution to Pension Fund – 80CCC
      2. Life Insurance premium (other than salary deduction)
      3. Contribution to Public Provident Fund
      4. Deposit in National Savings Certificates issued by Post Office
      5. Interest Accrued on NSC (up to 5th completed year only)
      6. Unit Linked Insurance Premium Paid if any
      7. Principal Housing Loan Repayment / Stamp Duty paid for Purchase of House/Flat
      8. Investments in Mutual Funds Having Tax Exemtpion
      9. Employee Linked Savings Scheme – LIC
      10. Children Education expenses (Tuition Fees)
      11. Fixed Deposits in Banks (more than 5 years)
      12. Equity shares / Debentures in Infrastructure companies
      13. Deferred Annuity taken from any Insurance company
      14. Others (please specify)
  4. HR or Payroll will provide you a Form 16 from Income Tax Department, this usually be given by mid-to-end of June or 6th month of the year
    1. Form 16 contains your overall earnings
    2. your overall tax paid along with challan numbers
  5. File IT Returns for past financial year, via online.   In case if you have paid high tax than you should be, in which case IT will refund the excess tax collected along with the interest, this usually to be completed by end of July or 7th month of the year.  To apply for IT returns, you need to provide
    1. Form 16
    2. PAN number
    3. Address
    4. Bank account details (to which you’ll get the amount credited)
    5. Any additional tax saving proofs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deduction under Section 24

  
 

Interest on Housing Loan on self occupied property

30000/150000
 

(If Loan taken for Repairs or re-construction interest paid should be limited to Rs. 30000/-)

  

(OR)

  
 

Interest on Housing Loan on let out property

Total interest paid
 

Rental Income from such property

  
 

Municipal Taxes for the year

  

Deduction under Chapter VI A

  

1

Sec 80D – Medical Insurance Premium ( including Rs.5000/- Preventive Helath Check up)

Max of 15 k

2

Sec 80DD – Specified Expenditure on Disabled Dependant

Max of 50 k

3

Sec 80E – Interest paid on Education loan – Self and/or Dependent

interest paid

4

Sec 80U – Deduction for Handicapped – Self Only

Max of 50 k
     

Rebate under Section 80CC

  

1

Contribution to Pension Fund – 80CCC

Maximum of Rs.1,00,000

2

Life Insurance premium (other than salary deduction)

3

Contribution to Public Provident Fund

4

Deposit in National Savings Certificates issued by Post Office

5

Interest Accrued on NSC (up to 5th completed year only)

6

Unit Linked Insurance Premium Paid if any

7

Principal Housing Loan Repayment / Stamp Duty paid for Purchase of House/Flat

8

Investments in Mutual Funds Having Tax Exemtpion

9

Employee Linked Savings Scheme – LIC

11

Children Education expenses (Tuition Fees)

11

Fixed Deposits in Banks (more than 5 years)

12

Equity shares / Debentures in Infrastructure companies

13

Deferred Annuity taken from any Insurance company

14

Others (please specify)
     

Previous Pay details if applcable

(Salary earned from 1-04-<year> till date of joining)
 

Gross Salary after Section 11
 

Previous PF
 

Previous PT
 

Previous TDS