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IT Returns

krish44

Well-known member
How many file IT returns themselves online without help from professionals -chartered accountants etc.

Most middle class pensioners with minimal pension find it difficult to fill and file a return themselves .

From ITR1 to ITR4 they have to make a choice based on income from pension, interet from SB/FDs , income from property if

they own more than one flat/house,jncome from shares .They have to file online from this year,digitally signing the returns.

How many know about the exemptions on 80c and other similar sections ?

Most go to a tax consultant and end up paying money fro their services.

Mot middle class are salaried employees getting less than10 lakhs/yr .

Very few. pensioners cross five lakhs per year.

Govt can very well waive of submitting a return for seniors getting less than 5 lakhs/year.

They can get rid of thousands of IT employees who spend time only clearing these returns.
 

Janaki Jambunathan

Well-known member
How many file IT returns themselves online without help from professionals -chartered accountants etc.

Most middle class pensioners with minimal pension find it difficult to fill and file a return themselves .

From ITR1 to ITR4 they have to make a choice based on income from pension, interet from SB/FDs , income from property if

they own more than one flat/house,jncome from shares .They have to file online from this year,digitally signing the returns.

How many know about the exemptions on 80c and other similar sections ?

Most go to a tax consultant and end up paying money fro their services.

Mot middle class are salaried employees getting less than10 lakhs/yr .

Very few. pensioners cross five lakhs per year.

Govt can very well waive of submitting a return for seniors getting less than 5 lakhs/year.

They can get rid of thousands of IT employees who spend time only clearing these returns.
[/QUOTE


Most go to a tax consultant and end up paying money fro their services.
Most of our religious obligations can be performed without help of வாத்யார் ( with CD Lifco books or even online help) Yet engage a வாத்யார் - emotional bond with ஆத்து வாத்தியார் Dhakshina has no role in this bond! Similarly I have an emotional bond with my auditor In fact I op prepare my returns for his approval and he files my return - Yes on a few occasions certain changes were made under his guidance !l He is my ஆத்து ஆடிட்டர்! I need his approval!
 
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krish44

Well-known member
I too have a income tax lawyer who files my returns.

Now I find that he is turning out to be too expensive [Rs3000 per return plus 25% of all refunds}

I thought it is an insult to my intelligence if I cannot file my own returns.

So this year, I decided that I will it myself online.

IT dept has trained and appointed some facilitators all over india to help file on line.

The approved charges are only Rs 250 per return.

I intend using one of them for computing, data entry and sending on IT website.

There are more than one near my residence.

Let me see how it works out.
 

Janaki Jambunathan

Well-known member
File your IT without an auditor and save professional fees!

I have no Salary/Pension My income is from property & investments J had Salary/Pension + investment & Rental income ,+ Professional Income The auditors fee was deducted in his profession income (as expense) as receipt for audit fee was made on Js name ! J has retired from active practice on 31 march 2018 and has no professional income from April 1 - I wonder if the Audit fee can be claimed as expenses inthis year's return with no professional income - standard deduction is allowed for pension I will take a clarification from ஆத்து ஆடிட்டர்!
 

Janaki Jambunathan

Well-known member
I too have a income tax lawyer who files my returns.

Now I find that he is turning out to be too expensive [Rs3000 per return plus 25% of all refunds}

I thought it is an insult to my intelligence if I cannot file my own returns.

So this year, I decided that I will it myself online.

IT dept has trained and appointed some facilitators all over india to help file on line.

The approved charges are only Rs 250 per return.

I intend using one of them for computing, data entry and sending on IT website.

There are more than one near my residence.

Let me see how it works out.
In fact it in no ப்ரம்ம சூத்ரம் - You will be shocked when you deal with approved facilitator They always demand more than the approved charge - This happened when J got his Jeevan Pgraman - usually it is 4 times If it is less You are lucky!
 

krish44

Well-known member
Thanks JJ for cautioning me regarding facilitators.

My need for one arises only because I require to have a digital signature with the return.

Having an approved auditor solves the issue.

I do not know if one can apply standard deduction if pension is less than standard deduction.

similarly if one cannot report loss for short term trading as negative sign is not accepted by the system.

One has to be technically IT savvy to know how to tackle such issues.

Bulk of income is from property and FD interest and some from equities.

I would like to just see if any other alternative works out.

Otherwise I can always go back my existing income tax lawyer who files my returns.
 

Janaki Jambunathan

Well-known member
Have Only one Bank A/C Preferably SBI on single name with nomination No E or S Activate both internet and mobile Banking Have one credit card Use it on every purchase Avoid debit cards. Mandate this bank for all receipts - Pension Interest dividends rental income - Minimum or 0 cash transaction ! Then you will be able to manage your financial data !

You will be able to down load your financial statement from single bank account. Credit card statement is available unlike debut card which you have to fish out from SB a/c statement and is a pain. For Money transfer payments etc Mobile (app)banking is simple and easy Internet banking for download and print outs!

You will never be able to manage a huge data in different banks This is my experience We had about 8 Bank Account 12 Debit Cards and no credit card! Consolidated to only 2 SBI & Yes Bank where everything is online I don't have physical Pass Book or FD certificates All digital can be downloaded Physical is given if you ask for only!

No physical certificate needed for E filing -the data you feed should match with 26AS which again is downloadable from net banking.

If I could Change over to digital with in a year - you can do better!

SBI upgraded software - easy user friendly comparable to hi-tech pvt. Banks. Other PSU banks haven't reached to this level.!
 
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Janaki Jambunathan

Well-known member
I do not know if one can apply standard deduction if pension is less than standard deduction.(#6)

This is the eligibility

Actual pay(pension) or 40000 which ever is less


"The Central Board of Direct Taxes (CBDT) has clarified that the pension received by a taxpayer from his former employer is taxable under the head "Salaries". The Finance Act, 2018 has amended Section 16 of the Income-tax Act, 1961("the Act") to provide that a taxpayer having income chargeable under the head "Salaries" shall be allowed a deduction of Rs 40,000/- or the amount of salary, whichever is less, for computing his taxable income. Accordingly, any taxpayer who is in receipt of pension from his former employer shall be entitled to claim a deduction of Rs 40,000/- or the amount of pension, whichever is less, under Section 16 of the Act," said the press release.


 

Ravi Sadasivan

New member
I have been filing income tax myself all through my employment years and since 2012 through CLEARTAX portal(or is it web site ?).I had some confusion after retirement whether my pension was categorised as salary.Salary /pension are categorised together and choosing that option required me to enter employers details and upload Form 16 for tds at source.I had no form 16 and could not manouvre over this bottleneck in the ITR.I decided to club my pension with other income and file ITR.
 

prasad1

Well-known member
The contributions that are made to a pension plan, under section 80CCC, are tax-exempt up to a maximum ceiling of INR 1.5 lakh. The contributions include amount spent on buying a new pension plan or renewing an existing plan of similar nature. Both residents and non-residents may claim tax deductions which are offered by this section. However, Hindu Undivided Family is not eligible to make such claims under the given section.
The withdrawals, however, are not tax-free. Only one-third of the corpus that is distributed to the retiree (soon after reaching the retirement age) by the pension plan is tax-free. The rest of the money is distributed as an annuity and is subject to taxation depending on the retiree’s tax rate at the time of retirement.

 

prasad1

Well-known member
Is pension income taxed as salary income?
Yes. However, pension received from the United Nations Organisation is exempt.

Is Family pension taxed as salary income?
No, it is taxable as income from other sources.

Are retirement benefits like PF and Gratuity taxable?
In the hands of a Government employee Gratuity and PF receipts on retirement are exempt from tax. In the hands of non-Government employee, gratuity is exempt subject to the limits prescribed in this regard and PF receipts are exempt from tax, if the same are received from a recognised PF after rendering continuous service of not less than 5 years.

 

renuka

Well-known member
In Msia the Income Tax department has a special unit where the staff helps people file their returns and guide them personally at the department using the departments computers..its a huge room full of computers and staff to help those who need help.
 

prasad1

Well-known member
In Msia the Income Tax department has a special unit where the staff helps people file their returns and guide them personally at the department using the departments computers..its a huge room full of computers and staff to help those who need help.
here in the USA to you can get that help, but thanks the all-powerful XXXX it is going to be discontinued,
 

Janaki Jambunathan

Well-known member
We ( J and JJ) have been filing IT returns for the past 40 years. Every year it was getting simpler and easier and user friendly Assessment and refunds happens with in a week now. But the confusion crops in because of the amendments proposed to the IT act in every financial budget. There should be a continuity for a reasonable time And the financial year should be changed to 1st. Jan to Dec.31st. Then most of us may not need any assistance to file the IT returns with basic skill we have.
 

tbs

Well-known member
Is pension income taxed as salary income?
Yes. However, pension received from the United Nations Organisation is exempt.

Is Family pension taxed as salary income?
No, it is taxable as income from other sources.

Are retirement benefits like PF and Gratuity taxable?
In the hands of a Government employee Gratuity and PF receipts on retirement are exempt from tax. In the hands of non-Government employee, gratuity is exempt subject to the limits prescribed in this regard and PF receipts are exempt from tax, if the same are received from a recognised PF after rendering continuous service of not less than 5 years.

hi

even im getting defence pension in india.....its taxable...very sad.....armed forces pension should be exempted..
 

tbs

Well-known member
hi

in USA....IT filing is very easy....not much hurdle like india....especially for senior citizen...
 

KRN

Active member
Let's hope Subramanian Swamy becomes next FM, so that we won't have to pay income tax again 😀
 

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