Blog Details

Does your filing of taxes, tax you? It does that to me too, but then I took up the challenge to get over it for myself and all out there. Being a salaried person filing your taxes is easy and convenient. The company which hires you, will be deducting your tax at source i.e. TDS and for the issuance of this certificate, it will seek all your possible details on your investments, savings, tax exemptions and all other benefits which you can claim. Don’t be hesitant; just share the details, as they are making it easier for you to file your Income Tax Returns.

What you should know? – As a salaried Individual

1. The Central Government announces the tax- slab for each Financial Year. Know the slab to understand the percentage of tax you will have to pay. Here is for the FY 2016-2017.

2. There are changes in the Tax Rules. Become Aware. You should listen to the Budget every year or please read the newspaper! It makes you smart.

3. Your salary will have different components – Basic, House – Rent Allowances, Conveyance & Dearness Allowance. Your company will make the prescribed calculations for you.

Say, if you are leaving in a rented house – you get a deduction of maximum of Rs. 60,000 subject to least being considered first, fulfilling the following criteria:

i) 25% of your income –i.e. what must be accorded to you by your company .Check your pay slips.
ii) Rs.5000/- if the HRA component is missing in your pay slip or
iii) Rent paid minus 10% of the adjusted total income.

4. There are various financial products in the market where you can invest your money and save your taxes. It is capped at a maximum limit of Rs.1.5 lacs per annum for example Mutual Funds, PPF, Post Office Savings, health insurance, loan for education purpose -can be claimed under the various provisions of section.80 of the Income Tax Act’1961.

5. The National Pension Scheme allows you a deduction of more of Rs.50,000/- per year above the prescribed limit of Rs.1,50,000 lacs. There are banks, which have been authorized to enroll you under the NPS scheme or you can do it online too.

6. While investing in Mutual Funds, do get a clear idea of whether they give you any tax – benefit or not? As all mutual funds do not fall under the category of tax- deductions.

7. Your donations to charitable funds do not go waste; its 100% deducted. Charity has its rewards. You can claim your exemption under section.80G of the Act.

8. When you take a loan to buy a property for residential purpose, you are exempted.

9. The Income Tax Department charges an education cess, a surcharge & allows a rebate and relief while you file your taxes. That’s the norm, so please take it easy!

10. Apart from this remember your bank savings account earns you an interest. Are you doing any other work apart from your salaried job- part time? That would have to be computed too.

Checklist!

#Pan Card is mandatory

#Get your pay slip for each month.

#Update your Pass- book of Bank Account(s) - keep a track by availing the monthly statements if needed.

#Keep a track of all your Investments and Donations in a financial year – ask for your receipts /certifications. These days you can get all statements on your email.

#Ask for your TDS certificate – Check with your Company CA, to get hold of the computation made for you.

Know this that you can file your taxes on your own. Yes! You can. However, if you still want, you can always approach a professional.