Salaried Employee – Income Tax Saving Tips for Assessment Year 2013-14.

Salaried Employee - Income Tax Saving Tips for Assessment Year 2013-14.

In India, there are various tax slabs for the male and female and as per the annual salary, the tax deduction takes place.

As per Income Tax Notification for Salaried Employee dated 05-10-2012 by Income Tax Department whose salary drawn u/s. 192 of income Tax Law they realize to save Income Tax by amount of Rs. 2060 for the Assessment Year 2013-14. Thus, it is mandatory to pay the income tax for every citizen, whose annual Income over Taxable Limit. The Income Tax assessment takes place every calendar year in the month of March. The Government of India has been given so many benefits to the taxpayers. Tax payment is applicable for a person who is generating profit by any mode either by the business or from the job. In any of the public or private limited company, there are shareholders then the tax will not be exempted on the individual basis. The calculation is based on the annual profit generated by the organization.





Income Tax Saving Tips for Assessment Year 2013-14 / Financial Year 2012-2013

In India, there are various tax slabs for the male and female and as per the annual salary, the tax deduction takes place. If a male individual earns (in Rs) 200,001 to 500,000, the tax would be 10% if it exceeds from 500,000 to 1,000,000 the tax would be 20% if it exceeds from 1,000,000 the tax would be 30%. Including Female assesses also. Tax slabs for the Sr. Citizen is different from the male individual, the tax limit for the female start from 250,001. For 250,001 up to 500,000 the tax is 10%, from 500,000 to 1,000,000 tax is 20% whereas for above 1,000,000 tax would be 30%.

To get the tax benefit, it is important to show the investment proof. Tax waiver is applicable if the investment has done in the following:

Tax Saving Mutual funds – There are several government and private mutual funds available in the market such as State Bank of India mutual funds, Franklin Templeton, Kotak Mahindra and ICICI. Investor has to take care that tax waiver is available only on those mutual funds that have a locking period; a fund without a locking period is not eligible for the income tax benefit.

Home Loan – If an individual has purchased any property on loan, a tax waiver is applicable on it.

House Rent – House rent is another mode to save the income tax. While filing for income tax, tax receipt should be attached.

Insurance Policy– Government has given tax benefit on different type of insurance policies such as life insurance policy and health Care. This should be noted that no tax benefit is given for the General insurance like motor insurance etc.

While filing for the income tax it is useful to attach the receipt of the documents as per the above list.

Optimal tax planning with section 80C: Eligible schemes under section 80C for 2012-2013

1. Life Insurance Premiums

2. Contributions to Employees Provident Fund

3. Public Provident Fund

4. NSC (National Savings Certificates)

5. Unit Linked Insurance Plan (ULIP)

6. Repayment of Housing Loan (Principal)

7. Equity Linked Savings Scheme (ELSS) of Mutual Funds

8. Tuition Fees including admission fees or college fees paid for full-time education of any two children of the tax payer. 

9. Infrastructure Bonds issued by Institutions/ Banks such as IDBI, ICICI, REC

10.5-Year fixed deposits with banks and Post Office Savings Schemes

11. Senior Citizens Savings Scheme (SCSS)

Besides the section 80C of the income tax law, you can save tax under section 80D. 

All the health insurance products are eligible for tax saving under the section 80D and you can save tax up to Rs. 35000 in case you buy a policy for your family and your dependent parents.

Save Tax beyond Section 80C

You can save tax beyond 80C under section 80D, 80DD, 80DDB, 80E, 80G, 80GG, 80GGC, 80Utaxetc.

Section     Quick Description and Deduction Limit
80D Premium Paid on Medical Insurance Maximum up to Rs.15000 or Rs.20000in case of Senior Citizen
80DD Maintenance including Medical Treatment of a Handicapped Dependent  who is a person with disability Rs.50000 irrespective of the amount
80DDB Expenditure Incurred in respect of
Medical Treatment
Actual Incurred with a ceiling of up toRs.40000 or Rs.60000 in case seniorCitizen whichever is lower
80E Repayment of loan taken for pursuing
higher education
Maximum deduction for interest paid for amaximum of 8 years to till suchinterest paid whichever is earlier
80G Donations of certain funds and charitable Institutions Maximum deduction allowed can be50% or 100% of the donation subjectto the stated limits as provided underthis section
80GG Rent paid in respect of property occupied for
residential use
Maximum deduction allowed isleast of the following: Rs.2000per month;25% of total income; excessof rent paid over 10% of total income
80GGC Contribution made to any political parties or
electoral trust
Amount donated to Political parties isfull exempt
80U Person suffering from Specific disability Rs.50000 irrespective of the amountincurred or deposited.However incaseof disability of more than 80% igherdeduction of Flat Rs.100000 is allowed

How to File Income Tax Returns Online

E-Filing of Income tax returns has been mandatory for all the assesses who’s income is more than 10Lakhs. This notification came from Central Board of Direct Taxes (CBDT). E-filing was made compulsory for the assessment year 2012-13 onwards, for an individual or a Hindu Undivided Family if the total income exceeded Rs. 10 lakhs.

E-filing of Income Tax Return Online refers to the process of filing Income Tax Return electronically. You no longer have to stand in long queues to file income tax returns.

We earlier covered details on who need to File an Income Tax Return in India and the Income Tax Forms in which such returns need to be furnished. The return form, along with copies of necessary supporting documents, has to be filed at the appropriate income tax office or special counters set up for this purpose by Income Tax Department, India.

While E-Filing of Income Tax Returns is mandatory for a company and a firm liable to audit under section 44AB of the IT Act, it is optional for other categories of Indian Direct tax payers. There are three methods for furnishing the Income Tax Returns electronically.

· You may choose to use a digital signature and avoid the need to submit any paper return.
· If you choose to file the return without a digital signature, you may have file the ITR-V form with the income tax department. This form serves the dual purpose of a receipt and the verification form.
· You may also choose to file the Income tax returns through an intermediary who would do 
e-filing on your behalf and also assist you in filing the ITR-V Form 

How to do E-filing of Income Tax Return Online?

Register on and create a user id/password. The following is a flowchart of steps to file an income tax return online.













Check the heads of income under which the tax payer would be assessed and determine the appropriate Income Tax Return.

· Select the appropriate type of Return from the various Indian Income Tax Forms for different assesses.
· Download the software for preparing the selected Return from
· Fill in all the relevant details in the income tax return.
· If there is any tax payable, make the 
Income Tax Payment Online and obtain a challan counterfoil with CIN.
· Complete the income tax return by filling it with all details like the challan counterfoil with CIN, bank name and all other relevant payment details for the e-payment.
· Next, use the software to generate a XML file from the completed income tax return (XML is a format in which the IT department captures the required information directly into its database).
· Login to and click on the relevant form on the left panel and select “Submit Return“.
· Browse to select the generated XML file from your computer and click the “Upload” button.
· After the file gets uploaded to the servers of the IT department, you will be shown the acknowledgment details for the submitted return. Click on “Print” to generate a printout of acknowledgment/ITR-V Form. 

If you have digitally signed the return, the E-filing process is fully completed on generation of the “Acknowledgment”. You may take a printout of the Acknowledgment and keep it in a safe location for your record.

If the return is not digitally signed, an ITR-V Form is generated after the successful upload of the e-Return. You may then have to take a print out of the form. This serves the dual purpose of an acknowledgment and a verification form. The tax payer has to fill-up the verification section of the form and verify the same. A duly verified ITR-V form shall then be submitted to the local Income Tax Office, within 15 days of filing the returns electronically. This completes the process of E-filing of Income Tax Return for non-digitally signed Returns.

It is important to fill up PAN number in the Income Tax return. To get a pan card, submit a pan card application online.

Alternatively, you can download and print a pan application form, fill up the details and submit it at the designated counters.

If you had submitted the form online, you can also know pan card status online.