Prajna Capital

Steps to File Tax Returns
E-Verification of Tax Returns
BNP Paribas Mutual Fund Applications

Posted: 26 Aug 2015 05:05 AM PDT

The deadline to file your income tax returns has been extended to August 31. So, you still have about six weeks to file your ITR forms. Here's what you need to do to file an error-free return.

CHECK YOUR TAX CREDIT ONLINE

The Form 26AS has details of the tax deposited with the income tax department on your behalf. This includes the TDS on bank deposits, salary , consultancy charges or even sale of property .You can access it online through your Netbanking account if it is linked to your PAN. Check whether the tax paid by you is reflecting in the Form 26AS.

RECTIFY MISMATCH IN FORM

26AS In case of a mismatch, get the deductor to rectify and file a revised TDS return.This is important because the tax department goes by what is stated in your Form 26AS. Once the return is filed, the tax department's system reconciles the tax paid details submitted in the return form with the amounts appearing in the corresponding Form 26AS of the tax payer.

"Parity in return form and Form 26AS would ensure faster processing of returns, speedy disbursement of refunds and also helps in avoiding unnecessary questioning by the tax authorities," says Kuldip Kumar, partner and leader, personal tax, PwC India.

Also ensure that the transactions mentioned in the Form 26AS have been reported in your return. If there is a 10% TDS on interest from a fixed deposit, the full interest should be reported. If you switched jobs during the year, you might have got double exemption and deduction.You have to report both incomes and pay tax.

ADD UP INCOME FROM OTHER SOURCES

Apart from salary , taxpayers may also have income from other sources. Add up all the interest earned on fixed and recurring deposits, infra bonds, NSCs, Kisan Vikas Patras and even your SB account. Even if TDS has been deducted on FDs, you might need to pay more tax if you are in the 20-30% tax bracket (income of over `5 lakh a year).

DO NOT FORGET GIFTS

Any `gift' transferred to close relatives is not taxable. However, any income arising from that asset is fully taxable in the hands of the transferor. So, if you invest the gifted money , the interest or profit earned from it gets added to your income.

INCLUDE FOREIGN ASSETS

The new ITR-2 asks for details of foreign bank account's holding status (both as an owner and as a beneficiary), account opening date, interest accrued during the year and schedule and fields number under which the same income is reported.

CALCULATING CAPITAL GAINS

If you sold any mutual funds, stocks, property or gold during the year and made a profit, report the gains in your tax return. Some of these gains will not attract any tax but others might.

REPORTING RENTAL INCOME

You are liable to pay tax even if you have not earned any income from your property . In case of sale, the new forms seek yearwise particulars regarding any unutilised amount lying in capital gain scheme account to check for longand shortterm gains. If the property was outside India, the new forms require the taxpayer to fill the details of such capital gain income in the Schedule FSI where details of income from outside India and tax relief need to be reported.

CLAIM THE DEDUCTIONS

Most taxpayers are familiar with tax deductions under Section 80C and Section 80D. But there are several other deductions, such as those for disabilities and certain illnesses.

CHOOSE THE RIGHT MODE

Online tax filing is not only easy but also mandatory for certain taxpayers.If your income is more than `5 lakh a year and includes foreign income, then you have to e-file your tax return.Even if the income is below `5 lakh but you are claiming a refund, e-filing is compulsory . E-filing not only ensures your ITR is error-free, but is more reliable as well. E-filed tax returns get processed much faster.

VERIFY YOUR TAX RETURN

The procedure does not end with uploading your return. You need to verify it also. From this year, the tax department has introduced the facility of electronic verification code (EVC). But it is not fully operational yet. If you can't go paperless, the option of sending the ITR V by post to Bengaluru is open. The ITR V must reach the CPC within 120 days of filing the return.

Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015

1.ICICI Prudential Tax Plan

2.Reliance Tax Saver (ELSS) Fund

3.HDFC TaxSaver

4.DSP BlackRock Tax Saver Fund

5.Religare Tax Plan

6.Franklin India TaxShield

7.Canara Robeco Equity Tax Saver

8.IDFC Tax Advantage (ELSS) Fund

9.Axis Tax Saver Fund

10.BNP Paribas Long Term Equity Fund

You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds

Invest in Tax Saver Mutual Funds Online -

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

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Leave your comment with mail ID and we will answer them

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

Leave a missed Call on 94 8300 8300

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Invest Mutual Funds Online

Invest Any Mutual Fund Online

Download Mutual Fund Application Forms from all AMCs

Download Mutual Any Fund Application Forms

E-Verification of Tax Returns

Posted: 26 Aug 2015 04:27 AM PDT

The e-verification process introduced by the Income Tax Department this year completes the returns filing process in a jiffy.

The e-verification of returns, introduced this year by the income tax department makes tax-filing a seamless process.

Till last year, if you did not have a digital signature, you had to send a copy of the ITR V to the Central Processing Centre in Bengaluru. From this year, the tax department has introduced an alternate way of paperless e-filing via Electronic Verification Code (EVC). The electronic code generation process may vary, depending on the taxpayer's profile and the channel used for accessing the e-filing website.

After you have filed your returns, you have the option of e-verifying it. Filing and e-verfication can be done seamlessly and you can finish the whole process in one go. Despite this relative ease, most people do not seem to be opting for this route. According to the income tax department website, of the total 62.19 lakh returns filed so far, only 12.8 lakh taxpayers have availed of the e-verification facility. The method is not complicated and most of the taxpayers who e-file are techsavvy. So, there seems to be a lack of awareness among people about this option.

To help you navigate the process, here are all the details you need to know about electronic verification, how it works and the various ways in which you can generate the EVC.

Since you get a 120-day period, starting the day you file your returns, for verification, you may still have time left to go for e-verification of your return. After all, those post office queues can be pretty long.

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Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015

1.ICICI Prudential Tax Plan

2.Reliance Tax Saver (ELSS) Fund

3.HDFC TaxSaver

4.DSP BlackRock Tax Saver Fund

5.Religare Tax Plan

6.Franklin India TaxShield

7.Canara Robeco Equity Tax Saver

8.IDFC Tax Advantage (ELSS) Fund

9.Axis Tax Saver Fund

10.BNP Paribas Long Term Equity Fund

You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds

Invest in Tax Saver Mutual Funds Online -

Invest Online

Download Application Forms

For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

---------------------------------------------

Leave your comment with mail ID and we will answer them

You can write to us at

PrajnaCapital [at] Gmail [dot] Com

Leave a missed Call on 94 8300 8300

---------------------------------------------

Invest Mutual Funds Online

Invest Any Mutual Fund Online

Download Mutual Fund Application Forms from all AMCs

Download Mutual Any Fund Application Forms

BNP Paribas Mutual Fund Applications

Posted: 26 Aug 2015 03:56 AM PDT

BNP Paribas Mutual Fund investors can now submit applications in soft copies. Investors need to do fill out a physical form, take its photograph (as well as that of supporting documents) and email it to the fund house.