Some of the other highlights of the DTC bill are as follows
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Finally, the much talked about Direct Tax Code Bill is introduced in the parliament but with a trimmed down version of the original draft.
The original draft was much more dynamic and laid down certain provision which could have altered the very nature of Direct Taxation System in India but our very own set of ministers feel that such drastic measures at one go might not be right for the government and thus this cautious approach which is quite visible in the final submitted draft.
Highlights of DTC:
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Question: Hi My Name Ravin Doshi, 28 years old, I am working as an Assistant Manager in private firm. My current salary package is six lakhs/pa. I joined last year in November 2010 I wanted to what is Form 16 and last date of filling income tax as I am salaried person.
Hello Ravin,
Very interesting question as mostly people don’t know what is form 16 and for what purpose it is used, and also the last date of filing income tax, as an salaried person your last date of filing income tax is 31st July so you have to hurry up.
Secondly At the end of financial year your company must have issued a Form 16 which contains the details about your salary what you have earned and how much it will be deducted. Form 16 gives details about the tax deducted by the employer on behalf of employees. And at the same it is paid to the government by the company. So just getting the From 16 is not enough for tax filing. Tax payer has to use this form to file their income tax return every financial at the end.
This certificate will be provided to you at the end of the financial year or normally by April 30. If there hasn’t been any TDS from your salary, they will provide you salary certificate, and not the Form 16.
For example, if your Tax at Deductive Source TDS is Rs 2799and Education Cess of Rs 72 are deducted from your April salary, Form 16 details will be provided to you. This is your final certificate issued to you by your employer in which the information and details about the salary that you have earned and the income tax which is deducted on your behalf by your employer and is paid to the government.
If you want to know how to file income tax click here
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It is the prime object of every taxpaying individual to use strategies that save taxes. There are various tax strategies for individuals that are used very effectively for deduction of payable taxes. Some of the widely effective tax strategies that individuals can practice in order to save their taxes include:
With the approach of tax season, taxpayers start looking out for some ways that can help them reduce the burden of their payable tax. In order to reduce their taxes, they seek various tax strategies from finance experts and professionals such as financial planner and certified accountant. These professionals generally charge their fees which might be beyond the limit of many. But, at the same time, there are several free of cost options that teach you how to obtain tax free strategies.
Being a family man, you might spend considerable time in planning your vacation, education for your kids, your daily meals and your schedules. Along with all these, you must also do tax planning for your family on priority basis. There are several useful tax planning tips which you can use for your own end. These tax planning tips are just a mouse-click away from you.
Personal tax deductions: It is a harsh fact that very few people are familiar with personal tax deduction. Most of the people have adequate knowledge about business tax deductions as well as investment deductions. Main reason for it is that personal tax deductions are rather strict.
Some of the top personal tax deductions that you can think about include:
Mortgage interest and property taxes: You can never make deduction of your mortgage from your payable income taxes. But, no one can stop you from deducting the interest which you pay on your mortgage. In order to be entitled for this type of personal tax deduction, you are required to prove that you posses any current mortgage and you pay a specific interest on it.
Donations to Charity: It is also an important personal tax deduction. However, taxpayers using this type of tax deduction most often land in trouble. You must keep it in mind that you can deduct your tax with the help of donations to charity only if these donations have the approval of tax deductible donations.
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Tax strategies for businessmen mean schemes that can save or deduct payable business taxes. It is a fact that businessmen are bound to pay income tax every year. The taxes on business income are levied according to the volume of business and income generated from it. However, in most of the cases, we find that tax seasons give sleepless nights to businessmen. Most of the business owners start shuddering at the mere of thought of paying taxes every year.
There are some tax strategies for business owners. These strategies are known to cut down considerable amount of taxes. Some of these strategies include:
Business expenses tax deduction is one of the tools that are effectively used for deduction of small business taxes. It is very important to know how to take advantage of business expenses tax deduction. In order to take advantage of this tax deducting tool, you require Schedule A, Form-1040. This form would help get your business expenses tax deduction itemized. The itemization of business expenses is done under various titles such as transportation, gifts, food as well as lodging.
For any small and developing business, taxes play vital roles. It is highly obligatory on the part of the small business owners to ensure that they take all measures for reducing their taxes. There are several prescribed suggestions that can be used by small businesses to lower their income taxes considerably.
In this regard, first initiative should be directed towards deducting insignificant but indispensable business expenses in areas concerning business travel, salaries, equipment and rent from the generated revenues of the business owners. Curtailment in the expenses of these things ensures significant reduction of taxable income. Other important small business tax tips include proper management of business losses and employee taxes.
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