July 2012

What is form 26AS~Important Tax Statement

 

What is Form 26AS?

A1Form 26AS is a consolidated tax statement issued under Rule 31 AB of Income Tax Rules to PAN holders. This statement with respect to a financial year will include details of:
a) tax deducted at source (TDS);
b) tax collected at source (TCS); and 
c) advance tax/self assessment tax/regular assessment tax etc. deposited in the bank by the taxpayers (PAN holders). 
Form 26AS will be prepared only with respect to Financial Year 05-06 onwards. [Source : Income Tax India Website]

The information will be useful when filing taxes online.

Tax Filing ~ Which ITR (Income Tax Return) forms to file~File Online

Income Tax India, Tax filing, Online, Form 26AS, ITR forms, Income from salaryNow you can File taxes online using the website : https://incometaxindiaefiling.gov.in/portal/index.jsp. Follow these simple steps for filing online.

1. Register using  your PAN. Once you login you can choose the Assessment Year for filing the tax :

Tax Filing, Which ITR (Income Tax Return) forms to file, Form 26AS, Individual , HUF,

2. Use the following ITR forms based on your type/ source of Income.

Tax Filing, Which ITR (Income Tax Return) forms to file, Form 26AS, Individual , HUF,

3. Download the return preparation excel sheet. There is excel utility excel templates which are provided for each type of ITR forms. 

Income tax return, Excel Utility, Preparation software, ITR Return, NSDL, ITR-1 Sahajj, ITR-2, ITR-3, ITR-4

4. Use form 16 to fill in the form (4 pages). Click Validate. This will generate the XML File. Now you just need to upload the file using the following form :

Income tax return, Excel Utility, Preparation software, ITR Return, NSDL, ITR-1 Sahajj, ITR-2, ITR-3, ITR-4Income tax return, Excel Utility, XML, Upload return, refund, Preparation software, ITR Return, NSDL, ITR-1 Sahajj, ITR-2, ITR-3, ITR-45.  You will get an email from income tax office. You need to send the signed form to the address mentioned on the file by ordinary post or speed post.

And that’s it… Remember online tax filing is mandatory for Income over 10lacs/Optional for income < 10lacs. You can either sign digitally or send by post.

Ensure that you check Form 26AS for TDS information and verification. 

The document : Common_Mistakes  which should be avoided when filing taxes online. 

Happy Tax filing

July 2010

Why you should never invest in ELSS , Dividend Reinvestment Scheme !

Why you should never invest in ELSS , Dividend Reinvestment Scheme, Section 80C, Mutual Fund Investment, Tax Saving Planning.

Equity Linked Savings Scheme (ELSS) is an instrument which many investors use to get advantage in Section 80C, Rs 1 Lac, deduction in Income.

There is a 3 year lock in in these schemes.

If you choose the Dividend reinvestment Scheme, then the reinvested portion gets locked again for 3 years from the date of dividend.

Even if the schemes declare dividends once every three years , part of your investments can be locked in for ever.

Options:

1.  Do not opt for Dividend Reinvestment Scheme in case of ELSS

2. In case you already have invested in such an option in ELSS , then change the option to Dividend Payout. (This is provided you are lucky that the dividend has not yet been declared) (Pls note that Fund House will not allow you to change to Growth)