This is year end time and all employees are supposed to submit income tax savings estimate to their employers so as to get deduction for all permissible savings and plan income tax liability. Failure on part of an employee to submit details of his savings can lead to employer deducting more income tax

As a part of series of providing various calculators to our visitors, today, we are attaching small utility which can be used by an employee to submit his estimate to his employer to enable employer deduct income tax at source.

Income from subletting is also income from house property and you can avail of 30% standard deduction as available to income from house property.  In the case of Smart (P) Ltd.

Mostly when you claim a deduction and the same is denied by Assessing Officer, Assessing Officer seeks to levy penalty for concealment. In one such case of Eicon International (P.) Ltd, Assessee filed return claiming deduction u/s 80HHB.

Assessing Office in absence of requisite evidence regarding various conditions to be met for a allowing deduction under section 80HHB, found claim to be not bona fide and accordingly, while making assessment order, also levied a penalty under section 271(1)(c).

So, March approaching, and it is time to plan savings for income tax purposes. You need to invest for tax savings purposes in investments that qualify for deductions under Sec 80 C.

 As against earlier years, not many avenues are left to plan income tax on salary by “classifying” the salary under different heads. However some types of allowances as HRA; conveyance; Medical reimbursement still come handy to save income tax, which an employee must use to minimize his tax liability.

General elections in the country are due in 2009 as per schedule. The rumors were rife that the government would pre-pone the elections to some time in 2008. But with the dismal performance in Gujarat and not so happy going ons in Himachal, that seems to be remote possibility. Only the factor of surprise may force government to face elections in 2008.

It is quite common for Income Tax Officer to reject the books of accounts, as per provisions of section 145 of Income Tax Act, of an Assessee where he feels that the books of accounts don’t reflect true and fair picture of the business.

Such rejection by the Income Tax Officer has to be valid in terms of the law and not arbitrary. While rejecting the books, the onus is on Assessing Officer to place evidence on record for suspecting evasion of revenue.

Quite often we land into a situation where, the payer has deducted tax from the payment due but has not deposited the same with Income Tax authorities and not issued the TDS form. In this situation, many hapless Assessees are forced to shell out the amount again to the Income Tax Department. What is more irritating is that Assessee is forced to pay interest and penal dues too on the above sum.

Section 139A
of the Income-tax Act, 1961-Permanent Account number-Do’s and Don’ts while
making application for New Pan Card/Correction.

Important information
for persons making application for allotment of PAN (Form 49A)

Do’s