Right Step Investment & Tax Solutions

Q: I am 82 years old I want to file income tax return for Assessment Year 18 -19 now? What will be penalty and how to pay it ? Ans:  There is no provision for you to file the returns once you have missed the due date.  According to the Finance Act 2016 amendment, you can file your   belated IT Returns   anytime on or before 1 year from the end of the relevant Assessment Year (AY). Example, for the AY 2018-19, the timeline to file a belated return was on or before 31 March 2019.  But, The income tax department allows taxpayers to file returns post deadline in some specific cases. The following ways helps you file a condonation of delay request: a. Request the Income Tax Commissioner or the prescribed authority to permit you file income tax returns and state the reason for missing the deadline. The officer can accept your request based on the following criteria: The claim is correct and genuine. The case is based on genuine hardship of merits. A refund has resulte...

Q:  Can I claim income tax benefit for the term life policy where I am the nominee? Ans: No, only a proposer who pays the premium can take the income tax benefit  up to the amount paid by the proposer but the Income tax benefit cannot exceeded Sec 80 C limit which is till now is of Rs. 150000 as per Income Tax Act, 1961.

Hello Friends,   My this blog is related to tell you about how to Online file Income Tax Refund Reissue Request.  The 7 steps are: Log on to www.incometaxindiaefiling.gov.in with your user ID and Password. Navigate to ‘My Account’  Click ‘Service Request’. Select the ‘Request Type’ as ‘New Request’ and  Select the ‘Request Category’ as ‘Refund Reissue’  Click ‘Submit’  After clicking submit, fill the additional details such as Bank Account number, Account Type, IFSC Code and so on Click on  Submit.  Thanks and Regards Kulvinder Kaur B.Com(H), MBA(Finance) 9871580806,8826566751 rightsteptoinvest@gmail.com https://rightsteptoinvest.com/

Q:  The period FM when income should be taken for calculation of income tax for the year 2019 to 2020. Ans.: If you want to calculate Income for Financial Year 2019-2020 (Assessment Year 2020-2021) then you have to calculate the Income generated for the   period  starting from 1st April, 2020 till 31st March, 2021 for calculation of Income Tax which also helps you to calculate Income Tax Return (ITR) of the respective period. 

  Q:  Whether claim for depreciation under Income Tax Act should be Assessee wise or business wise? Ans:  It is dependent on the conditions whether claim for depreciation under Income Tax Act on the basis of Assessee Wise or Business wise.  Depreciation unde r the   Income Tax Act   is a deduction allowed for the reduction in the real value of a tangible or intangible asset used by a taxpayer. The concept of depreciation is used for the purpose of writing off the cost of an asset over its useful life. An Assesssee can avail deduction for depreciation, only if it satisfies the following conditions:       The assets must be owned, wholly or partly, by the assessee. The assets must be in use for the business or profession of the taxpayer. If the assets are not used exclusively for the business, but for other purposes as well, depreciation allowable would be proportionate to the use of business purpose. The Income Tax Officer also has the right ...

Q:  What is the   Standard Deduction for Senior Citizens  in India for AY 2019 2020? Ans. For Assessment Year 2019-20 Standard Deduction for Senior Citizens is of Rs. 50000.

Q:  Tax rebate is available u/s 80 C under new tax slab for Assessment Year 2020-21 or not? Ans. Yes, it is applicable for  Assessment  Year 2020-21 as New Tax Regime will be applicable from FY 2020-21 (AY 2021-22).  But i f an Assesssee will opt for New Tax Regime for FY 2020-21 (AY 2021-22) then Assessee is not eligible to take the benefit of Tax Rebate available u/s 80C for Assessment  Year 2020-21.

Q:  My mother income is less than 50 K now.She is super senior citizen. Can I cancel her PAN card? Ans. Yes, you can cancel the PAN card but there is no benefit for cancelling the PAN Card as PAN card is must for all the banking  activities like Opening a New Account, Closing  of An Account, Opening FD and PAN Card is also useful for KYC purpose. It can also be required at many other activities whether Government and Non Government Activities. So I suggest that don't cancel her PAN Card.

Q:  I have not received my Income tax refund for the year 2015_2016? Ans.After processing of the Income Tax Return, If there will be any refund than it will be credited to the Bank Account of the Assessee.  If you haven't received your Income Tax Refund then please check the following details: Whether  your return has been processed or not? If not then check the reason. Whether you have sent or e-verify your ITR after filling it to the Income Tax Department ? If not, then first do the same. Have you received any letter from the department regarding your Income Tax Refund may be adjusted against any Previous Year Demand? If not, then please check your mail id or Income Tax Portal. Have you entered correct Bank details while filing your ITR? If not, then please check it first and then request the IT department for the correction of the same. Have you entered correctly Residential Address while filing your ITR? If not, then please check it firs...

Q:  I deposited income tax through Challan in a Bank Will the bank give me some particular number to indicate in ITR. Ans.  Yes, A Challan deposited to the bank will contain  Challan Date, Challan Number, BSR Code and  Amount need to indicate in ITR.             After making a payment through e payment a challan has been generated. First save that challan and enter the details of the Challan in the Self  Assessment  Tax Details with Challan Date, Challan Number, BSR Code and  Amount . All the information is available in  the  Challan you have paid. After that your tax  liability  will become Zero and then generate Xml file and file your  Income  Tax Return through Income Tax portal.

Q:  How to know total income tax paid for particular PAN number for all assessment years? Ans: There are two best ways to check the  total income tax paid for particular PAN number for all assessment years:  Check all the filed and processed Income Tax Returns. Check the 26AS of all the Assessment years to get the knowledge of Income Tax paid for particular PAN number.

Q:  I have paid remaining income tax through e payment What should I do next? Ans: After making a payment through e payment a challan has been generated. First save that challan and enter the details of the Challan in the Self Assessment  Tax Details with Challan Date, Challan Number, BSR Code and Amount . All the information is available in the  Challan you have paid. After that your tax liability  will become Zero and then generate Xml file and file your Income  Tax Return through Income Tax portal.

Q:  Where husband is sole owner can sale proceeds be split between husband and wife to avail tax benefits? Ans: No it is not possible as Husband is a sole owner and sale proceeds or income will be chargeable on the basis of PAN card number. As a sole owner it is the responsibility of the owner to file his return and pay the tax (if any). Q: I have ten lakh in SB account now I want to deposit 5 lakh another in the same account will I be in tax radar? Ans: Yes, it can be possible. If you have deposited Rs.10 lakhs or more in the Savings Bank Account then you can be get noticed by the Income Tax Department and you may get even a notice from the Income Tax Department to provide the explanation   about  the amount and then you must have a reasonable answer for that. 

Q:  If income tax has been wrongly deducted on medical reimbursement for treatment in hospital approved by Chief Income Tax Commissioner New Delhi how it can be got refunded? Ans: You can get it refunded if you have filed your return on time and you can revise your Income Tax Return.  As per the Income Tax Act, a  Revised Return  can be filed up to the end of the assessment year or before completion of the assessment, whichever is earlier. This means that an assessee can file a  revised return  up to one year from the end of the financial year.

Q:   I am 50,I have 3 lakhs money how I invest to get tax free returns. Ans: Tax free returns are possible in two kinds of Investment: First option is to take Life Insurance Policy which will provide you Tax benefit u/s 80C (maximum limit 1.5 Lakhs) at the time of filling your Income  Tax Return of the Financial Year to get the benefit and also get a benefit of Tax Free maturity u/s 80TTA.  Second option is to invest your money in PPF (Public Provident Fund) with a specific Interest Rate which will also provides you 80C Tax deduction benefit upto 1.5 Lakhs along with a Tax free maturity. Please remember that you can get only and only Rs. 1.5 Lakhs as a Tax Deduction u/s 80C while filing your Income Tax Return. 

Hello Friends, My this blog is related to tell you about Late Fee for Filing Income Tax Return u/s 234F of Income Tax Act, 1961. New penalty for late filing of Income Tax Return under section 234F is introduced in Budget 2017. Although this penalty is applicable only for income tax return of  Financial Year 2017-18 and  onward .  If a person who is compulsorily required to file Income Tax Return (ITR) doesn’t file return on time then he is liable to a penalty as follows: Amount of Penalty For person with Total Income of more than Rs. 5,00,000 If ITR is filed on or before 31st December following the last date – Rs. 5,000 If ITR is filed after 31st December – Rs. 10,000 For person with Total Income of less  than Rs. 5,00,000 – Rs. 1,000 Penalty is not applicable if ITR is filed before due date but verification is done after the due date. If your income is below taxable limit then you won't have to pay it even if you file after the deadline. I hope it w...

  Hello Friends , My this blog is related to tell you about Late Fee for filing TDS/TCS Return under Sec 234E as per Income Tax Act,1961   Tax Deducted at Source and Tax Collected at Source (Commonly known as TDS/TCS) are very important concepts in Income Tax Act, 1961. After collection/deduction of tax at source, the same must be deposited within a prescribed time limit to the credit of the Government of India. Along with that four quarterly TDS/TCS Returns must also be filed by the Deductor on or before prescribed dates during the financial year.  Important Points to Remember As per section  234E ,  of the income tax act where a person fails to file the TDS/TCS return on or before the due date prescribed in this regard, then he shall be liable to pay, by way of fee, a sum of Rs. 200 for every day during which the failure continues.  The amount of late fees shall not exceed the amount of TDS.  You have to pay this for every day of delay  until ...

  Hello Friends , My this blog is related to tell you about Interest on Excess Income Tax Refund under Sec 234D as per Income Tax Act.   0.5% Simple Interest on the Excess Refund Amount    Important Points to Remember Section 234D: Interest on Excess Income Tax Refund If an assessee has paid excess tax, then he/she can claim the refund of the same in his return of Income  and it will be refunded to him. Many times it may happen that an assessee is granted a refund at initial stage, that is at the time of intimation under the provision of Section 143(1). On the regular assessment (scrutiny assessment under Section 143(3) or best judgment assessment under section 144), the refund will be reduced.  In such a case the excess refund is recovered from the assessee along with interest under section 234D. No refund is due on regular assessment Amount refunded under section 143(1) exceeds the amount refundable on regular assessment Rate of Interest & Period of ...