SIMPLIFYING TAXES FOR YOU

B Com (Hons.), FCA

Q1) I have the following queries with respect to taxation. It would be nice to have these answered so as to help me understand my tax liability in a much better manner.

A) I have income from salary, bank interest & Bank F.Ds interest income, which ITR form I need to file? What is the difference between ITR 1 & ITR 2 forms? Which is the ITR form to be used for a person having income only from Bank F.Ds & Bank interest?

B) My total tax is Rs14900. In what break up do I in need to pay and when? Please suggest with Tax amount break up.

C) For Advance Tax of Non-corporate assessee for Current financial year 2013-14, the advance tax has to paid before 15th march 2014 or next 15th march 2015?

D) Please suggest, I have a salary income as well as income from interest of `855,000, after investment in 80c for `1.00 Lakh, Medical `23000 and Donations of `2500 in charitable trust, how much of tax do I need to pay and whether I am eligible for `2000 Tax credits?

E) What is the last date for self assessment tax payment and what is the Assessment year for financial current financial year 2013-14?
- Sameer Mehta Via Email

The answers to your queries are as under:
A) For Individuals having Income from Salary and Interest Income Form No ITR 1 is applicable. Form ITR is - For Individuals having Income from Salary and Interest Income and income from one house property {excluding cases where loss is brought forward from previous year} Form ITR 2is for Individuals and HUF’s not having Income from Business and Profession i.e. Income from Salary/ House Property/Capital Gains and Other sources.
For Individuals having Income only from bank FD’s and Bank Interest ITR 1 need to be 
filed.

B) From your query it is not clear whether `14900/- includes Education Cess or not. Presuming it includes Cess, you need to pay `14466/- in Income tax column and `434/- in Education Cess Column

C) Advance tax is to be paid during the financial year itself. For Non Corporate assesse for 
financial year 2013-14 Advance Tax has to be paid before 15th March 2014.

D) Rebate of `2000/- is available u/s 87A of Income tax Act only to individual having total Income less than `500,000/-. As such you are not eligible as income is more than `5 lakhs.

Your salary and interest Income after Investment of `100,000/- u/s 80C medical `23000/- and donation `2500/- is `855,000/-. However deduction on mediclaim premium is restricted to `15000/- {individuals} and `20000/- {Senior Citizen}. Therefore total Income is `863000/- and tax liability comes to `105,135 assuming that donation of `2500/- to charitable trust is eligible for deduction u/s 80G.

E) The relevant assessment year for financial year 2013-14 is Assessment year 2014-15. S.A tax needs to be paid before filing of your Income Tax return for relevant assessment year. 31st July in case of Individual and in case on-individual 30th September 2014.