Income Tax

enqyoob · Post by **enqyoob** » 22 Jul 2010 21:01

Urgent question motivating this thread, but all other discussion on the subject welcome too.

1. July 31 is deadline for filing personal Income tax, as I understand.
2. Is e-filing mandatory e-filed last year?
3. IT division says all TDS credit must be from what they can see on Form 26AS, which is downloaded from the NSDL site (on the rare occasions when it works) for one's PAN. IOW, if it is not on the form 26AS report, you can't get credit for it.

4. The kind bank aphsars have made an ingenious business out of this - they don't file the tax, or they don't do it under the correct PAN. Result: One cannot see it on Form 26AS, and so loses the credit. (Happened to me last year). When asked pointedly, I see all kinds of excuses given, the SBI claims everything has been reported but "there is something wrong with the NSDL site" (eminently possible, but I have inside intel that says SBI doesn't post TDS to the govt. unless customer absolutely twists their arms). Other managers far more 404 about the whole thing.

5. So my "pooch": How to get away with reporting TDS by Certificate number etc, which cannot be done while e-filing?

What is the alternative to e-filing?

chaanakya · Post by **chaanakya** » 23 Jul 2010 00:17

enqyoob wrote: 5. So my "pooch": How to get away with reporting TDS by Certificate number etc, which cannot be done while e-filing?

What is the alternative to e-filing?

Return can be filed manually( paper return ) before Assessing officer( special counters till 31st July). E filing is not mandatory.

It may even be sent by post or filed electronically. Nowadays returns are also being received at designated post offices.

Companies and firms are compulsorily required to file their return electronically, while for others it is still optional.

enqyoob · Post by **enqyoob** » 23 Jul 2010 05:26

Thanks. Anyone else having similar issues? It must be a big deal, because the govt. is putting the bandar on the taxpayer's back as always to get the banks to do what they are supposed to do, and otherwise the govt. and banks simply take the money. No room for negotiation - you file, they simply delete the credit for what is not visible on Form 26AS.

If companies etc have to e-file, why are they not hammering the banks to do the job right, or are the banks deliberately cheating the AA (aam abdul/ayesha)?

negi · Post by **negi** » 23 Jul 2010 05:31

I have not filed taxes back home for past 4 years (I have paid my taxes though), can I file all in one go ?

vina · Post by **vina** » 23 Jul 2010 08:16

enqyoob wrote:What is the alternative to e-filing?

Even filing manually wont solve your problem. You will get a demand to pay up back taxes all the same. It is all highly automated (very TFTA teknolajee) and your demand letter will get kicked out in the post automatically. It happened with SHQ because her TDS (from employer) wasn't registered properly in form 26-AS.

I would think that e-filing should be the best for you (saves you the trouble of trekking all the way to the IT office and fight with the crowd there etc), if there are any back taxes, you can pay that electronically as well as self assessment tax, download the Excel spreadsheet for the relevant year from the IT dept site, fill in the details, generate Xml and upload. As simple as that. You will get a ITR-V acknowledgment , print that, sign it and send it by ordinary post to the address in the bottom for the Central Payment Center in Bangalore, Kerala.

Then urge your bank to report their TDS properly. If they haven't deducted TDS, doesn't matter , actually it is good. You pay the TDS and the remaining taxes that you need to pay at your rate as a self assessment tax and file. So it wont matter if there is no entry in the 26AS (which of course cant be there if the bank didnt pay TDS). But if they did, you want to make sure that they reported it properly so that you pay only the difference in your normal return and dont get a demand notice from IT.

My experience is that banks (atleast in Bangalore Kerala) are pretty strict about PAN numbers and Know Your Customer etc and once in 2 to 3 years or so , ask you to show up with proof of details like PAN, address etc. For fixed deposits etc, they report the TDS diligently and it shows up in the Form 26AS .

vina · Post by **vina** » 23 Jul 2010 08:17

negi wrote:I have not filed taxes back home for past 4 years (I have paid my taxes though), can I file all in one go ?

No income, not taxes! I suppose you do have income then. In that case, just download the relevant xl spreadsheet for that year from the IT dept website, fill, generate xml, upload and sign the ITR-V and mail it.

Singha · Post by **Singha** » 23 Jul 2010 09:06

ICICI bank seems to be ok in paying TDS. they send me a printed sheet every year giving the dates and amts of tax deposited when interest accures in my account.

vina · Post by **vina** » 23 Jul 2010 09:12

Singha wrote:ICICI bank seems to be ok in paying TDS. they send me a printed sheet every year giving the dates and amts of tax deposited when interest accures in my account.

In the PSU banks, you have to ask for it. They print out the details and mail it/or you pick it up. yeah. ICICI sends a nice printed Form 16A if you have a term deposit with them.

ShivaS · Post by **ShivaS** » 23 Jul 2010 10:26

My company is showing Rs 67000 as monthly rental allowance in my compensation.
Can realistically claim that amount exempt from taxable income?
TIA

Dileep · Post by **Dileep** » 23 Jul 2010 10:29

Well, you might get form 16, but it might not show up on the 26As.

It is YOUR job to make sure that the TDS shows up on the 26AS. That is just like getting you fill up things in quadruplicate.

Singha · Post by **Singha** » 23 Jul 2010 10:36

well I found (after a long hard search) one thing that ICICI is good at !

vina · Post by **vina** » 23 Jul 2010 10:49

My company is showing Rs 67000 as monthly rental allowance in my compensation.
Can realistically claim that amount exempt from taxable income?
TIA

Yes, if it falls within the "formula" that IT has for HRA tax deduction. There is no upper limit on that. The higher your salary, the higher HRA becomes deductible if you are renting an expensive house.

Or else ,if your 67,000 is the monthly allowance you are claiming tax free, well Mr Shivas Reagull, be prepared to spend long hours with the IT dept when the demand comes and I think they will want a lot of Chivas Regals in addition to their tax monies!

ShivaS · Post by **ShivaS** » 23 Jul 2010 10:53

In that case I will offer nothing but "blood sweat and tears" to IT of I

niran · Post by **niran** » 23 Jul 2010 10:59

Shivas Regull wrote:In that case I will offer nothing but "blood sweat and tears" to IT of I

please do not say such things in open Forums, IT people are known to
peruse Forums where fat Moolah yaks, moreover it makes BRF
as a place of tax evader crooks.

vina · Post by **vina** » 23 Jul 2010 11:07

niran wrote:
Shivas Regull wrote:In that case I will offer nothing but "blood sweat and tears" to IT of I
please do not say such things in open Forums, IT people are known to
peruse Forums where fat Moolah yaks, moreover it makes BRF
as a place of tax evader crooks.

Bad Boyz! Bad Boyz! Whatcha Gonna Do ?
Whatchha Gonna Do ,when 'ey come fer ya ?

Don't worry. You will get a massive tax bill at the end of the year and you will pay with interest (remember, for that quarter, you are supposed to pay the dues in that quarter itself.. carry it over and you pay interest on the money due)

enqyoob · Post by **enqyoob** » 23 Jul 2010 13:14

Since I am only a boor mullah, my main concern is getting the refund that is due to me. But this becomes iffy when the bank aphsars are like Dileep says. Glad to read the posts here, makes me feel less SDRE and more talibunnic about what I have e-done to the manger-e-bank. Waiting for him to show up right now at the door, as a matter of fact. Claims that he has now filed a Form 27A (Correction to TDS) but he still made the nashtaa-e-kutta of that too. Considering explaining few facts of life to him.

OTOH, I read in the kagaj-e-khabar today that the IT dept has decided to accept what taxpayer writes in form as sufficient proof of TDS deposits etc, and issue refund based on that - for amounts less than Rs. 3 lakh interest and $25,000 tax respectively. May have been 'sensitized" by issues like the above.

Dileep · Post by **Dileep** » 23 Jul 2010 15:24

N^3, that would be for the FY2007-8, when they system was not at all reliable. I don't expect any leniency for the current FY.

enqyoob · Post by **enqyoob** » 23 Jul 2010 15:40

Ah! That's what saal-e-filing 2009-10 means, true. Last year, after e-filing, the Eye-Tee jarnails sent me this File-e-Halalness called "Quality of Matching" between what I filed and what they had. Unphortunately, despite my best efforts to "open Sesame!" using PC and Mac, all sorts of browsers, unzipping software etc, the computer said "file cannot be opened".

So the net result was that I found out the "Quality-e-Halalness" when the refund came. It was like Northern Flight Infantry coming back from Kargil. This year they again sent me "Preview" etc. and I eventually was able to enter the NSDL site and download the A26. It took more research than Khan Labs inventing the first AtimBum. And I was able to see the Halalness of lack thereof.

Tanaji · Post by **Tanaji** » 23 Jul 2010 15:56

Should one file an IT return if one is resident abroad, but has very little investment income in the form of interest (fractions of the exempt limit, so no tax liability)? Technically , the answer is yes I suppose?

Singha · Post by **Singha** » 23 Jul 2010 16:05

below 1.5L taxable income you need not file return. I dont think they will bother you even if technically its needed.
for women its 1.9L so if you intend to make FDs here, better to keep in wife's name and save a few shekels annually.

chaanakya · Post by **chaanakya** » 23 Jul 2010 19:19

There are delays in refunds if you e-file returns however one can remind IT dept and raise the complaint to CIT.
Filing return for below taxable income is not needed( mandatory) but IT dept advises to do the same nevertheless.
If there is tax due, it can be paid , suo-moto or on demand with interest and penal interest.If IT dept determines that there is deliberate suppression of income, there is a provision of 6 months to 7 years and/or fine
If your TDS is not reflected in form 26AS you can still show TDS. IT dept would raise demand for tax on your employer/payee.You should indicate TAN of them.
You can file revised returns any number of time till the end of assessment year or before you are assessed by Dept.
Late returns can be filed before the expiry of two years for the year during which income is earned.
You can opt for refund through ECS by giving your bank account number to which you want refund credited.

The software is improving but it is not yet robust. There is currently backlog of four to five years when e-filing is done. For manual there is less delay. Yet e-filing is better for those who have no refund or insignificant refunds to claim. Even otherwise you may need to follow with IT dept.

42. Is my responsibility under the Income tax Act over once taxes are paid?

No. You are thereafter responsible for ensuring that the tax credits are available in your tax passbook, TDS/TCS certificates are received by you and that full particulars of income and tax payment along with necessary proof is submitted to the income tax department in the form of Return before the due date.

So sum of all what IT dept says is that they have you by scruff of your neck and no chance to escape.

chaanakya · Post by **chaanakya** » 23 Jul 2010 19:22

Tanaji wrote:Should one file an IT return if one is resident abroad, but has very little investment income in the form of interest (fractions of the exempt limit, so no tax liability)? Technically , the answer is yes I suppose?

Tanaji

Is Income tax Act applicable only to residents?

No, The Income tax Act applies to all persons who earn income in India. Whether they are resident or non-resident.

However non-residents have to pay tax only on the income earned in India or from a source/activity in India.

Muppalla · Post by **Muppalla** » 23 Jul 2010 19:50

^^^^^
If from the NRI/FCNR accounts, the interest does not cross 1.5L, then I guess it is not needed to file the return. Right? (assumption being that there is no other income)

enqyoob · Post by **enqyoob** » 23 Jul 2010 21:26

TDS SCAM

Here's what I have found from my deep studies of The Kitab. The banks and probably "IT" sultans are making a really nice killing on TDS.

MO: Let's say AA is an aam Abdul who has very little salary etc., but has a nice hoarding of )$(1,000,0000,000,0000,000 . Deposited in a series of nice FDs in SDRE Banks.

The Bank tells AA that the bank gave AA )$( 1,000,000,000 as interest last year. And deducted 15% of that as TDS. So Abdul only gets ()$850,000,000.

Where does the other )$(150,000,000? AA is Of the Faith and hence is 800% confident that the bank has deposited it into the Central Fauji Madarssa 4 IT Ishtudies. Why, they even give him a Certificare, saying how much he has donated, and when it was deposited to the IT Madarssa. AA sits fat and happy and fills out Form Ati-Saral, checking "NO" to all questions on Income From Race Horses' Musharrafs, etc. but filling out the TDS section. Since AA has no other income, he is desperate about getting refund baksheesh from Guvrmand. Sits and waits happily (last year) 4 the Baksheesh to arrive.

Instead, first AA gets a file from the Fauj called "Quality of Matching". He tries Oben Sesame, but no luck.

Che Mahine baad, AA gets Rephund Baksheesh Cheque. For )$(3. AA happily deposits it in same State Bank of Habib Trust in account earning 0.005%.

Another saath mahine baad. AA gets a hawaii khat from IT Madarssa saying "Advance notice to TaxPayer: TDS". Aphter much brayer and many attempts, he is able to open it, and he gets instruction on how to open his Statement. Oben Sesame! He finds that pichle saal, Habib Trust Bank deposited only )$( under his PAN.

AA's little brain pooches: What happened to the other )$(149,999,997?

AA stupidly asks. And is told that it "got deposited without a PAN".

How come? AA has given PAN since it came out in Y2K or thereabouts.

Then AA asks his sister Ayesha and she tells him that her friend's 6th cousin thrice removed has an uncle 4 times removed who has account in Istate Bank of Habib Trust. Had to go and beg the aphsar there to deposit some baksheesh under his PAN.

So AA's little mind starts clicking like an RDX-filled BakPak sitting in a Londonistani train.

Why would Habib Bank deposit TDS without PAN when they surely HAVE his PAN handy?
Where does the TDS "deposited" without PAN go?

Answer: "Infrastructure Development". Like flats owned by aphsars oph Habib Bank, with their partners from EN Ess Dee Ell and Eye Tee Department?

(Rest later.. too sleepy from all the Rooh Afza todin)

negi · Post by **negi** » 23 Jul 2010 21:31

Thanks Vina saar my only query was with regards to the fine which I might have to pay.

niran · Post by **niran** » 24 Jul 2010 08:31

enqyoob wrote: AA's little brain pooches: What happened to the other )$(149,999,997?

AA stupidly asks. And is told that it "got deposited without a PAN".

How come? AA has given PAN since it came out in Y2K or thereabouts.

do AA have Peeroof, kagajji or digitally of the jawab?
if yes, then AA can get hisself "Most vigilant kanoon abiding seeteezen" award,
moreover AA will be treated as a Caliph next time he shows up at the bank.

enqyoob · Post by **enqyoob** » 24 Jul 2010 11:42

AA has peroof of everything, the beauty of hawai-khat.

From above deep discussions, I see that the following banks are actually trying to follow the law: they regularly deposit TDS properly with no prodding from the customer:

1. ICICI
2. Punjab National??
3. Indian Bank
4. IndusInd Bank

The following are scofflaws, or far worse (take your pick whether you want to believe that they are so incompetent or just crooked):

1. State Bank of India
2. South Indian Bank
3. ????

These should definitely be investigated. I hope those Eye-Tee Sleuths said to be prowling here please read this. Probably triple the tax intake of GOI by the simple step of auditing the TDS depositing practices of these banks.

niran · Post by **niran** » 24 Jul 2010 12:14

enqyoob wrote: These should definitely be investigated. I hope those Eye-Tee Sleuths said to be prowling here please read this. Probably triple the tax intake of GOI by the simple step of auditing the TDS depositing practices of these banks.

oh! this runs deep, or as a wise mulla would say "as high as Lal Masjid Gumbad"
there was once a not so wise Mulla in a similar situation, and then there was no
Bijjili-filling, onlee hand delivered hand filled forms under unutterable conditions,
this not so wise mulla had the temerity to actually calculate the refund yand blasphemously
demanded corrective measures, after 3 saal long chakkers of advocate aphises, IT aphises,
local neta aphises duyina engulfing paper works, threats, beard pulling, mussarraf scratching
this mulla still remained not so wise, and total 12 bank babus were advised not to come to work henceforth, 2 of them last heard were still enjoying free lodging at Grey Bar Hotel.

the point is, please to make the concerned babu aware of your proofs and your intentions,( diplomatically of course) and advise him corrective measures, unless AA wants to join in endless jehad against babudom.

enqyoob · Post by **enqyoob** » 24 Jul 2010 17:29

Wise indeed is the Mujahid who counsels avoiding testing ArePeeGee on sdre kanoom. Same as

Do Not Test IED Mubarak on Makaan-e-Lota. The Pakistan falling on u be u may r be ur own".

Anyway as I hear, AA does not actually have hajaar karod deposits like Jarnails and sdre babus have, and the difference even if they take all the Tee Dee Ess as baksheesh is only a few paise, not worth anything more than a few bijlee-khats to Sarbhij-e-Customer at the bank HQ. Apparently that caused some bijlee under the kursi of the Manger-e-Branch, so AA is waiting for the results of this.

Besides, Petishun-e-Kanoon is soooooooo pre-Chehra-Kitab and Twitter.

I think these (maal) practices are bank-wide, and industy-wide ( I mean banking industry, not just industry-e-baksheesh ).

Ess Bee Eye seemed to get a bit a little bit Energized (relatively speaking, of course) when AA revealed that, ah! even AA knows terms like "Enn Ess Dee Ell", Phorm 26A, Phorm 27A, and could download the info.

wig · Post by **wig** » 24 Jul 2010 22:17

enqyoob wrote:Urgent question motivating this thread, but all other discussion on the subject welcome too.

1. July 31 is deadline for filing personal Income tax, as I understand.

July 31, 2010 is the deadline for filing returns if your income is from salary, house property, other Sources (interest, horse racing etc) capital gains and/ or business or profession and does not require to be audited under the Income Tax Act.
however if you file the return till Mar 31 2010 (for Financial year 2009-10) there is no penalty only some interest.
penalty under section 271F (Rs 5000/) is thereafter. you can file till Mar 31 2011 with liablity of penalty.
levy of could be prevented you can show that you were prevented from filing due to reasons beyond your control

2. Is e-filing mandatory e-filed last year?

no. you can file hard( manual) copies for this year even if you filed your return electonically last year.
e filing is mandatory for all returns that are audited under the provisons of the Income Tax Act. All companies also have to e file their returns.
incidentally political parties and trusts mandatorily need to file returns manually in ITR 7.

3. IT division says all TDS credit must be from what they can see on Form 26AS, which is downloaded from the NSDL site (on the rare occasions when it works) for one's PAN. IOW, if it is not on the form 26AS report, you can't get credit for it.

if you are registered to file your retun electronically you can log in on site www.incometaxindia.gov.in and in the my account space on the top extreme right there is a drop down box which says AS 26 at the end. please check it for tax details. you will find the list of TDS deducted during this year and the pst few years there.
the site is generally working flawlessly.

4. The kind bank aphsars have made an ingenious business out of this - they don't file the tax, or they don't do it under the correct PAN. Result: One cannot see it on Form 26AS, and so loses the credit. (Happened to me last year). When asked pointedly, I see all kinds of excuses given, the SBI claims everything has been reported but "there is something wrong with the NSDL site" (eminently possible, but I have inside intel that says SBI doesn't post TDS to the govt. unless customer absolutely twists their arms). Other managers far more 404 about the whole thing.

Please make sure that you have the orignal hard copy of the F16/ f16a ( wish it were the aircraft!) the banks have outsourced most of the tds e filing work to TIN facilatators -(generally tax professionals in practise, advocates, ca's, cs's cwa's, etc) they are feeding the data correctly but banks do not have all the data regarding PAN. It is a good idea to keep a photocopy of PAN card and give to Banks, employers. Make sure that the correct PAN is mentioned on the F16/ F16 A when you recieive it.
if AS 26 does not show credits and you have the certificate, you call the bank people and they generally will check with the TIN facilitator who will revise the return.
There is nothing wrong with NSDL site, it works ok. And SBI does not/ can not withhold TDS. It has to be e-paid within a stipulated period to a govt account head. Managers do not delay it. It invites adverse comments from the internal auditors, statutory audit teams etc.

5. So my "pooch": How to get away with reporting TDS by Certificate number etc, which cannot be done while e-filing?

What is the alternative to e-filing?

you may file your returns manually. but i personally think e filing is better. in both filign and manual filing there is a place in the form where you fill the TAN and name& address of the person who deducts your tax.

incidentally an Instruction has been issued by the CBDT which i am postin a copy herein. i hope it is of help to you:

Steps to clear backlog of returns

Instruction No. 5/2010

Dated 21-7-2010

The issue of processing of returns for Asst. year 2009-10 and giving credit for TDS has been considered by the Board. In order to clear the backlog of returns, the following decisions have been taken:

(i) In all the returns filed in ITR-1 and ITR-2, for the Asst. Year 2009-10, where the aggregate TDS claim does not exceed Rs. Three lakh (3 lacs) and where the refund computed does not exceed Rs. 25,000; the TDS claim of the tax payer shall be accepted at the time of processing of the return.

(ii) In all the returns filed in forms other than ITR-1 and ITR -2, for the Asst. Year 2009-10, where the aggregate TDS claim does not exceed Rs. Three lakh (3 lacs) and the refund computed does not exceed Rs. 25,000 and there is 10% matching of TDS amount claimed, the TDS claim shall be accepted at the time of processing of the return.

(iii) In all remaining cases, TDS credit shall be given after due verification.

[F.No.225/25/2010-ITA-II]

wig · Post by **wig** » 24 Jul 2010 22:19

moderators,
some part of the my reply to enquoob's queries are in the quote section. i do not know what button i pressed wrongly

wig · Post by **wig** » 24 Jul 2010 22:21

negi wrote:I have not filed taxes back home for past 4 years (I have paid my taxes though), can I file all in one go ?

sir you can file returns now for the financial year 2009-10 and 2008-09 ( subject ot levy of penalty under section 271F (rs 5000/)
for the years before that you will need to approach the Assessing oFFicer with jurisdiction over your area and he will issue notice enabling you to file returns.

wig · Post by **wig** » 24 Jul 2010 22:26

ShivaS wrote:My company is showing Rs 67000 as monthly rental allowance in my compensation.
Can realistically claim that amount exempt from taxable income?
TIA

sir,
monthly rental allowance is normally taxable.

the deduction for House rent allowance is found in Section 10(13A) of the Incoem Tax Act, 1961
and Rule 2 A of the Income Tax Rules 1962
briefly it is;
least of the following
a) amount equal to 50% of salary if house in Bombay Calcutta, chennai or delhi and 40% if elsewhere in india
b) HRA recd by employee in respect of the period during which the rental accomodation is occupied by the employee during the prev year
c) the excess of rent paid over 10% of salary

wig · Post by **wig** » 24 Jul 2010 22:33

Tanaji wrote:Should one file an IT return if one is resident abroad, but has very little investment income in the form of interest (fractions of the exempt limit, so no tax liability)? Technically , the answer is yes I suppose?

sir,
if TDS has been deducted from your interest.
and the income you have is below the exemption limit. i opine that you should file your return and get the Tax deducted at source refunded.
but are you a "resident"?
please go through section 6 and section 9 of the Income Tax Act. the sections define residency status.
if you are non resident then you cannot hold a savings bank account. you will need to inform the bankers of your residence status.
if you are non resident then you will have FCNR / NRO account.
mayeb you should contact a neighbourhood tax consultant for precise advice.

enqyoob · Post by **enqyoob** » 25 Jul 2010 10:08

Dear wig:
Thanks for the accurate information. My frustration is with the banks who are simply not following rules, and not depositing TDS. They are giving "blow-off" answers claiming that there is some problem at NSDL, etc, when the truth is that they have not done their jobs.

What recourse does the taxpayer have?

ShivaS · Post by **ShivaS** » 25 Jul 2010 10:42

wig thanks for the tip I will now try to apply some OR options of Min Max to beat the Tax Wallahs

wig · Post by **wig** » 25 Jul 2010 13:04

enqyoob wrote:Dear wig:
Thanks for the accurate information. My frustration is with the banks who are simply not following rules, and not depositing TDS. They are giving "blow-off" answers claiming that there is some problem at NSDL, etc, when the truth is that they have not done their jobs.

What recourse does the taxpayer have?

enqyoob ji,
1. i think you hand over a copy of your PAN card to the Bank.In Finnacle software using/ based branches the pan can be fed into the account holder detail itself.
2. the problem as i am aware is that the bank deducts TDS deposits it but in the filing of its TDS return fails to provide adequate information to the TIN facilitation center that processes voluminous data and then uploads the same.
3. in my very humble opinion; you should e file your return based on the hard copy of F 16 A issued to you. the Income Tax Department is issuing notices to banks other deductors in case there is mismatch of TDS with AS 26. The bank will attract hefty penalties. the process has started and most banks are revising their TDS returns so that the deductees AS 26 reflects the correct amount.
4. you can deliver a copy of AS 26 to the banker along with a copy of the Form 16/A issued by the Bank to the Bank officail. Make an application to the Banking Ombudsman ( the local RBI office has one such functionary) with these two documents. The banker will promptly take measures to rectify the fault. But first make sure you have complied with point 1 in thhis post.

enqyoob · Post by **enqyoob** » 26 Jul 2010 05:23

Thanks. In one case, (SBI) it turns out that they did upload, but mistyped the PAN, so some happy person is showing my 20 paise under her/his account. The other case is a lot worse - there it appears to be institutional policy as in "confusion is the best policy to protect customers from taxes". Customers demanding accurate tax info filing, cause consternation there.

While I am getting such excellent advice, may I push my luck and ask a few more things? Can't figure out from reading ITR-2 or whatever. The nice Excel Tool for ITR-2 that I downloaded from the Ophishial Income Tax Divishun website, happily tells me that every paisa I paid is to be returned to me since my tax is Zerrow, but somehow I don't think it is being quite realistic or that the Assessing Aphsar will see it that way. And the button that advertises "Calculate Tax", does nothing. So let me please ask:

1. In India, suppose a family of N with one PAN files. Are there exemptions, i.e., is the tax lower for N>1, and how does one tell ITR-2 that? For instance, Emir Khan's Tax Kanoon gives 1 Exemption for each N, and Married Filing Jointly gets rates considerably lower than Single. Brats bring their own exemptions added to this. How does India recognize that a taxpayer may have dependents?

This seems ridiculous - Can a family-friendly society such as India actually charge tax regardless of how many people are in the family???

2. Which leads to the next question: Where does one find a Tax Table?

OK, Answer is here

3. Is it true that Long Term Gains (capital gains on stock held > 1 year) are tax-free?

Answer: Apparently so, and so is DIVIDEND!!! AoA! ooops! But only if done through an Estalishment of Ill Repute , like a Stock Exchange, paying "STT" baksheesh to the EyeTee Predator up front. In which case, and this is

, you just don't REPORT that at all because there is no way to do so!

4. Is there an exemption for Interest Income (then why do they hold TDS?) and if so, how much?

Answer seems to be Ha Ha Ha!

vina · Post by **vina** » 26 Jul 2010 09:18

Mullah, in Yindia, when you file ITR1,2 etc, you are filing as an individual. You are not assessed based on "family". It is similar to a married couple choosing to file taxes individually in the US. Also there is no "child credit" in India.

There however is something called "HUF" (Hindu United Family), that structure is supposed to result in much lower taxes. Dont know the details of it, but I guess it is some kind of family trust.

Now before the Sekoolars start jumping up and down, "Hindoo United Family" does not mean Hindoo as in Faith. Any person of any religion can file under it. In fact, much of the big Kerala based jewellers etc have that structure.

Speaking of which, I went to MG road in Bangalore Kerala yesterday after a long time and where the old Bombay Store used to stand, there is a MASSIVE and I mean MASSIVE Joy Alukkas right there with a massive chandelier from visible through the glass front , a store that in scale and size and in terms of location takes your breath away. That store could compete with any hotshot Tiffanys in 5th Avenue and more.

enqyoob · Post by **enqyoob** » 26 Jul 2010 10:39

Every town in Dera Achutanandullah Khan has the important things: BIG jewelry ishtore and BIG burkha ishtore. I was recently in TCRabad, Paktia, and they have very big ones too. Very hard to keep one's mind on the Holy Book when inside such establishments. Unphortunately, this has nothing to do with my Eye Tee form where the fact that they don't allow decimals is discriminating against me by dissing the honour and dignity of my income figures.

But I have just stumbled on the real IED-Mubarak in the system. Suppose you take out a Joint Deposit, Either or Survivor with your 6th cousin thrice removed (or, for that matter, with one's Supreme HQ). Say the Party of the Second Part puts )$( 1,700,000 in the account, and you put )$(0.025, and the ownership of said account is in that proportion and anyway s(he) is very much expected to "survive" given your proclivity to post on PeeAref, visit Bangalore, Kerala by road, and otherwise indulge in inadvisable behavior. But your cousin, being shy and most respectful of your long beard, puts YOUR name in front. How nice! Exemplary for today's Youth, etc.

You get to "claim" 100% of the TDS on that account, as the First-Named Depositor, per what I read on the internet. Which sounds spectacular until you realize that this comes with 100% of the interest also reported to the ISI as being YOUR INCOME!!!

Kicks even an old mullah from "baksheesh-deserving" to what is delicately termed "Alternative Minimum Tax Level" aka "Wanted" in AmirKhana parlance.

Anyone know any way around this? How to make Cousin Rashid fork over his fair share under his PAN? How can a boor mullah have enough goats to pay these sorts of outrageous taxes, which are anyway haraam?

Re HUF, it did occur to me eventually that even the Faithful could describe oneself as kuffar if it meant dodging the Eye Tee Predator, but I just dont' see how I can claim it. Seems to imply that all bank accounts are also in the name of some Trust etc, of which I don't have any.