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EDUCATION SERIES ON
INCOME TAX &
INVESTMENTS
PRESENTATION TO KE LEAD
MEMBERS
18TH MARCH 2011
EDUCATION SERIES ON
INCOME TAX &
INVESTMENTS
PRESENTATION TO KE LEAD
MEMBERS
18TH MARCH 2011
MARK D¶SOUZAMARK D¶SOUZA
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HAVE YOU GOT YOUR IT REFUNDHAVE YOU GOT YOUR IT REFUND
� Rs. 1,300 crore tax refunds lyingunclaimed
� It could be your fault
� Have you ensured the address inthe PAN database updated?
� You may have given wrong bank
account number or� Misquoted the MICR code of your
bank while filing the IT returns
� Rs. 1,300 crore tax refunds lyingunclaimed
� It could be your fault
� Have you ensured the address inthe PAN database updated?
� You may have given wrong bank
account number or� Misquoted the MICR code of your
bank while filing the IT returns
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HAVE YOU GOT YOUR IT REFUNDHAVE YOU GOT YOUR IT REFUND
� Due to this huge amount has piledup over the past 3years inKarnataka & Goa circle alone
� People seldom report the changeof address
� Result tax refund cheques
dispatched to them come backundelivered
� Due to this huge amount has piledup over the past 3years inKarnataka & Goa circle alone
� People seldom report the changeof address
� Result tax refund cheques
dispatched to them come backundelivered
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HAVE YOU GOT YOUR IT REFUNDHAVE YOU GOT YOUR IT REFUND
� Most people assume merely givingthe new address in the tax returnpapers would suffice !
� But it is not so !� If address given by you in your
return Form and PAN do not tally
� There would be refund problem� So visit jurisdictional office and
update your address
� Most people assume merely givingthe new address in the tax returnpapers would suffice !
� But it is not so !� If address given by you in your
return Form and PAN do not tally
� There would be refund problem� So visit jurisdictional office and
update your address
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HAVE YOU GOT YOUR IT REFUNDHAVE YOU GOT YOUR IT REFUND
� Refunds below Rs. 25,000/- aretransferred through ECS
� Refunds above Rs.25,000/-
cheques are sent to addressmentioned in the PAN throughSpeed Post service
� Unclaimed refunds are kept insuspense accounts of the Banks.
� Refunds below Rs. 25,000/- aretransferred through ECS
� Refunds above Rs.25,000/-
cheques are sent to addressmentioned in the PAN throughSpeed Post service
� Unclaimed refunds are kept insuspense accounts of the Banks.
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DO YOU OPERATE YOUR BANKACCOUNT REGULARLYDO YOU OPERATE YOUR BANKACCOUNT REGULARLY
� Unclaimed bank accounts
� RBI has reported that IndianBanks having
� Rs.1,360 crore unclaimed moneyin 1 lakh accounts
� Over 75% of them are savings
Accounts� If a bank account is not used for
10 years it becomes inoperative
� Unclaimed bank accounts
� RBI has reported that IndianBanks having
� Rs.1,360 crore unclaimed moneyin 1 lakh accounts
� Over 75% of them are savings
Accounts� If a bank account is not used for
10 years it becomes inoperative
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CHECK YOUR FIXED DEPOSIT RECEIPTSCHECK YOUR FIXED DEPOSIT RECEIPTS
� Interest rates of bank FD¶s areincreased from 7% to 10%.
� Check whether any FD¶s invested
@ 7% which will mature after 1 to5 years
� Can I break my existing FD before
its maturity?� Will I lose interest or pay penalty?
� Simple process ± inform your
banker to close and renew the FD¶s
� Interest rates of bank FD¶s areincreased from 7% to 10%.
� Check whether any FD¶s invested
@ 7% which will mature after 1 to5 years
� Can I break my existing FD before
its maturity?� Will I lose interest or pay penalty?
� Simple process ± inform your
banker to close and renew the FD¶s
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NOT FILED LAST YEAR¶S TAX
RETURN?
NOT FILED LAST YEAR¶S TAX
RETURN?
� There are several excuses for not havingfiled your tax return by the due date (31July of each year).
� You were travelling or
� you couldn¶t find the time from work.
� May be some documents were missing or
� perhaps you just forgot.
� Whatever be your reason, the taxdepartment is willing to
� give you a second chance.
� There are several excuses for not havingfiled your tax return by the due date (31July of each year).
� You were travelling or
� you couldn¶t find the time from work.
� May be some documents were missing or
� perhaps you just forgot.
� Whatever be your reason, the taxdepartment is willing to
� give you a second chance.
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NOT FILED LAST YEAR¶S TAX
RETURN?
NOT FILED LAST YEAR¶S TAX
RETURN?
� If you have not filed your tax return for 2009-10,
� you can file it by 31 March 2011 without any penalty.
� If all your taxes are paid, there is nopenalty for filing late.
� However, if there is some tax due,
� you have to pay interest of 1% permonth of delay on the amount payable.
� The interest meter starts ticking rightafter the end of the financial year.
� If you have not filed your tax return for 2009-10,
� you can file it by 31 March 2011 without any penalty.
� If all your taxes are paid, there is nopenalty for filing late.
� However, if there is some tax due,
� you have to pay interest of 1% permonth of delay on the amount payable.
� The interest meter starts ticking rightafter the end of the financial year.
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NOT FILED LAST YEAR¶S TAX
RETURN?
NOT FILED LAST YEAR¶S TAX
RETURN?
� You can also file tax returns of two yearsago (i.e, for 2008-09).
� This will be treated as a belated return.
� If some taxes remain unpaid, you willhave to pay them along with the penalinterest (1% per month of delay).
� In addition to this, there is a possibility of
� a penalty of Rs 5,000 for not filing thereturn by the due date.
� You can also file tax returns of two yearsago (i.e, for 2008-09).
� This will be treated as a belated return.
� If some taxes remain unpaid, you willhave to pay them along with the penalinterest (1% per month of delay).
� In addition to this, there is a possibility of
� a penalty of Rs 5,000 for not filing thereturn by the due date.
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NOT FILED LAST YEAR¶S TAX
RETURN?
NOT FILED LAST YEAR¶S TAX
RETURN?
� Some taxpayers might be tempted tobrush the issue under the carpet and
� start with a clean slate this year.
� This can be a costly mistake because
� failure to pay tax by the due date istantamount to tax evasion.
� Some taxpayers might be tempted tobrush the issue under the carpet and
� start with a clean slate this year.
� This can be a costly mistake because
� failure to pay tax by the due date istantamount to tax evasion.
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NOT FILED LAST YEAR¶S TAX
RETURN?
NOT FILED LAST YEAR¶S TAX
RETURN?
� The Income Tax Department picks upcases for scrutiny at random and
� if it is discovered that you have unpaidtaxes,
� a penalty of up to 300% of the amountcan be slapped on you.
� The minimum penalty is 100% of theoutstanding tax.
� The Income Tax Department picks upcases for scrutiny at random and
� if it is discovered that you have unpaidtaxes,
� a penalty of up to 300% of the amountcan be slapped on you.
� The minimum penalty is 100% of theoutstanding tax.
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WHY THERE IS A BIG RUSH FOR
FILING IT RETURNS
WHY THERE IS A BIG RUSH FOR
FILING IT RETURNS
� If all taxes are paid and there is nopenalty for late filing,
� why is there such a big rush to file taxreturns by 31 July?
� This is because taxpayers who file belatedreturns
� forego some of their rights if they wake
up late.� For instance, you cannot carry forward
losses for adjusting against future gains if you file late.
� If all taxes are paid and there is nopenalty for late filing,
� why is there such a big rush to file taxreturns by 31 July?
� This is because taxpayers who file belatedreturns
� forego some of their rights if they wake
up late.� For instance, you cannot carry forward
losses for adjusting against future gains if you file late.
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WHY THERE IS A BIG RUSH FOR
FILING IT RETURNS
WHY THERE IS A BIG RUSH FOR
FILING IT RETURNS
� This is especially useful if you have� incurred short-term capital losses from
investments in stocks.
� These can be carried forward and
� set off against short-term or long-termcapital gains made in subsequent years.
� Under current laws, such losses can be
carried forward for up to eight years.� Besides, there is no room for rectifying
mistakes
� This is especially useful if you have� incurred short-term capital losses from
investments in stocks.
� These can be carried forward and
� set off against short-term or long-termcapital gains made in subsequent years.
� Under current laws, such losses can be
carried forward for up to eight years.� Besides, there is no room for rectifying
mistakes