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Old 18th July 2014, 15:30   #541
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@undead: I need to file with ITR 2 since I have two home loans and loss/rent figures from them.

Last year, ITR 2 was used. Hence, thinking I need to continue with same.

>>Please delete this - double post<<

Last edited by A.R : 18th July 2014 at 15:33. Reason: Please delete this - double post
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Old 18th July 2014, 15:32   #542
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Why is that you need to file ITR2 . Was any income ommitted ?
Resubmittion can be done. But not advisabel unless you have omitted any taxable income .
I have two home loans with loss from property/rent figures included.

Last year, ITR 2 was used to file returns. Hence, thinking I need to continue with same.
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Old 18th July 2014, 21:57   #543
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I have two home loans with loss from property/rent figures included.

Last year, ITR 2 was used to file returns. Hence, thinking I need to continue with same.
You mean to say that, you have paid Interest and Principal on Housing Loan during the year. You also have Rental Income on House property let out? In that case ITR 2 is the right form.

If you have income on house property , better you file the revised return, as you shouldn't conceal any Taxable Income
In case, you don't have Rental income and have only interest paid on house property as deduction from Income (max Rs.150,000) , i suggest you leave it as it is.
Kindly note that:- A Revised income tax return always give slight rise to the chances of Scrutiny.
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Old 19th July 2014, 18:56   #544
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You mean to say that, you have paid Interest and Principal on Housing Loan during the year. You also have Rental Income on House property let out? In that case ITR 2 is the right form.
.
Yes, correct.

Investment and all related proof is usually collected by my employer. Hence, all of these feature in my Form 16 - Interest from home loan, rent, loss calculations etc. So no income or investment has been missed out.

Its just that the wrong ITR form has been used - ITR 1 instead of ITR 2.
Time to search for an auditor :-(
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Old 22nd July 2014, 01:30   #545
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Hi, can anyone tell me how to claim exemptions under section 10 while filing online?

It's otherwise a very simple return involving only salary and basic deductions, and I usually use ITR-1 and it suffices. I took a look at ITR-2 also and couldn't find it (although I may have missed it with the huge number of columns and pages).
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Old 22nd July 2014, 06:37   #546
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Default Re: All Income Tax Queries (refunds, disputes, rates etc...)

Managed to upload four ITR2s using the Java Utility. Had a bit of trouble with the HUF return. Now I have to put in my PAN in the declaration page, I used to do it with the HUF PAN there also in the past. Only my son's ITR4 remains (he is a medical consultant) which my CA friend should do today or tomorrow. So then peace and bliss. I must say at the end I found the Java utility friendlier than the xls(x)s of the past.
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Old 22nd July 2014, 11:06   #547
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Originally Posted by anku94 View Post
Hi, can anyone tell me how to claim exemptions under section 10 while filing online?

It's otherwise a very simple return involving only salary and basic deductions, and I usually use ITR-1 and it suffices. I took a look at ITR-2 also and couldn't find it (although I may have missed it with the huge number of columns and pages).
No need to worry about section 10. Fill the gross value of the salary . Then show deduction under chapter VI-A .
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Old 22nd July 2014, 14:20   #548
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Seven reasons why TDS provisions are draconian & flawed - http://www.moneylife.in/article/seve...wed/38173.html

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The citizens of this country are punished due to some draconian provisions in the Income Tax (I-T) Act, Rules and notifications. They could even be taken for a ride about the constitutional legality of tax deducted at source (TDS). Harassment because of TDS provisions began under the Congress-led government but nobody has bothered to listen to the woes of lakhs of taxpayers. Here are some thoughts on behalf of tortured taxpayers, for consideration by a government that has promised Achche Din for all of us.
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Old 22nd July 2014, 16:14   #549
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I donít know if this is the right thread for my query. Apologies if it isnít.
I am setting up a business in my hometown taking a bank loan (loan against property). This will be sole proprietorship. When time comes to file my returns I can show the money spent on setting up the business as expenses. The problem is I am not getting any bill for the civil work that is being done. That is close to 6-7lacs all put together. Is there any way I can show this as expense if I donít have bills?
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Old 22nd July 2014, 17:05   #550
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The problem is I am not getting any bill for the civil work that is being done. That is close to 6-7lacs all put together. Is there any way I can show this as expense if I donít have bills?
Disclaimer: I am not a lawyer or tax accountant.

I think the way it works is like this: The civil works contractor will send you an invoice with 12.36% Service Tax. You will deduct 10% TDS and pay him the remaining amount. When it is time for your firm to do its accounting, you can offset this service tax against your tax liability.

Without the tax invoice you are SOL.
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Old 22nd July 2014, 18:29   #551
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Originally Posted by binand View Post
Disclaimer: I am not a lawyer or tax accountant.

I think the way it works is like this: The civil works contractor will send you an invoice with 12.36% Service Tax. You will deduct 10% TDS and pay him the remaining amount. When it is time for your firm to do its accounting, you can offset this service tax against your tax liability.

Without the tax invoice you are SOL.
What you mentioned above is the ideal way of how things are done. But that is not how things work in the real world. Finding a civil contractor itself is a big challenge and none of them gives a bill.
By the way what is SOL?
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Old 23rd July 2014, 01:56   #552
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Originally Posted by undead View Post
No need to worry about section 10. Fill the gross value of the salary . Then show deduction under chapter VI-A .
Still confused - all deductions under chapter VI-A have to be in sections 80C/80CC etc. This would not go in any of those.

Can I just subtract it from my gross salary itself?

Specifically, the exemptions claimed are Rs. 1200 on my (son's) education (maximum of Rs. 100/month) and Rs. 12,000 on medical expenditure/reimbursement.

EDIT: Aah, found the field I was looking for in Schedule S of ITR-2! Thanks for the tip!

Last edited by anku94 : 23rd July 2014 at 02:02.
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Old 23rd July 2014, 07:02   #553
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Originally Posted by anku94 View Post
Still confused - all deductions under chapter VI-A have to be in sections 80C/80CC etc. This would not go in any of those.

Can I just subtract it from my gross salary itself?

Specifically, the exemptions claimed are Rs. 1200 on my (son's) education (maximum of Rs. 100/month) and Rs. 12,000 on medical expenditure/reimbursement.

EDIT: Aah, found the field I was looking for in Schedule S of ITR-2! Thanks for the tip!
Subtract from Gross Salary itself. No need to use ITR 2 unless you have income from capital gains or more than one house property. If your income is only from Salary , just use the ITR 1 itself. The Section 10 calculations are done properly by the employer itself. ITR 1,2,3,4 all has Salary sections. Use proper ITR return
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Old 23rd July 2014, 07:19   #554
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Originally Posted by zteg View Post
What you mentioned above is the ideal way of how things are done. But that is not how things work in the real world. Finding a civil contractor itself is a big challenge and none of them gives a bill.
By the way what is SOL?
Your case is true in most cases. Small level builders dont give any bill or pay service tax etc. Here is a tip
1. Find the built-up sq.ft area of the premises which you have constructed.

2. Use the prevailing average market rate of the construction and calculate the expenses based on the percentage of completion of work.

For eg : You are building a 1000sq.ft of concrete based building . The average rate for construction by builders in your area is around Rs.1500/- per sq.ft , and approximately 60% of building is completed , account 60% of the total contract amount , till that year and account the remaining expenses in the following year of completion.

3. Even IF incometax authorities visit your building and check the value of the expenses accounted, they will use this method only for calculation. They wont mind the contractor bill much.
The reason is simple, take for example the builder actually agrees for contract rate of Rs.1700 per sq.ft , but gives you bill for Rs. 1000 per sq.ft only . The remaining Rs.700 is unaccounted money , both for you and your builder. So, two things arises -a) The builder has deliberately concealed the income , b) You claimed less expenses , and you used some of your unaccounted black money to build your premises.

4. Also NO NEED to deduct TDS for contract as of now. TDS arises only when you come under the Section 44AB of the act, (ie) your turnover exceeds Rs.1 crore.

So , all you need to do is , account your building expenses as per prevailing market rate. DONT use very lower rate or higher rate. Use an acceptable rate.

Last edited by undead : 23rd July 2014 at 07:21.
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Old 25th July 2014, 19:43   #555
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I have a problem.

For AY2013-14 (not the current one that everyone's struggling with), I had some tax liability at the time of filing the return in July 2013. I did not pay self assessment tax on it then, but simply filed my return (I was running short of time, and had some cash flow issues). Much later, they sent me a Defective Return notification - and then I remembered this tax liability. I paid this tax due in April 2014. Now I need to file a corrected return.

The problem is that the ITR-2 of 2013-14 is not accepting the date I paid tax (9/4/14) as a valid date. It keeps throwing this error:

Name:  ITR_Error.png
Views: 241
Size:  19.5 KB

Now I'm stuck. There is no provision in the AY2014-15 to report this tax payment either. Anyone's been in this situation and know what to do? I am currently toying with the idea of putting in a date that is acceptable to the Excel utility (any date before 1/4 seems to work). Is that advisable? If they are matching date+challan number then I will run into more trouble.
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