DEPOSITING OR ENCASHING RS.500/- AND RS.1,000/- NOTES. BEWARE !!! THE INCOME TAX DEPARTMENT IS WATCHING YOU

DEPOSITING OR ENCASHING RS.500/- AND RS.1,000/- NOTES. BEWARE !!! THE INCOME TAX DEPARTMENT IS WATCHING YOU!

TAKE CARE AND CONSULT YOUR CHARTERED ACCOUNTANT

As per the IT department, the physical cash circulation in India is Rs 17 lakh crore and out of this, 88 per cent is Rs 500 and Rs 1,000 notes. Official data suggest that 40 per cent of black money is generated in real estate, while stock market and bullion transactions are other big sources.

1.    The Income Tax department will keep a check on individuals who exchange cash amount of Rs 2 lakh and above.

2.    The objective is to make Indians tax compliant, eventually leading to higher revenues for the government.

3.    The IT department has been asked to keep record of every individual, their PAN card details, and tally it with tax filing.

4.    Accordingly, the department will impose penalty, which could be between 30 per cent and 120 per cent, depending on the source of income.

OVERWHELMING RESPONSE TO E-FILING- LAST DAY FOR FILING EXTENDED TO 05-08-2013

E-filing of Income Tax Returns got Good Response and the last day for the filing is extended up to 05-08-2013

More than 82 Lakh Returns E-Filed till 29th July, 2013 which is More than 40% of the Returns e-filed during the Same Period Last Year; Record Peak of more than 85,000 Returns Per Hour Achieved.

But,some taxpayers have reported problems in accessing e-filing portal which is primarily due to network constrains of the local internet service providers.

Due to some network problems, the tax payers could not access the website to file the e-returns till late in the evening today.  The Finance department has extended the last day for the submission of income tax returns to be filed within 05-08-2013.

INCOME TAX BENEFITS FOR SENIOR CITIZEN

Senior Citizen Benefit under Income Tax Act
A person becomes senior citizen under Income Tax Act in any year after attaining the age of 60 even for one day. Once he attains 60 years, his status as senior citizen in that financial year, gives him/her some tax benefit and relief These are listed below:
1. Higher Exemption Limit
From F.Y. 2011-12, Qualifying age for Senior Citizens has been reduced from 65 years to 60 years and exemption limit for Senior Citizens has been enhanced from Rs. 2,40,000 to Rs. 2,50,000.  A new category of Very Senior Citizens, 80 years and above, has been created who will be eligible for a higher exemption limit of Rs. 5,00,000.
2. Reverse mortgage for senior citizens
Reverse mortgage’ – a concept introduced by Finance 2007 -provides that a senior citizen will be able to avail of monthly income streams by mortgaging a house owned by him.  For more details read the following article :- Reverse mortgage created under a scheme made and notified by the Central Government shall not be regarded as a transfer U/s. 2(47)
3. Tax benefits on medical insurance hiked
A senior citizen can avail of higher of higher deduction of Rs 20,000 u/s Section 80D.
4. Higher Deduction u/s 80DDB
Section 80DDB provides deduction to an assessee in case of expense on medical treatment of specified ailments. Generally this deduction is available upto Rs 40,000 . However , if the patient is a senior citizen, then deduction of Rs 60,000 is allowable.
5. No Routine Income Tax Scrutiny of Senior Citizens  -Appreciating the concern of these taxpayers and with a view to mitigate their hardships, Central Board of Direct Taxes has reviewed its scrutiny selection procedure. In order to redress the grievance, it has been decided that during the financial year 2011-12, cases of senior citizens and small taxpayers, filing income-tax returns in ITR-1 and ITR-2 will be subjected to scrutiny only where the Income Tax department is in possession of credible information. Senior citizens for this purpose would be individual taxpayers who are 60 years of age or more.