1116(Income tax) How to avail tax credit for self assessment Tax - TopicsExpress



          

1116(Income tax) How to avail tax credit for self assessment Tax in tax return Project - Make Knowledge Free Case Methodology - Harvard Case Methodology Video Link - https://youtube/watch?v=-75hZ4m06Zk Narration - By Amlan Dutta Fore previous year 2013 14 ,i am a resident non senior individual. i have salary income 1027185 and FD interest income of 63198 Rs .Besides i have invested in prescribed investment under section 80 C listed under chapter VI A in Provident fund . So my total income boils down to 990380 and taxes as applicable for previous year 2013 14 implying assessment year 2014 15 is 131918 Rs Before attempting to pay any advance /self assessment tax , i check once how much tax credit i have available in my tax credit statement ( Form 26 AS) I see employer BHEL has using its TAN registration for Mumbai unit deducted against my salary income against my PAN 118901 Rs .....so clearly i wont be required to pay this amount again because i have such credit of taxes paid against salary income as TDS credit , Like wise i see that Axis bank for its cuffe parade usnit having TAM registration MUMUM000F2 has already deducted under section 194 A 10 % TDS against FD interest income of 63198 Rs i.e 6319.8 approximated to 6320 Rs ..... So clearly , i therefore can take credit of this taxes as well ! But i still figure out that the total tax liability of 13918 Rs is not covered by the total TDS credit i have available due to salary and bank interest .That is i have a total TDS credit of Rs 118901 + 6320 = 125221 Rs So , i need further tax credit of 131918 - 125293 = 6698 Rs to meet my tax liability on total income else Jaitley will run after me !So,, i use the income tax challan (280 )Rs to make this payment of 6698 Rs to build my tax credit on account of advance tax payment ! Now while availaing tax credit , i have different specified fields for salary TDS , Non salary TDS , property Sale TDS. Again i have separate fields for availaing tax credit due to payment of income tax towards self assessment /advance tax So , using the salary TDS field , i avail tax credit for salary TDS i.e 118901 Rs stating that against TAN registration XXX--- i have credit available for Rs 118901 Rs which has already deducted against my salary and deposited to revenue Likewise against non salary TDS filed for claiiming tax credit , i cliam tax credit for 6320 Rs deducted as TDS against bank interest stating that such amount has already been deducted from my interest income as TDS and deposited to revenue ! Again using the schedule Income tax , i cliam credit for paid taxes 6698 Rs stating that against challan no xxx-- dated so and so , i have deposited 6698 Rs ! The assessing officer during assessment checks whether i have such credit reflecting in my tax credit statement against TDS and income tax paid details .If yes , he accepts my tax credit claim ! Hope the concept is clear like water ! Cheers , Amlan Dutta.
Posted on: Fri, 26 Dec 2014 09:19:23 +0000

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