1112(Income tax)If you cannot mix income heads , how can you mix tax credit in return? Project - Make Knowledge Free Case Methodology - Harvard Case Methodology Video Link - https://youtube/watch?v=teL7RGgzdQc Narration - By Amlan Dutta For previous year 2013 14 , i as a resident non senior individual has income from salary and FD interest income . I also had invested in prescribed investment listed under section 80 i.e 80 under Chapter VI A i.e In provident fund for Rs 1 lac ! Now my total income boiled down to 10 lacs ...on which taxes applicable as per slabs for the corresponding assessment year was 1,33900 Rs Unfortunately , my salatry TDS tax credit of 118901 and no bank TDS credit didnt sum up therefore to my tax liability ...i used the challan 280 to make a tax payment for the balance (133900-118901) well in advance to avoid any penal interest ! Now comes the most important part --using the tax return to avail tax credit .Please understand the term tax credit means availing credit of the taxes that is available to me for the given assessment year ! Now , when i said that the employer has deducted 118901 , what i mean that it using its TAN registration has collected so much taxes at salary source .When it files its TDS return properly , such things get reflected in my tax credit statement i.e i can see that i have salary TDS credit against TAN registration number xxx--- for Rs 118901 Rs ..... Likewise when i use challan 280 to make advance /self assessment payment , i build my tax credit but by paying taxes which again reflect in my tax credit statement showing very clearly the challan number and date against which such paid tax credit in form of self assessment/advance tax is available! Now obviously then when i claim credit of such taxes to meet my tax liability on total income , i cannot mix heads ...i cannot say that against my company TAN registration , credit of my paid taxes of self assessment are available ...that is bizzare ,lol! But there were people who asked me such things ....more than laughing it of , i thought that this are the concept builders...when such concepts are hammered , i guess the mind will then open up ! I am trying to understand what scares the psyche of indian tax payer and what is it that he /she finds difficult ...my 80 % study show that it is the part concerning availaing tax credit and so i make many tuts in this part and revisit this topic again and again because if this part is clear , you will start appreciating my other work faster ! Cheers , Amlan Dutta
Posted on: Thu, 25 Dec 2014 11:09:02 +0000
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