Tax Rules you should know before making Tax Declaration

Tax Rules

Most of the companies ask their employees in December to file investment declarations with proofs by January. In this coming financial year, most of the salaried individuals are in the process of finalizing their Tax Saving Tools and other deduction schemes they intend to claim.

Huge cuts can be seen in their monthly salaries when they fail to submit the details of investment with proofs. The company in which you are working deduct the TDS(Tax Deducted at Source) from their employee’s salary in the remaining months of the financial year.

While submitting your declarations, one must be fully aware of some rules and regulations. Some of them are given below:

• Landlord PAN Card is necessary:
• According to new IT rules, it is mandatory to mention the Pan card of your landlord. This happens in a case when you are paying an annual rent of more than Rs 1 Lakhs.
• New tax rules can give bother to some of the people who are paying rent as their landlord can refuse to part with their PAN card.

Avail tax benefit as the first time home borrower:

If you are buying your home for the first time, you can look forward to having some additional tax benefits this year. If you have taken Home Loan for the same, your loan amount must not exceed the amount of Rs 25 lakhs to claim the tax benefit.

Even the market value of the residential house must not exceed the value of Rs 40 lakhs. If you have owned Home Loan this financial year 2013-2014, you can claim a tax deduction of Rs 1 lakhs on the interest paid for that loan under Section 80 EEE.

Get Tax relief for lower-income categories: 

If your annual taxable income falls under Rs 5 lakhs, you are entitled to get a tax rebate of Rs Two Thousand this year. It is allowed under Section 87 A of the Income Tax Act.

Avail Tax Benefits on the donations made:

Most of the employees do not take the donations made by their employees that qualify for the tax deduction under Section 80 G. A person can claim refunds when they file their ITR on these donations.

Over few years, some of the TDS circulars were issued stated intention of the government to allow deductions by the employer when some of the donations are made by the employee.

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