The union budget 2012 will be presented tomorrow on 16 March 2012. The new income tax slab 2012-2013 will also be revealed tomorrow.

The railway budget that was presented today had some revolutionary steps taken to tackle the inflation and rising fuel prices. The increase in railway fare indicated that government is dedicated to reduce the burden on the railway department and pass on the burden to the people.

It is yet to be seen whether similar drastic measures will be taken by the Finance minister during the annual budget for year 2012-13 that will be presented this Friday. The finance minister has a lot to balance. Specially in light of all the rising inflation and the soaring fuel price that has put the people of the country in large suffering.

One of the eagerly awaited outcome will be the new tax slab. This will decide how much burden the salaried class will be having on their savings and expenses.

Whatever be the outcome of the union budget, there will surely be some happy and some unhappy people at the end of the day.

The tax filing date is nearing. The last date for filing your income tax returns for the year is July 31st. You can file the tax for your income of financial year 2010-2011.

File it fast before it is too late and before the tax department is behind your back.

So don’t forget. The last date for filing income tax is 31 July 2011

Relief to salaried tax payers whose taxable income is less than 5 lakh. They are not required to file income-tax return from now onwards.

But the catch, The 5 Lakhs include only your salary and any other interest. Does not include the income from other sources like house property, capital gains and gains from profession and business.

But still it is a relief for the majority as they normally have only one source of income..

More details can be had here – http://economictimes.indiatimes.com/personal-finance/tax-savers/tax-news/no-filing-of-tax-return-for-salary-and-interest-income-up-to-rs-5-lakh/articleshow/8747354.cms

It is better to consult a tax consultant or check the tax laws.

But as per the income tax rules one has to file the Income tax return if the income belongs to one of the tax slab and the income is higher than the exempted limit. This income should be before claiming any tax deductions.

Rising inflation, heating real estate. Is the Indian economy getting too hot ?

Prime minister says “Persistent food inflation is a concern”

http://www.indianexpress.com/news/persistent-food-inflation-is-a-concern-pm/779264/

The inflation took away a major portion of poor Indian’s savings. Getting 3 time meal is a major concern now.

The option before the country is to increase food production and at the same time make available more money in the hands of poor.

This is a common question regarding tax. For what duration do you need to pay your tax ?

This depends on country. In India, the tax is paid for the duration from April of this year to March of Next year. This is the financial year in India and the income tax needs to be paid for that duration.

For example. The income tax for financial year 2011-2012 is calculated from April 2011 to March 2012.

You will be filing your tax in 2012 for this duration. The exact tax amount can be seen here

The annual budget is nearing and people are eagerly awaiting what is in store. On 28th Feb, Finance minister will be presenting the union budget of India. The hopes and aspirations of the country will be revealed.
There will most likely be some changes to the income tax slabs. Against the growing inflation it is worth asking what is in store for you in the union budget.

How isincome taxcalculated for bank interest ?

As per the income tax rules, banks are supposed to deduct the taxes at the source on the interest. This is known as TDS (Tax deducted at source). This is already taken from you before the interest is deposited in your account.

This is a question you hear awful lot of time. Why should I pay income tax ?

Most of the nations subsidize the education, power, infrastructure (roads , rail etc), hospitals etc. The countries need money to provide the subsidy. This is where income tax comes in.

The simple reason is, if you are using the resources of a nation, including the roads, electricity, education, library etc, you need to pay tax on your income. It is a way to pay a portion of what you utilize.

It does not matter if you treat your online trade as a hobby or a sideline business, you need to pay taxes on every item traded on the Internet. Even if you make less than Rs 100, it is still considered an income.

Whether it can be really considered a hobby or business depends on whether the trade is carried out more like a business and less like a hobby (that is, if you are spending majority of your time for the trade or you depend on this income for your survival.

If you need to know how much you need to pay on your income, you can check Income tax slabs, income tax rates

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