Which Income tax form to fill?

Still Confused about the type of form you need to fill up for income tax returns. Well Individuals have three types of forms they can file depending on the source of income.

  • ITR-1 For individuals having income from salary, pension and interest earned in the financial year
  • ITR-2 In addition to the above income sources, income from capital gains, income/loss from house property and income from any other source
  • ITR-4 For all individuals having income from a business or profession

How to make a family Budget?

Well everyone needs to budget and that's what i am trying to create for my family right now, the budget needs to be based on the income. Will depend on whether your family is a single income or a double income family, you always need a budget to work on. A family budget is usually like a personal budget just in a bigger perspective. Here are some ways to make a budget...

1. First and always first for any budget determine the total income.

2. Second - Determine what needs to be paid like bills, Home Loan payments, Car loan payments, school fees etc.

3. Don't spend needlessly like eating out everyday, try taking lunch from home or only go out to eat once a month. Analyze all your extra expenditures.

4. Make a excel file showing all the expenditures and incomes just like a bank statements.

5. Try to optimize your savings versus expenditures figures in the consecutive month till you have reached a figure where your amount of savings is more than expenditures.

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Why do you need a PAN Card?

Many people have asked me this question? It is actually ignorance on the part of some of the people to the importance of a PAN card. The salaried class is ofcourse most aware that to purely out of a necessity by the employer for Tax deduction at Source but most of the other people are just purely ignorant Let me first define the PAN Card -

PAN - A ten Digit alpha numeric number issued by Income tax department.

Who Must have a PAN?

i. All existing assesses or taxpayers or persons who are required to furnish a return of income, even on behalf of others, must obtain PAN.

ii. Any person, who intends to enter into financial transaction where quoting PAN is mandatory, must also obtain PAN.

iii. The Assessing Officer may allot PAN to any person either on his own or on a specific request from such person.

Now the main Question, Why do you need a PAN?

It is necessary to quote the PAN in documents related to the following transactions:
  • Sale or purchase of immovable property valued at Rs 5 lakh or more. If there are co-owners (buyer or seller), the PAN of both the owners will have to be mentioned. If a nominee holds the property, the PAN of the legal owner must be mentioned. The PAN should be disclosed in the document pertaining to purchase or sale of the property.

  • Sale or purchase of a motor vehicle requiring registration other than two-wheelers. This does not include vehicles running on fixed rails or special vehicles for use only in factories or in other enclosed premises or vehicles of less than four wheels with engine capacity of not more than 25 cc.

  • A time deposit of more than Rs 50,000 with any banking company and deposit of more than Rs 50,000 with post-office savings bank. This requirement is not mandatory when investing in post-office National Savings Certificate or Kisan Vikas Patra, and the PAN will be required only if the time deposit exceeds Rs 50,000.

  • Contract of sale or purchase of securities exceeding Rs 1 lakh in value, including shares, bonds, debentures, derivatives, units and government securities.

  • Cash payment of Rs 50,000 or more for purchase of bank drafts, pay orders or bankersÕ cheques during any one day.

  • Cash payment exceeding Rs 25,000 in connection with travel to any foreign country (fare or purchase of foreign currency).

  • Application for installation of telephone, including cellular telephone.

  • Payment to hotels and restaurants against bills exceeding Rs 25,000 at any one time.

  • Opening a bank account.

  • Application for issue of a credit card.

  • A cash deposit of Rs 50,000 or more with any bank during any one day.

  • Payment of Rs 50,000 or more to a mutual fund for purchase of units or to a company for acquiring its shares or to a company/institution for acquiring its debentures/bonds or to RBI for acquiring bonds.

  • Minor intending to open time deposit or bank account should quote the PAN of either father or mother or guardian in whose hands income is likely to be clubbed.

A lot of reasons there huh but remember you really do need a PAN card. Its easy. Its not that difficult to get either, Got this website "http://www.utitsl.co.in".

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How to start and run a low cost business

Here are some tips to help out some new business to start a low cost business and run a office by keeping a very tight fist. It is important in times such as these to keep a tight fist on the expenditures while starting a new business...

1. Try working out of the home, may be you can use the existing phone lines and your old computers. You could even be using the old furniture lying in that store of yours.

2. If you are planning to set up a website, look for some bargains available on the net on the domain name and hosting plans. Some times you get really cheap options.

3. Keep a tab on the Utility bills like Electricity and phone bills. For mobile communication within your business like talking to your employees, take a plan from a single carrier for all the employees which offers free calls within a group.

4. Try using Open Source Software's which can be freely downloaded from the Internet for your software needs instead of spending heavily on Licensed SW's.

5. Buy those all in one printers where you can get photocopier, Fax, printer and scanner in one. This way you don't have to invest separately in different devices.

6. If you are doing some international calling try using the millions of VOIP services like skype, they usually end up being cheaper.

7. Always work on a budget, this way you will be able to control costs.

8. If you have to travel, plan it well in advance this way you can save on cost of air tickets by booking them in advance.

9. Try using budget hotels or self service hotels, these can cut costs a lot. Or if you have a fixed destination that you need to travel to each time, negotiate with the hotel for the rates.

10. Try finding some relative or friend who can help you out with legal, taxation and financial problems. You might be able to save instead of hiring professionals.

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