How do I pay taxes online and which form do I use?
If you intend to pay taxes (Advance Tax/ Self Assessment Tax), the challan applicable is ITNS 280.
Key in your PAN which will be checked for validity and then fill Challan 280 online. If you are paying taxes for 2007-08 now, then check 'Self Assessment Tax', then login to net-banking and make the payment. On successful payment a challan counterfoil will be displayed containing the challan identification number (CIN), payment details and bank name through which e-payment has been made. This counterfoil is proof of payment made. A copy of the same needs to be attached to your ITR while filing.
My rent is higher than the HRA benefit in my Form 26?
HRA exemption is arrived at as a minimum of the following three conditions:
Actual HRA (HRA as part of salary)
Rent paid: 10 per cent of salary
40 per cent of salary (non-metros) or 50 per cent of salary (metros)
Sometimes I need to pay a much higher tax when my 'Any other income' is added. Why?
A surcharge of 10 per cent on taxes is applicable if your taxable income exceeds Rs 10 lakh. Often, your Form 16 does not reflect total income due to non-declaration of certain sources of income -- capital gains, interest income etc.
On inclusion of the same, your income could have crossed the limit of Rs 10 lakh, thereby the surcharge kicks in and this is to be paid on the net taxes (including taxes on salary income which is already deducted at source), this may cause a sudden spurt in the taxability of an individual.
What are the common documents required for tax filing?
The common documents applicable are:
Form 16 (received from employer/s)
PAN card copy
Home loan certificate(s): Interest and principal
Advance/ self assessment tax challan
Form No 16A (where TDS is recorded in case of term deposits, consultant income)
Summary of all bank statements
Details of capital gains (including MF), rental income (if applicable), business income, income received in consultant capacity.
Photograph: Sajjad Hussain/AFP/Getty Images
Also read: 5 tax-smart ways to a better salary
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