when TDS Deductions can be avoided

Even though many of us are familiar with tax filing, the process of TDS deduction is still confusing for many. When and where TDS is applicable, what are the procedures to reduce it and how to claim the deducted amount at the time of filing tax returns are few of the queries we have. So, here we discuss TDS deductions with a focus on how and when it can be reduced to help you in everyday life.

Understanding TDS:
The Indian tax structure is broadly a two dimensional approach towards payment of tax liabilities. In the first method- self assessment, taxes can be paid voluntarily after evaluation of income during a financial year. In the second method, Tax Deductions at
Source or TDS, as the name suggests, is the spot deduction of tax from the income source itself, at the time of earning. This is to simplify the taxation procedure for the government and to ensure that the payment making and receiving individual / company is accounting the same without fail.
TDS is applicable for earnings from several financial instruments and business transactions like sale of property, interest income from banks, commissions and incentives, payment received for contracts and services, vendors, dividends and awards or prices earned as money.
There is no uniform rate for TDS deduction. Depending on the source of earnings, it can range from 1% for sale proceeds to 30% .
From Salary and Commissions
It is mandatory as per Indian Income Tax rules that companies as well as working professionals who earn above the aforementioned figure should deduct tax at source from the payments they make.
Employers normally will ask employees to fill an investment declaration form. If you have done an early homework to save your TDS deduction by investing in several tax saving instruments under Sections 80C, 80D, or planning to do within that financial year, do declare the details in the form with required proofs to save TDS. If despite all your investments, your salary is still above the exemption limit, TDS will be deducted monthly.
The employer will issue a TDS certificate (also referred as Form No.16 (a)) at the end of the financial year which can be produced while filing income tax return to get the credit of the TDS ( if applicable) during the personal income tax assessment.
TDS is applicable for payments including commissions, service fees, professional fees and payment via contracts. Here the TDS certificate issued will be Form 16 B which like Form 16 A, can be produced while filing income tax return to get reversed if applicable.
TDS from Property, Awards and Incentives:
TDS is applicable in case of earnings sale of property, rental / lease income, cash prizes, lottery winnings etc. The amount of deduction may vary from 1% in case of sale proceeds to nearly 30% in case of cash awards.
Individuals seeking TDS refund in the above mentioned situations can submit form 15G/H which is a self deceleration that your income is below taxable limit. This is applicable only for Indian residents including senior citizens and Hindu Undivided Families (HUF’s). Form 15G can be filed by all Indian residents whose total financial income for the designated financial year is below the threshold limit while senior citizens need to avail Form 15H for the same purpose. It is imperative to note that Non resident Indians are not allowed the use of forms 15G and 15H and need to apply separately.
In case of rental income, TDS will be deducted only if the rent you receive is not less than Rs1.8 lakh a year. In case of joint ownership of rented / leased property, where the specific share of the property is decided, the limit of Rs 1.8 lakh can be claimed separately by each owner.
Income generated through bank deposits-
TDS is deductable on interest income paid by banks and financial institutions in respect of FDs (exceeding Rs.10000 in a FY) and term deposits (exceeding Rs.5000 in a FY).
If your income is below the taxable limit, but the interest earned from your deposits is above Rs 10,000, you can request your bank not to deduct tax by submitting form 15 G and 15 H to the bank at the beginning of the financial year.
Another effective way is to opt for multiple smaller fixed deposits across various banks.
Splitting the interest earned across two financial years in such a way that the overall annual interest earned from any of the FD not exceeding Rs 10,000 is another workable option.
In certain cases, dividing fixed deposits under two different heads can also be useful in avoiding. Individuals can divide deposits in their names and have some under a HUF account to avoid interest generation cross the taxable limit.
And never forget to carry your PAN card for all fixed deposits over Rs.50000, because on not receipt of PAN number banks may deduct 20% TDS which is non reversible.
Reversing TS collected
As you file your tax returns, you will know the tax bracket you are which determines the balance tax to be paid or that can be reversed. So do keep a track of the TDS that you have paid with Form 26AS or annual tax statement. All the taxes deducted on your behalf will be listed in it and it can be availed from the concerned sources along with Form 16. Otherwise missing taxes will be considered unpaid by the income tax authorities.
Source Deduction pattern How to reduce TDS How to reverse TDS Conditions (if any)
Salary Monthly by
employer
Submitting investment declaration with proofs At the time of filing ITR (with proofs of investments under 80C and 80D. Form 16 A Ensure to have a tax savings plan under 80c and 80D
Incentives , Commissions, Services, Contracts, Rental Income At the time of payment Possible only to reverse At the time of filing ITR (with proofs of investments under 80C and 80D. Form 16B Only if eligible under 80C and 80D clauses
Sale of Property At the time of transaction If the transaction as per papers is below 20 lakhs in panchayaths and below 50 lakhs in municipality / corporation limits NA As per costs shown in documents
Bank Deposits During interest remittance by bank Form 15 G / 15 H, Splitting of accounts across banks / HUFs ( if applicable), splitting of interest in two FY Form 15 G / 15 H, Will not be reversed if a single deposit is above 50,000 and PAN no. not submitted

Detailed Explaination of Income Tax Calculation Sheet

As per the income tax form for the 2012-13 fiscal the following factors will be taken into consideration while deciding the gross salary of a taxable employee:
Basic
Special allowance
HRA
City compensatory allowance
Exemption of HRA under Section 10/13A
Referral allowance
Transport allowance
Arrears of the previous year/s
Exemption of transport allowance under Section 10/14

The areas mentioned below are the "other payments" and liable to be subjected to taxes: 
AIP/SIP/PIP/V.Pay
Notice pay recovery or reimbursement
Referral claim
Tour
Taxable reimbursement
LTA
Leave encashment
The following are regarded as "prerequisites" or "others" in the 2012-13 income tax form: 
Company leased accommodation
Payment for sweeper, watchman, and gardener
Less paid by the employee
Car perks
Medical reimbursement
Hard furnishing
Interest free loans
Normally the tax on these categories is deducted while calculating the salary. 

The following factors are also considered while paying the salaries of taxable employees:
Loans from housing property
Interest of housing loan

Tax Saving Tips : Save your tax and save a lot of money

The history of Income Tax in modern India dates back to 1860 when the first Income Tax Act was introduced and which remained in force for a period of 5 years. This Act lapsed in 1865.

There are different ways to save your tax and save a lot of money. Even there are different plans to save your tax in India. New salary is revealed in India in 2010, people get a higher salary or higher current salary beyond their own expectation and the current salary is dependable upon the cutting of tax. All types of new income tax schemes will depend upon the India finance ministry for government employees as well as for private employees in India. India government gives different types of tax discounts and there are different type of popular tax saving options for the people of India such as funds, saving bonds and life insurance etc. There are number of banks in the list of most popular tax saving schemes in India. You can call any of the banks for the information about tax saving options. The tax saver will tell you about the plans and procedure about the tax saving according to your current salary or total CTC. It is better to pay the car loan EMI, home loan EMI and many more in advance because the bank will imply the new interest rate at higher level up to 0.50%. So don’t take your loan EMI very easily.

A powerful systematic investment plans will help people in India. Reserve bank of India has various tax saving tools. The bank will sign the bond for 3 and 5 years at the rate of interest is 7.5% per annum. There are two types of bonds under the reserve bank of India such as cumulative bond and non-cumulative bond. There are so many private sector banks in India for tax saving. The best way to get information about saving tax is get in touch with a tax consultant. He has the complete information about tax implied on your salary and how you can save it. It is suggested to give the exact information about the income you receive from all sources. Mutual funds, Child insurance policies and health insurance plans can give you numerous benefits and you will be able to save tax. An agent will come at your place and help you fill the documents which you need to submit at the time of filing for year’s tax. This is because of the fact that the process may be confusing and tedious.

Getting help from a tax consultant, you will be able to save a lot of time and efforts. It is possible to save tax if you take right steps at the beginning of year. Proper planning and implementation is required so that you can save significant amount of money. One of the best options to get the information about tax saving schemes is to get online and browse various sites giving details about tax saving schemes. You do not have to do anywhere to get information as you can get it at the comfort of your home. You can also contact a tax consultant who can give you the best suggestions.

Forgot LIC India User ID | Login Password Easy Recovery

Recover Forgotten LIC User ID | Login ID | Password Details Easily

 Life Insurance Corporation of India (LIC) is the largest insurance company in India, also country’s largest investor and most trusted Insurance company. LIC India provides online portal facility for LIC policyholders, agents, etc. for many policy related services such as paying LIC premium online, viewing policy status, etc. by creating user account.

LIC portal users may forget login details, user ID, password

 For LIC portal users, it is quite possible that many times LIC Policyholders, LIC Agents, LIC Online Portal Users create their User ID on LIC India website/portal and forget the User ID over a period of time. Then, they try here and there to find their forgotten LIC India User ID but due to unknowingness, cant recover LIC user ID or login details.

Recovering | Resetting LIC login details, user ID, password

You can find below simple and easy steps to Recover | Reset Forgotten LIC India User ID or Login Details. This is useful for only valid LIC Policyholder who has forgotten his/her Login ID / Login Details due to some reasons. Please do not try it if you are not a valid LIC Policyholder, otherwise strict actions might be taken against you. 

Simple and Easy Steps to Recover Forgotten LIC of India Portal Login User ID

To get your forgotten User ID for LIC INDIA you have to send an e-Mail requesting for the same to the e-Mail ID bo_eps1@licindia.com
In the Subject Line of the e-Mail, mention “New Query”
In the contents of the e-Mail you have to mention your LIC Policy Details (just for verification purpose) such as:
Policy Number
Policyholder’s Name
Date of Birth
Date of Commencement
Complete Postal Address, etc.
Now, send the e-Mail to above mentioned e-Mail ID i.e. to bo_eps1@licindia.com
You are done, you will surely get your forgotten LIC User ID within hours at the e-Mail ID (from which you have asked for it).
Hence you have recovered your forgotten LIC India user ID, now it is time to recover your LIC India password, the process of which is mentioned below:

Simple and Easy Steps to Recover Forgotten LIC of India Portal Login Password

Go to Forgot Password Page of LIC India Portal i.e., https://customer.onlinelic.in/ForgotPwd.htm
In the Forgot Password Page you would be asked to enter the following:
Date of birth, and
User ID
Fill up the above details there and Click on the Submit button. After few hours, you will get your LIC India Portal Login Password at your Original e-Mail ID (i.e., the e-Mail ID which was used at the time of Creation of LIC India Portal Login Account)
Finally, you have successfully recovered your LIC INDIA Login User ID as well as LIC INDIA Login Password.

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