File tax returns last date July 31 2009

Now date are close to file your income tax return before starting this article please read Income Tax Rates/ Slab 2008-09

Filling income tax returns before July 31 is obligatory for all individuals earning above1.5lakhs (women – Rs. 1.8 lakes and Rs. 2.25 lakes for senior citizens ) Most people do not know how to go about it but here are a few simple steps which will help you go about it

The following documents are required
Form 16: This is a certificate given by the employer about the tax deducted at source from the salary
Form 16 A: This is a certificate of deduction of tax at source to be collected from all the people who have deducted taxes while making payments to you like banks and companies
Summary Of Bank Accounts: This is a statement of all your income as well as expenditure and investments
Details of Property Owned: The Details of any property purchased during the year like rent received, municipal taxes paid, loan (if taken) details and interest paid is also required for filing tax returns
Sale purchase bills for documents/ investments: In case of large transactions it is better if each transaction of sale and the corresponding purchase is properly tabulated ant the corresponding profit or loss is arrived at for the correct calculation of taxable income
Details of tax paid: Details of any advance tax paid is required

The next step is the selection of the correct income tax form based on the nature of income

• ITR 1: Individuals who have income from Salary/interest/family pension/agricultural activities
• ITR 2: Individuals? HUF not having income on account of business/profession or on account of being a partner in a partnership firm
• ITR 3 : Individuals /HUF who are partners in partnership firms and do not carry out any separate business profession
• ITR 4 : Individuals /HUF carrying out business/ profession under a proprietary concern

The final step is filing the returns
The returns can be filed electronically by uploading the valid format of the respective ITR form (obtained from the Income Tax department site or other online tax preparation sites). After successful upload an electronic receipt will be generated... In case the form has your digital signature the electronic receipt can be kept for your records else it has to be signed to verify and acknowledge the electronic submission of the IT returns.

The returns can be filed physically by taking a print out of the ITR form and acknowledgment form and filing with the income tax officer

No documents need to be attached in either case

A penal interest @ of 1% per month of delay will be charged if the returns are filed after 31st July 2009 till 31 t march 2010 If filed after march 2010 a penalty of Rs. 5000 will also be charged apart from the fine
Paying tax is as important as filing tax returns hence to avoid any hassles it is necessary to file your returns before 31st July in case of individuals and 31st Oct in case of individuals who get their accounts audited

Filing of tax returns has never been easier thanks to the initiatives taken by the IT department.

Best Reading:

• What is Value Added Tax (VAT)
• How to know PAN Card Status
• Permanent Account Number FAQ's
• Save Tax Through Investment

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Tax Planning For First Timers

You have just set up your own business, and aside from the activities that need to be done to get everything up and running, you should also pay enough attention to the accounting side of your business.

The sooner you get this part organized, the sooner you will be able to concentrate on the business of making money.

The most difficult part about financial tax planning for new business owners is not knowing the terms, the rules, and the tax schedules. If you have no interest in this part of the business, then it would be better to hire a qualified and experienced accountant to set it up for you.

Of course, people with the credentials and experience will add an additional cost to your budget, but this is an expense well worth it.

On your own, you need to concentrate on the following areas as far as tax planning is concerned.

First, know what the rate for self-employed taxpayers are, as well as how the computations are done. In the United States, taxes that come from the self-employed are used mainly to cover for the Social Security and Medicare costs. This makes this a very serious income for the government.

If you are self-employed, there is a chance that you do not issue a paycheck to yourself. If this is the case, then you do not deduct any taxes from income earned on a regular basis. This tax can then grow to an amount that is harder to compute and pay. It would be a good idea to report your income on a monthly basis, and self-deduct, as well as pay the dues even if ahead of time. Make sure to keep a file of all payments made though, so that come tax season, you simply present proof of payment.

A business will have its own share of tax benefits which you should know about. For instance, your utilities, rental, luncheon business meals, even gas and transportation expenses can all be charged to the business. There is also the VAT input and output taxes, or sales tax on items purchased for the business. You just need to know the limit on how much you can charge to your business, and make sure to keep the official receipts on each expense you are charging to the business.

Another way to manage your taxes is to have a health care plan for the workers as well as for yourself. For the self-employed, you can get medical benefits for your entire family, provided the children are still dependents, and then you can deduct this expense up to 100%. Check to see what the requirements are for this benefit.

Tax planning is all about preparing early for that one month in a year when everyone is scrambling to fix their tax papers. If you plan and prepare ahead of time, you will never have to go through this kind of chaotic experience that is both harrowing and stressful.

Quote of the Day:
Self-employed taxpayers who use the cash method of accounting have the most flexibility to maneuver at year-end. See a tax specialist for more information.

Conclusion:
Tax planning for the current year, if done properly, will set the course for your business in a way that is proper and full of direction. After all, a business is all about the bottom line.

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What is negative inflation

Friends today, Inflation in India turned negative 1.61 for the first time in 32 years but the prices of food items like fruit and vegetables, cereals and oil were still higher than last year. It is a big question that what is mean of negative inflection.

Negative inflation is an indication of over production of goods. It indicates that market is flooded with all essential goods. Because of the huge supply the prices will fall down. But what is the truth? The price of all essentials is going sky high. These points indicate the mistake in the tabulations and assumptions and projections. The modern economists have to think of changing GDP method of tabulations. The theory they learn is being proved wrong. But their pride does not allow them to accept it. Poor men!! Let them accept that India needs a concept for statistical tabulations suitable to India. Let our economists work for evolving a method for India. The government should give them patronage for that. Let there be debates in media and public forums.

One of my friend email me today about this negative inflection, he said the Truth about Inflation or Deflation in relation to Cash, Demand and Supply .I am publishing this here, I hope you people like his words.

• You have CASH in hand and you wanted to BUY a product/service which is available in market. (INFLATION)
• You have CASH in hand and you wanted to BUY a product/service which is NOT available in market. (INFLATION)
• You have CASH in hand and you do NOT want to BUY a product/service which is available in market. (DEFLATION)
• You have CASH in hand and you do NOT want to BUY a product/service which is NOT available in market. (DEFLATION)
• You do NOT have CASH in hand and you wanted to BUY a product/service which is available in market. (INFLATION)
• You do NOT have CASH in hand and you wanted to BUY a product/service which is NOT available in market. (INFLATION)
• You do NOT have CASH in hand and you do NOT want to BUY a product/service which is available in market. (DEFLATION)
• You do NOT have CASH in hand and you do NOT want to BUY a product/service which is NOT available in market. (DEFLATION)

Conclusion: Negative inflation can also be termed as deflation. Deflation is a fall in the price of goods and services. Deflation occurs when the inflation rate falls below zero per cent. This is the opposite of inflation.When the inflation rate is negative, the economy is in said to be in a deflationary period.

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How To Accelerate Your Deductions and Handle Tax Planning Better

If you are bent on learning tax planning, you will need to be ready to devote time and energy to understanding the intricacies of taxes. It can be a little confusing at times, but once you calendar all the tax activities that are required of you, it will be just like clockwork.

Before you start planning how to handle your taxes, you will need to know if you below to the higher income bracket, or the lower income bracket. Talk to your local accountant and get an idea about where you stand.

If you belong to the lower income bracket, you can also manage to use deductions ahead of time, if you expected income can accommodate additional expenses. This is so you can lower the taxes you will have to pay.

Here are some of the ways you can do it: First, delay some of the income you should be earning like collecting receivables after the new year. You can also delay issuing your stock option incentives and set up a retirement fund.

If you usually donate to charities, what you can do is donate next year’s amount this year, to increase your expenses. If you have any plans to sell a major asset like real estate or equipment, wait for next before doing it so that the income is applied to next year’s capital gains tax.

You can also increase your contributions to a tax-deferred plan like a 401 (k) plan. In other words, if you have too little expenses to claim, try paying off what you can this year, and hold off on selling anything to minimize your income.

In the same manner, if you belong to the higher income bracket, you can accelerate your capital losses, and pay your taxes at the end of the year instead of in the following year. You can also prepay any deductibles like college tuition, alimony payments, retirement payments, and the like.

There are even more ways to increase your expenses without actually spending more, but you will need to sit down with a certified public accountant (CPA) to get the latest on these.

One of the issues that constantly hound tax payers is the fact that there are always changes in the tax system, and for this reason alone, you should make it a point to read up regularly for news and updates on taxes that relate to you and your business.

Most revenue officers will not accept ignorance as an excuse for non-payment of taxes. You should also know how much penalties you will incur should you pay late. This is an incentive for taxpayers to keep paying on time since the penalties can be quite high.

Plan you taxes properly, and make sure to get a professional go over your books every quarter, if possible. At the very least, you can point a finger at your accountant if things are not done properly. You should also know what you are signing, and never sign a blank tax return.

If you cannot afford to get an accountant full time, there are offices that offer accounting and auditing services for a minimal fee.

Quote of the Day:
If you'll be in a lower tax bracket next year, you may wish to accelerate your deductions into this year and postpone your income into the following year.

Conclusion:
Fix your taxes early with proper tax planning, and you will never be bothered by an audit from the government.

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Tips For Women Who Want To Get Involved in Tax Planning

In today’s economy, more and more women are coming out of the house, and starting a business, or a job. Not for anything else, but as a means to augment their husband’s income, or to start making a name for themselves as part of their need to find self-fulfillment.

You can visit any website designed for women, and see how many times financial management is being discussed but there is one website that specializes in women’s finances, and can provide the right insight, maturity and information about how women can manage their funds better.

If it is business tax planning that is involved, then the best start would be to have a financial goal. Your tax planning should be able to work hand in hand with this goal. Of course, you cannot mess around with taxes because the government does not tolerate any kind of error, whether done in ignorance or on purpose.

After you have established you financial goal, your next step would be to start your financial organization. Tax planning falls under this category. When planning your taxes, it is always the groundwork that is the most difficult. Once you have set the right foundation for paying taxes, the only problem you will have is making the payments on time.

After the first two years in business, you will be able to see a trend in your finances, such as peak times, and problem areas where you are spending too much money. You will also be able to plug the loose ends better as far as your taxes are concerned.

When planning your taxes, mid way through the year, check and see how your income relates to your expenses. It would be a good idea if your income is higher, but in the first year, don’t expect that to happen. Nevertheless, there should be a good indication if you do not include your major start-up expenses.

If you notice a trend that the income is starting to rise way above your expenses, you can plan to buy some more items needed for the business so that the costs will even out with the income, and you get to save on taxes.

Whatever your decision regarding your taxes, you will need to make sure that a certified accountant agrees with your decisions, because it could have a terrible backlash if you just make assumptions about tax issues.

If you cannot afford an in-house accountant, hire someone to come in once a week to go over your books. A certified accountant will be more expensive that one that has not yet passed the board, but considering that you are paying for expert information, the cost would be well worth it.

Tax planning is a good idea for all businesses, and without it, your business could go under because you did not adhere to the tax regulations properly. Keep in mind that when you start planning to tax season, you do it way ahead of the deadline. In fact, make sure you are updated every month so that you simplify your work come tax season.

Quote of the Day:
The best time to begin planning your financial future is right now. Early savings and investing, clear goal setting, and understanding how markets and your money work will make your financial picture a healthy one. Get the facts and get started. The best time to begin planning your financial future is right now. Early savings and investing, clear goal setting, and understanding how markets and your money work will make your financial picture a healthy one. Get the facts and get started.

Conclusion:
Plan to pay your taxes way ahead because rushing through this kind of work will never be a good idea, and mistakes easily happen with numbers.

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Understanding Delusions Of Grandeur

Do you know of anyone who thinks too highly of himself, and takes the stand that he is better than everyone else? We all know someone like this. However, this is not exactly what delusions of grandeur is.

Often a person who is diagnosed with this kind of disorder has a false sense of importance or power. Many times, you hear about politicians, actors, or other people in power having this, but then they already have power, right? So why are they being labeled as such?

Many people with power never seem to have enough of it, and it would appear that they need more, or at the very least, show to more people that they have it. A lot of the feelings attached to delusions of grandeur is because of the adulation these people get from unknown sources.

For example, a singer who gets thunderous applause most times, will expect that the minute she steps into a room, people will turn and look at her, or even approach her. Most often, this is exactly what happens, and this is the feeding of the ego.

As time passes, the singer could start getting delusions that she is better and more powerful than ever. As they say, “it goes to her head.” When this happens, the cycle continues and she has nowhere to go but down because not everyone will bow down to her, and she will get figuratively slapped by reality.

The problem gets serious when the belief of being powerful leads them down a path that will result in physical, mental, or emotional harm. It would be unfair to call them mentally challenged because treating this disorder, when it is still in its early stages, could mean a simple withdrawal from the elements feeding it.

It gets dangerous when the person turns to alcohol or illegal substances to escape from the pressure.

If you know a person who is on the verge of thinking he is more important than he really is, you should not automatically assume he has delusions of grandeur. This would be very uncalled for. What you can do is suggest he talk to an expert, even if just in a casual conversation, to help pull him back from the direction he is taking.

On the other hand, if illegal substances are causing him to think this way, then definitely a different approach is vital.

Many medical practitioners caution against directly approaching this person because it is a sensitive matter that could backfire. Delusions of grandeur, if not a serious case, will not require medication or confinement. He could be treated as an outpatient. In fact, many times, people in authority get “a taste of their own medicine” which will bring them back to earth with a great big shudder.

Quote of The Day:
Drug intoxication and drug addiction may also contribute to episodes of delusions of grandeur, especially when subject to the influence of pcp or speed. This is dangerous because users who are high may believe they have powers that will enable them to perform dangerous feats that any normal human being would not succeed in doing, like flying off tall buildings or stopping an oncoming train with one hand. Delusions of grandeur could actually result in serious injuries or even death. - www.wiseGEEK.com

Conclusion:
Delusions of grandeur can be mild cases, and in which case, you don’t really need to do anything. Life has a way of taking care of these things on its own.

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Control Expenses If You Want To Be Rich

If you are interested in being more financially independent, then you need to know how to plan your funds better. The first rule about financial planning is controlling your expenses because it does not matter whether you make $500 a week or $5000 if you cannot live within your means.

The heart of any financial planning idea is being able to control what funds you have. It is not about how much you are getting, but how much you are spending. So, if you are spending more than what you are earning, then you are in big trouble, or will soon be.

Take for instance the story about the man who made millions on the internet. He was swimming in dollars and was the envy of many of his peers. However, it all seemed to disappear because he spent a lot of the money on luxury items, vacations, and simply by giving money away. He spent more on himself and forgot about putting the money back into his business.

He was enjoying the fruits of his labor, and though there is nothing wrong with that, what went wrong was that he forgot to give attention to the very thing that brought him the income in the first place - work.

As we all, the internet is a thriving industry where you are only as good as your last post or software. People are constantly on your back to get to where you are. The battlefield is enormous, and so very competitive. Well, this man (name withheld because it happens to so many men anyway) soon got left behind. Today, he works on his website but has a long way to go before the big bucks start rolling in again.

This even happens before internet. You see it with people who have sudden cash on their hands, working people, businessmen, even housewives. Without control, things will go out of control and you stand to lose everything.

Keep in mind that the things you are buying are mostly temporary. If you buy gadgets, you will need to keep buying the latest, and that’s a huge investment for anyone. If you enjoy trips, you should try to schedule them apart, and only when you have extra funds.

The important part about financial planning is the word “plan.” This means you need to prepare for every expense, every income, and every projection. Avoid impulsive buying and even donations should be studied properly before giving out. Plan your money and if it will make it easier, put your extra funds in an investment. Only you know what your weaknesses are, and so if you can address these weaknesses, you will be able to manage your money better.

You will also need to set boundaries and goals. This will help you keep things realistic. Try to have short-term as well as long term goals, and be as specific as possible. Avoid making the “one day, I will own an island” kind of goal because that’s just wishing on a star. Of course, it may happen, but let’s stick to the kind of goal that says, “I will have $10,000 in my savings account in 8 months.”

Quote of the Day:
"Do not watch the ‘money porn' television channels. Nobody knows for sure how this is going to turn out, or what's going to happen next. Understand that many of the people who are telling you that the end is near are the same ones who in 2007 were telling us that good times would never end." - Kevin McKinley

Conclusion:
Even with the recession happening, there are opportunities to make money, and even more opportunities to spend money. There are so many good deals right now, but you need to set priorities otherwise you will end up spending more than you can afford to.

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Make Money With Proper Financial Planning

The rich always say that it is easy to make money, while the middle class and poor are constantly struggling with finding ways to pay for their bills. What happened here? Why is there such a big discrepancy in the way of thinking? Do you really need money to make money?

Making money does not need to be a case of having a huge investment or financial backer. Everything starts small. In fact, big businesses may appear to be big shots from the get go, but they too have equally large expenses to cover, and they usually do not make a profit right away - no one does.

If you are groping with ideas on how to make money, start easy. Think about what in your life you are not happy with - what service or product could you improve on. Then, if you find one that tweaks your interest, you have many choices.

One, you can work on the idea on your own and improve on the concept, then sell it once you have perfected almost all the quirks. Two, you can find a partner who is also interested in the concept and work on it together. Three, you can find an investor and get him to finance your idea. Four, sell the idea.

Making money is not easy, but then neither is it that hard to do. The key to making money is being able to dedicate time and effort in the project, and to never be afraid or proud to ask for advice. In the first place, you can ask, but you don’t have to use the advice if it is not what you would consider a good idea. The point is that there are always different angles in looking at a situation, and a proud person who is too cocky to ask for ideas and advice will never go anywhere far.

The second part of making money is controlling your expenses. If you do not put back money into your business, or you end up spending whatever income you have without setting aside any savings, then you will be living a daily existence kind of lifestyle. Now, that is a pretty stressful place to be in, and not very responsible.

Some people who earn money through a job, spend most of it soon after, then live a measly few days before the next paycheck. This is also a very immature thing to do. If your paycheck is not commensurate to your lifestyle, you have two choices: you can either look for a higher paying job, or angle for a promotion; or you can lower your monthly expenses so that it is not constantly under strain from a too low paycheck.

Obviously good paying jobs are hard to come by nowadays, so to augment your income, you should consider a second income through a part time job. On the ethical side, you should never start a apart time job that will compete with your current day job. Surely you have other interests, and this is what you should pursue because if you get caught competing with the interests of the company you work for, you will definitely lose your job.

Quote of the Day:
Start at the top of your 'thankful' list, and ask yourself if you'd give up anything on the thankful list to make something on your ‘worry' list go away. Chances are, the answer will be ‘no' and you will realize how fortunate you are." - Kevin McKinley

Conclusion:
Making money will help you be more financially stable if you know how to manage your money.

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