Are You Paying Your Income Tax?

Income tax benefits and income tax expenses are retained by the grantor, thus he pays income taxes on the income of the trust. Income taxation system bears progressive character. In order to help pay for its war effort in the American civil war, the United States government issued its first personal income tax, on August 5, 1861 as part of the revenue act of 1861 (3% of all incomes over US $800; rescinded in 1872)…

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Filing Your Income Taxes – How To Identify The Right Time:

A number of individual usually start attending to their income taxes immediately after they get a hold of their W-2’s from their employers. Yet, for some people, they are fond of waiting until the deadline before doing do. For most of the states the deadline occurs in April 15.

Several times when individuals postpone doing their income taxes; it usually means that these individuals will either end up breaking even or pay back to their state. For this reason, they will not have any refund of any sort since they did not pay the right amount of tax to which they are grossed for that particular income for the year. For those individuals who paid their income taxes immediately, they will acquire income taxes in the end. Quite often, a family’s income tax returns will relatively be high if they do not gross quite a lot of money.

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Reducing Incomes Taxes

Each and every person is looking out for ways which may reduce the amount of tax that has to be paid to the government. The following article contains few ways which will lessen the amount of income tax
anytime in the present and future. It is mandatory that every family sort to different ways which may reduce their tax bills.

Funding the retirement-It is a known fact that saving money is a good retirement option, but it is great news that these retirement funds can help in reducing your taxes. By saving money for retirement you can reduce the adjusted gross income, which in term means that you are reducing the value of your income that is taxable…

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Income Tax Refund-Till 31st March 2010

If more tax has been deducted from your income, then you are entitled to get a refund cheque from the income tax department.
Time to get such refund is unpredictable, so it is suggested not to overpay and to do your calculations wisely. The interest paid by the income tax department on your refund is very low, so it is better to invest the money in higher return investment than waiting for refund…

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5 Good Reasons to File an Income Tax Extension

With not much time remaining until the April 15 IRS income tax deadline, many Americans are scrambling to finalize their income tax returns.
This year, a growing percentage of taxpayers will choose to file an IRS income tax extension, which will postpone their tax deadline to October 15…

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Maximum Deduction of Income Tax From Life Insurance Plan:

Maximum Deduction of Income Tax From Life

Insurance Plan:

Applicable if ·All Life Insurance Plans gives you the tax benefit Conditions ·You should have Life Insurance Policy Max Deductions ·Complete amount invested in Life Insurance Policy is tax Free. ·Payout from life insurance policy is tax free. Limitations ·  Go for plan which is suitable to your life and your financial planning. ·  You need not buy every year new policy. ·  If you think that you have already invested enough in life insurance plan  but want to invest again then you should go for ULIP plans.

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Important dates for income tax return

14th January:
Submission of tax deduction against interest, dividend or any other amount paid to non-resident during 1st, October – 31st, December. Form No: 27

15th March:
In case of other than company – Payment of 3rd installment of advance for the financial year In case of a company – Payment of 4th installment of advance for the financial year

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Deadline Approaching for 2006 Refunds

Deadline Approaching for 2006 Refunds:

Individuals have until April 15, 2010, to file an original or amended tax return for 2006 and receive a refund from that year. The IRS says it has about $1.3 billion in reserve for people who still need to file their 2006 returns.
Additionally, taxpayers had a special one-time-only tax credit available to them in 2006. It was called the telephone excise tax refund. Basically this is a tax credit available to anyone who had telephone service,…

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Income Tax Return (e-filing)

E-filing is essentially another mode of filing your income tax return
In addition to the popular mode of printing and submitting your return at the income tax counters. It is a two step process:

a. Prepare your return using tax preparation software
: Enter your income tax data, such as, PAN, income, deductions, and TDS. Review your data for completeness and accuracy; and, generate your electronic return in XML format….

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Financial planning tips for IT

Financial planning tips for IT contractors:

With a new tax year to take advantage of, there has never been a better time to spring clean your finances.

With many household budgets now tighter and low interest rates making a dent in the return from savings, what can you do to ease current pressures and make the most of your contract income?

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