The Tax Preparation Blog

Posts Tagged ‘income tax return’

Question: How married people with interest from joint fixed deposit account file tax return?

We are NRIs and we have joint fixed deposit accounts in India. Which form we should use to file tax return. Is it possible to file jointly. If it is filed individually it will be considered as whose income.
Tax is for the interest income.

Answer: The Interest Income on bank FDs is treated as ‘Income from Other Sources’.

This is one of the 5 Income Heads. You have to file an ITR only if your total income, from all the 5 Income Heads, during the previous year exceeded the maximum amount which is not chargeable to income-tax.

If your Interest Income on bank FDs was your sole source of Income during the previous year and exceeded Rs 1,50,000/- , then you have to file an ITR.

The Interest Income on bank FDs is earned by the 1st named holder, when they are held jointly and hence that person is liable for paying tax.

Brown to curb migrant intake

British Prime Minister Gordon Brown adoptins what he describes as the “tough Australian immigration points system” as a key part of Labour’s poll manifesto.

Budget and its impact on your life

Question: Is the amount taken out of my paycheck for FICA considered federal taxes?

I’m trying to guesstimate how much my federal income tax return might be. When using a tax estimator, it asks for the federal income tax amount withheld. Is FICA included in that?

Answer: FICA is a combination of the social security tax and medicare tax and totals about 7.65% of your gross pay.

FICA has absolutely nothing to do with your federal income tax rate. Your federal income tax rate is dependent on which tax bracket you fall into.

The following tax calculator may help.

Tax and Finance Apps for Cell Phone

Every year there is a new and easier way to prepare for tax season. Now most people file their taxes online and keep track of their finances on a computer, but there are some cell phone applications that may make keeping track of your income and expenses a little easier.

Income Tax Return