When you sell or transfer any asset you own (house, land, shares, mutual fund units, gold, debentures, bonds) and you make a profit on the sale, it is known as capital gain. The tax you pay on this profit is called the capital gains tax. If you make a loss (you sell at a lower price than you bought it), you incur a capital loss.

TYPES OF CAPITAL GAIN: Depending on how long you held the asset, the capital gain is classified either as short-term or long-term.

Short-term capital gain: If you sell the asset within 36 months from the date of purchase (12 months for shares or mutual funds)

Long-term capital gain: If you sell the asset after 36 months from the date of purchase (12 months for shares or mutual funds)

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When I filed my tax returns for first time in 2006, the consultant (agent/broker) charged me around Rs.100. Last year I paid Rs.200 for the same. This year I heard that they will not provide the service if we are not ready to pay Rs.300. For me, paying the actual tax itself is a burden. Just to show the proof of my payment, again I am being asked to pay the agent. I was kind of frustrated with that news. You might ask why cann't you go and do it directly myself, to do that I would have to waste at least one day of mine... You know about these govt. offices, don't you?  I was thinking about this and then someone told me about the online filing process.

Income Tax Department has provided online option for filing returns. Unlike other Govt. websites, wwww.incometaxindia.gov.in is provides us good information and we could really use this site with out much difficulty. Get started by clicking here. Coming to the process of filing, you need to select the type (like HUF, Individual, etc.), download a small application. You can now use that application offline to generate an XML file. This file needs to be uploaded after logging in to the site with your user id (which is your PAN number). You will get an acknowledgement instantly. If your returns are degitally signed (most MNCs do have it like TCS, CTS, etc.), that's it! You have successfully filed your returns. In case your returns are not digitally signed you need to do one more step. You need to fill the acknowledgement/verification form and submit it to local IT officer.

If you need to pay any extra amount in the form of tax, you can do that online too. IT Dept tied up with almost all major banks to accept e-Payments. To know more about the e-Payments, visit income tax department website.

It is a good step by Govt., but the process needs to be simplified further. Meanwhile, if you are looking for help online, there are portals like  TaxSmile and MyITReturn providing services for nominal fee.

By,
Meghana