April Fool’s Day had just passed and now we are back to a no kidding matter – Income Tax!
The last day to file for Income Tax is 15th April 2013 if you are filing by paper. If you are doing e-filing, it will be 18th April 2013.
Do note that you still need to file your reliefs or rebates even if your employer had done the filing for you under the ‘Auto-inlcusion Scheme”. Else, it will be assumed that you have none of those.
One common relief that’s often missed by many is the “Life Insurance Relief”. A male tax paper can claim this relief for himself or his legal spouse but a female tax payer can claim only for herself.
If your CPF Contribution is less than $5,000 and had paid the insurance premium either on yourself or the wife’s life, you can claim the lower of
1) the difference between $5,000 & your CPF Contribution.
For. e.g. Mr. Tan had contributed $2,000 for his CPF. He purchased a life insurance policy for himself and his wife with a annual premium of $3,000 each. Although the total premiums paid are $6,000, he can only claim another $3,000 under this relief.
2) Up to 7% of the insured value of your own/wife life or the amount of insurance premium paid, whichever is lower.
This occurs more commonly for single premium policy.
For tax payers who wish to lower your tax payable, one option you can consider SRS(Supplementary Retirement Scheme). PM me if you need further info.