Thursday , 23 November 2017
Home » Taxation » 13 things to know before filing Income Tax returns

13 things to know before filing Income Tax returns

21,879 views

itr-filing-deadline

Last date for filing returns in 31-July. Here are some tips & important points you should take care while filing your income tax returns. 

(Link to all articles below open in New Window, so you can click directly without leaving this post)

1)      E filing of income tax return is mandatory if your total Income is Rs 5 lakhs or more, you need to file Income Tax return online / electronically. Digital signature is not required to file e-returns.  Read this post to see when efiling is mandatory

2)      Enter Email Id and Mobile number –  Now, you need to mention your email id and mobile number compulsory while filing IT return. Read more details on this

3)      Any Refund mandatory via ECS – So if you  are claiming any refund, you need to provide bank Account number for direct credit via ECS. Read more details on othr changes made in ITR forms

4)      Choose the right Income Tax form –   If you are salaried person and have no Income from Business & profession, then it is likely that you need to file return in ITR 1 or ITR 2. There are some conditions that who can file return in ITR 1 – Read this & check whether you need to file ITR 1 or ITR 2.

5)      Check Form 26AS (Tax Credit Statement)   Check your Form 26AS to verify the TDS deducted & deposited against your PAN. It includes TDS deducted by your employer, TDS deducted by bank on Interest etc. See more details on 26AS & how to access it

6)      Include Income from Bank FD Interest / Sweep in FD Interest – Many taxpayers make mistake of not including FD interest in their Returns as they think that TDS is already deducted so there is no need.  But this is not correct. You need to show the FD interest under Income from Other Sources and then claim the TDS amount under Schedule of TDS deducted. Read more on FD Interest

7)      Include Income from Saving Bank Account – Many taxpayers wrongly belief that saving bank Interest is not taxable.  Please note that Interest earned on Savings bank Account is Taxable and should be included under Income from Other Sources. However, you can claim deduction upto Rs 10000 under Section 80TTA in respect of Savings bank Interest. Read more on 80TTA

8)      Claim Tax Deductions –  Make sure you know about the deductions available for certain investment or expenditure and claim these while filing IT returns.  Section 80 C, 80D to 80U . Read more on 80C deductions

Read more on tax saving options – 80D to 80U

9)      Section 80EE – Additional deduction for Home Loan – Check if you are eligible to claim this deduction. Read more details on 80EE

10)   Section 87A –  Additional rebate of Rs 2000  –  Check if you are eligible to claim this rebate. Read more details on 87A

 11)   File return online for FREE –  You can file your Income tax returns online for FREE at Income tax department e-filing website –   https://incometaxindiaefiling.gov.in/

Read – How to file return on Income Tax efiling website

 12)   Send ITR V –   After filing return, you need to print the acknowledgment (ITR V) on A4 paper, sign and send it to Income Tax dept via SPEED POST in A4 envelope.  Address is mentioned in ITR V. You need to send within 120 days.

 13)   No Need to attach any document / evidences – You are not required to attach any documents / investment proofs etc along with the Income tax return. You just need to send ITR V. However, you should keep the supporting evidences / proofs with you as they can be requested by Assessing officer at the time of assessment, if any. 

 14) Donot forget Exempt Income :  Even if you ahve Income which is exempt from tax – for e.g. Dividends, long term capital gains from stocks and equity funds, PPF Interest, these exempt incomes must be mentioned in the tax return. If the total exempt income exceeds Rs 5,000, you will have to use ITR 2 to file your return.

15) Pay balance tax online : You can  pay anby tax payable online and enter the reference number in the IT return.       

https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp

If you have any queries related to filing Income tax returns or computation of Income, feel free to comment below.

If you have any queries related to this article or any other personal finance query ( Investment, Taxation etc), please comment below

http://wealth18.com/

About wealth18

The author is a Chartered Accountant and loves to write about Personal Finance, Wealth Management, Taxation etc. Disclaimer - The articles on this website is for informational and knowledge purposes and should not be treated as financial advice, Please consult your financial advisor before taking any investment decision.

38 comments

  1. Many Thaks Sir for sharing such an Important Information which would helpful to Assesses to avoid Ommissions and to filling the Income Tax Return within timeline errorless.

    Keep Writing.

  2. Hi,

    I have a query. I want to know whether this Exempted Income limit of Rs 5000 applies to exempted income under sec 10 (HRA & Conveyance Allowance).
    I have exempted income of greater than Rs 5000 under HRA and Conveyance allowance. Do I need to file ITR-2 or ITR-1 would suffice. Please reply

  3. Hiiiiiiii Vivek

    I had filed the ITR 1 via Quick e-file mode which is available on the incometaxindia.gov.in but over there the form didn’t ask about the name of employer (incase of salaried assessee) and the name of investment in which the assessee had claimed the deduction. So, is that okkk or shall i have to file the return via .xml file???

    Kindly do revert me back.

    Your cooperation shall be highly appreciated.

    • Hi Aditya,

      Under Tax Details tab, you need to provide etails regarding TDS deducted by Employer. if no TDS is deducted by Employer, then no details are requirerd.

      Also, there is is no need to given details of individual investment details / documents under 80C

  4. Hi Vivek,

    I gained a interest of around 11K on FD but bank already has deducted 10% TDS . Do i need to include that interest Under Income from other sources while filling ITR?

    If i include actual interest(Before Deduction of TDS by bank) in ITR form my total balance tax goes up by 2K though i fall into 10% category before or after including it.

    Could you please guide me whether i should include FD’s interest in ITR or not ?

    Thanks & Regards,
    Ashish

    • Hi ashish, you need to include the gross interest under “Income from other sources” in ITR.
      at the same time, you need to claim the TDS deducted by Bank, under TDS Section.

      If you are in 10% tax slab, then you will not be required to pay additional tax.

  5. Dear Sir,

    I had fixed nearly nine lakhs amount in syndicate bank in 2013 for one year. the bank has deducted rupees 15221/- as a tds on interest amount but the bank did not provide form 26AS. can i ask them to provide form 26AS. I did not file my income tax return as yet. can i file now with the support of form 26AS and how much can get as a rebate.

  6. Dear Sir,

    1. I have joint A/c in this first name is of my wife and second name is my , in this case can bank update my PAN details or wife PAN details.

  7. I am freelancer and got bank transfer from my client. Would I require Pan card details of payee before filing tax return & is bank account details also required ?

  8. Hi Vivek,

    Excuse my ignorance on this matter! Ignorance could be an under-estimated word here. I’m clueless! I have no idea what or how I’m supposed to go with this. I’m a salaried employee in a BPO in Bangalore. Every year my company brings in tax consultants to our work place to collect these documents. Here are some of the facts:

    1. Up until FY 2008-2009, everything was taken care of my father(we lost him in Aug 2009). Ever since I’ve been confused! I requested his office auditor to take care of it for a year more and sent across my investment proofs(for FY 08-09) by about Nov 2009. I got a refund check by India mail.

    2. Post that, I could not go back to them. I used my office consultants(they come in and collect the docs every year for 3 days in the first week of Jan). I submitted one or two years with them. I hurriedly paid off all my dues on my investments by week 1 Jan(I recall since I had to pay of my PPF and LIC annual amounts too) and submitted with them. I don’t exactly know which years these were. I may have the acknowledgements in my house some place safe(so safe that I may not find them now!). Sorry… Anyways…

    3. When I login to the Income Tax official site online, I find 2008-2009 and 2011-2012 under the e-filed returns/forms section.

    4. Where did the rest go?! What happened to the forms and proofs that I submitted to these guys at work?

    5. How do I take care of these past years and what do I need to do here on?

    If you could please take me through these, I would really appreciate your help! Also, I have no idea on what it means to approach a tax consultant privately near my home. I mean, if they would guide me well etc. 🙁

    Thanks,
    Vani.

    • Hi Vani,

      It seems that for those years, return were filed manually & not online.

      Normally, when you use office consultants, they give you receipt at the time of submitting the IT returns ( I am taking about Income tax form & not investment proofs). After that when they file return, they give you stamped acknowledgement.

      It may be possible that you have just submitted investment proofs to your employer and not filed Income tax return.

  9. Pls tell me if my wife is earning 22-25,000 Rs per month through tution and handicraft work at home.She is investing in RD,FD and MF .Pls let me know whether she needs to file IT return.

  10. sir,
    i have a query that my mother is getting special pension from government after my father’s death. she has filled ITR for last two years. last year in September my brother got job on compassionate ground and my mother has returned half of her income with 12 percent interest to government. so as she has returned half amount that took her out of the taxable income for previous years too but she had paid tax. sir please help us in this regard can we get back our amount which we have deposited as tax amount.
    thank you.

    • Hi Sourav,
      I am not sure if there is any rule to claim deducted of such amount. If the assessment is not complete, you can submit the revised return for AY 2014-2015 showing actual income only.

  11. My TDS is already deducted by my employer correctly in form 26AS. so i want to know that , it is compulsory for me to enter TDS deduction details at the time of e-filling income tax through Excel utility. and if i fill 26 AS details son it decrease my Tax payable amount . so please help me in this matter.

  12. Hi,

    1. I am out of country since April 2014 and not a salaried employee in India.
    2. I have a FD of 1 Lakh
    3. Also, income from Renting my property around 3 Lakhs
    4. In the month of May 2014, I got 3 Lakhs against my PF settlement which is reflected in the Form26AS

    Kindly advice, How should I file the tax for year 2015? Which form I should use ITV-1 or ITV-2 or any other option.

    Thanks in advance.

  13. Hi, My salary is 10000 rs per month , 80000 aprox is agriculture income , FD ac int.income annually is 120000 and total anual income including all is 300000 rs . Which ITR form should I use? Can I give 15G in bank to save TDS? Plz rply..

    • Hi Sunil,

      You can submit Form 15G, as your tax liability will be NIL.
      As agricultural income exceeds Rs.5,000, then form ITR 2 applies, which has a separate column for disclosure of agricultural income.

      Step 1: Your total income of Rs.320000 comprises net agricultural income of Rs.80000 and salary income of Rs 120000 + 120000. Accordingly, basic tax on the aggregate income of Rs.320000 shall amount to Rs. 7000

      Step 2: Add the applicable basic tax slab benefit, i.e., Rs.2.5 lakh to the net agricultural income. Accordingly, in this case, the total income shall be Rs.3.3 lakh (i.e. Rs.2.5 lakh plus Rs.80000). So, the tax amount would work out to Rs.8000

      Step 3: Subtract the tax computed at step 2 from the tax computed at step 1 (Rs.7000 – 8000), i.e.,- 1000. Accordingly, the net basic tax would be NIL.

  14. Hello Sir,

    First of all may i on behalf of everyone here convey our deepest gratitude to u for taking time off your obviously busy schedule to answer our queries that too for free. God bless u most abundantly for this service that is helping so many of us and we pray for your prosperity.

    Now for my query. My mother in law is 85 years old. She has almost 40 lakhs in various banks in FDs and submits her 15G forms each year without fail to these banks but does not file returns. This morning we were shocked to receive a letter from the IT dept with subject : Non filing of IT return and asking us to respond to the letter in 10 days before action is taken. They say they hv recd info on financial transactions/activities relating to her. A list of this info is as follows :
    1. TDS return – interest other than securities (Sec 194A) For 2009-10
    2. Time deposit exceeding Rs.2lakhs wuth a banking company for 2010-11
    3. Same details as point.1 but for 2010-11)
    4. Same details as in point. 1 (but for 2011-12)
    They hv asked her to reply electronically in 10 days by clicking in the compliance link after logging on.
    Pls.. adv Vivek.
    Much appreciated.

  15. suppose we cut the tds on bank fd and not fill the itr.is that problem or not

  16. I AM AN NRI SINCE LAST 30 YEARS. I DO HAVE MUTUAL FUNDS AND SHARES WHICH HAVE BEEN PURCHASED FROM MY NRI ACCOUNT. THE DIVIDEND IS ABOVE RS 2 LACS ANNUALLY . I DO NOT HAVE ANY CAPITAL GAINS. ALL MY DIVIDENDS GO TO MY NRI ACCOUNT. I DO HAVE DEPOSITS IN FCNR AND NRE ACCOUNT.
    I DO NOT HAVE A NRO ACCOUNT OR ANY LOCAL ACCOUNT.
    DO I HAVE TO FILE A RETURN.
    I DO NOT HAVE ANY OTHER INCOME IN INDIA.
    PLS ADVISE WHETHER I MUST FILE A RETURN OR NOT.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

6000 + Subscribers – Subscribe to our New Posts

Copy Protected by Chetan's WP-Copyprotect.