Wednesday, November 27News That Matters

13 things to know before filing Income Tax returns

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. 

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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.

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