Skip to main content

Checklists for filing Income Tax Returns

 

 

Filing income-tax return is a yearly ritual followed by all taxpayers. While filing the return, necessary precautions are to be taken to avoid confusion and litigation at a later date. Here are some key points to be taken into consideration for a hassle-free filing of tax return.

Selection of form

There are eight return forms prescribed for filing the income-tax return. Every taxpayer must choose the correct return form appropriate to the source of income in his total income chargeable to tax. For example, a partner with no other business income must adopt form ITR-3 so that the purpose is served in addition to convenience in filing of return.

Availability of details

The taxpayer must keep all the details required for filing the return with him before resorting to actual filing work. Though the tax returns are annexure-less, keeping all the details in hand and filling-in the tax return form meticulously could make return filing a simple single stroke work.

By registering with www.incometaxindiaefiling.gov.in, taxpayers may also know the amount of tax deducted at source or collected at source standing to their credit and accordingly adjust the tax liability or make a claim for refund.

A tax credit omitted to be claimed in the original return cannot be claimed subsequently as the law does not permit revised return for enhanced refund claim. However, offering additional incomes and filing of revised return thereto is permissible.

Quantum and eligibility for deduction under Sections 80C, 80D, 80DD, 80DDB, 80E, 80G, 80GGC and 80U in the light of any recent changes may also be kept in mind for utilising the correct deduction. A wrong claim might result in slapping of penalty and a non-claim could be set right only by filing revised return later.

Filing the return on or before the 'due date' would mean no interest under Section 234A of the Act. Even if the assessment is made subsequently with upward revision of income, the levy of interest under Section 234A would not be possible if the return is filed on or before the due date.

E-based return

Recent experiences in return filing has shown that e-filing of tax returns has been efficient, effective and trouble-free for taxpayers.

Though intimation in respect of those returns have been trickling in only over the last few weeks, the experience shows that e-filing is worth the waiting time for getting response in the form of intimation under Section 143(1) of the Act. A first hand experience of obtaining refund for e-returns might also motivate many more taxpayers to opt for e-filing of returns.

AIR data

For filing the tax return, relevant and accurate data is to be keyed in. The taxpayers must also remember that high value transactions are liable for disclosure by various authorities under 'Annual Information Report' (AIR).

It is necessary to fill in the relevant columns of the tax return correctly. In the event of mismatch between the return filed and AIR, the case might be selected for scrutiny under computer aided scrutiny system adopted by the tax department.

Scope for revision

July 31 is the 'due date' for filing returns by all taxpayers except those whose accounts are liable for audit under the income-tax law or any other law. Filing return before the 'due date' entitles the taxpayer to file a revised return in the event of any error or omission therein. Whereas a return filed beyond the 'due date' is not eligible for such revision.

Carry forward of losses

A return filed on or before the due date, also enables the taxpayer to carry forward losses viz. business loss, loss under the head 'capital gains', speculation business loss and loss under the head 'other sources' which could be set off against income of the subsequent year. This disqualification of carry forward however will not apply to unabsorbed depreciation.

Tax incentive

In the recent times, whenever a tax incentive is given by way of exemption or deduction, it is mandated that the tax return is filed before the 'due date'.

 

At present, such provisions are applicable for undertakings in free trade zone (eligible for deduction under Section 10A) and 100 per cent EOUs (eligible under Section 10B).

Popular posts from this blog

National Savings Certificate

National Savings Certificate Here's everything you need to know about the 5-year savings scheme offered by the Government This is a 5-year small savings scheme of the government. From 1 July 2016, a National Savings Certificate (NSC) can be held in the electronic mode too. Physical pre-printed NSC certificates have been discontinued and replaced with Public Provident Fund-like passbooks. What's on offer The minimum amount you can invest in them is Rs100 and there is no upper limit. Under this scheme, all deposits up to Rs1.5 lakh qualify for deduction under section 80C of the Income-tax Act, 1961. The interest earned is taxable. You can invest in multiples of Rs 100. These certificates can be owned individually, jointly and also on behalf of minors. The interest rates for all small savings schemes are released on a quarterly basis. The effective rate for NSC from 1 October to 31 December is 8%. The interest is calculated on an annual compounding basis and is given along w...

Am you Required to E-file Tax Return?

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   Am I Required to 'E-file' My Return? Yes, under the law you are required to e-file your return if your income for the year is Rs. 500,000 or more. Even if you are not required to e-file your return, it is advisable to do so for the following benefits: i) E-filing is environment friendly. ii) E-filing ensures certain validations before the return is filed. Therefore, e-returns are more accurate than the paper returns. iii) E-returns are processed faster than the paper returns. iv) E-filing can be done from the comfort of home/office and you do not have to stand in queue to e-file. v) E-returns can be accessed anytime from the tax department's e-filing portal. For further information contact Prajna Capit...

Mutual Fund Review: HDFC Index Sensex Plus

  In terms of size, HDFC Index Sensex Plus may be one of the smallest offerings from the HDFC stable. But that has not dampened its show, which has beaten the Sensex by a mile in overall returns   HDFC Index Sensex Plus is a passively managed diversified equity scheme with Sensex as its benchmark index. The fund also invests a small proportion of its equity portfolio in non-Sensex scrips. The scheme cannot boast of an impressive size and is one of the smallest in the HDFC basket with assets under management (AUM) of less than 60 crore. PERFORMANCE: Being passively managed and portfolio aligned to that of the benchmark, the performance of the index fund is expected to follow that of the benchmark and in this respect, it has not disappointed investors. Since its launch in July 2002, the fund has outperformed Sensex in overall returns by good margins.    While every 1,000 invested in HDFC Index Sensex Plus in July 2002 is worth 6,130 now, a similar amount invested in Sensex then wo...

Different types of Mutual Funds

You may not be comfortable investing in the stock market. It might not seem like your cup of tea. But you can start by investing in Mutual Funds. Many first-time investors invest in Mutual Funds. This is because they do not know how to invest in individual securities. Basic information on Mutual Funds People invest their money in stocks, bonds, and other securities through Mutual Funds. Each Fund has different schemes with specific objectives. Professional Fund Managers look after these schemes. Your Fund Manager could help you invest in a scheme that suits your financial goal. Functioning of Mutual Funds You could make money through Mutual Funds in different ways. A single Mutual Fund could hold many different stocks, bonds, and debentures. This minimizes the risk by spreading out your investment. You could earn dividends from stocks and interest from bonds. You could also earn capital by selling securities when their price increases. Usually, you could choose to sell your share any t...

IDFC - Long term infrastructure bonds - Tranche 2

IDFC - Long term infrastructure bonds What are infrastructure bonds? In 2010, the government introduced a new section 80CCF under the Income Tax Act, 1961 (" Income Tax Act ") to provide for income tax deductions for subscription to long-term infrastructure bonds and pursuant to that the Central Board of Direct Taxes passed Notification No. 48/2010/F.No.149/84/2010-SO(TPL) dated July 9, 2010. These long term infrastructure bonds offer an additional window of tax deduction of investments up to Rs. 20,000 for the financial year 2010-11. This deduction is over and above the Rs 1 lakh deduction available under sections 80C, 80CCC and 80CCD read with section 80CCE of the Income Tax Act. Infrastructure bonds help in intermediating the retail investor's savings into infrastructure sector directly. Long term infrastructure Bonds by IDFC IDFC issued an earlier tranche of these long term infrastructure bonds on November 12, 2010. This is the second public issue of long-te...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now