Skip to main content

Income Tax Returns Filling

Scurrying for papers yet again to file your income-tax returns? Here are lists the necessary steps to make the process hassle-free

NEVER ask a man his wage and a woman her age is an adage often quoted but not one that your taxman upholds. Yet again, it’s that time of the year when you are required to disclose the details of your income and file income-tax returns. To make this pocket-pinching process a non-taxing job, we list down six steps which you can follow to sail through.

DO YOU NEED TO PAY TAX?
This year, the income-tax department has made revisions with regard to tax slabs and exemptions. The income slabs for different categories have been revised this year, so verify if you need to pay tax at all. You are not required to file tax returns if you are a man whose earnings were less than Rs 1.1 lakh in 2007-08. On the other hand, in case of a woman, an income of less than Rs 1.45 lakh during the previous financial year is exempt from filing tax returns. Similarly, senior citizens whose income was below Rs 1.95 lakh in 2007-08 is also free from this obligation.

GET YOUR FACTS RIGHT
Once you’ve ascertained that you have to pay tax, you need to choose from the forms titled ITR 1 to ITR8. ITR 1, ITR 2 and ITR 4 are the forms most commonly used by an individual and an HUF.

ITR 1 - ITR 1 is the form that you must pick up if your income is from salary, pension or interest income.
  • ITR 2 - ITR 2 caters to individuals who have an income apart from salary (from property or capital gains) but not from a business or profession.
  • ITR 3 - An individual who is a partner in a partnership firm is supposed to fill up ITR 3.
  • ITR 4 - An individual who makes an income from his business or profession, including investments in the stock market, should fill ITR 4.
COMPILE YOUR DOCUMENTS
To fill your form with ease, you must get your documents together with necessary details. This includes documents such as:
  • Form 16 (which is given by the employer and includes details about yearly income) and
  • Form 16(A) with details of tax deducted at source on income other than the salary.

In addition, chartered accountants advise that you should have a copy of the returns filed the previous year, bank statements with details of accounts operated not only by you but also by your spouse (provided she does not have an income of her own) and children who are minors.

Besides, you need to have your savings statements and an interest statement that reflects how much was your interest income in the previous year. Remember, these documents are for your reference while filing tax returns and none of these documents needs to be attached with the form.

MAKE YOUR DISCLOSURES

You are also obliged to make disclosures in the following cases: If you have invested more than Rs 2 lakh in mutual funds, withdrawn over Rs 10 lakh in cash from your savings account or if you have purchased bonds worth more than Rs 5 lakh. You also need to furnish details of your immovable property if they exceed Rs 30 lakh, to disclose the acquisition of shares beyond Rs 1 lakh and an aggregate payment of Rs 2 lakh or more via a credit card.

BE AWARE OF DEDUCTIONS

To avail of the legal deductions, financial planners advise that you should acquaint yourself with the terms of section 80 of the Income-tax Act 1961. Tax breaks are available on both incomes and payments. For instance, you are eligible for a deduction for the premium paid towards your life insurance policy, or if you have contributed to funds such as the provident fund set up by the government, or for that matter, deployed funds in the pension scheme set up by the Central government or a superannuation fund. The deduction on medical insurance premium and on medical treatment are beneficial for the elderly. There is, however, an upper limit to the deductions possible.

FILING AND SUBMITTING THE FORM

For your own benefit, the form should be filled accurately, if possible without any overwriting. You should re-check details, particularly where you quote your Permanent Account Number (PAN) and Transaction Authentic Number (TAN). The forms can be filled and submitted on paper at the income-tax office or at specified post offices or digitally (it is, however, mandatory to have a digital signature) or as a combination of both, in which case there are more procedures for verification involved.

You should try to follow, as much as possible, the calculation methods which are described in the form itself. Also, remember to get an acknowledgement slip in every case. The final date for filing tax returns is July 31. If you don’t want to file the returns on your own, you can hire the services of a government-trained tax return preparer or a chartered accountant. If you delay filing your tax returns beyond July 31, an interest of 1% per month will be charged.

Popular posts from this blog

Mutual Fund Review: Religare Tax Plan

Tax Plan is one of the better performing schemes from Religare Asset Management. Existing investors can redeem their investment after three years. But given the scheme's performance, they can continue to stay invested   Given the mandated lock-in period of three years, tax saving schemes give the fund manager the leeway to invest in ideas that may take time to nurture. Religare Tax Plan's investment ideas revolve around 'High Growth', which the fund manager has aimed to achieve by digging out promising stories/businesses in the mid-cap segment. Within the space, consumer staples has been the centre of attention for the last couple of years and can be seen as one of the key reasons for the scheme's outperformance as compared to the broader market. It has, however, tweaked its focus and reduced exposure in midcaps as they were commanding a high premium. The strategy seems to have worked as it returned a 22% gain last year. Religare Tax Plan has outperformed BSE 100...

Mutual Fund Review: L&T MIP

        This fund won't deliver chart-topping returns. However, over the long run it will not disappoint and end up beating the category average The fund has seen numerous changes at the helm. When Katare took over in October 2007, he made dramatic alterations to the portfolio. On the equity side, he increased the number of stocks to 11 (November) from 2 (September). On the debt side, he added Certificates of Deposit (CDs), while earlier Treasury Bills (T-Bills) and cash accounted for 88 per cent (September 2007) of the portfolio. In November 2007 he exited T-Bills for good. The results impressed. In the last quarter of 2007, it delivered 12.83 per cent (category average: 6.12%). In 2008, the first quarter performance was nothing short of impressive, a return of 9.93 per cent (category average: -3.97%). While other players increased their portfolio maturity, Katare maintained a low maturity profile. While the average maturity of the category was 2.81 years that quarter, th...

JP Morgan ASEAN Offshore Fund

  JP Morgan ASEAN Offshore Fund - Invest Online JP Morgan ASEAN Offshore Equity Fund is an international equity mutual fund scheme that invests primarily in companies of countries which are part of the Association of South East Asian Nations (ASEAN). Most international funds , apart from those focused on the US market, have been struggling for sometime. This is because of the uncertainties in the global market. International funds are meant for investors who want to diversify their investments across geographies. If you haven't made your investment for this diversification, you should sell your investments in this scheme.   Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015 1. BNP Paribas Long Term Equity Fund 2. Axis Tax Saver Fund 3. IDFC Tax Advantage (ELSS) Fund 4. ICICI Prudential Long Term Equity Fund 5. Religare Tax Plan 6. Franklin India TaxShield 7. DSP BlackRock Tax Saver Fund 8. Birla Sun Life Tax Relief 96 9. Reliance Tax Saver (ELSS) Fund 10. HDFC TaxSaver...

ICICI Prudential Balanced Fund

 ICICI Prudential Balanced Fund scheme seeks to generate long-term capital appreciation and current income by investing in a portfolio that is investing in equities and related securities as well as fixed income and money market securities. The approximate allocation to equity would be in the range of 60-80 per cent with a minimum of 51 per cent, and the approximate debt allocation is 40-49 per cent, with a minimum of 20 per cent. An impressive show in the last couple of years has propelled this fund from a three-star to a four-star rating. The fund has traditionally featured a high equity allocation, hovering at well over 70 per cent, which is higher than the allocations of the peers. But in the last one year, the allocation has been moderated from 78-79 per cent levels to 66-67 per cent of the portfolio. ICICI Prudential Balanced Fund appears to practise some degree of tactical allocation based on market valuations. Within equities, well over two-thirds of the allocation is parked i...

Mutual Funds: Past Performance is not just everything

Many a times your agent / distributor / relationship manager tries to push you some mutual fund schemes by enticing you with a typical sales pitch…"Sir, this scheme has generated 20% returns in the past one year." And this sales pitch often gets louder when the market conditions have been favourable. Some of the agents / distributors / relationship managers have another unique way of luring you. They say, "Sir / madam this scheme has been awarded the best scheme award in the past by a leading business channel"... And hearing all these sales talks you investors very often get attracted and sign a cheque in favour of the respective scheme.   But please ask yourself do you hear these sales talks when the capital markets turn turbulent? Why is it so that your agent / distributor / relationship manager avoids talking to you during turbulent times of the capital markets and doesn't boast about returns generated by the respective funds or awards being conferred on t...
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