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

Understanding Your Cibil Credit Information Report

   WE ARE all familiar with the anxiety and uncertainty that we feel when applying for a loan. After all, it's the lender who decides whether we can own our dream home, our first car, or whether our children can pursue higher education. In a nutshell, a better life depends on the lender's decisions.    While other factors do play a part in the lender's decision, the Cibil Credit Information Report ( CIR ) plays a crucial role in a lender's decision to approve a loan application.    Previously, lenders would treat all loan seekers equally. Each applicant, if approved by the lender's internal credit policy, would be charged at the same interest rate for a particular loan size and purpose. The lenders would charge a higher interest rate to all the borrowers, in order to compensate for the possible default of a small portion of the loan disbursed. In other words, it's like a professor (the lender) punishing an entire class (borrowers) for the mischief played b...

Reliance Health Total

  Reliance Life Insurance has launched Reliance Health Total, a non-linked, non-participating and non-variable health insurance plan . It provides a fixed benefit cover for hospitalisation, critical illnesses and surgeries. The customer can also make a claim for over-the-counter health-related expenses. This is a regular-pay, five-year plan that can be renewed till the age of 99. The plan comes with two options: customers can choose a higher medical reimbursement benefit or a higher sum insured. Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015 1. ICICI Prudential Tax Plan 2. Reliance Tax Saver (ELSS) Fund 3. HDFC TaxSaver 4. DSP BlackRock Tax Saver Fund 5. Religare Tax Plan 6. Franklin India TaxShield 7. Canara Robeco Equity Tax Saver 8. IDFC Tax Advantage (ELSS) Fund 9. Axis Tax Saver Fund 10. BNP Paribas Long Term Equity Fund You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds Invest in Tax Saver Mutual Funds Online - I...

Some tips for individual investors for investment planning

These days, the stock markets are quite volatile in nature with a bearish bias. Rallies do not last long in the markets and peaks of market rallies are reducing. The markets are hitting fresh lows in every fall. Many blue chip stocks are trading 50 percent lower than their high levels. Many stocks are currently trading at their year's low prices or all-time low prices. Many investors have lost their hard-earned money and many others are stuck with stocks that have corrected heavily in the last few weeks. Here are some tips for investors already invested in the stock markets: 1) Hold fundamentally strong options The domestic macroeconomic fundamentals are strong. The GDP growth rate is expected to slow down slightly from the nine percent last year to around 7 - 7.5 percent this year. This is still quite good and encouraging in comparison to other developed countries. The current market crash can be attributed largely to foreign institutional investors' ( FIIs ) outflows but...

Good Loan

Why Is It A Good Loan?: Loans against gold are cheaper and better than personal loans as the former are available at lower interest rates. In contrast, the interest rates on personal loans are not standardised and can vary from bank to bank. Also, a personal loan depends on a host of factors including, the borrower's salary, profession and the purpose for which the loan is being taken.      For instance, the interest rate on a personal loan of 5 lakh falls in a wide range of 15-30%. But loans against gold are available for as low as 11%. Secured borrowing such as a loan against gold, investments or property is cheaper because it is backed by some assets, which command a good value at any point of time. If the borrower defaults on the loan, the banks can liquidate the assets to settle the loan account.    Being a secured loan, the risk of default and credit losses is significantly lower in this loan compared to other forms of loan for personal use. Given the lower risk, gold loa...

Save Tax With Mutual Funds

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       Mutual funds are ideal as long term investment avenues for retail investors. To encourage investments in this avenue, the Government of India offers investors a spate of tax benefits thus ensuring maximum benefit from mutual funds held beyond a year. Sample some of the key benefits and refer to the table for a detailed list of tax rates for different types of schemes ·        Avail deductions under Sec 80C of the Income Tax Act by investing up to a maximum of Rs. 1 lakh in designated Equity Linked Savings Schemes (ELSS). Such investments have a compulsory lock in period of 3 years. ·        First time retail investors in equity with a gross total income of up to Rs. 12 lakh can invest up to Rs. 50,000 in specific MF schemes un...
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