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

How much to invest in gold ?

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India) Let your motivation dictate the share of the yellow metal in your portfolio Enough has been said and written about gold as an investment option. The latest argument is that the craze for gold among Indian households is endangering our country's balance of payments. The policymakers are busy trying to find ways of discouraging investment in gold, but if households keep the common good in mind, they would be paying the market price for gas cylinders as they do for, say, their mobile phone bills. After all, private decisions are driven by private motives. So, how should a household look at gold from its own perspective? Gold is primarily acquired for its merit as a store of value. Even if the worst crisis hits a family, the gold that it holds could be put to use anywhere in th...

Mirae Asset Ultra Short Term Bond Fund and Mirae Asset Tax Saver Fund

Mirae Asset Mutual Fund   has renamed   Mirae Asset Ultra Short Term Bond Fund , an open ended debt scheme, to   Mirae Asset Tax Saver Fund   with effect from October 18, 2016. Also, Mr. Sumit Agrawal, the co-fund manager of Mirae Asset India Opportunities Fund (MAIOF) and Mirae Asset Great Consumer Fund (MAGCF) ceases to be the fund manager with effect from October 1, 2016. Consequently, MAIOF shall now be solely managed by Mr . Neelesh Surana while MAGCF shall continue to be co-managed by Mr. Neelesh Surana and Ms. Bharti Sawant. ------------------------------ ----------------- Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds Top 10 Tax Saver Mutual Funds to invest in India for 2016 Best 10 ELSS Mutual Funds in India for 2016 1. BNP Paribas Long Term Equity Fund 2. Axis Tax Saver Fund 3. Religare Tax Plan 4. DSP BlackRock Tax Saver Fund 5. Franklin India TaxShield 6. ICICI Prudential Long Term Equity Fund 7. ID...

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...

Car Insurance – Basics

If you have a car, chances are you have car insurance for it. But how much do you understand about what kind of policy you have and what policy is best for you, given the risks that you want to protect against? Here we share with you basics that you must know if you want to make smart decisions about your car insurance policy. Why do you need car insurance? You need car insurance because its mandatory — its the law. For any vehicle to drive on Indian roads, it must have a valid insurance policy, that at a minimum covers the cost of damage that you might cause to other people or vehicles. Rather than have to pay from your own pocket, if you have a valid car insurance policy, the insurer will assume the liability, as long as the damage is covered under the terms of the insurance contract and there is no case of fraud. Situations where a car insurance policy can cover costs are damages arising from an accident, theft, fire and any natural calamities like flood, earthquake, or cyclone. ...
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