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File Income Tax Returns in time

 

IT IS again that time of the year when individuals need to file their tax returns. Fortunately, the tax authorities have simplified the tax return process over the past few years, especially by eliminating the filing requirement of annexures along with the return, facilitating online filing and introducing simplified forms for salaried taxpayers. Therefore, all one now need is some proper planning before preparing and filing the tax returns.

Requirement for filing the tax return: An individual, whose total income before allowing certain specified deductions under the Income-tax Act, 1961 (the Act), exceeds the maximum amount, which is not chargeable to income tax, is required to file the tax return on or before the due date in the prescribed form. Different dates have been specified under the act in order to file a tax re turn for different sets of taxpayers. In the case of salaried individuals, the tax return is to be filed by July 31 following the end of the relevant financial year. Therefore, for salaried individuals whose taxable in come exceeds Rs 1.6 lakh for men, Rs 1.9 lakh for women and Rs 2.4 lakh for senior citizens (more than 65 years) for the FY11, the due date of filing the tax re turn is July 31.

Filing of the tax return in a timely manner is also important to claim any re fund of tax due from the tax authorities and to carry forward any loss that the individual wants to set off against his future income.

Compiling various documents: To determine the taxable income and calculate the tax payable there on, one should start com piling the relevant documents, such as: Form 16: Certificate is sued by the employer to an employee detailing the taxable salary and tax deducted thereon.

Form16A: Certificate issued by banks, other deductors providing a summary of interest, rent, commission and professional fees paid and the tax deducted on such payments.

Bank statements: To calculate the interest that has been paid by the bank on the savings bank account and fixed deposits which is chargeable to tax.

Other income details: Documents in relation to income under any other head such as income from house property, short-term or long-term capital gain and income from other sources. The details of dividend income, which are tax exempt in the hands of the individual, are also required to be disclosed in the tax return.

Advance tax paid: Acknowledgement of advance tax paid during the year for computing the balance tax liability.

Proof of investment in specified saving schemes/ expenses: Copies of proof of investment in PPF , NSC, payment of life insurance premium and medical premium, details of expenses like payment of tuition fee for children to school are required for computing the deduction, in case not already submitted to the employer.

Copies of donation receipts: Copies of donation receipts would be required to compute the deduction in case of donations made to specify charitable and other institutions.

It is pertinent to note that once you compute your taxable income and the tax, thereon, you need to discharge the balance tax liability that has not been paid during the financial year, along with applicable interest before finally filing your tax return.

In order to avoid the last minute rush, it is prudent that taxpayers make a list of `to dos' required to be completed and obtain the relevant documents before actually commencing the return filing process.  

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Also, know how to buy mutual funds online:

 

1) DSP BlackRock Mutual Funds:

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2) Reliance Mutual Funds:

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3) Reliance Mutual Funds:

http://prajnacapital.blogspot.com/2011/07/buying-hdfc-mutual-funds-online.html

 

4) Sundaram Mutual Funds:

http://prajnacapital.blogspot.com/2011/07/buying-sundaram-mutual-funds-online.html

 

5) Birla Sunlife Mutual Funds:

http://prajnacapital.blogspot.com/2011/06/buying-birla-sunlife-mutual-funds.html

 

6) UTI Mutual Funds:

http://prajnacapital.blogspot.com/2011/06/buying-uti-mutual-funds-online.html

  

7) SBI Mutual Funds:

http://prajnacapital.blogspot.com/2011/06/buying-sbi-mutual-funds-online.html

 

8) Edelweiss Mutual Funds:

http://prajnacapital.blogspot.com/2011/06/buying-edelweiss-mutual-funds-online.html

 

9) IDFC Mutual Funds:

http://prajnacapital.blogspot.com/2011/06/buying-idfc-mutual-funds-online.html

 

 

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