July 31st is the last date in every year for filing one’s income tax returns for both resident and non-resident salary receiving individuals and also for people who are partners in firms with turnovers of less than an amount of Rs.1 Crore. Thus this is indeed a taxing process, and you can learn more about it as you keep reading on!
One must first determine whether he needs to file returns as the government has provided an exemption for those people whose total salary falls under Rs.5 lakhs under the condition that the same people do earn more than Rs.10000 as an interest amount from saving deposits and also fulfill other criteria as laid down by the authorities.
Choose the right form for filing of returns:
There are different forms of filing income tax returns online as per the various types of assesses.
– ITR1 form: for people who derive income from salary or pension or from one house property.
– ITR2 form: for people whose income comes from other sources besides those mentioned in ITR1 which do not include any profits or gains from the profession.
– ITR3 form: for people who are partners in firms and taxes can be charged on their income under the gains and head profits but does not include bonuses, salary, commissions, or any interests.
– ITR4 form: for an individual who carries out business with a proprietorship concern.
– ITR4S form: for those assesses who take advantage of the Presumptive Taxation Scheme.
Quote the right PAN Number and check Tax Credit Statement:
Be careful when you are entering your PAN Number as normal to make mistakes given the complexity of the number. You can also confirm you PAN Number online at the website of income taxes.
The income tax department issues a statement of TDS to all assesses called Form 26AS and is available online. The form includes details of TDS: Tax Deducted at Source TCS: Tax collected at source, Advance taxes or regular assessment tax, self-assessment tax, and details of refunds if any issued.
You can also learn how to rectify income tax return online in case of any mistakes. You will be provided with steps to file revised income tax returns online at the website.
Check bank details and disclose any other sources of salary:
The new system allows refunds of up to Rs.25000 to be credited directly to your bank account. For this, the correct bank details are necessary and hence one must be careful in handing out the Bank Account Number, BSR Code and the MICR Code.
Also, any income from sources like earnings received from mutual funds or capital gains, interests amount on savings deposits, or any other business income.
Include details of any foreign assets:
As per the Income tax act of 1961 people who are tax-paying citizens of India are required to pay taxes for their other assets located globally as well. They have to provide details regarding the incomes earned abroad and also bank account details if any held abroad.
Claim deductions for tax saving:
You also keep in mind that certain forms of incomes can be deducted while filing claims and thus you should check and see which of them could be eligible for the same under section 80C, 80D, etc. This should be done by filling out the relevant information in the forms so that you can get credit which processing the returns itself.
The timely filing must be done:
If you forget to file your returns in time, you will have to face interests and penalties. There is also a penalty for filing wrong income tax returns. Filing them in time will allow quicker processing of ITR and refunds if there are any.
Also remember that for people whose income goes beyond Rs.10 lakhs they can file returns online alone.
Thus, keep in mind these small important details, and you’ll be good to go!