Filing Income Tax Returns to be Simpler

For most of the individual income tax assessees, last date for filing of income tax return for the assessment year 2013-14 (financial year 2012-13) is just few weeks away, i.e., 31st July, 2013.

Dr. Sanjiv Agarwal

For most of the individual income tax assessees, last date for filing of income tax return for the assessment year 2013-14 (financial year 2012-13) is just few weeks away, i.e., 31st July, 2013.

While the tax returns could be filed in physical form as well as on line (e-return), e-filing is mandatory for those with an annual taxable total income of Rs. 5 lakh or more. It is seen that in previous year, over 2.14 crore assessees filed their income tax returns online as it is a hassle free process. It is expected that even the requirement of sending physical returns by post to central processing cell at Bangalore may also be dispensed with this year. This may help in timely validation of e-returns and paper verification could be avoided. It would also save on postal delays and costs.

Once you decide to file the tax return, a list may be prepared containing details of income earned from different sources besides Form 16 which is received from the employer. Documents relating to rental receipts, interest income, capital gains on shares etc and investment details should also be collated and kept handy. TDS details and advance tax details should not be forgotten as credit of the same must be taken. Certain allowances and deductions are not taxable or tax benefit is allowed such as for medi-claims, insurance, housing loan installments, tuition fees, eligible donations etc. Assessees should ensure full details thereof to be mentioned in return appropriately.

While return filing is one event in itself, it is not just the end of it. Once the income tax return is filed, there is a challenge of availing correct credit for the tax deducted at source (TDS). It should match with the figures with the department as reflected in TDS returns filed by the tax deductors. The amount of TDS should match with Form 26 AS. The tax department will give credit of TDS claimed only if the amount as per return match with the annual tax credit statement failing which credit may not be allowed for any unmatched entries. This can happen for any reason including non or wrong mentioning of permanent account number of deductee or for any other reason.

Since income tax refunds, if any, are now a days, directly credited to bank accounts, it is equally imperative that assessees do mention their bank account number and other details correctly failing which credit of tax refund may go for a toss and tracking it would be a night mare.

The returns we file are also subject to detailed scrutiny on a selective basis using the computer Assisted Scrutiny System. Once picked up, assessees are subjected to detailed and penetrating enquiry into various sources of income, investments, expenses etc. So it would be advisable to keep such information ready, in case of any need. Further, certain high value transaction such as buying or selling of immovable property for over Rs. 30 lakh , credit card spends over Rs. 2 lakh, investment  in securities etc are also taken up for scrutiny.

Filing returns timely is not only our duty but it has a cost too. If you do not file the return timely, one is not allowed to carry forward any unabsorbed losses, returns cannot be revised and fines and penalties are imposed. So remember, filling return is a must-whether easy or cumbersome. It you have prepared all details and papers, it becomes easier and smooth. And we have enough time on our side at this moment.

Categories: Income Tax

View Comments (9)

  • Dear Sir/ Madam,
    I am working as an Accountant in a school in Pune. I wanted to calculate Tax payble on salary of employees for 2013-14 for deduction of TDS. This year Income Tax Dept. allowed Rebate Rs.2000/- from tax amt. whoes income is less than Rs. 5 Lac.
    I have 1 doubt regarding this. How we should take investment amount from employees? Including rebate or exluding rebate?
    suppose taxable income of 1 employee is Rs. 250000. Then Taxable amount is Rs 50,000. and tax will be 3090. Then how much he should invest to get nil tax Rs. 50000 or Rs. 31000?

  • Sir, 

    Still department is not clear about the ITR applicable to Specific Trust and Discretionary Trusts. Last year there was the press release regarding ITR applicable to Specific Trust and  Discretionary Trusts.But what about this year???

  • Dear sir ,Please advise on the following for filing the income tax return. 1.If I have 2 bank accounts and I earn Rs.10000 of savings interest for each of the account ,Will in that case Rs.20000 savings interest from 2 bank accounts exempted ? 2.Do I need to show the Interest earned on PPF account in the income tax return and then show it as exempted ? 3.

  • My complaint is that while passing assessment order under 143 or 154. CPC do not  see the tax credit  details already available in26AS,  with the result that  taxes already paid are  again demanded.And  contacting  CPC  on e-mail  for clarifications is not accepted, and we are asked to contact CPC telephones  which more often  are engaged , and even if available, it is seldom that we are able to get throuh to  the KARYAKARI.

  • I have sold some shares which were purchased more than ten years ago. The shares were listed on the NSE,and sold through HDFC Securities Brokerage. Am I liable to pay Long Term Capital Gains tax.If so how much ?

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