Tips for Filing Income Tax Returns

Income-tax return is a legal document and it should be filed by the assessee with due care and caution. It should be correctly file and properly signed and verified by the person authorized to do so under the provisions of the Income-tax Act. The following important points may be taken care of while filling up the return forms:

1. ITR Applicable

  Each assessee has to identify the correct ITR Form applicable in its case before filing the return of income.

2. No enclosures to the Income Tax Return / ITR

Rule 12(2) of the I.T Rules provides that the return of income is required to be furnished in Form No. ITR-1, ITR-2, ITR-3, Sugam ITR-4 (wef 01.04.2017), ITR-5, ITR-6, or ITR-7 shall not be accompanied by a statement showing the computation of tax payable on the basis of return, or proof of tax, if any, claimed deducted or collected at source or the advance tax or tax on self assessment, if any, claimed to have been paid or any document or copy of any account or form or report of audit required to be attached with the return of income under any provisions of the Act. Any audit report or documents shall be filed electronically.

3. For timely delivery of refunds, ensure correct address and account number on your Return of Income –

From 1.10.07 onwards, all income tax refunds in Bangalore, Chennai, Delhi, Kolkata and Mumbai will be delivered by the Refund Banker directly at the communication address mentioned on the Return of Income. Taxpayers are requested to fill in the correct address (available during working hours for delivery) to ensure speedy delivery of refunds. In the case of taxpayers who opt for refunds through ECS, it will be credited directly to the bank account for which correct MICR code/ Bank Account Number has to be furnished on the Return.

4. Manner of filing Income Tax Return

These Forms can be submitted in the following manner:

(i) furnishing the return in a paper form only applicable to super senior citizen and Individual or Hindu undivided family whose income does not exceed five lakh rupees and no refund is claimed in the return of income, and who furnishes the return in Form No. SAHAJ ITR-1 or Form No. SUGAM (ITR-4)

(ii) furnishing the return electronically with/ without digital signature;

(iii) transmitting the data in the return electronically and thereafter submitting the verification of the return in Form ITR-V;

(iv) Transmitting the data in the return electronically under electronic verification code

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5. Filling out acknowledgement

Where the return is furnished in paper format, acknowledgement slip attached with the return should be duly filled in. The new forms are not required to be filed in duplicate.

6. Intimation of processing under section 143(1)

The acknowledgement of the return is deemed to be the intimation of processing under section 143(1). No separate intimation will be sent to the taxpayer unless there is a demand or refund.

7. Filing your return through Tax Return Preparers (TRPs)

If you are an individual or an HUF assessee and you are not required to get your accounts audited (called ‘eligible person’) under the provisions of the Income Tax Act, then you can use the services of a Tax Return Preparer (TRP). However, if the ‘eligible person’ is not a resident in India during the previous year relevant to such assessment year, he can not avail of the services of a TRP.

If you are filing your returns through a TRP then you should ensure that:

i) You are eligible to file return of Income under this Scheme;

ii) You give your consent to any Tax Return Preparer to prepare your return of income for any assessment year;

iii) You verify that the facts mentioned in the return are true and correct before you sign the return;

iv) You certify the amount which has been paid by you under this Scheme to the Tax Return Preparer for preparing and furnishing of the return of income; and

v) You take a receipt of the payment made to the Tax Return Preparer and produce the same before the Resource Centre or Assessing Officer, if required,

8. Incentive to Tax Return Preparers

The Tax Return Preparer shall charge a fee of two hundred and fifty rupees for any assessment year from the eligible person for preparing and furnishing his return of income for that assessment year:

Provided that he will charge no fees for preparing and furnishing the return for any eligible assessment year if the amount disbursable to him as per the scheme notified by the government for that eligible assessment year exceeds two hundred and fifty rupees. If the amount disbursable is less than two hundred and fifty rupees, we can charge the difference between rupees two hundred fifty and the amount disbursable.

9. Verification

The verification must be signed by the authorized person before furnishing the return and the name and designation of the person signing the return should also be written. Any person making false statement is liable to be prosecuted under section 277 of the Act.

10. Who Can Verify And Sign The Income Tax Return?

a) Individual : The individual filing his Income Tax Return has to sign the return. In case the individual is mentally incapable, then the return may be signed by his Guardian or by any other person competent to act on his behalf.

In case the individual is absent from India or because of any other reason he is not able to sign and verify his return of income, then any person duly empowered by him through valid Power of Attorney may sign on his behalf. In such a case, a certified copy of the Power of Attorney must accompany the return.

b) Hindu Undivided Family : By the Karta or where he is absent from India or is mentally incapacitated from attending to his affairs, by any other adult member of such family.

c) Company : In this case by the following :-

1) Resident : Managing Director or, where there is no Managing Director or he is not able to sign and verify the return due to any unavoidable reason, by any director thereof.

2) Non-Resident : The return may be signed and verified by a person holding a valid Power of Attorney from the Company, which should be attached to the return.

3) Wound up/taken over by the Govt. : The return should be signed and verified by the Liquidator or the Principal Officer as the case may be.

d) Firm : Managing Partner, or where there is no Managing Partner or due to some unavoidable reasons, he is not able to sign and verify the return, by any partner thereof not being a minor.

e) Local Authority : By the Principal Officer.

f) Association of Persons : By any member of the Association or the Principal Officer thereof.

11. Where to File the Income Tax Returns?

An existing assessee must file his Income-Tax Return with the Assessing Officer who had previously assessed him or with the Assessing Officer where his case stands transferred. A new assessee should file the Return with the Assessing Officer having territorial jurisdiction over the area where he resides or his principal place of business is situated or with the Assessing Officer having special jurisdiction over specific assessees or classes of income. For example, where the major source of income of an assessee is the income from contract business, the IT Return should be filed with the assessing officer having jurisdiction over the contractor circles. A doctor or C.A. or an Advocate should file the returns in professional circles if any specified.

The return may be delivered at the counter in the concerned Range/Circle or it may be sent by registered post. The return is attached with two acknowledgement forms which should be duly filled in by the assessee. One copy of the acknowledgement form is to be returned by the official at the counter duly signed, stamped, numbered and dated in support of having received the return. In case of any doubt or problem, the taxpayer should contact the Public Relations Officer for guidance and help.

(Post is been updated on 16.07.2018 with revised Rule 12 of Income Tax Rules)