Income-tax return is a legal document and it should be filed by the assessee with due care and caution. There should be no corrections or overwriting and it should be 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 return- Rule 12(2) of the I.T Rules provides that the return of income and return of fringe benefits required to be furnished in Form No. ITR-1, ITR-2, ITR-3, ITR-4, ITR-4S ITR-5, ITR-6, or ITR-8 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 or return of fringe benefits under any provisions of the Act.

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 the new Forms

These Forms can be submitted in the following manner:

(i) furnishing the return in a paper form;

(ii) furnishing the return electronically under digital signature;

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

(iv) furnishing a bar-coded return in a paper form:

Mandatory E-Filing of Income Tax Return

  • E-filing of Income Tax return with digital signature is mandatory for Individuals, HUF  and firms requiring statutory audit u/s 44AB of the Income Tax Act, 1961.
  • E-filing of Income Tax return with digital signature is mandatory for all Companies irrespective of Income.
  • A person, other than a company and a person required to furnish the return in Form ITR-7 ] if his or its total income, or the total income in respect of which he is or it is assessable under the Act during the previous year, exceed [five lakh rupees], shall e-file their  Income Tax return either with or without digital signature.
  • Individual and HUF having assets (including financial interest in any entity) located outside India; or are signing authority in any account located outside India have to e-file their Income Tax return either with or without digital signature.
  • If Assessee claims any relief of tax under section 90 or 90A or deduction of tax under section 91 of the Act than Assessee have to e-file their Income Tax return either with or without digital signature.
  • All the Assessee who are required to file ITR-5 and not covered by tax audit provisions have to e-file their Income Tax return either with or without digital signature.
  • In addition to above all the Assessees who are required to file  furnish a report of audit specified under sub-clause (iv), (v), (vi) or (via) of clause (23C) of section 10, section 10A, section 10AA, clause (b) of sub-section (1) of section 12A, section 44AB, section 44DA, section 50B, section 80-IA, section 80-IB, section 80-IC, section 80-ID, section 80JJAA, section 80LA, section 92E, section 115JB or section 115VW or to give a notice under clause (a) of sub-section (2) of section 11 of the Act have to e-file their Income Tax return either with or without digital signature.

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 intima-tion 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,

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.

8. 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.

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.

9. 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 15.07.2014 with revised Rule 12 of Income Tax Rules)

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0 responses to “Tips for Filing Income Tax Returns”

  1. Dr G V Rao says:

    If I give power of attorney to a person for sale of my house( not apartment)the income accrued goes to the account of power of attorney or me. Also whether Capital Gains Tax has to be paid by POA or me.
    Kindly clarify.
    Dr G V Rao

  2. J.P.CHAUDHARY says:

    I am gov. employee. My transfer to other district. IT office could not accept my ITR-1 they say for to go old district at the and i do e-return. now ,how can i change my PAN address etc for transfer my it a/c to newer district give me process hints for its.

  3. H.N.Dash says:

    On submission of the income tax return the receiving employee is nor stamping,signing and putting the serial number as you have mentioned above but only attaching a computer generated small slip to Acknowledgement-V

  4. H.N.Dash says:

    On submission of the income tax return the receiving employee is not stamping,signing and putting the serial number as you have mentioned above but only attaching a computer generated small unsigned, slip to the Acknowlwdgement-V.Please clarify if that will amount to submission of Income tax return.

  5. c.b.balasubramanian says:

    kindly clarify whether the amount spent for master check up is eligible for deduction in the pension/ salaries. If so kindly furnish IT Act section number==c.b.balasubramanian.

  6. c.b.balasubramanian says:

    sir,
    I need a clarification in filing I.T Return. My friend has paid interest on housing loan obtained from L I C. as a deduction as it is exempted from tax up to Rs 1,50,000/– .Which ITR form to be filed. In which head the deduction has to be shown. I will be much thankful if a reply furnished to me .
    c.b.balasubramanian

  7. Anil Anand says:

    Please advise, can the salary received by me, able to share as 50% to spouse to avail IT Benefit ?

  8. Neera Uppadhayay says:

    Please advise how to recover the tax recovered by ITO and the case decided in my favor by the CIT in an appeal filed by me.

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