1. Is it mandatory for every person to file his return?
Every individual / HUF whose gross total income (‘GTI’) (i.e. income before availing any deductions like LIC, PPF, etc) exceeds minimum tax exemption limit of Rs. 200,000 is required to file return. For example – your GTI for the FY 2012-13 is Rs. 250,000 and you have availed of the PPF deduction of Rs. 70,000 thereby resulting in net total income of Rs. 180,000. Although you are not liable to pay any income tax on Rs. 180,000, you are still required to file your return since your GTI exceeds Rs. 200,000.
Note: There is no minimum tax exemption limit for partnership firms and therefore, it is mandatory to file its return even if its total income is Rs 1. In case of loss from any source of income, it is mandatory to file the return in order to carry forward the said loss to the subsequent year and set it off against the subsequent year’s profit.
2. Which documents substantiate the basis of your return?
The following documents are a must for preparing the return:
Income statement enumerating income earned during the FY from all sources
3. What is the pre-requisite for filing your return?
No person can file return without a Permanent Account Number (‘PAN’). PAN is 10 digit alpha-numeric number issued by NSDL authorities in confirmation with Income Tax Department and is considered to be one’s identity proof in India. In case of PAN – AAAPS8216Q, fourth alphabet (P) denotes the status of the person. P stands for Personal, H for HUF, F for Partnership Firm and C for Company. The fifth alphabet (S) denotes the surname of the individual, or surname of the Karta of the HUF, or the first alphabet of the firm or Company name, as the case may be.
4. Is it mandatory to file your return electronically (‘e-filing’)?
An individual has the option to file his / her return manually or electronically. However, an individual whose GTI exceeds Rs. 500,000 is mandatorily required to file his / her return electronically. The same principle as explained in point no 1 with regards to GTI applies in this case also. An individual can download the Excel utility of the applicable Income-tax return form (‘ITR Excel utility’) from the website –www.incometaxindiaefiling.gov.in and file the return electronically. For example, if your GTI is Rs. 450,000, you can either file your return manually or electronically. However, if your GTI is Rs. 500,000 or more you would have to file your return electronically.
5. Which ITR Excel utility should you download?
The tax department has notified different forms for different persons as under:
ITR 1 – Individuals having only salary income and interest income (salaried employees)
ITR 2 – Individuals & HUFs having income from any source other than Income from Business
ITR 3 – Individuals & HUFs being partners in firms and not carrying any business or profession
ITR 4 – Individuals having income from Business or Profession
ITR 4S – Individuals having income from Business or Profession and opting for special taxation scheme
ITR 5 – Partnership firms
ITR 6 – Companies
Depending on the sources of your income, you need to download the applicable ITR Excel utility. In case you wish to file your return manually, the aforesaid forms can be purchased locally and can be filed with the local tax officer along with copy of previous year’s return acknowledgment.
6. What are the pre-checks before uploading your return?
In order to have a hassle-free processing of your return, the following aspects should be checked:
Name – it should match with the name printed on your PAN card
Date of birth – it should match with the name printed on your PAN card
Status – Whether you are an individual / HUF / Firm and whether you are a resident / non resident
Address – it should match with the address as per your PAN card
Email address and mobile no – It is the basis of communication from CPC (avoid mentioning Chartered Accountant’s email ID or the one which is not frequently used by you)
Date of filing the return – Mention the date on which you upload your return
TDS – Verify the total TDS credit in your name by downloading your Form 26AS from the website and claim credit equivalent to the credit available as per Form 26AS
Bank details – Mention your existing bank account no, correct MICR code, IFSC code and bank branch details since refund, if any due, shall be credited only to this account
No cut / paste – Avoid using cut and paste formula while filing the ITR Excel utility else it shall corrupt your Excel file.
Needless to mention that only correct and accurate figures and dates should be filled in to avoid any discrepancy while processing your return.
7. How to file return electronically?
The first step in e-filing is to create an account by registering your self on the website at the link –https://incometaxindiaefiling.gov.in/e-Filing/Registration/RegistrationHome.html. After downloading the ITR excel utility, it is to be filled in with the relevant details. The file is to be then validated to check up for any errors using the ‘validate’ option. Subsequently, an xml file is to be generated using the ‘create xml file’ option provided on the first page of your ITR excel utility. This ‘xml file’ is then required to be uploaded on the website. Uploading the return is a very quick process (less than a minute) unless there is a system breakdown which seldom happens. (Detailed step by step procedure is available on the aforesaid website).
8. Does uploading your return mean that your return for the year has been filed?
Mere uploading of the return does not mean your return for the FY has been duly filed. Every person after uploading their return is required to take a print out of their return’s acknowledgment (ITR V), sign the same at the designated place (in blue ink only) and then send the duly signed acknowledgement via ordinary or speed post (not courier) to CPC, Bangalore (complete address is provided in the acknowledgment) within 90 days from the date of uploading of the return. Once your duly signed acknowledgement is accepted at the CPC, Bangalore, you shall be intimated about the same via message and email and only then will your return be said to have been duly filed.
9. What if you miss the July 31 deadline?
You can still file your return for the FY 2012-13 as a ‘belated’ income tax return till March 31, 2015 with interest on the tax amount (in case you are not liable to pay any tax, no interest will be levied). However, it is to be noted that in case there is any loss which is to be carried forward to the subsequent years, it is mandatory to file the return in time ie July 31 or else the benefit of set off of loss against profits in the subsequent years shall not be available.
The aforesaid article shall not be 100% sufficient for any individual to upload his / her return all by himself but shall definitely help in acquiring knowledge and assist in planning as to how should you generally proceed to file your return to avoid unnecessary rush at the last minute. So, all those who are liable to file their returns please do the needful before the July 31, 2013 due date.
On 18th April government has notified the new ITR forms. Those new forms were opposed by various sections of businesses. The forms required detailed information from the taxpayer. It was so detailed that ITR 2 was of 14 page long. These were two point of contention from the new ITR forms.
In the ITR 2 and ITR 2A, you needed to give full details of foreign travel. the assessee would have to report passport number, the issuance place of the passport, countries visited, number of times such journeys made. In case of a resident taxpayer, the expenses incurred from own sources in relation to such travel should be also reported.
They assesse would have to furnish the number of bank accounts along with the account number, address, IFSC code, any possible joint account holder and balance in the accounts. It also included the dormant bank account.
After the uproar the finance minister Arun Jaitely immediately put these forms on hold. Now in the revised ITR forms you need to give only passport number and details of active bank account. You need not to mention the account balance. Also, This year government has extended the last date of income tax return filing.
The Income Tax Return Of Salaried
Most of the income tax payers in the country is salaried. The employer deduct tax at source from the salary of employees. The employer takes care to the applicable tax of the employee. Therefore, most of you are not concerned about the payment of income tax. Since your employer do the taxation job, the filing of income tax return of salaried is easier.
Important Documents For Income Tax Return e-Filing
The salaried employees get form 16. This form 16 has the details of your income and TDS. The 80C deduction is also incorporated in the form 16. The government has prescribed a format of form 16. This form 16 is used to file income tax return. Please note form 16 is not required with the income tax return form. It is used only for reporting the income and tax details. It is a certificate of TDS from the employer to the employee. You should preserve it for any further query.
This is also a TDS certificate similar to form 16. But it is used for TDS other than the salary income. There are many payments other than salary which is given after the tax deduction at source. The certificate of this deduction is given in the form 16A. Form 16 is given annually while form 16A is given quarterly.
Form 26AS is provided by the income tax department. It shows all the taxes paid against a PAN. This form incorporates the TDS details of form 16 and form 16A. You can verify the TDS on your payments through the form 26AS. Anyone can access his form 26AS through the income tax e-Filing website. The login ID and password of e-Filing is used to view the form 26AS. You can also see your form 26AS through the internet banking.
You should also have details of your bank accounts and passport number while you e-File the income tax return.
The ITR-1 Form For Salaried Taxpayer
Who Should Use ITR-1
You should use ITR-1 to e-File income tax return if your income for the assessment year 2015-16 (financial year 2014-15) includes:
Income from Salary/Pension; or
Income from One House Property
Income from Other Sources (excluding winning from Lottery and Income from Race Horses) and does not have any loss under the head
You should also note that these conditions of ITR-1 is also applicable for the dependent spouse or minor child. As there income is clubbed with you. If wife or minor child is self dependent and filing her own income tax return, this clubbing rule is not applicable.
Who Should Not Use ITR-1
This Return Form should not be used by an Individual whose Total Income for the assessment year 2015-16 includes:-
a) Income from more than one House Property; or
b) Income from Lottery Winnings or horse races; or
c) Income under the head “Capital Gains” ,e.g., short-term capital gains or long-term capital gains from sale of house, plot, shares and gold ; or
d) Agricultural income in excess of ₹ 5,000; or
e) Income from Business or Profession ;or
f) Loss under the head ‘Income from other sources’; or
g) Person claiming double taxation relief under section 90 and/or 91;or
h) Any resident having any asset (including financial interest in any entity) located outside India or signing authority in any account located outside India or
i) Any resident having income from any source outside India
How To e-File Income Tax Return Online
In this method of e-Filing the form is presented online. You fill the form and keep saving the draft. After the completion of form you have to submit it online. In this method you do not download anything. It is an easier process therefore It is listed asQuick e-File. Besides ITR-1, the form ITR-4S can be also filed through Quick e-File.