Your checklist for filing IT returns
Bangalore: It's time to file return for this financial and 31 July is the deadline. Any salaried individual with an income more than 
5 Lakh have to pay tax. Despite their cautious effort in filing the tax returns many taxpayers tend to commit common mistakes while filing their returns that lead to penalties and delays. Listed below are few points the assessee should note before filing their IT returns.
Organize documents: Before filing the return make sure you have all the essential documents in hand. These documents include Form 16, Rent receipts, proof of tax saving investments, in case if you have availed any loan from the bank make sure you have the loan documents, your saving account statement, Though income from Mutual funds or any shares are exempted from tax, you are required to have a copy of those documents also. All these documents are required for tax calculation. If you don't have a PAN card you will be fined.
Calculate Income tax slab: Before filing the income tax return, you should calculate the tax based on the income tax slab. There is no income tax rate for those earning up to 190,000 for women and up to 240,000 for resident individual of 65 years or above. For those earning 300,001-500,000 there is a 10 percent tax rate; for 500,001 and more it is a 30 percent tax rate; for those earning more than 1,000,000 there is a surcharge of 10 percent of the total tax liability applicable.
Previous income or income arising out of previous jobs: If the previous employer has deducted taxes or TDS from your salary report this to your new employer in case the taxpayer has switched to a new job; the entire TDS return certificate obtained from the ex-employee must be produced while filing of the annual income tax return.
Fill the correct ITR form: ITR1 is for individuals having only salary and interest income. ITR2 for individuals and HUFs having income from any source except business or profession. ITR3 for individuals and HUFs who are partners in a firm but who do not have their own proprietary business or profession. ITR4 for individuals and HUFs who have their own proprietary business or profession.
E-filing online mode: Apart from the offline mode of IT returns E filing is gaining popularity. To file IT returns online you need to have the digital signatures which avoids paper work and visit to the ITO. E-filling without digital signatures is not much different from filing returns offline. This is an improved and hassle-free method of tax filing.
5 Lakh have to pay tax. Despite their cautious effort in filing the tax returns many taxpayers tend to commit common mistakes while filing their returns that lead to penalties and delays. Listed below are few points the assessee should note before filing their IT returns.
Organize documents: Before filing the return make sure you have all the essential documents in hand. These documents include Form 16, Rent receipts, proof of tax saving investments, in case if you have availed any loan from the bank make sure you have the loan documents, your saving account statement, Though income from Mutual funds or any shares are exempted from tax, you are required to have a copy of those documents also. All these documents are required for tax calculation. If you don't have a PAN card you will be fined.
Calculate Income tax slab: Before filing the income tax return, you should calculate the tax based on the income tax slab. There is no income tax rate for those earning up to 190,000 for women and up to 240,000 for resident individual of 65 years or above. For those earning 300,001-500,000 there is a 10 percent tax rate; for 500,001 and more it is a 30 percent tax rate; for those earning more than 1,000,000 there is a surcharge of 10 percent of the total tax liability applicable.
Previous income or income arising out of previous jobs: If the previous employer has deducted taxes or TDS from your salary report this to your new employer in case the taxpayer has switched to a new job; the entire TDS return certificate obtained from the ex-employee must be produced while filing of the annual income tax return.
Fill the correct ITR form: ITR1 is for individuals having only salary and interest income. ITR2 for individuals and HUFs having income from any source except business or profession. ITR3 for individuals and HUFs who are partners in a firm but who do not have their own proprietary business or profession. ITR4 for individuals and HUFs who have their own proprietary business or profession.
E-filing online mode: Apart from the offline mode of IT returns E filing is gaining popularity. To file IT returns online you need to have the digital signatures which avoids paper work and visit to the ITO. E-filling without digital signatures is not much different from filing returns offline. This is an improved and hassle-free method of tax filing.
