TIME TO COMPLETE YOUR INCOME TAX RETURN E-FILING (PART 2)

This article is continuation of my previous article (TIME TO COMPLETE YOUR INCOME TAX RETURN E-FILING (PART1))

In previous article, we all know about how to register at income tax department website to get free access to file our income tax return.

In this article, i am sure you will get some clear picture about Income Tax Return E-filing.

So, Lets know few more things about Income tax return and E-filing.

Who should file income tax returns?

1. An Assessee with a total income of Rs. 5 Lakhs and above.
2. An assessee required to furnish returns U/S 139 (4B) (ITR 7).
3. Individual/HUF resident with assets located outside India.
4. A resident who has signing authority in any account located outside India.
5. All companies.
6. An assessee required to furnish a report of audit specified under sections 10(23C) (IV), 10(23C) (v), 10(23C) (VI), 10(23C) (via), 10A, 12A (1) (b), 44AB, 80IA, 80IB, 80IC, 80ID, 80JJAA, 80LA, 92E or 115JB of the Act.
7. Assessee required to give a notice under Section 11(2)(a) to the assessing officer.
8. A firm (which does not come under the provisions of section 44AB), rtificial Juridical Person, Cooperative Society, AOP, BOI and Local Authority (ITR 5).
9. A person who claims relief under sections 90 or 90A or deductions under section 91.

Before start E-filing, we have to know some important points about E-filing and required documents.

E-filing forms:

How to choose the right form to file your taxes:

ITR 1 - Individuals with income from salary and interest

ITR 2 - Individuals and Hindu Undivided Families (HUF) not having income from business or profession

ITR 3 - Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship

ITR 4 - Individuals and HUFs having income from a proprietary business or profession

ITR 4S - Individuals/HUF having income from presumptive business

ITR 5 - Firms, AOPs,BOIs and LLP

ITR 6 - Companies other than companies claiming exemption under section 11

ITR 7 - Persons including companies required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D)

Required document handy to start your E-filing:

For all:

1. Bank account details            2. PAN Number

For salaried:

1. Rent receipts for claiming HRA.    2. Form 16

3. Pay slips

For House inocme:

• Address of the house property
• Details of the co-owners including their share in the mentioned property and PAN details
• Certificate for home loan interest
• Date when the construction was completed, in case under construction property was purchased
• Name of the tenant and the rental income, in case the property is rented

For capital gains:

Stock trading statement is required along with purchase details if there are capital gains from selling the shares.

In case a house or property is sold, you must sought sale price, purchase price, details of registration and capital gain details.

Details of mutual fund statement, sale and purchase of equity funds, debt funds, ELSS and SIPs.

For other income:

The income from interest is reported. In case of interest accumulated in savings account, bank account statements are required.

Interest income from tax saving bonds and corporate bonds must be reported.

The income details earned from post office deposit must be reported.

Check these before you start your E-filing:

Check your tax credit - Form 26AS vs. Form 16:

You should check Form 26AS before filing your returns. It shows the amount of tax deducted from your salary and deposited with the IT department by your employer. You should ensure that the tax deducted from your income as per your Form 16 matches with the figures in Form 26AS. If you file your returns without clarity on errors, you will get a notice from the IT department.

Check 80G (Donations), savings certificates and other deductions:

You can claim extra deductions if you forgot to claim them. Similarly, you can also claim deductions under section 80G on donations made to charitable institutions.

Interest statement:

 Interest on savings accounts and fixed deposits

A deduction for up to Rs.10,000 is allowed on interest earned on savings accounts. However, interest earned on bank deposits, if any, forms a part of your taxable income and is taxable at applicable slab rates.

In addition to the above, have the following at hand.

• Last year's tax returns
• Bank statements
• TDS (Tax Deducted at Source) certificates
• Profit and Loss (P&L) Account Statement, Balance Sheet and Audit Reports, if applicable

I think, now you are ready to start your income tax return E-filing

Read here: TIME TO COMPLETE YOUR INCOME TAX RETURN E-FILING (PART 1)

Please share your knowledge and queries with me by giving your comments below.