Now date are close to file your income tax return before starting this article please read Income Tax Rates/ Slab 2008-09
Filling income tax returns before July 31 is obligatory for all individuals earning above1.5lakhs (women – Rs. 1.8 lakes and Rs. 2.25 lakes for senior citizens ) Most people do not know how to go about it but here are a few simple steps which will help you go about it
The following documents are required
Form 16: This is a certificate given by the employer about the tax deducted at source from the salary
Form 16 A: This is a certificate of deduction of tax at source to be collected from all the people who have deducted taxes while making payments to you like banks and companies
Summary Of Bank Accounts: This is a statement of all your income as well as expenditure and investments
Details of Property Owned: The Details of any property purchased during the year like rent received, municipal taxes paid, loan (if taken) details and interest paid is also required for filing tax returns
Sale purchase bills for documents/ investments: In case of large transactions it is better if each transaction of sale and the corresponding purchase is properly tabulated ant the corresponding profit or loss is arrived at for the correct calculation of taxable income
Details of tax paid: Details of any advance tax paid is required
The next step is the selection of the correct income tax form based on the nature of income
- ITR 1: Individuals who have income from Salary/interest/family pension/agricultural activities
- ITR 2: Individuals? HUF not having income on account of business/profession or on account of being a partner in a partnership firm
- ITR 3 : Individuals /HUF who are partners in partnership firms and do not carry out any separate business profession
- ITR 4 : Individuals /HUF carrying out business/ profession under a proprietary concern
The final step is filing the returns
The returns can be filed electronically by uploading the valid format of the respective ITR form (obtained from the Income Tax department site or other online tax preparation sites). After successful upload an electronic receipt will be generated… In case the form has your digital signature the electronic receipt can be kept for your records else it has to be signed to verify and acknowledge the electronic submission of the IT returns.
The returns can be filed physically by taking a print out of the ITR form and acknowledgment form and filing with the income tax officer
No documents need to be attached in either case
A penal interest @ of 1% per month of delay will be charged if the returns are filed after 31st July 2009 till 31 t march 2010 If filed after march 2010 a penalty of Rs. 5000 will also be charged apart from the fine
Paying tax is as important as filing tax returns hence to avoid any hassles it is necessary to file your returns before 31st July in case of individuals and 31st Oct in case of individuals who get their accounts audited
Filing of tax returns has never been easier thanks to the initiatives taken by the IT department.
Best Reading:
- What is Value Added Tax (VAT)
- How to know PAN Card Status
- Permanent Account Number FAQ’s
- Save Tax Through Investment
