Friday, 10 July 2015

Income Tax Return - Experience

Filing income tax return can be very hard/cumbersome for those who are entering in it for the first time, the best example is an IT employee who just started with his job.

Though it is hard because of all the clauses in it with time it has been much simplified. The new Java Utility is very simple to use but i recommend you to file using for the first time and then try the Java Utility as you will be easily able to relate most of the things.

Ways to file a Return

  1. eFiling by downloading the ITR Java Utility or the ITR Excel Utility.
  2. - recommended as its very interactive and automats most of the things by reading your Form 16 and Form 26AS
  3. Paying an agent to do your job - most simple way

Important forms needed to file the return

Form 16
It is provided by your employer. It is a certificate under section 203 of the Income-Tax Act, 1961, which gives information on the tax deducted at source (TDS) from income chargeable under the head “salaries”. Simply put, it gives details of the tax deducted by the employer.

Form 26AS
Form 26AS is provided by the income tax department to all tax payers. It contains -
Details of income earned (income which is linked through your PAN number).
Examples: Salary, Pension Income, Fixed Deposit Interests etc.

Details of all the taxes that have been paid to government on behalf of you.
Salary that we get in hand comes to us after our employer deducts appropriate taxes on it. These taxes are then submitted to government. This is called TDS (Tax deducted at source) and gets reported in Form 26as.

Interest from Fixed Deposits in a particular bank, if exceeding Rs 10000/- in a year, will come to us only after the bank deducts TDS on it. This TDS is also reported in Form 26as

Thus if you are a salaried employee, Form 26as will contain monthly details on the salary being paid to you and taxes deducted at source by your employer. Similarly, if you are earning interest on FDs, Form 26as will contain details on the interest being paid to you and taxes deducted at source by your bank on FD interest.

How to show FD interest in you Income Tax Return

Note that interest on saving bank account, bank deposit (fixed, recurring), loans or company deposits are all taxable and need to be shown in you IT Return.
You need to check this income in your Form 26AS and enter it in the Income From Other Sources row of the IT return process.

Note: Make sure that your ITR is in sync with the Form 26AS with you will anyways download from the Income Tax Department website

Filing Revised Return of Income Tax - It comes under Sec 139(5)

In case you have filed your Income Tax Returns before the due date of filing of Returns u/s 139(1) but later realised that there was any omission or mistake in filing your Income Tax Return, you need not worry as you can always file a  Revised Return of Income Tax
Also, a revised return can be file any number of times but make sure you send the final revised return which has no mistakes.
Also, you need to enter the original Acknowledgement number during the revised number - this is the acknowledgement number of first return and not the intermediate returns.

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