Saturday, June 13, 2009

GUIDE TO FILING YOUR INCOME TAX (IT) RETURNS

With the Income tax return filing deadline of 31st July fast approaching, its time for you to brace yourself to file your tax returns. Following are the important things that one must keep in mind while filing his/her tax returns:-

1. Who needs to file the tax returns - All corporates and individuals whose income is within the taxable income slab need to file income tax. For those individuals whose total annual income is less than the taxable income (currently Rs 1.5 lakhs pa for men and Rs 1.8 lakhs for female) need not file income tax returns. However, in case your net tax liability is 0 after availing the various income tax deductions under Sec 80C and Sec 80D etc, then you are required to file your income tax returns.

2. When is the last date for filing your income tax returns? For all those who have tax liability yet to be paid , have to file their income tax returns by 31st July . However, if you are a salaried person and have all your tax liability already paid via TDS , then you may file your tax returns till March 31st 2010.

3.What if you fail to file your returns within the stipulated time? If you fail to file your tax returns by March 31st 2010, then you will have to pay a fine of Rs 5000 as per IT Act. So, please stick to the time lines to avoid this.

4. What are the documents required? For , salaried people, the Form 16 provided by the employer is the most important document which is required for filing income tax returns. In case of interest income from FD, investment in shares etc, the documents supporting that needs to be submitted.

5. How can you file your returns? You can file the income tax returns yourself by filling the relevant documents and forms. However, in case you are not very comfortable with the accounting principles etc, then you may take the help of a qualified CA as well. CA will take care of end to end process of filing tax returns for you. They may charge anywhere between Rs 200 to Rs 1500 for this purpose.

6.Where else can I get help? There are around 3,500 registered TRPs in India who are authorized to file tax returns of any individual whose income is not subject to a tax audit.Though they get a nominal amount from the taxman for filing of returns, many TRPs charge clients for their services.

7. Can I file IT Returns online ? Yes. You can also file your Income tax returns online . You will need a digital signature for this purpose .Tax websites can help you generate the ITR form once you enter particulars of your earnings and savings in the web-based form. These websites offer various packages, ranging from 100 - 750 rupees, depending on the type of income declared and mode of submitting the return finally, electronic or manual. There are various sites which you may use for this purpose like myitreturn.com, myitfile.com, taxsmile.com, taxspanner.com, filemyreturns.com.

8. Why Filing Income tax returns is necessary ? Income tax returns are necessary for each one of us to file because it is mandatory exercise for all of us . Government of India requires everyone whose income is within taxable income bracket to file their returns. Besides the legal requirement, your Income tax returns will come handy as your income documents while applying for a loan with banks. Most of the banks will ask for Income Tax returns as your income document when you apply for a home loan or personal loan etc with them. Income tax returns also is needed to arrive at your life insurance cover limit when you go for a term plan.

1 comment:

  1. Thanks for sharing such great post, according to me all should be prepared for paying taxes well in advance by making the necessary investments. It is important that you file and pay your taxes before the due dates to avoid penalties for late payments. You can consult a tax adviser who would offer details about all the deductions that are applicable.

    ReplyDelete