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Why wait for July end Deadline? File your Income Tax Returns Online Now

The deadline for tax filing is just a month away. And filing returns online seems to be the way to go this year for individuals who earn more than Rs. 10 lakh and for easy of filing for every other individual. Now these individuals dont have the option of filing tax returns offline through a tax consultant or chartered accountant anymore. The Central Board of Direct Taxes (CBDT) has issued a notification in March making it mandatory for individuals with annual income of more than Rs. 10 lakh to file their returns online from the current financial year. The new notification is applicable to individuals and Hindu Undivided Family (HUF) taxpayers, too. Further, resident individuals with assets abroad (including authority to sign a bank account held abroad) are compulsorily required to file their return electronically for AY 2012-13 and for subsequent assessment years as well. Though many individuals may be a bit apprehensive about filing returns online because of security and connectivity issues, online tax filing could actually be a blessing. It means you have the option of filing the returns on any day and from any location. Tax payers have an option to file their tax returns through incometaxindiaefiling.gov.in, the tax portal run by the Income Tax Department. DOCUMENT CHECK A basic document check before starting the filing process could be helpful. For salaried individuals, Form 16 is a crucial document. Secondly, if you have taken any housing loan, you should have the bank statement which mentions the exact amount of interest paid in a financial year, If you are filing for HRA, you would need the rent receipts, Self-employed individuals need a profit or loss statement in case they run a strategic business unit in which they remunerate themselves through a profit sharing model. In case self-employed individuals follow a salary model in their own company, they require Form 16 A to file their returns online. STEPS FOR E-FILING The first step in filing tax returns is to compile relevant documents, which include Form 16 obtained from the employer, Form 16A obtained from the concerned vendors who have deducted tax, bank statements, details of other sources of income and details of tax paid. Form 26AS (consolidated tax statement) should also be collated to find out the amount of taxes that have been deposited in your name in government records. Once the documents are compiled, the total taxable income and tax liability should be computed. After adjusting the advance tax paid, if any, the balance tax liability needs to be deposited as selfassessment tax with interest, if any. Thereafter, the tax return can be prepared and filed with the tax authorities in hard copy or electronically, as applicable. Secondly, register your personal details to choose a login ID. At this stage the portal will take you to the next stage to complete the registration process. Second, enter the income particulars in ITR software tool, which would generate the ITR form in electronic format (XML file). You have to upload the Form 16, enter other details on TDS, housing loan if any, particulars of tax investments, and so on. Three, as you finish the process, a copy of your XML file will be sent to your email address. It will tell you if you are eligible for a tax refund or you are liable to pay taxes.

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Four, if you are using a private portal, you will be directed to the payment gateway to pay for the e-filing. Five, an acknowledgement, called ITR Form-V, would be generated and mailed to your email ID. You have to download the form and mail it to the Central Processing Unit in Bangalore within 120 days of e-filing. Last, the IT Department will send you the final acknowledgement which is the final step for e-tax filing. Common mistakes It may be worthwhile to keep some points in mind to avoid making small mistakes:Use the correct form. Choose the correct form, keeping in mind the source of income. At times, extra information is required to be furnished if an incorrect form is selected. PAN should be correct. It is important that the PAN quoted in the tax return is correct; otherwise, the tax office could levy a penalty of R10,000. Slab benefits should be availed only once. Many times, income of the previous employer is not furnished to the existing employer, which results in dual slab benefit in the same financial year. As slab benefit is available only once on the total income, tax may be required to be deposited later along with interest, if any. Not filing tax returns. It is a common mistake among salaried taxpayers that since tax has been deducted from their salary, there is no need to file their tax returns. However, even though tax has been deducted and there is no further tax liability, an employee has to compulsorily file tax returns. Tax returns need not be filed if the taxable income is up to R5 lakh and the income includes salary and interest up to R10,000 from a savings bank account. POINTS TO REMEMBER Dont wait till the last week of July to e-file your return. The tax departments e-filing website becomes almost inaccessible (due to server overload) during the last few days of July, forcing many to file their returns offline. Also, if you are using the tax departments template, make sure you save the incompletely filled file on your computers disk. In case youre using private portals, make sure you have saved your changes before you log out. Enter details on housing loan, HRA, tuition fees for children, medical insurance, bank interest income and capital gains to ensure you file the accurate return. Even if you have missed out on filing these details in your investment declaration submitted to the employer, ensure you fill these details at the time of online filing. You will be eligible for a tax refund at a later stage. Lastly, beware of emails that lands on your inbox with a link to the Income Tax Office website. Dont click on the link before double checking the source of the mail. These should be carefully evaluated as they may be intended to steal your sensitive personal information like credit card details/bank details.

The above article is contributed by our consultant CA Chirag Chauhan Do contact info@oneroofconsultant.in or visit our website and post query we will get back to you soon.

Phone: +91 (22) 28679524 |Mobile: +91 9172325783 |Fax: +91 (22) 39167251 |Email: info@oneroofconsultant.in|
Add: Shop No 11, GRD Floor, Satyam Shivam Building, Vasant HSG. Complex, Link Road, Kandivali West, Mumbai 400067, India.