Are you ready to file your Tax Returns?

Income Tax Filing for Financial Year 2014-15

We are in the last fortnight for filing the Income Tax returns for the previous financial year, 2014-15.  The Income Tax department has become more diligent in collecting details about our incomes from various sources and they look forward to your annual Income Tax returns to corroborate what they have with them.  Filing of Income Tax returns are mandatory for anybody who is earning more than the basic exemption limit, that is, Rs2.50 lakhs per annum (subject to certain well defined exceptions).  Form 26AS is a wonderful tool to understand a broad snapshot of your various incomes you have received and the tax deducted against them.

Kindly start preparing the necessary documents to ensure that you are filing it properly. To give a brief summary of the requirements you need to keep handy are as follows:

1. Form 16 from the employer, if you are employed

2. Interest Certificate on housing loan, if applicable

3. Interest from Bank fixed deposits, if any

4. Interest from Savings Bank account, if any

5. Details of Capital Gains or business income, from purchase and sale of shares/mutual funds, if applicable

6. Investments which are eligible for deductions u/s 80C (if not considered as part of Form 16)

7. Rental Income of house properties, if applicable

8. Details of donations made, if any

9. Details of Health Insurance premiums paid (if not considered as part of Form16)

How to file the returns?

1. Electronically filing of income tax return is mandatory for the taxpayer except for super senior citizen (Age above 80 years) if the total income is more than Rs. 5 lakh or if there is a claim of refund

2. Details regarding how to file the income tax return is available at www.incometaxindiaefiling.gov.in -> Help tab -> ‘How to e-file’ and for any other queries on e-filing -> Please go to -> Help tab -> FAQ.

3. New functionality of electronic verification code (EVC) of the Income Tax return has been introduced vide Notification No. 2/2015, dated 13/07/2015. You can use this facility as an alternative for submission of ITR-V to CPC- Bangalore.

To know further details on EVC, please visit www.incometaxindiaefiling.gov.in -> Help tab -> EVC user manual.

How to ensure speedy processing of your returns?

1. Please ensure all the information like PAN/ Name/ Date of birth etc. are filled correctly in the Income Tax Return.

2.  Use the appropriate form type relevant to your different sources of income while filing the income tax return.

3. Properly update the Address/ Email Address/ Mobile number by logging into the e-filing website (www.incometaxindiaefiling.gov.in) with your user id and password under profile tab. This is essential as CPC uses these details for sending all the communications.

4.  Make sure that you are taking due credits for the tax remitted on your behalf by your employer.  Kindly check the Form 26AS which gives you complete details of all incomes received by you as well as Tax deducted on them.  To check the details of tax credits visit www.incometaxindiaefiling.gov.in -> Form 26AS.

4. Refund:  If you are looking to get refunds, please make sure that you are giving the correct bank account details along with the correct IFSC code .  Refunds are processed through ECS.

5. Outstanding demand: Timely action should be taken for all outstanding demand as reflected in the e-filing website. To know the outstanding demand and to furnish your response to each demand, login www.incometaxindiaefiling.gov.in -> e-file tab -> Response to outstanding tax demand.

6. Correctness and Completeness of Income Tax Return: Non filling of the relevant schedules or incomplete data in the return is the most common reason for difference in the Income/ Tax computation by the department. To know further details, login www.incometaxindiaefiling.gov.in -> Help tab -> e-filing check points.

7. Removal of defects: Any defects flagged in course of the preparation of the e-return (by using the e-return utility available from department) or while uploading the XML at e-filing website should be corrected so that your return will be processed accurately.

Source: Income Tax mailer to Tax Payers