File Income Tax Return the easy way!
This article has been penned by the MyTrustedTutor.com team to make it easy for you to file income tax return the easy way, without hassles.
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It’s always Parents who have requested or look for tutors in the website. We thought why not educate to Parents, Working Professionals and general readers this time.
Yes, we are talking annual ritual of filing Income Tax Return for FY 2015-16 (AY 2016-17) The last date is 31st July 2016 for Individuals
Filing Income Tax Return is Boring, Difficult, Uninteresting, Painful, Taxing and what not!! But, still we have to do it and live with it.
Don’t want to read or know further, yet want to file Income Tax Return (ITR), then click HERE, nominal fee will be charged for ITR filing.
But with technology and greater improvement in functioning of Income Tax Department, the process has become simpler and easier for large number of Taxpayers.
Before you start the process of filing Income Tax Return, just ensure the following details are handy with you.
1. Form 16 issued by your employer.
2. Form 16A, if you have earned any income by way of Interest, professional fee,etc.
3. Bank statement of all active Indian bank account (i.e excluding dormant account) in your name (including Joint Bank Account) with IFSC Code
4. Previous income tax return (Last Year Income Tax Return)
5. Download 26 AS from Income tax website.
6. Rent receipt from your Landlord, if you have paid Rent of more than Rs 1 Lac per year.
7. Mutual Fund or Demat account statement, if you have earned any income by way of Capital Gain (short-term or long term) in equity or debt instruments.
8. Aadhar Number (if available)
9. Passport Number (if available)
Now, check whether all investment proof has been considered in your form 16, if not you can claim now and can get refund.
If you have paid less tax by way of TDS, you have to re-compute your tax, and you will be required to pay self assessment tax.
Also, if you have earned income by way of FD Interest, short-term capital gains from mutual fund or have earned income by way of rent, you have to pay Self-assessment tax.
There are 3 different forms this time which you will be most likely using it:
1. Form ITR-1
2. Form ITR-2A
3. Form ITR-2
For most of the salaried employee, filing ITR 1 is simple process, if they have not changed job during the year, or they have not started earning extra income by way of investment, rental income, or by providing professional advice.
ITR-1 cannot be used, in case if you have earned any income from capital Gains or business. Details to file ITR-1 is illustrated below.
If you have income by way of Salary, income from House Property and Income from Other Sources. To check how to file ITR-2A, click HERE.
If you have income by way of Salary, owns 2 or more house property, Income from Other Sources and Income by way of Capital Gain.
Now, you have all documents in place and know which Income Tax Return forms to be filled (steps for ITR-1 will be explained here).
How to file Income Tax Return (ITR-1)
Step 1: Log into income tax website with your user name and password. If you are first time user, create now and verify your email and mobile no. If you have forgotten your password, keep your bank account number or Last acknowledgement number ready.
Step 2: Download ITR1 or start filling online, with the help of your Form 16, Bank account details
Step 3: In ITR-1, Personal Section is very simple. Don’t forget to mark, whether Income Tax is Payable, Refund, or Nil Tax
Step 4: Income Details section is very similar to your form 16, start filling details from therein. If any investment you have not declared earlier, you can claim it now.
Step 5: Tax Details: Again, fill it from your Form 16, check 26AS whether any TDS is deducted from other than Salary; and if yes, it means you have other source of Income too.
So, re-compute your income and check whether any Self-assessment tax is payable.
Step 6: Taxes Paid and Verification: This can be filled with the help of Form 16, report any exempt income (check whether you have got any dividend from Shares or Mutual Fund, do report as now Income Tax Department will be having information from your Bank Account), enter details of all active Bank Account with IFSC Code. 80G is applicable, only if you have paid any donation.
Step 7: Recheck before submitting, print acknowledgement and send it to CPC cell, Bengaluru, if you have filled online. In case, you have downloaded and filled information in excel, generate XML and upload it the website, print acknowledgement and send it to CPC. We will recommend you to do E-Verification as that is easy and convenient
Step 8: Don’t forget to send signed ITR-V to CPC, Bengaluru through Speed Post or Normal Post (Courier and Hand-delivery is not allowed). If you done E-Verification, this step is not required.
Your annual ritual is over!
Relax and Enjoy!!
(Disclaimer: This is general guidelines to make the life of Taxpayer easy. Read detailed guidelines from Income Tax Website. In case if anyone suffers any loss, MyTrustedTutor.com will not be held responsible in anyway)