Guidelines to filing your income tax return
It is a legal obligation for every individual to file a return of income, whose taxable income during the year has exceeded the exemption limit of Rs 100,000 (Rs 135,000 in case of females and Rs 185,000 in case of senior citizens).
Additional exemption limits stated above are not applicable to the individuals who are Non-Resident Indians.
Documents to keep ready
It is fruitless to go to the war front without proper arms and ammunition. Hence, it is always advisable to keep all the documents required for preparation of the income tax return ready and handy before calculating your tax liability and preparing your tax return. Some common documents required by an individual for preparing the return are:
Form No. 16 (received from the employer): This will help to know your income from salary and tax deducted by your employer from your salary income.
Form No. 16A (received from all the payers who have deducted tax): You will first have to get this form collected from the parties who have deducted tax while making payment to you during the year. This includes banks and companies (with whom you have kept fixed deposits), parties to whom you have given loan, tenant to whom you have rented your property, et cetera.
Summary of all bank accounts operated during the year: This summary will give an idea about all the income earned during the year and investments and expenditure incurred. This assures that no part of income is left out and you do not miss out any eligible deductions.
Details of property owned during the year: If you have bought some property during the year, you will need details of rent received and receipts of municipal tax paid during the year. In addition to this, if you have taken this property through a loan, do carry the loan details and a copy of certificate of interest paid during the year.
Sale & purchase bill / documents / contract note in respect of investments / assets sold during the year: You will also need purchase documents corresponding to the sales made during the year. In case of a large number of transactions, it is advisable that you prepare a statement of sale and corresponding purchase of these investments and arrive at the amount of profit or loss, before actually calculating your taxable income.
Details of tax payments made during the year: This is required only if you have made advance tax payment during the year.
Additional exemption limits stated above are not applicable to the individuals who are Non-Resident Indians.
Documents to keep ready
It is fruitless to go to the war front without proper arms and ammunition. Hence, it is always advisable to keep all the documents required for preparation of the income tax return ready and handy before calculating your tax liability and preparing your tax return. Some common documents required by an individual for preparing the return are:
Form No. 16 (received from the employer): This will help to know your income from salary and tax deducted by your employer from your salary income.
Form No. 16A (received from all the payers who have deducted tax): You will first have to get this form collected from the parties who have deducted tax while making payment to you during the year. This includes banks and companies (with whom you have kept fixed deposits), parties to whom you have given loan, tenant to whom you have rented your property, et cetera.
Summary of all bank accounts operated during the year: This summary will give an idea about all the income earned during the year and investments and expenditure incurred. This assures that no part of income is left out and you do not miss out any eligible deductions.
Details of property owned during the year: If you have bought some property during the year, you will need details of rent received and receipts of municipal tax paid during the year. In addition to this, if you have taken this property through a loan, do carry the loan details and a copy of certificate of interest paid during the year.
Sale & purchase bill / documents / contract note in respect of investments / assets sold during the year: You will also need purchase documents corresponding to the sales made during the year. In case of a large number of transactions, it is advisable that you prepare a statement of sale and corresponding purchase of these investments and arrive at the amount of profit or loss, before actually calculating your taxable income.
Details of tax payments made during the year: This is required only if you have made advance tax payment during the year.
Which ITR Form is applicable to you?
With the introduction of new income tax return forms based on nature of income earned during the year, one needs to know relevance of each return form and select the right form.
For an individual, four forms have been introduced, the details of which are as under:
ITR � 1
Meant for Individuals, who have
a) Income from salaryb) Interest income (taxable / exempt)c) Family pensiond) Income from agricultural activities
In other words, this form is not applicable in the following situations:
a) Individual having any income (taxable / exempt) other than mentioned aboveb) Any brought forward loss of earlier yearsc) Any income of other person to be included
ITR � 2
Individuals / HUF not having any income on account of carrying out business / profession or on account of being a partner in a partnership firm.
ITR � 3
Individuals / HUF who are partner in a partnership firm and does not carry out any other separate business / profession.
ITR - 4
Individuals / HUF who is carrying out business / profession under a proprietary concern.
With the introduction of new income tax return forms based on nature of income earned during the year, one needs to know relevance of each return form and select the right form.
For an individual, four forms have been introduced, the details of which are as under:
ITR � 1
Meant for Individuals, who have
a) Income from salaryb) Interest income (taxable / exempt)c) Family pensiond) Income from agricultural activities
In other words, this form is not applicable in the following situations:
a) Individual having any income (taxable / exempt) other than mentioned aboveb) Any brought forward loss of earlier yearsc) Any income of other person to be included
ITR � 2
Individuals / HUF not having any income on account of carrying out business / profession or on account of being a partner in a partnership firm.
ITR � 3
Individuals / HUF who are partner in a partnership firm and does not carry out any other separate business / profession.
ITR - 4
Individuals / HUF who is carrying out business / profession under a proprietary concern.
How to file the tax return
Today there are two options available to the individuals to file their return of income:
Electronic filing;
Physical filing
Under Electronic filing, the individual will have to follow the following procedure:
Today there are two options available to the individuals to file their return of income:
Electronic filing;
Physical filing
Under Electronic filing, the individual will have to follow the following procedure:
Get the tax return in a valid XML format (through the Income Tax department site or other online tax preparation sites)
Visit the Income Tax site by https://incometaxindiaefiling.gov.in/portal/index.do
Log on using the user-ID and password
Select the respective ITR form
Upload the XML file generated
Upon uploading, an acknowledgement will be generated.
If the file is uploaded with a digital signature, then the process of filing return is completed.
Select the respective ITR form
Upload the XML file generated
Upon uploading, an acknowledgement will be generated.
If the file is uploaded with a digital signature, then the process of filing return is completed.
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