Updated : May 15, 20245 things to know when filing tax returns online
Overview : Start Valuing for your Income Tax returns and refund receipt you are liable of, as five weeks are left for Income Tax filing cutoff date. As per current guidelines, if the earning is more than Rs Five Lakh per annum, online tax filing or e-filing is compulsory .Even if your refund claim or interest income from saving bank account is above 10k,e-filing become compulsory. Form 16 is what Salaried person need for Filing their returns, usually Human resource department must have distributed, if not received yet it can be availed from them. 5 Things to Know When Filing Tax Returns Online Filing Returns have become easy and takes less time, it can be done on tax department’s site directly and if any difficulties there are many other website Platform with better service.
Choice of filing tax returns is yours but while filing returns remember Five Important Things:-
1) Knowing Form 16
When filing the Tax returns yourself on government site be careful in entering the number, for this first know your Form 16 .Foremost see that the employers name, address and Tan is correctly entered ,which is mentioned in form 16,as bigger companies have multiple registered office. In Case of online businessmen application the registered company name are different from known authority name. 5 Things to Know When Filing Tax Returns Online
Vaibhav Sankla , Director, H&R block India says “Taxpayers many time makes mistakes in reporting this break-up correctly especially they get confused between the exempt and non exempt allowance. The major and usual mistake taxpayer makes is in understanding “net payable income “and “Gross payable income”. It’s important to know that calculation of tax is on “net payable Income”, however, “gross payable Income “have to be mentioned in ITR-income before deductions. While filing ITR 1 figures can be picked under the topic “income chargeable under the head salary”. However, If Filing for ITR 2 or 2A, salary bifurcation needs to be mentioned. Sankla says ”Salary is typically reflected as item 1(a) in Form 16, allowance exempt under section 10 are item 2, value of perquisites is item 1(b) and profit in lieu of salary are shown under 1(c),” . Under section Item 1(d) the allowances that are not exempted are mentioned and if already included in salary and not mentioned separately then it is mentioned in annexure issued along with Form 16.Cross check that no deduction have been missed while filing returns and also ensure the deduction figures of PF and HRA is entered correctly. If there is job change or investment proof missed to submit the employer then these data need to be entered manually. 5 Things to Know When Filing Tax Returns Online
If you find difficulties in filing or running out of time you can download Form 16 to online portal like Clear tax.com ,which takes the required data automatically, however, don’t forget to cross check the figures. Especially if there is any job change for which you have more than one Form 16 to refer. Accordingly, you need to calculate again your tax liability. 5 Things to Know When Filing Tax Returns Online
2) Which Form to Fill
When filing returns on government portal, you need to know which form you are eligible for. However, if you are using online platform the correct and require figures are picked by portal on its own. According to Archit Gupta ,CEO of ClearTax.com, ” The correct ITR form gets selected automatically on the basis of the information provided by the taxpayer.”
There are different forms for returns filing and each have its own limitations. You cannot file ITR 1 if own more than one property or have been trading in shares, beside the regular salary. You are eligible for ITR 2A, when you are owner of more one house and have no gains in capitals or income and assets from foreign. If the income is from business or blue-collar work then ITR 4S is 20 long pages bulky form need to be filled, instead you can fill much easier form ITR 4. If you file ITR 4 then you don’t require to keep records of income and its loses and profit records or audits .The best part is advance tax payment is not required. The only but is that the income source should not be registered as any Company nor its turnover or gross income exceed one Crore. Whatever the income be but the tax eligibility is calculated on “presumed business Income”. This presumptive process mentioned in Income-Tax Act under section 44AD precise that only 8% of gross outcome of business is evaluated to be the net income. According to Mr. Gupta from this year 2016 “ A new section 44AD under which professionals with receipt of Rs 50 or less could opt for the presumptive scheme . Their income shall be assumed to be 50% of their receipt,” So, if income of professionals is less than Rs. 50 Lakh per annum and wants to file the bulky for ITR 4 can go ahead however can enjoy the easier way by filing ITR 4s. 5 Things to Know When Filing Tax Returns Online
3) TDS and Form 26AS
TDS Deductions are mentioned in Form 26AS, and you can download this form 26AS from the site “TRACES”. The government tax e-filing also gives the link. If you have any other source of income or interest coming from bank deposits don’t forget to cross verify the TDS deduction with this form, even if you don’t have any other income source to verify. If you have submitted Form 15 G/H, then Form 26AS keeps the data of the interest earned, so, make correction to the tax eligibility if you have filed in easy go. According to Sankla, taxpayer should calculate the tax eligibility as per the slab rate and, mention the “interest income” under the head “income from other sources”. There are two types of year while filling Assessments year and financial year. Remember returns are filed on Assessment year, for example the tax payable in assessment year 2016-2017 will be on the earning earned between year 1 april 2015 to 31 march 2016. According to sankla “by selecting the wrong year you may end up paying big tax amount due to mismatch in the year.”
4) Declaration “Income from other sources”, Capital Gains
Knowing form 16 will help you to feed data to your Income tax returns. However, beware if you have earning from any other means. These departments have become very serious and if any ups and down in return filing the consequence would be a notice. Though the earning from other means are a subsidy part of earning subject, taxes which are not charged under any section and part are charged here in this part head. So, any other source of income beside salary, i.e., any property (house, shop, etc.), deposit bank interest, horse race, lottery, share markets, business, pensions, dividend under tax s and others need to be mention under the subject “income from other sources”, with correct figures.
One thing need to be remembered that owner of second house need to pay tax whether rented or not. If not rented then as “deemed income”. The positive side of this section of tax that if you have incurred any kind of expenses in getting earning from theses income you are entitle for tax exemption as well for that amount. However remember there is separate section for Capital profits and losses, i.e., it needs to be specified in Schedule CG of Form ITR 2.
5) How to e-verify
Besides filing online tax returns on time you need to send the ITR-V copy on time to, i.e., within 120 days from the date of filing to tax department, Bangalore. If this copy is not received on this time schedule it will be not considered. If the copy received is not signed or verified by Income tax department, the case is considered invalid. Now after sending the ITR-V copy to CPC , Bangalore you can also e-verify by tie in with Aadhar card or net Banking. Aadhar card tie in with is Tax can be done simply by registering to e-filing Link where aadhar card number need to be mentioned , after mentioning aadhar card the system validate it and after that it send one time password to the registered mobile number to Aadhar Card. The validity of this password is just 10 minutes. You need to enter this therefore-verification of your ITR-V. 5 Things to Know When Filing Tax Returns Online
If there are some differences in Aadhar card and pan card detail or you have not yet registered UIDAI then you can e-verify using your net banking bank account.
