What is Income Tax Returns?
Dear Friends,
Welcome back after a short
break. I hope you got some insight about this financial world from my previous
posts. Today I will take you through a journey which will help you to stay on
the right side of Law. Yes, Income Tax department is keeping a serious vigil on
each and every individual to stop any kind of mishandling of money. So it is
our duty to file our Income tax returns on time to avoid any kind of issues in
future.
First and Foremost, What is
Income Tax Return? The simplest answer
is: For a financial year, providing all information about the total income from
all sources and the tax paid on those to the Income Tax department.
If your total income in FY
2015-16 is more than ₹2.5 lakh you must file a tax return.
Do remember that this income is before allowing deductions. You must file a tax return
if your gross income exceeds ₹2.5
lakh, whether or not you have any tax payable. It
is compulsory to file your return electronically if your income exceeds ₹5
lakh.
Points to
look before filing your tax return
·
If
you are a salaried person, you would need Form 16, which is issued by the
employer. It contains your salary details along with the TDS (tax deducted at
source) details. If you have worked with
more than one employer in the financial year for which you are filing the return,
you have to collect the Form 16 from all the employers.
·
If
you are running your own business, you need to get the complete details of the earning,
expenditure and profit earned in the financial year.
·
You
need to report the interest income that you have earned on your savings and
fixed deposits.
·
If
you have received any other income such as dividend, rent or gift above Rs
50,000, you need to give details about it in your income tax return
·
If
you have sold any property, shares and mutual funds during the year, you need
to keep details of the transactions for calculation of capital gains tax.
·
If
you have availed any loan like Home loan or Education loan, keep its record
handy to get benefit on deductions in lieu of Principle and Interest paid for
the loan.
Now, you
are ready with your data and documents, so let’s go ahead with the process to
file the income tax return through the online medium. Believe me this is the simplest,
fastest and most accurate method to file your income tax. I will give you step
by step details to go ahead.
First go
to the website: https://incometaxindiaefiling.gov.in/e-Filing/UserLogin/LoginHome.html
This is
the official website of Government of India to e-file the tax return. If you
don’t have an account on this website you can create a new account using you
PAN as user id and a password of your choice.
If you are
new user, please click on Register now. In next screen select your user type
For Salaried employees it is “Individual”. Click on continue and provide the
Basic details asked like PAN, First name , Middle name and Surname and Date of
Birth and Click on Continue. This will give a Registration form to complete
your registration. Once your registration is complete, you can also login to
the site.
Once you
login you will see the below screen to start you ITR filing click on Quick
e-File ITR.
For
individuals, With a Income only from salary and interest from bank deposits ITR
form name is ITR-1. Assessment year is 1 year ahead of
financial year. For Financial year (FY) 2015-16, Assessment year (AY) will be
2016-17. Select other options as applicable
Once you
click on submit you will get the next page with all the tabs to capture
information like Personal information, Income details etc.
You need
to check prefilled data and fill if required.
1.
In
Income details tab, you need to fill the details like
a)
Your
Gross Income in the FY 2015-16.
b)
Investments
made by you in tax saving options like PPF, LIC, ELSS, etc. This will help you
to save tax under section 80 C
To know more about the relevant section of Income Tax act,
please refer the Income tax website or https://en.wikipedia.org/wiki/Income_tax_in_India
.
2.
In
Tax Details tab, there will be pre-filled data provided by your employer
regarding the Tax deducted from your salary.
3.
In
next tab i.e. Taxes Paid and verification tab, you can fill the data about the
tax. In case you find any anomaly in the total tax collected you can either pay
the balance tax online or you can ask for refund. Along with this you need to
provide the details of your currently used bank accounts.
4.
Under
Section 80 G, you need to declare the donations made by you.
5.
AL
tab is used for people with annual income more than 50 Lakh. They need to
declare all the moveable and immovable assets under this tab.
For Men Below 60 Years Of Age
| Income Tax Slab | Income Tax Rate |
|---|---|
| Income upto Rs. 2,50,000 | Nil |
| Income between Rs. 2,50,001 - Rs. 500,000 | 10% of Income exceeding Rs. 2,50,000 |
| Income between Rs. 500,001 - Rs. 10,00,000 | 20% of Income exceeding Rs. 5,00,000 |
| Income above Rs. 10,00,000 | 30% of Income exceeding Rs. 10,00,000 |
For Women Below 60 Years Of Age
| Income Tax Slab | Income Tax Rate |
|---|---|
| Income upto Rs. 2,50,000 | Nil |
| Income between Rs. 2,50,001 - Rs. 500,000 | 10% of Income exceeding Rs. 2,50,000 |
| Income between Rs. 500,001 - Rs. 10,00,000 | 20% of Income exceeding Rs. 5,00,000 |
| Income above Rs. 10,00,000 | 30% of Income exceeding Rs. 10,00,000 |
For Senior Citizens (Age 60 years or more but less than 80 years)
| Income Tax Slab | Income Tax Rate |
|---|---|
| Income upto Rs. 3,00,000 | Nil |
| Income between Rs. 3,00,001 - Rs. 500,000 | 10% of Income exceeding Rs. 3,00,000 |
| Income between Rs. 500,001 - Rs. 10,00,000 | 20% of Income exceeding Rs. 5,00,000 |
| Income above Rs. 10,00,000 | 30% of Income exceeding Rs. 10,00,000 |
For Senior Citizens (Age 80 years or more)
| Income Tax Slab | Income Tax Rate |
|---|---|
| Income upto Rs. 5,00,000 | Nil |
| Income between Rs. 500,001 - Rs. 10,00,000 | 20% of Income exceeding Rs. 5,00,000 |
| Income above Rs. 10,00,000 | 30% of Income exceeding Rs. 10,00,000 |
Last but the most important point, Last date to file ITR is 31st July 2016. Please do not wait for the last date to file your ITR. Try to file it on your own, if you find any difficulty please feel free to take help of any CA or shoot your questions to me. I will be more than happy to help you.
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