Five Handy Tips to File Tax return online

by Amol Kale Consultant, writer

Just like friction which results in wear and tear but facilitates movement; taxes too seem like a burden but play a very important role in the economy. Within a few months, a lot of new taxpayers would be filing their returns for the first time. As per the IT Act, every taxpayer has to file tax returns with the correct ITR form depending on their status and sources of income.

Fortunately, the returns filing process can now be easily done online. While the process might seem challenging for people who are filing returns for the first time, a bit of prudence can take them a long way. If you too are new to online return filing, we have a few very helpful tips for you.

1.       Selecting the Right Return Form

To file tax return online, you’d first be required to select the right return form as per the status. There are forms for individuals, HUFs, companies, and trusts. Also, if you are someone who has filed the returns yourself in the past, then it is important to know that the IT department has made a few changes to the forms.

For instance, there used to be 9 forms in the past; there are now only 7 of them. ITR-2, ITR-3, and ITR-2A are rationalized into a single ITR-2 form.

2.       Use your Monthly Payslip if you do not have Form 16

While you’ll most probably receive Form 16 from your employer before the return filing begins, in case you do not or for some reason are unable to access it, you can use your payslips to know the exact taxable income and exempt components, like conveyance, etc.

While this might require a bit of work, it is still better than missing the last filing date and pay the penalty for the same.

3.       Use Form 26AS for TDS Details

You can know all your TDS details from the Form 26AS that you can find on the income tax website. The form is free to download and provides detailed information of all the tax deducted at source from your income(s).

Also, if any TDS has been deducted from the interest of FD, you can find details about this too in the form.

4.       60% Tax on Unexplainable Income

People who deposited Rs. 2 lakhs or more in their bank account at the time of demonetization need to provide details about the same, like bank name, account number, IFSC code, etc. at the time of filing the returns. There is a new section on the returns form for the same.

Unexplained income needs to be mentioned in the new returns forms, and this income would be taxed at 60% along with additional cess and surcharge.

5.       Collect all your Investment Proofs

In case you have not declared any of your investment to the employer that is eligible for exemption or were unable to provide the investment proof for some reason, the deductions for the same would be absent from your form 16. However, you can still claim the deduction if the investment was done before 31st March in the same year.

You can mention such investments at the time of filing the returns. While you’ll not need proofs at the time of filing returns, you might need them for future communication with the IT department.

Online return filing is quick and simple but surely requires you to keep a few important things in mind to avoid making any serious or expensive mistake. Keep the points mentioned above in mind and do not shy away from taking help of a professional if you are still confused with the process.

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Created on Feb 1st 2018 00:57. Viewed 421 times.

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