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6 Steps to Make Online Tax Filing a Cakewalk for Employed People
by Kristen White BloggerEvery year, as the financial year-end beckons, thousands and thousands of taxpayers in India feel the rush to complete the tax filing process. Tax filing is a financial obligation for all people who are employed or engaged in a business and their income falls under the tax bracket. If you have no prior experience with tax filing, the task may seem to be quite overwhelming, however, it is not very difficult if you know the process well. For all the beginners, here is six-step guide that would make the task simple.
Keep your PAN card ready
Mentioning the PAN details in the income tax form is a mandatory requirement. So while you are filling the form, keep your card handy to enter the details quickly. Also, be careful while entering the personal details, the name and the father’s name section should be filled exactly as mention on the PAN card.
Keep your AADHAR card ready
With effect from 1st July 2017 mentioning the AADHAR details has become a compulsory requirement for filing the tax. If you do not have AADHAR card make sure that you apply for it and get the enrollment number before filing your taxes online.
Ask the employer for Form 16
Form 16 is the most important document for online tax filing in India. The form contains all the important information needed for tax filing. Typically, form 16 is given by the employer to all their employer before 31st May every year. If you have worked at more than one organization during the financial year, it is advisable that you collect the form from both the employers.
Don’t forget about Form 26AS
This form contains all the details of the TDS (Tax Deducted at Source) that is linked to your PAN card. The details of the TDS that is deducted from the fixed income like fixed deposit, rent, salary and commission income can be traced with the form 26AS. By looking at the various deductions, you can adjust the TDS from your local tax liability as this tax is already deducted from the income. If you file a TDS claim and not provide the details of the related income while filing the tax online, you may receive a tax notice.
If your annual income is over 50 Lacs, collect the details of all your assets
If your annual income is more than 50 Lakhs, you would have to provide additional details like the value of the immovable and movable assets, the liquid cash, and jewelry. You have to declare these details in the Schedule AL.
Collect all your proof of investment
If for some reason, you did not declare the proof of your various investment to the employer, the tax deduction will not appear in form 16. While filing the tax, you can claim for the deductions only for the eligible investments made before the end of the financial year, which is 31st March. If you have made any investments, you can include the details of it while filing the tax returns.
Keep your PAN card ready
Mentioning the PAN details in the income tax form is a mandatory requirement. So while you are filling the form, keep your card handy to enter the details quickly. Also, be careful while entering the personal details, the name and the father’s name section should be filled exactly as mention on the PAN card.
Keep your AADHAR card ready
With effect from 1st July 2017 mentioning the AADHAR details has become a compulsory requirement for filing the tax. If you do not have AADHAR card make sure that you apply for it and get the enrollment number before filing your taxes online.
Ask the employer for Form 16
Form 16 is the most important document for online tax filing in India. The form contains all the important information needed for tax filing. Typically, form 16 is given by the employer to all their employer before 31st May every year. If you have worked at more than one organization during the financial year, it is advisable that you collect the form from both the employers.
Don’t forget about Form 26AS
This form contains all the details of the TDS (Tax Deducted at Source) that is linked to your PAN card. The details of the TDS that is deducted from the fixed income like fixed deposit, rent, salary and commission income can be traced with the form 26AS. By looking at the various deductions, you can adjust the TDS from your local tax liability as this tax is already deducted from the income. If you file a TDS claim and not provide the details of the related income while filing the tax online, you may receive a tax notice.
If your annual income is over 50 Lacs, collect the details of all your assets
If your annual income is more than 50 Lakhs, you would have to provide additional details like the value of the immovable and movable assets, the liquid cash, and jewelry. You have to declare these details in the Schedule AL.
Collect all your proof of investment
If for some reason, you did not declare the proof of your various investment to the employer, the tax deduction will not appear in form 16. While filing the tax, you can claim for the deductions only for the eligible investments made before the end of the financial year, which is 31st March. If you have made any investments, you can include the details of it while filing the tax returns.
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About Kristen White 
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285 connections, 0 recommendations, 1,021 honor points.Joined APSense since, August 19th, 2016, From Chicago, United States.
Created on Mar 20th 2018 05:48. Viewed 715 times.
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