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10 Easy Steps To Tax Filing
10 Easy Steps To Tax Filing
Step 9: Choosing the correct income tax return (ITR) form.
Based on your income sources, you need to choose your ITR form.
The Final Act
Once the documents and the calculations are done, the process of filing tax enters
the final phase.
Which form to fill?
The return form that you would need to fill will depend on your income sources:
ITR-1: For individuals having income from salary, pension and interest earned in the
financial year
ITR-2: In addition to the above income sources, income from capital gains,
income/loss from house property and income from any other source
ITR-4: For all individuals having income from a business or profession
How to file your returns?
You can file your returns offline or online. However, before doing so, check whether
you still have a tax liability. In you are still to pay taxes, do so through Internet
banking or through cash/cheque at any bank along with Form 280. In both cases, you
will get a receipt number which will have to be quoted in your income tax return (ITR)
form
Offline
Fill ITR yourself or take a CA's help
Submit it at the IT office
Get an acknowledgement
Online
Register online
Input details of Form 16 in ITR
To submit ITR physically, take its printout to the IT office and get an
acknowledgement
If you want to send tax details to the IT department online and don't have digital
signature (DS):
Save XML file, upload it on IT department site
Download ITR-V (acknowledgement)
Courier ITR-V at IT office (if you have DS, there's no need to do so)
Now that you have sorted out the documents needed to file your tax returns and
worked out the mathematics, you just have to transfer the necessary information to
the income tax department in the prescribed format by filling out a tax return form and
depositing it. Once that is done, your task is over -- for this year. Here's what to do:
Which form should you use?
There are two income tax return forms, ITR-1 and ITR-2, for salaried individuals. Your
sources of income (they will fall under one or more of the five income sources
mentioned in the earlier articles) will decide which form you need to use.
Use ITR-1 to file your tax return if your income is from salary, pension or interest. In
case of any capital gains, income or loss from house property and income from any
other source, you will have to file ITR-2. You can go to
www.incometaxindia.gov.in/download_all.asp to download any of these forms.
You will find ITR-1 fairly simple to fill. A prerequisite for the exercise is Form 16, the
certificate that comes from the employer. It shows the tax deducted at source (TDS)
from the income chargeable under the head salary.
ITR-1 is almost a replica of Form 16. You just have to pick the numbers from Form 16
and put in the ITR form.
That's the end of your job. After this, all you have to do is deposit this form. You will
need to fill up ITR-2 if you, as a salaried individual, have made any capital gains. That
would require putting in the Form 16 figures in ITR-2 in the same way as you did in
case of ITR-1.
In addition, you will have to fill in the capital gains or income, if any, from house
property and securities.
If your income is from business or profession, which means that you are not a
salaried person, you will need to use ITR-4. This form is slightly more complicated
than the other two and you will possibly need the help of someone trained in
preparing a tax return, preferably a chartered accountant (CA).
Step 10: Filing returns
You can file your returns offline or online.
Remaining Tax Liability
Subtract your TDS from the tax liability that you computed earlier to ascertain if you
are still to pay any taxes. If you still have a tax liability, get hold of Form 280, fill it up
and deposit it in any bank along with the tax payable in cash or cheque before filing
your returns.
You can also pay this through Internet banking. In both cases, you will get a receipt
number, which has to be quoted in the ITR form.
What to do for refunds?
If you are entitled to a tax refund, in addition to your contact details, enter your bank
details in the form. It is equally important to mention the MICR number of your bank
branch. MICR is a 9-digit number mentioned next to the cheque number in the
cheque leaflet. If you file your return on time, you will get interest on the refund
amount from the beginning of the assessment year.
How to file?
The actual filing of return can be done either by using the traditional paper form or
electronically over the Internet.
Offline:
Under the offline method, you will have two options -- you may either submit the ITR
form at the nearest income tax office (ITO) after filling it up yourself, or you may get a
CA or a tax return preparer (TRP) to do it for you.
You may also take help from the public relations officer of the ITO to fill the form. No
documents or investment proofs need to be attached with the form, but remember to
bring photocopies or originals with you to the ITO.
These will come in handy if you are asked to authenticate your numbers. The CA
would charge a fee in accordance with your income slab and the number of income
sources. Typically, it would range from Rs 300 to Rs 2,000.
Online:
Known as efiling, this method is fast catching up. Filing returns online is compulsory
for companies, but optional for salaried individuals. In the future it will become
compulsory for individuals with a certain level of income, so it may not be a bad idea
to familiarize yourself with the process.
E-filing process
In order to e-file your returns, you will have to input the details of Form 16 in the
software of the website, which would automatically generate an electronic return in
XML format. This format helps in sharing of structured data across different
information systems. A PDF file of the relevant ITR form is also created along with the
XML format on the desktop of your computer. You can download this ITR form,
submit it at the ITO and get an acknowledgement.
Alternatively, save the XML file on your desktop and then upload it on
www.incometaxindiaefiling.gov.in, the government site. Private sites upload it on the
government site on your behalf. You will get the acknowledgement by email.
Using Digital Signature (DS)
Using a DS will help you complete the e-filing process without paperwork and visits to
the ITO. In case DS is used, the acknowledgement is emailed to the taxpayer.
How to get a DS?
A DS can be acquired from any of the agencies authorised by the government for the
job, including the private and government websites meant for filing tax returns. To get
your DS from a tax site, download the relevant form, fill it up, attach the required
documents, such as your identity and address proofs, and courier them to the
address concerned. The entire process of acquiring a DS may take around 15 days.
E-filing without DS
E-filing without DS is equally convenient now. After filing the returns online, the
taxpayer receives an acknowledgment called the ITR-V. Till last year, ITR-V had to be
submitted at the nearest ITO, making e-filing a manual affair at the end. From this
year, this form just needs to be couriered to a specific IT office in Bangalore making
the process convenient for assessees.
E-filing sites
There is a government site that offers this facility free of cost. The site
is;www.incometaxindiaefiling.gov.in/portal/index.jsp.
There are three non-government sites they are secure and easy to navigate. They
are;
www.taxspanner.com
www.taxsmile.com
www.taxshax.com