Compulsory E-filing: All individuals who have taxable income of above Rs 5 lakh in the financial year 2012-13, are mandatorily required to file their income tax return online (e-filing) in the assessment year (AY) 2013-14. Last year, the limit was Rs 10 lakh. So, ensure you abide by the new rule.
The government of India has made many amendments to the Income Tax Act 1961, in the Budget 2013-14. While filing the return, you have to keep in mind the changes. Then, you have to understand the form that you have to fill. The salaried individuals, who are required to file their returns latest by July 31.
However, the process is not as cumbersome as it is assumed to be. If you are a salaried individual not liable to pay any additional taxes and are not expecting any refund from the income tax department, you can follow following simple steps to complete the process within an hour,
8 Steps to file your IT -Returns
Filing returns through this IT department official website is free.
Step 2: The next step is to download the
ITR form applicable to you. You will find the forms in ‘Downloads’ menu. This year, most tax-payers will have to download Form ITR 2 as those with tax-exempt income of over Rs 5,000 cannot file their tax return using Form Sahaj (ITR 1). In simple terms, if your salary includes components like
conveyance allowance,
house rent allowance (HRA), leave travel allowance, etc, which collectively exceed Rs 5,000 in a year, you will have to opt for ITR-2. See at the end of this page for more information on which form you should select
Step 3: Once you download the Return Form’s excel utility, you need to enter all the details asked for by referring to the Form 16 issued by your employer.
Form 16 should be sufficient enough to provide all the details, if you don’t have any other source of income apart from salary.
Step 4: Now, validate the information by clicking the ‘Validate’ key. An XML sheet will be generated and saved on your computer.
Step 5: Upload the XML file on to the I-T
e-filing website after selecting AY 2013-2014 and the applicable ITR form. You will be asked whether you wish to digitally sign the file. If you have obtained the DS (digital signature), select ‘Yes’. Otherwise, choose ‘No’ and proceed further.
Step 6: If the process is completed as per the requirements, the site will flash a message indicating the success of your e-filing process. You can check your mailbox to ascertain whether your ITR-Verification form has been mailed to your registered e-mail ID.
Always provide your personal mail ID, but not you office mail ID. Refer bottom of this page for more info.
Step 7: Next, get a print-out of your ITR-V, sign the form (in blue ink) and send it by ordinary post to the Income Tax Department-CPC, Post Bag No-1, Electronic City Post Office, Bangalore – 560 100, Karnataka within 120 days of filing your returns electronically.
Step 8: If you do not receive any acknowledgement from the I-T Department, you should send the form again. However, avoid enlisting the services of courier companies, as your form will not be accepted. Forms sent through Speed Post, though, will be accepted.
Choose the right form
ITR-1, known as Sahaj form, has to be filled by individuals who have income from salary or pension, receive income from one house property or have income from sources other than winnings from lottery and race horses.
ITR -2 : If you received more than Rs 5,000 tax-exempt income during 2012-13, you will have to use the ITR 2 for filing your return this year. Exempt income includes tax-free sources of income, such as the interest on PPF, tax-free bonds and dividends.
-> Also, a taxpayer is not supposed to use ITR 1 if he has foreign assets or has claimed tax relief under any double taxation avoidance treaty.
-> Also, if you have a loss brought forward from previous year, you have to file ITR-2.
Remember following points before submitting the ITR-1 or ITR-2
1. Submit all Form 16: If you have changed jobs, ensure that you collect the Form 16 from the past employer as well. There is a good possibility that your past employer too has deducted tax, which means you could have paid extra tax. Hence you might just be eligible for a refund if you submit all the relevant Form 16 documents.
2. Be careful with email address: Never use your office email address on the ITR form. If you change jobs in the future, you won’t have access to that email address. Giving your office email ID on ITR form is one of the dumbest mistakes you could ever make.
3. Submit all information regarding income from other sources information: It becomes imperative that you declare all the income you earn even from other sources like capital gains even if such income is not taxable. Also mention income from other sources, right from sale of house property as well as rental income. 4. If you have more than one house and the other house is lying vacant, don’t forget to add the notional rent of the vacant house in the total taxable income.
4. Sending e-filing acknowledgement on time: Once you file the returns, you get an ITR -V acknowledge, which you need to submit to the IT department’s Bangalore office within 120 days. First mistake many make is that they forget to send the ITR V acknowledgement within the deadline. Another thing you need to keep in mind that you need to send it via post or speed post and not courier. And thirdly, you need to sign the acknowledge in blue ink and not black.
5. Double check numbers: If your agent is filing the form for you, ensure you check it before submitting. Even spelling mistake could cost you later. Next is to ensure there are no typos, especially in the PAN, TAN number. There is a good possibility you could be fined for a wrong entry. So double check all numbers once before submitting the form online. Even the IFSC number of your bank, if you are expecting a refund.
6. Income from fixed deposit or savings bank account is taxable.
7. Any investment in name of your wife, husband, or minor child will be clubbed with your taxable income and will be taxed under section 64 of the income tax act. However, such income is exempt up to Rs 1,500 each for two children.
8. If you have received gift in cash of more than Rs 50,000 from someone who is not your relative or spouse, you have to include that in your total taxable income under section 56 of the Act. Similarly, if you received any immovable property as a gift, the stamp duty value of which exceeds Rs 50,000, you have to include that too.
9. Income from short-term capital gains like sale of shares or an equity-oriented mutual fund should be filled in the form. It is taxable as per section 111A at a flat rate of 10 per cent. However, if it is sale of any other asset it is taxed at the normal slab.
10. Though long-term capital gains are not taxable, they have to be mentioned in ‘other assets’ under section 112(1). This includes consideration received for assets sold such as house property.
11. Winnings from lottery also need to be mentioned in the return.
12. Bank account number and MICR code has to be mentioned in the form. In case you fill either of these wrong, you would need to submit a cancelled cheque showing the corrections. You may also log on to the website and make a refund re-issue request under ‘My Account’.
If still confused,
There are few private websites which helps you file your e-returns. These websites charge individual taxpayers between Rs 200 and Rs 4,000 for uploading their tax returns. However, private tax filing portals hand-hold the taxpayer through the process. They guide you while filling the form and even correct you if you make a mistake. You can use any of these below web sites for such services.
