Guide to File Your Income Tax Returns

It is the time of the year to file your income tax returns. We hope that you are aware that the deadline for filing taxes is July 31^st. If you fail to file your Income Tax Returns on time, you can be penalized. Even if you do not pay tax in absolute terms, income beyond a threshold level is chargeable to tax and you have to file the tax returns.

Whether we like it or not, taxes are an integral and unavoidable part of our life. Let us understand them better to make our life easy.

Here is a simple step-by step guide to file taxes -

1) Get your documentation ready. You can keep the following documents handy when you are filing tax returns as information from them will be required to file the returns -

·       PAN Card

·       TDS Certificates

·       Information on Investments and Loans

·       Form 16

·       Interest statements

·       Form 26AS

2) Assess what your income is. Consider salary, interest from Savings A/c and FDs, dividend received, rent earned etc. You should also consider loss on investments and principal and interest paid on housing loan, education loan etc.

3) If your income is less than ₹ 2,50,000, it is not mandatory to file IT returns else you have to file IT returns whether there is any actual tax payable or not.

4) Log on/Register on the IT website using your  PAN number.

5)  Select the appropriate Income Tax Returns (ITR) form.

Form	Criteria To Select Form
ITR 1	Income from salary/pension and have one house. Income is less than ₹ 50,00,000.
ITR 2	Income > ₹ 50,00,000, Capital Gains, Foreign income, Income as a partner or from agriculture.
ITR 3	Income > ₹ 50,00,000, Capital Gains, Foreign income, Income as a partner or from agriculture.
ITR 4	Income from Business/Profession.
ITR 5	If the entity is a firm, LLP, or other such association.
ITR 6	Companies that do not claim exemption under Section 11 use this.
ITR 7	Persons/Entities governed by Section 139 4A, 1394B, 1394C, 1394D, 10(23A) and 10(23B).

6) Complete the form and submit it online. If you fill the form offline, you should generate an XML file and upload it  The ITR Verification (ITR-V) will be generated. It should be downloaded.

7) Print the ITR-V , sign it and send it to the Income-Tax Department-CPC , Post Bag No-1 , Electronic City Post Office, Bangalore - 560 100, Karnataka, within 120 days of filing your return online. It has to be sent via ordinary post or speed post. There is also the option of e-verifying the return using Netbanking, Electronic Verification Code etc. You will get an intimation of the ITR-V received by the IT department via email and/or SMS. You can also check the status online.

Filing tax returns is a must. Income Tax statements are required while applying for loans, getting visas, for start up funding and other business/professional ventures etc.

If you are prepared beforehand with all requirements and information, filing tax returns becomes a smooth process.