Farmacy

Sep 14 2017

Income Tax Return Filing: Ten rules you must follow while filing income tax returns, income


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Ten rules you must follow while filing income tax returns

If the gross taxable income after exemptions, but before deductions, exceeds the basic limit, or if a tax refund has to be claimed, you need to file your tax return.

Income tax returns delayed

Do you have to file your tax return? Taxpayers hold many misconceptions about this. Some think if their income is not taxable, they needn’t file their return. Others believe that if tax has been deducted at source, their tax compliance is taken care of. The rules say that an individual has to file his tax return if the gross taxable income is above the basic exemption limit. This limit is Rs 2.5 lakh for general taxpayers, Rs 3 lakh for senior citizens (above 60) and Rs 5 lakh for very senior citizens (above 80).

Income tax returns delayed

Komal Agarwal CA and Partner, Mahesh K. Agarwal and Company

“Even if the tax is zero or all taxes are paid, the individual must file the return if the gross total income exceeds the basic limit.”

Once it is clear that you have to file returns, the next step is to verify whether the tax deducted on your behalf has been credited to your PAN. While the tax deducted by your employer will reflect in the Form 16, check out your Form 26AS online to make sure that all other taxes (advance tax, TDS on interest and other incomes) have also been credited to your PAN.

Income tax returns delayed

Sudhir Kaushik CFO and Co-Founder, Taxspanner.com

“The tax details in the return must match the TDS details in the Form 26AS. A mismatch will surely lead to a notice.”

III: THOU SHALL CHOOSE THE RIGHT FORM FOR FILING RETURN

One big confusion among taxpayers is which form they must use to file their return. Most tend to use the ITR 1 because it is simple to fill. The rules relating to forms have changed this year. Here is a guide to the forms that individuals have to use:

Income from salary or pension Income from one house property Income from other sources (interest, dividends, etc)

You are carrying forward losses Your total income exceeds Rs 50 lakh You hold foreign assets Agricultural income exceeds Rs 5,000 You have taxable capital gains You have income from business or profession You earn income from more than one house property

Income from salary or pension Income from house property Income from capital gains Income from other sources Income as a partner in firm Foreign assets and income Agricultural income of over Rs 5,000

You have income from business or profession

Are an individual or HUF with income from proprietary business or profession. Have income from house property, salary, pension and other sources

You have opted for presumptive taxation

If you deposited more than Rs 2 lakh in cash in your bank after demonetisation, it has to be reported in the tax return. Mind you, the Income Tax Department has already got details (name, address, PAN) of the cash deposited by individuals. This information can be matched with the ITR. In case there is a mismatch in the reporting, the individual can expect a notice.

Income tax returns delayed

Chetan Chandak, Manager, Tax Research, H ?>

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