Tuesday, July 24, 2012

Useful Info and Links on E-filing Income Tax ... - Personal Finance


31st July is the deadline for filing your tax returns. For many of you who can file their tax returns online, also called e-filing, the long Ques are no longer relevant. You can file your returns sitting comfortably at your home or office and do it online.

And this 31st July deadline is also not relevant if you have paid your taxes as advance tax or by tax deduction at source before 31st March, 2012. Also, if you have no unadjusted loss to carry forward, you can efile/file your returns upto 31st March, 2013.

However, it's always to better to finish these mundane tasks as soon as possible. Why wait for deadlines?

Here is some useful information on tax filing. Let's start with the question about "What is income tax return?"

Income tax return is a prescribed form through which the particulars of income earned by a person in a financial year and taxes paid on such income is communicated to the Income tax department after the end of the Financial year.

Declaring the income earned means that you are informing the income tax department of the actual amount earned under various heads such as salary, interest, house rent, capital gain / loss etc.

Declaring taxes : You pay your tax dues in any of the following ways namely, Tax Deducted at Source, Advance tax or Self-assessment tax. Paying the entire tax liability means that you have paid the tax due to you for an assessment year. This also needs to be declared in the Income tax return.

Do you have to file your return?

The CBDT has exempted taxpayers with an income of less than 5 lakh from filing their tax return. However, you can avail of this exemption only if you have income from salary and bank interest. Also, this interest should not exceed 10,000 in a year and you should have paid the tax due on it. You should also not have any tax refund due.

If you have paid more tax than due, the only way you can get it back is by filing your return. Don't look at filing your tax return as a painful exercise. Instead, think of it as sending a bill to the Income Tax Department demanding a refund of the amount you overpaid in taxes during the previous year. The sooner you do it, the better it is for you because the faster your tax refund reaches you.

BeMoneyAware has a detailed post on the basics of tax returns and filling up the individual ITR form

Different forms are prescribed for filing of returns for different kind of tax-paypers and nature of income. Forms for the year 2012-13 can be downloaded from Income tax website:NEW RETURN FORMS FOR ASSESSMENT YEAR 2012-13.

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Source: http://personalfinance201.com/Tax-Return-Filing/useful-info-and-links-on-e-filing-income-tax-returns.html

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