Six Things to do Before Filing Your IT Returns

Written by Vidya Kumar

May 24, 2017

Picture

Executive Summary: It is compulsory to file ITR form if you are earning income greater Rs. 2,50,000. Filing tax returns is akin to a nightmare for many. But if you prepare the requirements beforehand, it is not such a cumbersome process. You need to be aware of your income, investments and keep documentation handy before filing your returns.

It is the time of the year to get ready to file your taxes. Let us look at the requirements for filing tax returns. If you are prepared with the following, it will be easy to file taxes –
1) Ascertain the various sources of income that you have. It can include salary, commission, dividend received, interest earned or proceeds of sale of capital assets.

2) Determine the losses you have made in selling off capital assets like land or shares if any.

​3) You need not submit all the documents mentioned below. But these documents help you fill the income tax form with ease. So it is good to have these documents handy –

  • Form 16 issued by the employer in case you are salaried.
  • Property details if there has been any purchase or sale.
  • Contract notes of purchase or sale of shares.
  • Bank account statements of all operational accounts – savings account and current accounts.
  • Form 26AS, which is your tax credit statement . It shows all taxes received by the Income Tax Department.
  • If you have property that is rented out and your tenant has deducted TDS on rent, get the form 16A.
  • Documents of transactions that can get you tax deduction. For example if you have taken an education loan or home loan, keep proof handy about the principal amount and interest paid in the financial year.
  • Any other documents that have details of any transaction that has affected your income.

4) How much do you earn? If it is greater than Rs. 5,00,000, you have to e-file your tax returns meaning you have to file taxes online. If your income is less than Rs. 5,00,000 and have not claimed refund, you have the option to file it offline. You can also fill offline if you are 80 years or older.
Understand the form that you should use to file returns. For individuals there is ITR-1, ITR-2, ITR-2A, ITR-3, ITR-4 and ITR-4S. Click here to get more details of the different forms. Be sure of the form to fill in
5) PAN is required to file taxes and now it has been made mandatory to link PAN and Aadhaar for filing tax returns apart from a few categories of people who are exempt from it. Ensure your PAN and Aadhaar are linked. Click here for more details about linking of PAN and Aadhaar.

Once you have all the above mentioned things in place, you can fill the ITR form easily and file your returns online.
Let us know, if you faced problems in completing your ITR filing.

0 Comments

INSIGHTS + MONEY STORIES

INSIGHTS + MONEY STORIES

Our Newsletter features money stories and useful insights on personal finance that can help you make informed decisions and stay up-to-date with the latest trends in personal finance. Sign up today!!!

You have Successfully Subscribed!