Tax filing is in full swing and thousands of taxpayers are busy e-filing their income tax returns. Websites like ClearTax capture the data from your Form 16 when you upload the document on the website, and offer tax benefits you are eligible for automatically. Follow these 7 simple steps to file your return online.

Step 1: Gather All The Documents

Form 16 is the single-most important document for filing income tax return for salaried individuals. Form 16 is an annual statement issued by the employer to salaried individuals carrying details of the employer, salary paid, tax deducted and investments declared. Also refer to your passbook or bank statement to find out savings bank account interest earned during the year and interest from fixed deposits.

Banks are required to deduct tax of 10% if total interest income from all fixed deposits exceed Rs 10,000. You will receive a Form 16A from the bank in such a case. If you trade on the share market, or have SIPs, then download the summary of your transactions from your demat account.

Ask your lender for a home loan interest certificate to avail tax benefits that are available to you as a homeowner. The home loan interest certificate shows you the split between your principal repayment and interest payments. Both of these can be claimed as a deduction in your income tax return.

Step 2: Claim All The Deductions You Are Eligible

Your employer calculates your salary and TDS deductions based on the investments you had declared at the beginning of the year. But you could have invested more under Section 80C during the year than you originally declared to your previous employer.

If you are concerned that you have not any investments under Section 80C, you’ll be happy to know that 80C offers tax relief on some of your expenses too.

Your contribution to the provident fund, life insurance premium payments (provided the premium is less than 10% of the sum assured), tuition fee if you have school-going children. This are few expenses that can be claimed as a deduction under Section 80C. Expenses related to stamp duty and registration charges can be deducted under Section 80C if you bought a house between April 2014 and March 2015.

Form 16 is the single-most important document for filing income tax return for salaried individuals

Section 80TTA, a common deduction that most people forget to claim, allows for a tax deduction on interest income from bank savings account of up to Rs 10,000. Make sure you avail this deduction.

Step 3: Check your Form 26AS For Information On Taxes Deducted

Download the tax credit statement Form 26AS from the Income Tax Department website. This contains information on all the taxes paid on your behalf by say, your employer or the bank. Make sure the entries in your Form 26AS match with the ones mentioned on your Form 16 or Form 16A.

Step 4: Pay outstanding taxes

When tax deducted is not adequate, you will be shown a tax due. This is a common case with fixed deposits. Interest from fixed deposits as taxed just like your salary income. But banks only deduct 10% TDS when the interest income exceeds Rs 10,000. You might have to pay the additional tax on the fixed deposit if you fall on the 20% or 30% tax bracket.

Another instance where there is a tax payable is when employees change jobs and fail to submit investment proofs to their current employer. The current employer might have not deducted taxes as much as they should have. Pay the pending taxes online on the department website. Then come back and make an entry in the income tax return under the head “Self-Assessment Tax” using Challan 280.

Step 5: Fill up the fields correctly

Enter your name as it is mentioned on the PAN card. There are new details that are required to be reported in the income tax return this year. Make sure you fill them up correctly. Irrespective of whether you are seeking a refund or not, you must select the bank account where you’d like the refund credited. Taxpayers with a passport must enter their passport number in the income tax return with the exception of those filing ITR-1. Taxpayers who hold an aadhaar card have to mention it in their income tax return. This has been added in all the new forms.

Step 6: Review And e-File Your Income Tax Return

Review your income tax return before you proceed to submit it to the Income Tax Department. You will receive a 15-digit acknowledgment number.

Step 7: E-verify Your Tax Return Or Send ITR-V To The CPC Bangalore

After you have successfully e-filed your tax return, you must verify your return using any one of options mentioned below: Send the ITR-V, the one page verification document to the Income Tax Department in Bangalore or e-verify using an electronic verification code (EVC) generated on the department website, or aadhar card, or your Netbanking account.

Written by: By Clear tax content Team

Posted by The Finapolis Monday, August 10, 2015 3:28:00 PM

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