Saturday, 16 July 2016

           Benefits of writing IT returns

I’m taking the #TaxPledge to file IT returns with the easy Income Tax efiling option from H&R Block at BlogAdda.

The ITR Controversy of 2015

On 18th April government has notified the new ITR forms. Those new forms were opposed by various sections of businesses. The forms required detailed information from the taxpayer. It was so detailed that ITR 2 was of 14 page long. These were two point of contention from the new ITR forms.
  1. In the ITR 2 and ITR 2A, you needed to give full details of foreign travel. the assessee would have to report passport number, the issuance place of the passport, countries visited, number of times such journeys made. In case of a resident taxpayer, the expenses incurred from own sources in relation to such travel should be also reported.
  2. They assesse would have to furnish the number of bank accounts along with the account number, address, IFSC code, any possible joint account holder and balance in the accounts. It also included the dormant bank account.
After the uproar the finance minister Arun Jaitely immediately put these forms on hold. Now in the revised ITR forms you need to give only passport number and details of active bank account. You need not to mention the account balance. Also, This year government has extended the last date of  income tax return filing.

The Income Tax Return Of Salaried

Most of the income tax payers in the country is salaried. The employer deduct tax at source from the salary of employees. The employer takes care to the applicable tax of the employee. Therefore, most of you are not concerned about the payment of income tax. Since your employer do the taxation job, the filing of income tax return of salaried is easier.

Important Documents For Income Tax Return e-Filing

The Importance Of Form-16

The salaried employees get form 16. This form 16 has the details of your income and TDS. The 80C deduction is also incorporated in the form 16. The government has prescribed a format of form 16. This form 16 is used to file income tax return. Please note form 16  is not required with the income tax return form. It is used only for reporting the income and tax details. It is a certificate of TDS from the employer to the employee. You should preserve it for any further query.

Form 16A

This is also a TDS certificate similar to form 16. But it is used for TDS other than the salary income. There are many payments other than salary which is given after the tax deduction at source. The certificate of this deduction is given in the form 16A. Form 16 is given annually while form 16A is given quarterly.

Form 26AS

Form 26AS is provided by the income tax department. It shows all the taxes paid against a PAN. This form incorporates the TDS details of form 16 and form 16A. You can verify the TDS on your payments through the form 26AS. Anyone can access his form 26AS through the income tax e-Filing website. The login ID and password of e-Filing is used to view the form 26AS. You can also see your form 26AS through the internet banking.
You should also have details of your bank accounts and passport number while you e-File the income tax return.

The ITR-1 Form For Salaried Taxpayer

Who Should Use ITR-1

You should use ITR-1 to e-File income tax return if your income for the assessment year 2015-16 (financial year 2014-15) includes:
  • Income from Salary/Pension; or
  • Income from One House Property
  • Income from Other Sources (excluding winning from Lottery and Income from Race Horses) and does not have any loss under the head
You should also note that these conditions of ITR-1 is also applicable for the dependent spouse or minor child. As there income is clubbed with you. If wife or minor child is self dependent and filing her own income tax return, this clubbing rule is not applicable.

Who Should Not Use ITR-1

This Return Form should not be used by an Individual whose Total Income for the assessment year 2015-16 includes:-
a) Income from more than one House Property; or
b) Income from Lottery Winnings  or horse races; or
c) Income under the head “Capital Gains” ,e.g., short-term capital gains or long-term capital gains from sale of house, plot, shares and gold ; or
d) Agricultural income in excess of ₹ 5,000; or
e) Income from Business or Profession ;or
f) Loss under the head ‘Income from other sources’; or
g) Person claiming double taxation relief under section 90 and/or 91;or
h) Any resident having any asset (including financial interest in any entity) located outside India or signing authority in any account located outside India or
i) Any resident having income from any source outside India

How To e-File Income Tax Return Online

In this method of e-Filing the form is presented online. You fill the form and keep saving the draft. After the completion of form you have to submit it online. In this method you do not download anything. It is an easier process therefore It is listed asQuick e-File. Besides ITR-1, the form ITR-4S can be also filed through Quick e-File.

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