FILE YOUR RETURNS PRONTO

The thought of July 31st gives many the heebie-jeebies. As per the Income tax laws of our country, all taxpayers, who do not have to get their accounts audited, have to mandatorily submit their income tax returns by this date. The others can take it easy as the cut-off date is September 30th. With the clock merrily ticking away towards the deadline, there is a mad rush to settle this year- on- year issue. If all that financial gobbledygook and the math work involved scares you, then its best that you consult a Chartered Accountant or a Tax expert. You can also avail yourself of the services an e-filing web portal and get the task accomplished online and save yourself from waiting in long queues. Another viable option would be direct e-filing (https://incometaxindiaefiling.gov.in) if you enjoy the benefit of net banking facility.

Who has to file returns? If your income for the year 2010-11, has crossed the basic exemption limit of Rs 1, 60,000 (Rs 1, 90,000 for women and Rs 2, 40, 000 for senior citizens) before deductions, then you are on. Interestingly, commencing assessment year 2011-12 onwards, you neednt bother yourself with income-tax returns if you are a salaried person whose annual taxable income including salary and interest is up to Rs 5 lakhs unless you are expecting a refund from the income tax department. You also need to apprise your employer of any interest or dividend income, so that they can include it in your Form 16.
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What to do next? 1. Get your PAN card ready. Apply for one immediately if you dont have one as yet. Quoting your PAN in the return is mandatory. 2. List your sources of income-salary, house property, capital gains, profits from business, income from other sources. 3. Compute your tax liability. You can do it on your own if your income is solely from salary and interest using your Form 16/16A. On the other hand, if you find it tough to work out, then its best that you consult an expert. Many websites offer free Income tax calculators, which you can use to cross-check the figures. 4. Organize the relevant documents such as your Form 16/16A, Form 12 BA, bills/vouchers, rent receipts, bank certificate on your home loan, financial statements, advance tax challans, savings certificates, bank statements and so forth. Note that none of these documents are to be submitted with the return. The return filed is to be strictly annexure-less. 5. Select the appropriate ITR form applicable to you. 6. Jot down your bank details and MICR code correctly, so that you can get your refund credited to your account. 7. Make certain that you pay your taxes (in the form of TDS, advance tax or self assessment tax) prior to filing the return to avoid glitches in the future. Pay up now so that you will not have to do any troubleshooting later.

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ITR Forms To condense the return filing process, the Income tax Department has introduced two tax friendly forms this assessment year. Sahaj is intended for the salaried class and Sugam for the small business men and professionals (covered under presumptive taxation) to curtail their compliance burden. These are the first technology-enabled, tax payer friendly forms in our country. Saral forms, which were used in the earlier assessment years, stand withdrawn now. The specified color scheme for these new forms has to be strictly adhered to or else the return is invalid. So be careful not to use black and white format straight out of your printer.
ITR1 SAHAJ Individuals should use this form if their income comprises of no more than the following: 1. Salary/ Pension or 2. Income from one House Property (excluding cases where loss is brought forward from previous years 3. Income from Other Sources (Excluding Winning from Lottery and Income from Race Horses). For Individuals and HUFs not having Income from Business or Profession For Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship For small businessmen and professionals covered under presumptive taxation. Individuals and HUFs who carry out any business or professional activity in addition to having sources of income applicable to ITR-3. Firm, AOP, BOI, artificial juridical persons, cooperative society and local authority are to use this form Companies (other than claiming exemption under section 11)should make use of this form Persons including companies who are required to furnish return under section 139(4A) or under section 139(4B) or under section 139(4C) or under section 139(4D) should employ this form. Acknowledgement form for all ITR- Forms

ITR2 ITR3 Sugam ITR (4S) ITR 4 ITR 5 ITR 6 ITR 7

ITR-V

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A stitch in time saves nine Missed the deadline? Theres no need to panic. You are at liberty to file a belated return before the running out of two years from the end of the financial year in which you earned the income. That means for the income earned in 2010-11, the time limit can be stretched up to March 31st, 2013. But you will have to pay a price for disregarding the law. 1. If the Income Tax Department feels like slapping a fine of Rs 5000/- on you, it may do so any time after March 31st, 2012(i.e. once the assessment year is over). So ensure that you swing into action before the 31st of March, 2012, to avoid the penalty. 2. In addition to this, if you have failed to remit your taxes as well, then a simple interest of 1% per month will be charged on your tax dues. So speed up and file those returns to avoid complications afterward. Besides, there are a couple of other reasons as to why you should stick to the cut-off date. If you have missed the deadline by any chance, you can neither revise your return later nor will you be eligible for any refunds from the Income tax department. What's more, to file a loss return and to carry forward losses, its mandatory that the return be filed promptly.

Bear these guidelines in mind and draw this tedious affair to an early close. File with a smile and go with a light heart!

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