Income Tax Return Filing

All salaried individuals in India with an annual income exceeding the minimum exemption limit are legally obligated to file a return of income. A failure to file the returns before the due date mentioned in the IT returns form is subject to a penal interest of 1% for each month of delay. Delayed filings may also attract a flat-out charge of Rs.5,000 over and above the penal interest.

Documents Required for Income Tax Returns

Filing income tax returns can be an intricate task. To make the task easier, keep all essential documents handy before computing your tax liability and organizing your tax return. Commonly, a tax-payer is required to furnish the following documents while filing an income tax return:

• Form No. 16 (provided by the employer): This contains a detailed breakdown of your salary, along with the TDS (Tax Deducted at Source) information.
• Form No. 16A (received from parties who have deducted tax): This form needs to be collected from all parties who have made a payment to you after deducting tax. This includes a tenant living in your accommodation and individuals/institutions who have obtained a loan from you.
• Tax payment details: This is required only when an advance tax payment has been made during the relevant assessment year.
• Summary of bank accounts: This presents a comprehensive overview of all income earned and expenditure incurred during the assessment year.
• Details of property owned: This includes details of rent received, receipts of municipal taxes and loan details (if any). Additionally, assemble all sale and purchase bills and contracts in respect of investments and assets sold during the assessment year.

How to File Income Tax Returns?

With the centralizing of IT returns filing, an assessee can file his/her returns from anywhere in the country, at an IT office or a designated post-office. Even if an assessee has relocated, filing can be easily carried out from the new location with just an intimation of the change in address. Additionally, IT returns filing has become even easier with the introduction of electronic filing in 2004. The e-filing service can be availed from the official Income Tax Department website, www.incometaxindia.gov.in/