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7 Tips for ITR Filers

7 Tips for ITR Filers

I guess most of us, specially who are not professionals, would be busy in searching over net the available deductions and instructions to file ITRs. Apart from a duty to contribute to the development of nation in form of taxes and filing ITRs, it is also necessary to claim refund of taxes, show as valid proof of income for availing loans and peace of mind (Of course! Who wants to receive even a simple Hello! Notice from IT Department).

So as to minimize your hardship to a little following are some useful tips which can help you to sail through the river of current Financial Year of return filing:

1. Whether to File ITR or Not: If your income exceeds basic exemption limit (i.e. Rs. 2,50,000) then you must file ITR to avoid any surprise. If your income is more than Rs. 5,00,000 then it is mandatory to e file the ITR.  If TDS has been deducted and you think you deserve refund of that then you must file ITR to claim the refund. Even if no tax payable or no refund is due you should continue the holy ritual to file ITR every year reporting your correct income so that Kripa Bani Rahe!

2. More Time to File ITR: For all the assessee having salary income, Income from house property, Interest Income or business income where accounts are not required to get audited due date for filing ITR has been extended to 31st Aug, 2015. Hurray! One month more for mind battle! 

3. What’s New this year: This year IT department has launched new service of e verification of ITR through OTP (Like we do while making online payments) which can be accessed by internet banking, aadhaar number, ATM & E mail. So now we don’t need to send the ITR V acknowledgement (Do Not Disturb Letter!) to IT Department, Bangalore. 

4. Correct Form of ITR: Categorize your sources of income. Based on the source of income you have to choose correct form for yourself. For example ITR1 is for salaried persons along with interest income and ITR4 is for Proprietary Business or Profession. Different forms for different category of incomes. 

5. Paper Work: Now no paper has to be sent to IT Department to file ITR. You just need to have Form 16 of applicable FY with you to file tax return, if TDS has been deducted on your income. Hey! But if you couldn’t E verify your online return then same as you did in the last year, you have to send ITR V to IT Department Bangalore. 

6. Our Favorite Part! Deductions: Obviously we all want to save tax, therefore we have been given so many beautiful sections under boring IT Act. There are many sections under it, some of them are :

  1. Deduction under section 80C, 80CCC & 80CCD(1) is available upto Rs. 1,50,000. Under this section you get deduction for amount paid for PF, annuity plans, LIC, other insurance, pension fund and other annuity linked approved investments.
  2. Deduction u/s 80TTA is for interest on deposits for FY upto Rs. 10,000.
  3. Preventive health checkup expenditure of spouse/self/parents is allowed u/s 80D, even in cash upto 5,000/- and upto 15,000/- for medical insurance premium of self, spouse & children.
  4. You can claim deduction of Interest paid on Loan for Higher Education u/s 80E for yourself, spouse, children or students whom assessee is legal guardian.
  5. If you don’t receive HRA doesn’t mean you cannot claim deduction for house rent paid. Though the quantum of relief is limited but still it is there. Under section 80GG you get standard deduction of Rs. 2000 per month for house rent paid.

There are also other deductions available under chapter VIA for tax savings.

7. The Cherry on the shake: Apart from deductions under chapter VIA we do also have rebate of tax upto Rs. 2,000, If gross total income after deduction is upto Rs. 5,00,000. 

7 Tips for ITR Filers

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