In 2010 July 24, Indian Government declared as Income Tax Day. This day is just before six days of last date for filing an income tax return (ITR). ITR is mandatory process if you are earning an annual income of more than Rs. 2,50,000. ITR filling is an imporatant process and also it is critical process as well.
Know How ITR help?
ITR filing will legitimate your earnings and you can claim a refund if you paid excess tax to the government. Even though it is not compulsory by the government to file a return if the total income is below taxable limit set by Government but will recommend you to do so becouse ITR is one of the best document to proof of income. ITR also helps you while taking loan through ITR bank judge the payback capacity of the loan seeker. If you don’t have ITR then it’s difficult to get visa to travel abroad. If you want to take high life cover insurance policy or even though you want a high -limit credit card then ITR Required. Would recommend you that as we don’t have too much time now it’s just a week to go before the last date to file ITR.
So If you wanted to start filling ITR you need to have some of the important documents in place – PAN card, bank account details, Form 16, Form 26AS and proof of investments, which are useful for tax filing. Now you need to register yoursef in http://www.incometaxindia.gov.in/ and follow some of the Guidelines. After filing ITR successfully you will get your excess tax credited to your bank account within three to four months.
Here are some of the tips if you are planning to file ITR now to avoid any errors.
- You should start tax planning from the beginning of the financial year to save taxes defer last minute lapses.
- Filling personal details correctly is very important and it should matched with your PAN card detail. You have to also select correct ITR form and assessment year.
- Mention your correct bank account detail with IFSC Code it will help to ensure smoother ITR Processing.
- Declear all income you are earning from various source of investments to avoid tax trouble.
- If you change your job within a single financial year you should mention all the earnings from previous job.
- Once you filed your ITR you need to e-verified either through Aadhaar authentication, Online Banking Portal or by sending a signed acknowledgement copy to the IT Office.
- There are multiple options you can use to save income tax every year like rent receipt, medical receipt etc.
Here are five other tax saving instruments you can us:
i) Equity Linked Savings Scheme (ELSS): Investments in tax saving equity mutual funds will serve two purposes – wealth creation and tax-savings fund (EPF)
ii) Public Provident Fund (PPF)/Employees’ Provident Fund (EPF)/National Savings Certificate (NSC)/ Kisan Vikas Patra (KVP)
iii) Tax-saving FD (5 years)
(iv) New Pension Scheme (NPS): It gives an additional deduction of Rs. 50,000.