The due date for filing tax return for FY12 for individuals is July 31. With time running out, taxpayers may wonder where and how to start the process. The following steps will help you file your tax return:
Step 1: Identify all sources of income. Think back about the various sources of income earned during the year under any of the five heads, ie., salary, house property, business or profession, capital gains or income from other sources. Tax return is required to be filed if the total income is above the basic exemption limit.
Step 2: Identify eligible tax deductions. Tax deductions can be claimed for allowances, such as LTA, HRA and for certain investments like PPF, NSC, children?s school fees, housing loans, specified donations, etc.
Step 3: Collect all relevant documents. The documents generally comprise Form 16 issued by the employer; Form 16A issued by banks, receipts issued for donations made; bank challans for advance taxes paid, etc. If you have not received any of these documents, write to the relevant persons to provide the documents.
Step 4: Verify the tax credits as appearing in Form 26AS. Form 26AS provides details of taxes paid in your name as per government records. This form can be downloaded and compared with the Form 16/Form 16A issued to match the tax credit claimed in your return.
Step 5: Calculate and pay the balance taxes and interest. Once you have all the documents in place and have verified your tax credits, you would need to calculate any balance taxes payable. This is calculated after adjusting the TDS and advance taxes paid during the year. Balance tax can be paid in the form of self-assessment tax along with interest, if applicable.
Step 6: Choose the right tax return. There are many forms for individuals like ITR 1 (Sahaj), ITR 2, ITR 3, ITR 4 and ITR 4S (Sugam). The tax return applicable depends on various sources of income earned during the year.
Step 7: Fill the necessary information in the tax returns. While filling the tax return, correct personal details like taxpayer?s name, PAN, address, residential status, etc., should be provided. The details of income earned under the various heads, deductions claimed, tax paid, etc., are required to be provided in the tax return.
Step 8: File your tax returns. The tax returns can be filed manually or electronically. Electronic filing is mandatory if an individual has taxable income of more than R10 lakh or if an ordinarily resident individual/HUF has foreign assets.
The author is a director in KPMG. Views expressed are personal