17 Jul 2018
#FinancialBytes: A step-by-step guide to Income Tax return filing
July 31 is the last date to file your income tax, and if you fail to do it on or before that, a penalty of upto Rs. 10,000 would be levied.
Most of the I-T returns are to be filed online, except for a few cases in which a physical return is permitted.
Worried about how to go about the procedure? Here, we elaborate.
Collection of forms, and Form 26AS
First off, you must collect all the necessary forms such as Form 16, salary slips, and interest certificates, as these will facilitate the computation of your taxable income, and details about TDS.
Additionally, for those unaware, Form 26AS is your tax passbook that showcases the taxes that have been deducted from your income, and deposited against your PAN, during the assessment year in question.
About downloading Form 26AS, and rectification of errors
Download the Form 26AS or the tax credit statement from the TRACES website. To download the form, log in to your account, go to "My account" tab, and choose "View form 26AS" option.
Do match the amount of tax deducted with that mentioned in the TDS certificates.
In case there are any discrepancies, bring the matter up with the deductor (bank, employer, other parties).
About the computation of your net taxable income
Once you've taken into account all the tax that was deducted from your income during the entire assessment year, you can start computing your net taxable income, if any, for the year.
You can arrive at the final figures by adding-on all the incomes under the five different heads, accounting the losses, and claiming all deductions, in accordance to the Income Tax Act.
About the calculation of your tax liability, and tax payable
Now that you've computed your final taxable income, do calculate your tax liability using the prevailing income tax rates applicable to your income-slab.
After calculating the tax liability, subtract the taxes that have already been paid in the form of TDS, TCS, and advance tax during the year, and add interest due, if any.
This will give you your payable tax balance.
About filing and verification of ITR
After paying the taxes due, you should now finally file your ITR.
Carefully choose the correct ITR form for yourself.
And after successfully filing the return, get your ITR verified.
This can be done online (on the NSDL portal), and also offline by signing and sending a copy of the verification form to the CPC, Bengaluru.