Saturday, 29 January 2011

File Your Income Tax Return Carefully

Every individual person those who have a taxable income should submit income tax return. IF your income is more than Rs. 160000 (for Gents), Rs. 190000 (for Ladies) and Rs. 265000 (for Senior citizen – those who have completed 65 years) for the Financial year 2010-11 (Assessment Year 2011-12) is liable to submit Income Tax return, even if your employer deducted your tax or not.  You can submit Form ITR-1, if your source of income is only from salary or pension and interest. But if you have more source of income such as capital gain or rental income you should choose the Form ITR-2.

You can file your Income tax return manually or through electronic filing. The last date of submitting your Income Tax return is 31st July. If you are submitting it through electronic filing without digital signature, you have to submit the ITR-V form (which can download after uploading electronic return) to the concerned officials within 30 days. If not it will be considered as you have not submitted Income Tax Return.

As per the current Income Tax rules the dividend income received from mutual funds, long term capital gain on securities etc. are exempted from income tax, but you are liable to report such income through your Income Tax return, even if you are not liable to pay any income tax for the same.

You are also liable to reveal your financial transactions more than a certain limit such as your credit card transactions more than or equals to Rs. 2 lakh for the year, purchase of shares of a company more than Rs. 1 lakh, purchase of mutual funds more than Rs. 2 lakh etc.,

Income received by a minor child should be considered as the income of the highest income parent and should be included in your income tax return as income and taxes to be paid accordingly.

Do not forget to include your interest income even though it is a small amount or not. All interest income is taxable without any exemption and can be traced by the ITO easily. If you are an employee, disclose all your interest income to the employer in time and allowed him to deduct the tax accordingly. Then you can avoid last minute extra tax payment.

You have to submit the correct details of your bank account number, MICR code etc. for the proper and timely refund of your excess tax if any.

If you are doubtful for any tax rules and filing tax return, get help of any tax experts or online tax help. The income tax authority is also ready to help you for filing your income tax return correctly. Do not hesitate to seek help. It is better to file the correct return than filing a wrong return. So file your Income Tax Return correctly and promptly and be a proud citizen of our nation.

Related Posts
Calculate Your Income Tax Liability Automatically
The end of the financial year is almost at the doorstep. This is the right time to recalculate your tax liability. In case of employees the employer is deducting TDS (Tax deducted at source) and should not be much worry … Continue reading ?

United States Government to offer prepaid debit cards for tax refund
The Treasury Department of United States wishes to pay tax refund through prepaid debit cards. This will be helpful for lower income tax payers those who do not have bank accounts and also can reduce the paper work and related … Continue reading ?

Income Tax Deduction (TDS) from Salaried Employees
In case of salary the employer should deduct Tax at the time of disburse the salary. This deduction is known as Tax Deducted at Source (TDS) from Salary. TDS from Salary is not like other TDS such as TDS from … Continue reading ?

1 comment :

  1. [...] a Salaried Tax payers those who have satisfied all the above conditions should not file income tax return for the assessment year 2011-12 (Financial year 2010-11) and their TDS certificate in Form No. 16 [...]