Procedure of filing IT returns and deductions available in the process | Details of tax slab for individuals and various forms to be filled during filing of IT returns

July 21st, 2010| Education.

Procedure of filing IT returns and deductions available in the process | Details of tax slab for individuals and various forms to be filled during filing of IT returns

Filing of IT returns

It is compulsory for all the persons to file income tax returns who come income exceeds the maximum limit of non-taxable income.  Returns can be filed even without the help of the tax consultants.

People who are under personal tax limit, the month of July is as important as March. If the month of March is the dead line for savings and advance tax payments to get exempted from tax, July 31st is the deadline to file the income tax returns.  Filing returns was a tedious process earlier.  Chartered Accountants help was necessary to file the returns. But the procedure has been made easy so that a common man can also file the returns without anybody’s help.  For filing returns for the year 2009-2010 financial returns, one has to understand that 2010-11 financial year will be considered as the assessment year for the financial year 2009-2010.  Therefore 2010-11 should be mentioned in the assessment year column.

What is the income?

Income of a person comes in many forms.  Salaries, rents, interests, business, commissions, capital gains are some examples. Keep all the papers ready to assess the income from other sources apart from the salary. Salaried people should take form-16 from their employees. If income comes from other resources like commissions from-16A also is to be taken from the employees.  Keep all the bank statements ready.  Gross total income is computed based on the income one gets from all sources including the salary.

Deductions available

To reduce the tax burden various exemptions are available.  Savings of various forms come under this.  Salaried people get exemption in the form of profession tax, rental rebate if residing in a rental house. Savings of up to Rs.1, 00,000 also get exempted from tax.

Any papers need not be attached for filing income tax returns.  One should prepare the statement of incomes and expenses.  Calculate the taxable income based on the incomes and exemptions. After this, check you fall under which tax bracket.  A table is given under to check tax brackets depending on the personal income.

The final stage is to select a form.  Many income tax return forms are available and one should select a form based on one’s income sources.  Select a form and fill all the details.  Submit it before the 31st of this month.  It can be submitted in the Income Tax circle office directly or through online. There is no need to submit the copies of savings, statements along with the ITR forms.

A person whose income exceeds the basic limit has to file the returns as per law.  If the returns are not filed before the fixed time one has to bear the burden of interests and penalties.  1% interest will be calculated per month on the amount of tax to be payable.  Penalty of Rs.5, 000 can also be imposed.

If there is no need to pay income tax, the returns can be filed any time. Returns of the previous years can also be filed if necessary. Do not file wait till the last date the file the returns as this may cause standing in the queues for a long time and taking leave from the office.  File your returns and do your duty as a true Indian.

Tax slab (in Rs.)  for individuals Tax
0 – 1,60,00 No tax
1,60,000 – 3,00,000 10%
3,00,000 – 5,00,000 20%
More than 5,00,000 30%
Income tax slab for Women
0 – 2,40,000 No tax
2,40,000 – 3,00,000 10%
3,00,000 – 5,00,000 20%
More than 5,00,000 30%
Income tax slab for seniors
0 – 1,90,000 No tax
1,90,001 – 3,00,000 10%
3,00,000 – 5,00,000 20%
More than 5,00,000 30%

Income tax forms

ITR – 1 Salaries people, pensioners and income through interests
ITR – 2 People who get income from sources other than business and profession
ITR – 3 Persons who are in partnership business
ITR – 4 Business people and professional experts.