With digitization, it has become easier and simpler to file the Income Tax return by yourselves. You do not need to be an expert to do it. This write up will provide you easy tips to file Income Tax return by yourselves for Assessment Year 2019-20.
Deadline or last date for filing the Income Tax Return for persons other than companies and specified persons, is 31st July. Any individual is required to file the return on or before this due date to avoid interest and penalty.
Following are the simple tips to file the Income Tax return online
- There are five heads of income – House property, Salary, Business or profession, Other sources, Capital Gain. Try to understand and put in proper file for basic documents.(for e.g. – Form 16 for salary, Certificate of interest – Interest on Housing loan etc.)
- For any income, on which TDS is deducted, you should either have TDS certificate or it should be present in Form 26AS (this can be downloaded from your bank account)
- For any income, on which TDS is not deducted, You should be able to trace the amount in your bank account or any other trail document (for e.g.- salary slip)
- If, your house is rented, then maintain the rent receipts copies. You can claim any amount of interest on housing loan, if any. There is no upper cap on deduction of interest on housing loan with respect to rented premises.
- You can set off negative income from house property against your salary income. This situation arises if you reside in Self Occupied property. In this case, there is an upper cap on claiming the interest on housing loan.
- Maintain the profit and loss account if you carry business or profession.
- Understand that you can claim presumptive income for certain type of business or services under section 44AD, 44AE etc., if it is beneficial.
- Make sure that turnover mentioned in Income Tax Return should not exceed threshold for GST registration, if you are not a registered under GST.
- Calculate interest from your savings bank accounts and fixed deposits. Do remember to consider the TDS deducted after the calculation of tax.
- If you trade in shares, mutual funds or you have sold the shares or mutual fund units in the year, then you need to calculate the capital gains on the same.
- Capital gains need to be calculated if there is sale of property. It needs to be clarified whether it is long term or short term capital gain.
- Capital gains can be exempted if the conditions are complied with. For .e.g. if the house proeprty is sold and a new one is purchased then the capital gain on the sale of old house will be exempt.
- Salaried individuals will have deductions mentioned in their TDS certificate. However, if it is not, then he/she needs to collect the proofs and fill in the Income Tax Return.
- Others need to calculate the amount of deduction under chapter VI-A based on the actual proofs of investment.
- Once tax is auto calculated in the Income Tax Return, then it should be either be adjusted against TDS credit or advance already tax.
- If the tax is still payable, then you can not submit the Income Tax Return without settling off the tax liability. You need to pay the tax as self assessment tax.
- Fill in every mandatory detail in Income Tax Return accurately like PAN, Bank Account number etc.
These are some smart tips to save your time and file your Income Tax return by yourselves. Tune in for such interesting articles. Happy Reading !