About Your Income Tax Returns
Have you find your dream job and going to Filling your Income Tax Return for the first time? I know it’s very complicated to fill income tax return first time, especially for new taxpayers. So here I come with few important things you must know before file your income tax return.
Income Tax Slabs
For the taxpayers when gross total income exceeds the threshold limit, taxpayers have divided into four different categories:
- Income up to Rs. 2,50,000: No tax
- Income between Rs. 2.5 lakhs to Rs 5 lakhs: 5% tax on taxable income
- Income between Rs. 5 lakhs to Rs. 10 lakhs: Rs.12,500 + 20% of income above 5 lakhs
- Income above 10 lakhs: Rs. 1,12,500 + 30% of income above 10 lakhs
- Define The Financial Year
The financial year or previous year is 12 months period that starts on 1st April and ends on the 31st March of the next year. The financial year does not depend on when your job is started. Your tax year ends on 31st of March and the new year start on 1st April.
- Choose The Correct ITR Form
As you can see above your tax is depends upon the status of the taxpayer and type of income. The income tax department issued 7 types of ITR forms and the disclosure requirements are different for all forms so it is very important to check your type of income and choose the correct form.
Below you can find the list of ITR forms that help you to select a right form and what kind of incomes they are applicable:
- Income from one house
- Any exempt income & other sources (excluding lottery and race horses)
- Everything from ITR-1
- Agriculture income more than Rs. 5,000
- Income/loss from more than one houses
- Income from lottery and racehorses
- Foreign assets/income
- Loss on sale of investment of property/capital gains
- Everything from ITR-2A
- Profit share from a partnership form
- Everything from ITR-2
- Income generated from proprietary professions
- Everything from ITR-3
- Income from presumptive business
- Everything from ITR-1
You can all forms instruction in details on official website ITR (http://incometaxindia.gov.in) with each form type.
- Fill Correct Particulars
Make sure fill your correct particulars in ITR form with any change in correspondence email id and address. When you filing ITR you also need to update any changes in a phone number, address and email id. The tax authority use this information while sending any information, so make sure all information provided by you is up to date.
- Reconcile your income with Form 26AS
The form 26AS contain the details of your taxes paid and tax refunds that have been received by you during the financial year. Form 26AS helps you to reconcile all your revenues on the income tax portal. When received amount not matched with total income there is a likelihood of receiving a notice to explain the mismatch.
- Recheck All Mandatory Details
Must check all details and fields are duly filled in ITR form. Don’t forget to check the mentioned details of all saving bank account like bank account number and IFSC code.
- Use Form16 To Include Salary Income
The form16 is issued once for a particular financial year and is certified by your employer. This form contains details of the salary paid by them and taxes deducted on it. The taxable salary goes into the ITR under the salary head.
- HRA Exemption
If you live in a rented house then make use that HRA exemption has been claimed. In case if you did not submit the proof of rent and no any amount reduced from salary as HRA deduction then you can claim while filing ITR.