Seven Things To Help Tax Return Filing For Salaried Individuals

Last date to file tax returns is four weeks away, and it’s time to get into action and escape the urge to wait for the last moment. Here are few things that will help to refresh tax return do’s for the Assessment Year (AY) 2016-2017. 

1. e-Filing or not - Tax returns have to be filed online if salary or total income exceeds Rs 5 lakh. Total income implies salary income along with income from other sources and interest from bank account surpassing Rs 10,000 a year. However, if this income is below Rs 5 lakh, as well as interest from bank account, is less than Rs. 10,000 then e-filing is not mandatory. 
2. Be thorough with Form 16 - For salaried individuals, Form 16 is the key document that matters. Salary details are required to be entered manually on government site while some of the online tax filing platforms automatically upload Form 16 details to do away with manual entry. However, it is advisable to match the numbers before proceeding ahead. Individuals who have switched job during the year need to be extra careful as they will have to enter details of Form 16 from both previous and current employer. 
3. Revisit deductions - Although Form 16 accounts deductions correctly most of the times, individuals should re-check if all the deductions are in place. Change of jobs within a year or failing to submit investment proofs in time would require employees to input the data manually. 
4. Tax Deducted at Source (TDS) - Ensure to enter and reconfirm the TDS already deducted as mentioned in Form 16 or TDS certificate. Form 26AS credit statement is the best way to reconcile TDS. Form 26AS can be sought by registering on the income tax website. Employer or corporate should be reached out if there is any difference between the TDS certificates/Form 16 and Form 26AS. 
5. Type of ITR Form - Most of the online tax filing portals direct tax filer to the right ITR form based on the occupation details provided, however, one has to choose the form manually on the government site. There is a thin line between ITR 1 and ITR2. For instance, a salaried individual owning more than one house property will have to file ITR2 instead of ITR1. The latter is meant for those who draw salary income, own only one house property and have exempt income below Rs 5,000 a year.
6. Enter income from other sources and capital gains - Never miss out on entering income from other sources such as income from subletting, interest on bank or fixed deposits, winnings from lotteries. For clarity, any income that cannot be categorized as income from salary, business, profession or assets, fits this income head. Moreover, income from second property and gains from mutual funds should be recorded under capital gains. 
7. e-Verify - Save yourself from the hassles of sending ITR-V acknowledgment by physical mail when you can e-verify online. Government has enabled e-verification through Aadhaar or net banking to simplify post-filing processes. 

Follow us more to know about the e-verification process in detail. Until then, move ahead with filing your returns.