Thursday, July 28, 2011

Income Tax Returns - Quick Tips

Few days left to file your IT Returns: (Last Date: 31 July)
Just some quick info to proceed with eFiling, might be useful.

Filing IT Returns Online will take just 15-20 minutes of your time, avoid long queues, its quick and easy, anytime, anywhere.
  1. Use proper ITR utilities (Excel) available online at Income Tax eFiling website - https://incometaxindiaefiling.gov.in/portal/index.jsp
    1. If you salary/income is less than 5 lakhs, IT Returns is not required.
    2. 1b. Unless you have to get IT Refunds for extra Taxes paid during the financial year, you have to file the IT Returns.
  2. Excel Utility:
    1. Excel requires you to 'Enable Macro' feature in the Microsoft Excel software. Please enable them prior to entering the data.
    2. It will round off to nearby integer. So there is a possibility that you will see Re.1 under 'Tax Payable' field (either you have to Pay or you have to get Refund). This sounds like a round off bug. To solve this, round off your interest/tax calculation to next integer. Example: Tax calculation: Rs. 1234.56 means Rs.1235/-
    3. Use 'Validate' button to check every required field is filled correctly.
    4. Do not use 'Copy' / 'Paste' options while entering data in the Excel utility.
    5. Use 'TAB' keys to move to next field while entering the data/values.
    6. Once you fill the ITR form (Excel), you need to Validate (click Validate button) every sheet before you move to next sheet. This will ensure that you have filled all relevant fields in the form/sheet.
  3. Provide your Bank Account details for quick refunds along with A/c number, MICR Number (see you Cheque leaf for this MICR 9 Digit Number), Savings, Opt for 'Yes';
  4. Before filling the Excel, download the 'Form 26AS - Annual Statement' from Income Tax India eFiling website.
    1. Logon and Goto 'My Account' > 'View your Tax Credit 26AS Statement'
    2. This will help you to understand the Tax deducted at Source (TDS) by your Company or Bank or any institutions that you dealt with.
    3. This should match your 'Form-16' and Annexure of TDS by Employer/Deductor.
  5. Pay your extra Taxes for other income not included in your Form-16. You can pay them Online via Internet Banking.
    1. Link: e-Payment of Taxes (You can find it at the left column of the Income Tax / eFiling website)
  6. Self Assessment Tax (300) - Tax to be paid during IT Returns. (ITNS 280)
    1. Goto: e-Payment of Taxes and fill the relevant details as per your PAN information.
  7. you filing Revised Return? - Please make sure you provide 'Receipt No' of the Original Return and DATE. Do not forget to change the "Returns filed u/s 11 - u/s 139(5) instead of 139(1)"
  8. Judistriction: Design of Assessing Officer Information: Logon to eFiling website with your PAN number, look at the top-right section for 'Services' left to 'My Account'. Under 'Services' you will see 'Know your Judistriction' - This will give you this information.
  9. 'Calculate Tax' button can be used to calculate tax after all the IT Returns details in all the Excel sheets. This should reflect your tax paid details as per Form-16.
  10. 'Compute Setoff' - Use this button to setoff for calculations.
  11. 'Generate' button helps to generate a XML file and save it in the directory where your ITR Excel file is present. Before you upload this XML to eFiling website, Open the file in Internet Explorer browser and see all Bold numbers and their fields matching your Form-16 and Tax payable/Refund details.
Useful Links:
Source & Courtesy: Income Tax India
Thanks to my friends who help directly or indirectly in writing this article.
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