The Income tax department has already notified the income tax return forms to be used for filing returns for FY 2016-17 or
assessment year 2017-18. Income tax return forms for most categories of tax
return filers have changed-some more some less. Although the last date to
file for individuals is July 31, it helps to start work on your income tax
return now so that one is not rushed at the last minute. Here is a step by step
guide on how to do it. The income tax department through its website
https://incometaxindiaefiling.gov.in/ has provided an easy to use platform for
users to pay taxes, file ITRs, cross-check TDS through TRACES, download forms,
claim refunds, check status of dues, refunds, challans etc. However, a
technologically-challenged tax-payer may find it difficult to use these
services.
STEPS IN FILING YOUR INCOME TAX RETURN
Step 1. Collect TDS certificates, capital gains statements
Collect all the required documents such as your TDS certificates, which
have to be mandatorily in TRACES format, from all deductors. You can also
collect your, capital gains statement from mutual funds for redemption of
units, if any, done, in the financial year 2016-17 etc. However, it is not
mandatory to obtain these capital gains statements from your MFs. Most MFs
provide it as an additional service for the redemption of units you held in
their schemes in a particular FY. You can calculate your capital gains yourself
or cross check the calculations sent by your MFs also. In case of digitally
signed TDS certificates ensure that there is a check mark on the digital
signature indicating it has been verified. Non-verified certificates will have
a question mark over the digital signature. Cross check the TDS figure on the
certificate with that shown as deducted from your income e.g. TDS figure on
salary slip with the figure on the TDS certificate. Check whether deductor has
deducted and deposited the tax with the government. TDS certificates are in Form
16 for salaried employees and Form 16A for other deductors.
Step 2. Download and check Form 26AS
Download your tax credit statement (Form 26AS) from TRACES and cross-check
the amount of tax deducted with that mentioned in TDS certificates. You should
be getting certificates for all TDS reflecting in your Form26AS and all the TDS
from your income should reflect in Form26AS. You need to log into your e-filing
account on the income tax e-filing website to download your Form26AS. You can
also download it via net-banking wherever the bank provides for this.
Step 3. Get Form 26AS errors, if any,
set right
In case of any difference in the TDS amount shown in Form 26AS and TDS
certificates, take up the matter with the deductor (employer, or others, as the
case may be) and request for rectification. It is advisable to keep track of
all the TDS deducted during the financial year so as to avoid any discrepancies
at return filing time.
Step 4. Compute total income for the financial year
Now compute your total income for the relevant financial year by adding
income under all 5 heads and claiming all the relevant deductions, rebates and
setting off the current year and brought forward losses. Make sure that you
don't miss any income in computing your total income which is chargeable to
tax.
Step 5. Compute your tax liability
Compute your tax liability by applying the tax rates in force for the
financial year for which you are calculating the tax as per the income slabs
your income falls in. Most filers would be filing tax return for the financial
year 2016-17 therefore the tax rates and corresponding income slabs for this FY
would be applicable.
Step 6. Calculate final tax payable
Next, compute your final tax dues payable or refund of taxes. This is done
by deducting the taxes that you have already paid for the year by way of-TDS,
TCS, and Advance Tax from the tax liability computed above and adding interest
payable under sections 234A, 234B, 234C, if any. Finally pay the final tax
dues, if any. Tax can be paid physically via cheque or online using challan
ITNS 280. Income tax payments made after 15th March of the financial year for
which return is to be filed are called payment of self-assessment tax. The same
should get reflected in your Form 26AS within 2-3 working days from the date of
payment which you should cross check.
Step 7. File income tax return after all taxes are paid
(a) Return filing deadline
Once you have paid your taxes, file the return. The
deadline for filing individual tax returns ( except for those whose accounts
are required to be audited as per section 44AB or those who are required to
furnish the Transfer pricing report) is normally July 31 of the year
immediately after the financial year for which the return is being filed.
(b) Electronic return compulsory for
certain categories
The return has to be filed electronically by every assessee
except (i) if the assessee is an individual of age 80 years or more during the
financial year for which the return is being filed and (ii) An Individual or
HUF whose income doesn't exceed Rs 5 lakh and no refund is claimed.
(c)
Log-in to income tax e-filing website
To start filing the return, one has to login to income tax
department's e-filing website with User ID, Password, Date of Birth and enter
the Captcha Code. Once you login, you will see different tabs like
"dashboard", "my Account" etc.
Step 8. New users to register first
In case of new user - Register yourself with income tax site first. You
need to choose your status (individual, chartered
accountant, tax deductor etc.) and fill in your basic details like address,
DOB, PAN to get registered. Only then you can login to e-filing.
Step 9. Choose the applicable form
After signing in, choose the form applicable to you for the purpose of
filing return. Income tax department this year has made some changes in the ITR
forms to make them simpler. Also, they have rationalized the ITR forms such as
ITR-2, ITR-2A and ITR-3 have been rationalized as ITR -2.
Step 10. Filing online
In case Form ITR-1 or ITR-4 is applicable to you, then you can simply file
your return online without any need to download the blank ITR forms and then
upload the filled ones.
Step 11. Aadhaar to be filled in ITRs
Remember to keep Aadhaar number handy while filing returns this year as it
has become mandatory to mention the same in the ITR forms from July 1.
Step 12. Download forms
In case of other forms like ITR-2, ITR-3 and, you need to download the
relevant form from the website (either in excel utility or Java utility).
Step 13. Fill form and upload return
Once you have downloaded the relevant form, you need to fill in your
personal details, income details and other details required in the form. After
filling the form completely, the same is to be uploaded to the website and the
return will be filed.
Step 14. E-filed return not valid without verification
E-filing of return (whether directly or after uploading the ITR-forms) is
not valid without verification of the return so filed. Return once e-filed has
to be verified by the user.
Step 15. Verification of ITR
Verification of return can be done by any one of two modes i.e. e-
verifications of ITR and Physical verification of ITR. E-verification methods
include:
(i)) Making use of Internet Banking,
(ii) or by using the OTP sent on your mobile number after you have linked
your Aadhaar with your account on the e-filing portal of the Income tax department
or by generating the EVC.
(iii) Another method for verification of your ITR is through bank
account-based validation system if you don't have Aadhaar number or internet
banking facility.
(iv) Bank account-based validation
On the other hand, ITR can be verified physically as well. An
acknowledgement or ITR-V is generated by the e-filing website immediately after
you file/upload your return. To verify your return physically, you need to take
a print-out of this acknowledgement, check and sign it and send it to the
address mentioned on this acknowledgement.
Step 16. E-verification acknowledgement
Once you have received the acknowledgement of your e-verification, filing
of your return is complete. You should receive an email confirming that your
ITR-V has been received by the IT department i.e. your return stands verified.
The email will be sent to the email you have registered in your e-filing
account on the income tax department's e-filing website.
Step 17. IT department will process return after verification
After receiving the ITR-V, either through e-verification or physical, the
Income tax department will process your return to ensure that all the details
filed by you are correct as per the Income Tax Act and also cross check the
details filed by you with other data available with it.
Once processed,
the I-T department communicates the same. In case any discrepancies are found,
they may ask you to explain further or correct the mistakes made while filing
the original ITR.
