Filing an Income Tax Return: Individual

A simple B.Com., M.Com., BBA, MBA graduates must have the knowledge about filing ITR, but what about if anyone is not graduate or say not a commerce graduate. This article aims at making familiar about same.

Income Tax :

Income Tax is a kind of direct tax, which need to be paid to the government, by a person on its income.

History:

• Introduced in 1860
• In 1886, separate income tax act
• In 1918, a new income tax act
• Income Tax Act 1922
• Income Tax act 1961

How to file Income Tax Return?

ITR, i.e; Income tax return is an online method being adopted and to be used for filing information about income and tax being computed on same to the Income Tax Department.?

Filing ITR, an individual need to forego through below steps:??

• Calculate net taxable income,?
• Fill ITR form online as applicable and as guided, pay taxes if any.?
• If computed tax has been paid and ITR is submitted on the income tax portal, ensure that the ITR filed is verified.??
• When ITR will be verified, the tax department will take up for processing and once the ITR is processed, then intimation notice will be sent on registered email id for providing information about if your income tax calculations matches or with that of income tax department’s calculations.?

1. If it matches, filing process for that financial year is said completed.?
2. If it does not match, either you have income tax refund due or have income tax payment pending.?

• If income tax refund is due to you, then it will be credited in your bank account.
• If the income tax payment is pending, then income tax department will ask you to make payment along with interest, if any.

How to calculate total taxable income for ITR filing?

To know the income tax an individual is required to pay, one must first calculate the total taxable income. The total taxable income is divided into five categories:?

?Income from salaries, salary/pension(Basic pay + Commission + Bonus + All Taxable Allowances & Perquisites) getting from employer is taxable under this head?

Income from house property, any rental income earned from letting-out house property, there is a concept of self-occupied, rent, deemed to be on rent.?

Income from capital gains, earned from sale of land, house property, equity shares, mutual funds (equity and debt), gold jewellery etc. The capital gains computed can be either be long-term or short-term.??

Income from business/profession,

Individuals earning income from business or by working as self-occupied are required to report their income??

Income from other sources, has all those incomes that are not reported in other categories. Some of income from interest incomes from fixed deposits,

taxable bonds, pension of family, pension received from insurance company policies, dividends etc.

Documents required to file ITR? Now, the new income tax portal already offers pre-filled ITR which it may be happen has errors. So, it is suggested that individuals must cross-check the information. Also, one need to collect following listed documents to cross check the information: a) TDS certificates (Form 16, Form 16A), b) Interest certificates (savings accounts, fixed deposits etc.), c) Repayment certificates (if you have home loan, education loan), Form 26AS, annual information statement (AIS), Aadhaar number, bank accounts.

Can mistakes made at the time of filing ITR corrected? Yes, we have an option to correct mistakes made at the time of filing ITR. To get it correct, an individual will need to file ITR again under section 139(5) of the Income-tax Act, 1961 with correct information. The last date for filing revised ITR is December 31, until and unless extended by the government.?

Knowing which income tax return (ITR) filing form is applicable??

To be familiar about which ITR form will be applicable to you, it is very important to know the sources of your income that are already listed above. An individual can file his/her income tax return using ITR-1 form - if he/she is earning his/her income from salaries, house property and income from other sources. But, if his/her income sources are through capital gains, he/she cannot file income tax return using ITR-1, then an individual will need to file income tax return using ITR-2 form.

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