The deadline to file your income tax return for 2016-17, for your income in the year 2015-16, has now been extended to August 5, 2016, by the government, because of the strike at public sector banks. The deadline is August 31, 2016 for Jammu and Kashmir, in view of the ongoing turmoil in the state.
The return mandatorily has to be filed if your taxable income is above Rs 2,50,000.
The Revenue Authorities have introduced new reporting requirements for FY 2015-16 for Assets and Liabilities for individuals with income above Rs 50,00,000. In case of this, the individual has to disclose the cost value of all the assets above the specified amount, in the tax form, as well as disclose the debts associated with these assets- land, building, cash-in-hand, jewellery, bullion, vehicles, yachts, boats and any aircraft owned. It is advisable that you retain the purchase receipt of any of these assets.
Here is an easy guide to file your income tax return, online or offline:
Selection of tax form
The selection of the tax form depends on your source of income.
ITR-1 is for salaried individuals whose source of income is either from a salary or a pension, from house property or from other sources, except for example, winning a lottery. This form should not be used if the individual has multiple house properties, if he/she was income from winning a lottery, income earned from agriculture above Rs 5000, income from a business, or by a tax payer who is filing for double tax relief.
ITR-2A was introduced this year. This form is similar to ITR – 1, one of the differences is that if an individual has income from more than one house property, then he/she is to fill out this tax form.
ITR-2 is for individuals who don’t have any income from a business/profession.
ITR-3 is for an individual who is a partner in a firm, but this form cannot be used by an individual who is earning income from a proprietorship form.
ITR-4 is for an individual earning income from a proprietorship firm.
ITR-5 and 6 are for companies.
This is a form you get from your employer. If you have changed jobs over the last year, then you will have more than one Form 16. This form has all the information required to prepare your tax return. It has two parts, Part A and Part B.
Other than Form 16, you should also have your bank statements, interest certificates, and your housing loan certificate (in case of housing loan).
Also, download Form 26AS from the e-filing website (http://incometaxindiaefiling.gov.in/). Form 26AS shows the income for which taxes are deducted at source, it is an annual tax credit statement. You can show your actual income in your return and claim the amounts that are taxes deducted at source. These deductions include life insurance, fixed deposits for at least five years, fees paid for children, etc. You should look at your investments and determine which of them can be a deduction.
Filing your return
After completing the tax return forms, it has to be uploaded on the e-filing website. E-Filing of a tax return is compulsory for individuals with income above Rs 5,00,000. Once the return is successfully uploaded, an auto-generated acknowledgement is sent to you. This needs to be verified, either by signing and submitting the acknowledgement, or by submitting it online. It is advisable to do the e-verification. Once this is completed, the process of filing your return is complete.