How to file your income-tax returns: A do-it-yourself guide

An individual,whose total income for the relevant assessment year doesn’t exceed R5 lakh and consists of only income chargeable to income tax under the head ‘salaries’ and ‘income from other sources’ by way of interest from a saving account in a bank not exceeding R10,000,will not have to file any income-tax returns from now.

The CBDT notification under a sub-section of Section 139 of the Income Tax Act,1961,for the assessment year 2012-13,also clarifies certain conditions. For one,an individual has to report to his employer his permanent account number (PAN); he has to also report to his employer the income mentioned on which the employer has to deduct tax. It also clarifies that the individual needs to have a certificate of tax deduction by way of Form 16 from his employer that mentions the PAN,details of income and the tax deducted at source and deposited to the credit of the central government.

The prescribed due date for filing tax returns for individuals is July 31. In cases where the accounts of an individual are required to be audited,or a partner in a firm whose accounts are required to be audited,the due date is September 30.

For individuals,one has to file returns on the SAHAJ form. This applies to individuals having income from salary or pension or one house property (excluding loss brought forward from previous years) or other sources (except winnings from lottery or income from horse races). Where the income of a minor is to be included,this form can be used only if the income falls under the above categories.

The ITR-2 form applies to individuals deriving income only from salary or pension or house property or capital gains or other sources and not having income from business or profession.

For individuals or Hindu Undivided Family (HUFs) being partners in a partnership firm,one will have to file returns on ITR-3. While paying your taxes correctly and in time is imperative,the process is complete only with the use of the correct tax-return form and following the right filing process.

In Budget 2012-13,a new Section 80TTA of the Income-Tax Act has been introduced,which gives deduction of R10,000 to an assessee for income by way of interest on deposits in savings account of banks,a cooperative society engaged in carrying on the business of banking or a post office. However,the interest income from fixed deposits is liable to income tax.

Most banks (nationalised/non-nationalised/co-operative banks) are required by the provisions of the income-tax law to deduct tax at source at the rate of 10% from the interest paid on fixed deposits,if it exceeds the prescribed limit of R10,000 per branch.

But if an individual’s total income,including interest on such bank fixed deposits,is less than the applicable basic exemption limit or an individual’s tax on his/her estimated annual income (including interest on such bank fixed deposits) is nil due to tax deductions,the treatment is different.

For those whose tax liability is nil from bank fixed deposits,one has submit a declaration to the bank in Form15G/Form15H. Form 15H is exclusively meant for senior citizens (who are of 65 years or more at any time during the previous year) who are tax residents of India,whereas Form 15G is for other categories of individuals.

The purpose of this declaration is to inform the bank that the individual’s annual income-tax liability is nil and,on that basis,request the bank not to deduct tax at source from the interest.

One can get the form at the bank branch where the deposit is made. It has to be filed in the beginning of the financial year for existing deposits and,subsequently,for fresh deposits. Banks take the form in duplicate. Also,individuals,before submitting the forms to the bank,must ensure that the information furnished in the declaration form is correct.

To know the status of your taxes,you can check online to get details of the withholding tax certificates. The income-tax department has put in place a facility to enable taxpayers to view their tax credits online. A consolidated annual tax statement in Form 26AS is now available to the PAN holders. As a result any discrepancies that may arise due to reasons like incorrectly quoted PAN,non-filing of TDS returns or non-deposit of taxes can be identified and resolved at an early stage.

Form 26AS is actually divided into three parts. The first two parts,Part A and Part B,include details of taxes deducted and collected at source,along with the details of the date on which payment was made,tax was deducted and deposited in the bank.

Part C displays details of income tax directly paid by the taxpayer like advance tax/self assessment tax/regular assessment tax,etc.,and deposited in the bank by the taxpayer.

To view the form online,one has to register with the National Securities Depository (NSDL) website. Fill in the PAN number and contact details and choose a user-ID and password. On submission,an acknowledgment number is generated. The user-ID is activated within 24 hours of PAN verification and you can then log in with your ID on the website,tin-nsdl.com,and view all your tax credits for a financial year.

This facility is available to a taxpayer having a net banking account with any of authorised banks. A list of authorised banks is available on the TIN website and Form 26 AS can be viewed only if the PAN is mapped to the bank account.

All these checks and processes will ensure that your return-filing is hassle-free.

Filing returns

* An individual,whose total income for the AY does not exceed R5 lakh and consists of only income chargeable to income tax under the head ‘salaries’ and ‘income from other sources’ by way of interest from a saving account in a bank not exceeding R10,000,will not have to file any income-tax returns

* The prescribed due date for filing tax returns for individuals is July 31

* In cases where the accounts of an individual are required to be audited,or a partner in a firm whose accounts are required to be audited,the due date is September 30