Filling tax is very important for self employed irrespective of the duration of self employment. For the entire year or a part of the year for which you were self employed it is important to fill the tax returns.
The most vital things to remember while filling the Tax returns are discussed in the sections below.
To fill the tax returns electronically there are 3 ways:
- Digitally Signed Certificate or DSC is required to e-file the tax returns and after that no actions are required.
- When you e-file without the Digitally Signed Certificate a form named ITR –V is generated. This form needs to be signed and within 120 days of e-filling, it needs to be send to the CPC, Bangalore through Speed Post or through Ordinary Post.
- E-Return Intermediary or ERI which can be done with or without DSC or Digitally Signed Certificate
Check the Document
Before starting the e-filling a basic document check is very important. If you have a home loan then a statement from the bank stating the total interest that is paid in that financial year is required. A profit loss statement is required in case of a strategic sharing is run and the remuneration is done on the profit sharing basis. If a salary pattern is there in a own company then Form 16A is needed to fill the return online.
One of the very important thing to remember is not to wait till July end to file your return. Severe overload on the server makes it almost inaccessible to file their returns online. This may force you to opt for the offline mode. So it is better to do it as early as possible.
In case a template from the tax department is being used it should be kept in mind that an incompletely filled file is saved in the computer’s disk. While if private portals are being used it is recommended to save the file before logging out.
For private portal make sure that it is licensed by the e-Return Intermediary or ERI. ERI is authorized by the department of income tax.
The details on housing HRA, loan, and medical insurance, children’s tuition fees, capital gains and bank interest income should be entered to ensure you file the return in an accurate manner. Also make sure that the email received from the Income tax is carefully evaluated. It may happen that a fishing mail is received from some other sources to know about your detailed information. So please check before filling any personal or any sensitive information
All the expenses that you have made should have a bill and it should be kept for at least 7 to 8 years in case the income tax department asks to cross verify the information. The rent of the apartment that is being used for the profession can be claimed as well. But to claim that the rental receipts must be there. Laptops and its parts that is used for the business can be claimed as well. Even cell phone purchase can also be claimed but only the depreciation can be claimed on it. Also if the amount of any such expenses in more than or equal to Rs. 20000 then the amount should be paid in check.
The rent for the place of stay can also be claimed. Remember only rent for the place of residence and the place of work can be claimed.
The form ITR 4 needs to be filled by you for the income tax return. Always mention the details of your bank account in the form for easy refund of tax in case you have paid an extra tax. In case you feel that you need someone’s assistance for e-filling your income tax then you can also go to a chartered accountant who can e-file the income tax on your behalf. It is always advisable to ask the chartered accountant about the bills that can be claimed and the how long the bills needs to be preserved for any future reference.