As the due date for e-filling your income tax is approaching fast, it’s time for you to file your tax return if the total income exceeds the amount limit of the basic exemption. It doesn’t matter whether you paid tax in the financial year or not but if the income exceeds the exemption amount it becomes mandatory for you to fill your income tax return file.
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
Some very important points to remember when you e-file your income tax are listed below.
Identification of Sources of Your Income
It is important to identify your own sources of income. Income earned under different categories ranging from the income earned from capital gains or income earned from salary or income from business or income from house property.
Choose the Appropriate Form
ITR -4 is the appropriate form for the individuals who are e-filling for small business. Important to note is that you have to collect all the documents that are needed for e-filling your income tax return file. Obviously when you fill the form it is very important to correctly fill your personal details and your organization details. Make sure to fill the bank details in case a refund is being claimed. Account no. , MICR code of the bank, IFSC code of the bank and the type of account are the information that needs to be filled while submitting the details of your bank account.
Claim All Your Expenses
Also please note that the rent that is being paid for the location of your business can also be claimed. Proper receipts should be there as a proof. The apartment that is being used for the business can be claimed for the exemption. All the expenses that is made for running a small business starting from the telephone bills to the staffs payment can all be claimed. Important to claim all this expenses is to make sure that you have all the receipts with you.
Preserve the Documents for Future Reference
All the documents that are being used for e-filling your income tax return file should be preserved properly so that in case if you are asked to cross verify your declarations, you have the proof with you.
Let us discuss some very common mistakes that happen with the tax payers so that you keep a note and do not make such mistake.
All Sources of Your Income Should Be Reported
All source of income should be highlighted while e-filling your income tax. Income earned from savings account or from fixed deposits should necessarily be reported. Also incomes earned from investments should be reported.
Email Address and Contact No. should Be Reported Properly
All the information related to your income tax is communicated through email and via the contact number. So make sure that the email address and the contact number are correctly mentioned.
Check Your Form
It is the most vital step when submitting your filled income tax return file. Whether you are doing it in online or in offline mode it is important to check your form before submitting. If the e-filling has been done through some Chartered Accountant even then it is important to check the generated file and then after proper verification send it to the concerned address.
So it is the absolute time to pull out all the documents lying deep since a year and file your income tax return file. Submit the form before the due date. After the submission (if you are going for online mode) make sure to send the downloaded form to the address mentioned within 120 days of filling the form.