Is Filing Your IT Return a Pain? Well, One Aspect Solved.

In our journey of associating with people to help them out with a myriad of money management queries, the frequent ones have been related to maintenance of documents and submission of same while dealing with regulatory requirements.

Documentation

So, as a starter from our side we thought of compiling a quick list of documents that are required while filing your tax return. Take a stab at it:

1. PAN Number Verify it online with I.T department by going through this link : https://incometaxindiaefiling.gov.in/e-Filing/Services/KnowYourPanLink.html
2. Form 16 – for Salaried  A statement issued by your employer which has details of your Salary, the taxable salary amount after various perks and allowances, the TDS deducted by your employer, the deductions you have claimed and the overall tax due.
3. Documents rcomeelated to Interest Income
  • Bank statement/passbook for interest on savings account.
  • Interest income statement for fixed deposits.
  • Debentures yielding interest
  • TDS certificate issued by banks and others, in case tax has been deducted on your interest income
4. Form 26AS It reflects all the Income Tax received by the I.T. Department with respect to you. This is a tax credit statement which shows TDS payments, voluntary tax payments made by you. Form 26AS should match all tour TDS certificates. Link to view Form 26AS : https://incometaxindiaefiling.gov.in/e-Filing/UserLogin/LoginHome.html?nextPage=taxCred
5. Sec 80C investment documents
  • Your contribution to PF, NSC, ELSS, ULIP, RGESS etc.
  • Your children’s school fees
  • Life insurance premium payment
  • Stamp-duty and registration charges
  • Principal repayment on your home loan

Maximum deduction can be claimed up to Rs. 1.5 lakh

6. Sec 80D Medical Documents ·   Premium receipt for medical insurance premium paid for self, family and dependent parents.
7. Sec 80G – Charitable donation statements ·   Receipt issue by the charitable organisation

·   Pan number of the charitable organisation

8. Interest paid on a housing loan Interest on housing loan is eligible for tax saving up to Rs 2.5 lakh. This is for a self-occupied house.
9. Stock Trading Statement The stock trades that were made during the year may attract Capital Gain tax.
10. If there is income residential property ·    Housing Loan repayment certificate

·    Municipal Corporation Tax Receipt

 

 

Income Tax Returns: An Assurance Of Your Financial Health!

Just the other day, I got a rather usual message from a teenage cousin. It was a troll message on the famous Alia Bhatt ( now you know why its rather usual :P). This is how the message goes (pardon me if you have already heard this one, because it is undoubtedly naïve)

Alia Bhatt: Dad, what is your plan for the weekend?

Mahesh Bhatt: Income tax returns!!

Alia: When did the first one release? 😛

To be honest, I know it is a poor joke. However, the only reason I put it here is to highlight the significance of filing Income Tax Returns [(Even Mahesh Bhatt files it ;)]. Also, the aim of this post is to assert the importance of filing returns when your taxable income is below the prescribed threshold.

Individuals, whose total income without allowing any deductions exceed the basic exemption limits are mandatorily required to file Income Tax Return (ITR).

So, what does total income, without allowing deductions mean?

For this, you first need to know the existing exemption limits, beyond which you are liable to pay tax.

For Assessment year 2015-2016, the basic exemption limits are the following:

  • Individuals below the age of 60, the exemption limit is INR 2,50,000
  • For senior citizens, whose age is between 60 to 80 years, the exemption limit is INR 3,00,000
  • For super senior citizens, whose age is more than 80 years, the exemption limit is INR 5,00,000

Let’s say, Mr. X has an income of INR 2,80,000 and his deductions under section 80C come to INR 50,000 for A.Y. 2015-2016. Hence, taxable income is INR 2,30,000 (INR 2,80,000 – INR 50,000). Now, since this amount is below the thresholds mentioned above, the tax payable is nil.

However, here the striking point is – Mr. X is required to file his returns because his Gross Total Income (total income before allowing deductions) is above the exemption limit of INR 2,50,000 (assuming he is not a senior citizen).

Now, the question is “Why should one file the return when his/her income is below taxable limit?”

Filing income tax return does not necessarily means paying taxes. There are a number of benefits that will ease your life and future plans if you file tax return. ITR acts as a credential of your financial well-being and serves as an evidence of your income. Additionally, it makes you a good law abiding citizen (like how Mr. Modi says).

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