8:17 pm - Wednesday October 1, 2014

5 steps to e-filing income tax returns

The last date for the filing of income tax returns is fast approaching. Some people might be filing returns through the chartered accountant, while filing online is now the easiest way to file returns. Here are the steps to e-file income tax returns.

1. Examine your situation first – You must first determine all your sources of income. You income might also come from house rentals and capital gains apart from the monthly salary. If you own more than one house and it is not rented out then you will still have to pay notional rental income.

2. Collect the details of income and taxes – Tally the details in Form 16 A with the details contained in Form 26AS which is available on the income tax website. You need to pay taxes in case you fall in the 20 or 30 percent bracket as the withholding taxes which are calculated by the payer other than the employer.

3. Get the right form – If you have any assets overseas or even have its signing powers you will have to use the ITR 2, but you can also use the form ITR 1. You will also have to report exempt income like dividends, long term capital gains, interest on PPF and so on.

4. Check assets – Also check if you have any wealth tax obligation. If you have then you will have to file wealth tax return before July 31, 2012.

5. Maintain documents after e-filing – Always maintain bank statements with Form 16 and 16 As along with proof of other income and of exemption claimed and so on.

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