10 Must To Do Things When Filing Your Income Tax Returns
10 Must To Do Things When Filing Your Income Tax Returns
With the due date of July 31 fast approaching, it is that time of the year again when the nation's tax payers scramble to file I-T returns. After
all, filing of tax return is compulsory for everyone whose gross total income exceeds the basic exemption limit.
For financial year 2007-08, for instance, the basic exemption limit was Rs 1.45 lakh for women below 65 years of age, Rs 1.95 lakh for senior citizens and Rs 1.10 lakh for any other individual. However, for financial year 2008-09, the limit has been increased to Rs 1.80 lakh for women below 65 years of age, Rs 2.25 for senior citizens and Rs 1.50 lakh for males below 65 years.
Thus, if your income for the year exceeded the exemption limit, you will be required to file the return by the due date. "You need to file the tax return even if you are not paying any tax or even if your employer has deducted tax at source," says Ashish Kapur, CEO, Invest Shoppe India Ltd.
However, despite all the precautions taken by you, rush-hour filing may mean that you could inadvertently miss out on certain details and disclosures, and therefore be on the bad books of the taxman. If not that, you might just forget to make the most of the tax breaks available to you, thus paying more tax in the process and claiming no or less return.
Here are 10 important things to do before filing your I-T return:
1. Identify Sources of Income
Firstly, you need to identify your sources of income under different heads. Under the I-T Act, all incomes earned by persons are classified into five different heads, such as income from salary, income from house property, income from business or profession, income from capital gains, and income from other sources. Thus, you should identify all your incomes from different sources, just to ensure that you haven't missed out something while filing your return.
2. Refer to the Basic Documents
According to Vikas Vasal, executive director, KPMG, some basic documents/information that should be referred to while filling the return include:
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