File Tax Returns Before Deadline: 4 Easy Steps

1# Check your pervious TDS details

Check whether the tax you paid earlier has credited to your acount or not. You can check Form 26AS that has the details of tax paid by you. In this form you will find all TDS linked to your PAN or self assessment tax.

You need to match the TDS details given in Form 26AS with the Form 16, if you are a salaried tax payer. You can also go to the tax department’s e-filing portal and click on Check tax credit statement to access Form 26AS. If you have a net banking account you don’t need to log in. In case the details in two forms do not match you need to bring this to the notice of establishment and rectified the mistake.

It is a misconception of the taxpayers that if TDS has been deducted on the interest earned on fix deposit and bond they don’t need to pay the tax. TDS will reflect in Form 26AS. If you ignore the income from interest, the tax department will immediately find out.

2# choose the right form

Many taxpayers don’t know much about the application forms to file tax return. If you don’t choose the correct form for filing tax return, your return may get rejected. ITR 1 is the most used form but people don’t able to use it properly sometimes.

In 2013, the Central Board of Direct Taxes made it compulsory to use ITR2 for the taxpayers if their exempt income is exceeded 5000 a year. Exempt income includes the allowances for house rent, leave travel, medical and transport. So most of the salaried taxpayers need to use ITR2 instead of ITR1.

Many tax payers think that the exempt income in this context only refers to earnings like dividend and agricultural income and not the allowances from employers. Though many tax payers used ITR1 and their tax returns were accepted last year but this year it is not the same.  

It will be better if you choose private portal for filing the tax return. A private portal automatically chooses the correct form for you. The portal processes your return using the appropriate form. It will also cost you a particular amount.

3# choose a correct mode

You can go for private portal if you are convenience conscious but if you are money conscious then go for e-file through the official website, free. It is compulsory for the tax payers with an income of over 5 lakh a year to e-file their tax return.

Though private portal is more convenient but the tax department’s portal has become easier from this year with Java Utility. You need to do it on your own for free. For a private portal you will have to pay anything between 250 and 1500 depending on the form used and your income.

Make sure that the portal you use, ask all your relevant details. Some portals send you an alert ITR V has not been posted within the dead line. Some portals also offer you free filing of tax return. Be careful from those portals they might sell your details to others. In such cases check the privacy police carefully. Always choose your portal with a good record and established credentials.

4# Note down the changes in tax forms

If you have obtained a home loan in the period from 1^st April 2013 to 31, March 2014, you can claim an additional deduction if one lakh on the housing loan interest paid by using ITR 1form that has created space for claiming. But the condition is that your house should not excide 40 lakh and the home loan value should be less than 25 lakh.

You will now have to furnish all the details of the allowances exempt under section 10. You also need to provide all the detailed information on capital gains. You can claim the deduction on the capital gains if you sell the property after three years. You need to provide details of such deduction claimed on capital gains in form ITR2. Ensure the details of your bank account are correct including the branch code because from this year you will not receive any cheque instead the amount will be credited in the bank account.

Always file your return as soon as possible. The return comes faster if you do so. Sometimes the e-filing websites tend to get clogged before the dead line expires. Calculate the tax by adding incomes in case you have changed the job during the year.

The new Sec 80TTA gives deduction of up to 10,000 on interest from a savings account. This does not include the interest earned on bank deposits. Send your ITR-V within 120 days of uploading the return by post. The process will be incomplete without your digital signature. The original and black printed copy of ITR-V has to be sent by post not courier.