All details about Income Tax Return filing

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Income tax filing time is near and last date for filing of income tax return is 31st July 2017 If you have no liability of Tax audit otherwise it will be 30th September 2017.
in this post we try to explain 

Also Read : Income Tax Slab Rates for F.Y. 2016-17 A.Y. 2017-18
  1. Why you should file your income tax return
  2. What are the benefits you received when file an tax return.
  3. What documents needed to file income tax return for income source.
  4. what deduction can be taken from your income.

Filing Income Tax Return (ITR) is mandatory under the Income Tax rules of India if your gross total income exceeds Rs 2,50,000/- before deduction under Chapter VI.
This limit is Rs 3,00,000 for senior citizens ( who are more than 60 years old but less than 80 years old) or Rs 5,00,000 for super senior citizens (who are more than 80 years old)
If your tax deducted at Source (TDS) irrespective of taxable income then for taking refund you have to file income tax return, for losses carry forward.

Not liable for Audit

The last date to file ITR for Individual and persons who are not liable to audit is 31st July for every year from the end of respective financial year.

Liable for Audit

The Last date for filing of return for Individual and persons liable for audit is 30th September after end of respective financial year.

Why Need to file Income Tax Return

For filing of income tax return you should collect some of the important papers that would be used to prepare return like for tax calculations, taking tax exemptions.
If you are going to apply for a bank loan then you will also need last years income tax return copy along with computation.
ITR is also required if you are trying to apply for a bank loan. If you plan to emigrate to another country, the visa officers would ask to see your ITRs. It is also necessary if you plan to move out of a salaried job and want to start up a new company.

Benefits of Filing Income Tax Returns

Some of the benefits you get when you file your income tax return on time:

  1. Income Proof - IT Return are solid income proof for what you are earning apart from your bank account. ITR is considered a customary income proof not only in India but also globally. If you are looking for higher education or employment abroad, ITR is the largely accepted income proof.
  2. You can get your capital gains or losses adjusted: If you are investing in the equity market and have been buying or selling shares, filing an income tax return may be beneficial for you. As long as your total income is below the exemption limit, there is no compulsion to file an ITR. But you can get your short term capital losses adjusted against capital gains. What’s more, this adjustment can be carried forward for eight years as and when you submit your ITR for the respective year.
  3. You will need ITR to claim any tax refunds: Once tax is deducted, any tax refund is facilitated only when you submit your income tax return for that year. So any TDS on rent payments for NRIs, or TDS deduction by banks on your fixed deposits will be refunded only once you file your tax returns and claim the desired tax deduction. You will need to file for tax refunds online once you file your ITR for that year.
  4. ITR is required when you are applying for loans: Since your ITR is not just a financial document but also indicates your annual earnings, banks and NBFCs ask copies of your ITR when you approach them for a loan. Filing your returns despite having no taxable income will increase your chances of getting a loan approved as compared to someone with the same earnings but no ITR filings.
  5. ITR is needed to claim any tax deductions: The Rs 2.5 lakh exemption limit is on your gross income. So, if your income is higher than Rs. 2.5 lakh, and you are seeking various tax exemptions to bring your income below that level, you will need to file your income tax returns. Even when there is no tax liability, filing of your ITR is mandatory in order to seek any tax deduction under various sections of the I-T Act.
  6. ITR is mandatory if you own foreign assets: As an Indian resident, if you own any foreign assets, you are required to file your income tax returns as per law. This includes having movable or non-movable foreign assets including a bank account overseas. Failure to disclose your foreign holdings can lead to a possible fine and is considered to be an economic offence.
  7. Speeds your loan application process - Apart from a good credit history (or past repayment track), the fact that you are filing your ITR regularly gives you speedier access to credit and at better terms – although not necessarily a larger line of credit, but surely a better rate. It also provides the impression to the financier that you are a law abiding citizen and will repay the loan within time.
  8. Power of PAN – Permanent Account Number or PAN issued by the IT authority is not only a prerequisite for filing ITR but is also now mandatory for all financial transactions – from opening a bank account, or purchasing mutual funds to real estate for investment. So it makes sense to get yourself one even if you don’t have much income to boast of.
  9. Claim your Tax refund – Filing ITR is not always about paying tax. It can be used as a means to reduce your tax liability! Yes, you heard us right. Take for instance, salaried employees for whom TDS has been cut during the financial year can claim refund if the tax outgo has been more than the actual tax payable.
  10. For obtaining LIC/GIC agency: Insurance corporations, before allotting an agency, check the financial health and habits of the agents. Previous three years’ returns are called for before allotting any agency.
  11. For Startup Funding: Many a time, seed, angel or VC investors include income tax returns filed till date in their statistical analysis. From returns they not only want to know your profitability but also your scalability, various cost parameters, and validity of the data produced from the auditor’s report.

Documents Required for Filing Return

Normally following documents are required for every Tax Payer

  1. PAN card
  2. Aadhar Card number ( as it is compulsory to link your Aadhar card with PAN Read Notification)
  3. Bank account information (i.e. IFSC code, Bank Account number.)
  4. TDS certificates (if applicable)
  5. Tax payment Challans (Self-assessment, advance tax)
  6. In case of revised return/return in response to a notice received from Department of Income-tax You need the details of Original return/details of notice 

Below is the list of documents as per income Source:

Income tax has 5 heads of income
1. income from salary,
2. income from house property
3. income from Business & Profession
4. Income from Capital Gains
5. Income from Other sources
All income that not allocated to any heads will fall under Income From Other sources like winning from lotteries, or like wise.
Type of your income will decide which ITR form you should file more info can be Read Here

1. Salary Income:  
  • Salary Certificate Or Form 16 received from Employer.
  • If leave on rent then HRA details if received. and Rent paid Details as it can be taken as deduction in HRA or in Section 80GG ( deduction on Rent Paid)

2. House Property : 
  • Address of the property.
  • Co-owner details (if property is co-owned)
  • Interest certificate issued by bank in case of housing loan with principal and Interest.
  • Rent details ( rent received, Tenant names and Pan number if any)
  • Any house Property Tax paid for house. 
3. Business & Profession
  • Balance Sheet 
  • Profit & Loss Account
  • all banks statements
  • All expenses Details ( only business related )
  • In case of Proprietorship any investment taken in his name


Note: Kindly Contact your chartered or person who is filing your return he will give you more details about it.

3. Capital Gains
  • Sale and Purchase deed of the property including stamp valuation of the property (for land/building)
  • Documents for cost of improvement on the property (if improvement is done)
  • Stock statement in case of trading in shares etc. (specifying sale and purchase value of shares) it may be received from broker.
  • In case of other capital assest the cost of purchase, sale value and cost of improvement if any
  • Details of expense incurred on transfer
  • Re-investment purchase deed for claiming exemption from Capital Gains
  • Details of investment in Capital Gains Accounts Scheme

4. Other Sources
  • All Bank Passbook/Statement or interest income certificate (deduction of Saving bank interest up to Rs 10000/- u/s 80TTA is available) as you will require to disclose all your bank account which open in your name & all joint account  in which you are primery holder.
  • PPF passbook for interest
  • Dividend warrants/amount
  • Interest certificates on bonds and Fixed Deposits
  • Details of accrued interest on NSC during the year. ( if NSC interest is reinvested then tax free other wise on withdrawal interest is taxable)
  • Rent agreement for plant & machinery, building etc. given on rent (if any)
  • Receipts of any income from winning of lottery, horse races etc.
Pin Code For Banglore CPC Changed Read Full info

Tax deduction under chapter VI

After income details you need to collect all your expense or investment details which are eligible for deduction from your Gross Income below is an sample List : ( as it may defer from case to case you have to ask and show all the details to your Chartered Accountant. )
  1. Life insurance Premiums [80C]
  2. Mediclaim insurance Policy Premium Paid [ 80D]
  3. PPF passbook [80C]
  4. any investment made in Mutual Funds 
  5. Fixed deposit receipts [80C]
  6. Repayment certificate for housing loan ( Interest U/s 24 & Principal U/s 80C)
  7. Deposit receipts for senior citizen saving scheme. 
  8. Tuition fees receipts whether School or College [80C]
  9. Donation receipts (Along with PAN of the donnee) [80G]
  10. EPF or PPF investments [80C]
  11. Investment in National Savings Certificate (NSC) [80C]
  12. Investment in Sukanya Samriddhi Scheme [80C]
  13. Investment in Unit-linked Insurance Plans (ULIPs) [80C]
  14. Investment in Equity Linked Savings Scheme (ELSS) [80C]
  15. Investment in 5-year Fixed Deposit scheme
  16. Contribution to notified securities/deposits scheme
  17. Subscription to notified pension funds set up by Mutual Fund or UTI.
  18. Investment in term deposit schemes of the National Housing Bank
  19. Contribution to term deposit schemes of a public sector or housing finance company
After Filing Your return if you have to sent ITR acknowledgement to Banglore CPC ( it is not required if you have e-verified your return) 

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