July 31 is last day to file income tax returns: 5 things to keep in mind before filling up the form

July 31 is last day to file income tax returns: 5 things to keep in mind before filling up the form

As the deadline to file your income tax returns (ITR) draws nearer, there might be many questions on your mind while filing the same, especially after the recent announcements related to linking Aadhaar with PAN.

The last date of filing your ITR for financial year 2016-17 is July 31.

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To help you out with the process, we have listed out important things to remember while filing the ITR:

ITR forms have been reduced from 9 to 7:

For financial year, 2016-17, the Central Board of Direct Taxes (CBDT) has made some relevant changes to the ITR forms. To make the process less tedious, the number of ITR forms have been reduced from nine to seven.

Complete coverage on filing income tax returns

Earlier, there used to be three forms: ITR-2, ITR-2A and ITR-3, now all these have been replaced by just one form, which is ITR-2.

The new form ITR-2 should be filled by those who have income of more than Rs 50 lakh or own more than one house property.

Necessary to Aadhaar number:

Tax payers now have to their 12-digit Aadhaar number, or the 28-digit Aadhaar enrolment number, while filing the income tax return. Supreme Court is yet to give a final verdict on whether it will be mandatory, but the CBDT has mentioned that tax payers need to mention Aadhaar number to file returns.

Form 16 and Form 26AS:

All of you salaried people must have received Form 16 by your respective employers by now. Form 16 has all the details regarding your salary and taxes deducted on it.

Form 26AS is a document that a salaried individual should access before filing tax returns. This is a tax credit statement, which includes all taxes received by the Income Tax Department, the same can be accessed from the tax department’s website: incometaxindiaefiling.gov.in

If you have paid taxes on your income, or tax has been deducted from your income, the Income Tax department already has these details in their database.

Form 26AS can be downloaded from the income tax website.

Bank Accounts:

A tax payer is also required to disclose his/her bank account number along with the IFSC code. However, dormant accounts, which have been in use for the past three years or more, need not to be mentioned.

Mandatory disclosure:

According to the Income Tax Department now, tax payers have to disclose information of cash deposited in their bank account aggregating to Rs 2 lakh from November 11 to 30 December, 2016.

Besides that, if any assessee has any unexplained income or investments, he has to report such unexplained income in the new ITR forms and such amount will be taxable at the tax rate of 60 percent plus surcharge and cess.

Source by msn….

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