Did You File ITR For Financial Year 2016-17?

The time has come for you to do the most important job of the year. Filing your income tax returns, popularly called filing ITR. Days are running. The last date to file ITR for assessment year 2017-18 is July 31^st 2017. You better not wait for the last minute. Time is ticking.

Albert Einstein might have said that the hardest thing in the World to understand is income taxes. But, you need have no worries....Filing your ITR online is quite an easy process. Want to know more on tax planning? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice / education to ensure that you are not mis-guided while buying any kind of financial products.

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File ITR For Assessment Year 2017-18

Steps to file ITR Online:

To file your returns online you must visit the website. This is how you can do it:

STEP 1 :

You must first Log on to the income tax e-filing website 

STEP 2:

You then download the applicable ITR Form from 'Downloads'.

STEP 3:

You will have to fill this ITR Form offline. You will have to generate an XML file and save it on your desktop.

STEP 4:

You then create a User ID and Password and Login to the Portal.

STEP 5:

Go to the e-file. Check on 'Income Tax Return'. You then click, Upload the tax return.

Things to do before filing ITR

1. You must first check Form 26AS and make sure that the tax deducted from your income matches that of Form 16.

2. If there are mismatches, there is a chance of you getting an income tax notice.

3.  You will have to mention the right bank details so that any refund due to you is credited directly to your bank account. You will have to mention the correct PAN, address, email and mobile number.

4. Finally, remember to file ITR much before the due date of July 31^st 2017.

Things to know before filing ITR

1. Identify the ITR form you have to fill

• If you have income from salary, one house property, other sources of income like interest income and your total taxable income is up to INR 50 Lakhs, you must file ITR using the ITR 1 Form.
• If you are an individual/HUF not carrying out business and have more than one house and income from other sources, you must file ITR using the ITR 2 Form.
• If you are an individual/HUF having an income from a business/profession, you must file ITR using the ITR 3 Form.

2. Remember to quote Aadhaar

• It is compulsory to quote Aadhaar while filing ITR with effect from July 1^st 2017.
• You have to mention the 12-digit Aadhaar number or the 28-digit Aadhaar enrolment number while filing the income tax return.

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3. There are new sections in ITR Forms

• The dividend income you earned, used to be exempt from tax in the hands of the assessee. The amount of dividend income you earned did not matter.
• Now while filing ITR, any dividend income you earn which is more than INR 10 Lakhs is taxed at 10% and must be reported in schedule OS.
• If you receive income from any person in the form of royalty for a patent developed and registered in India, you are taxed at the rate of 10%.
• If you are a first time home buyer who has availed a home loan to purchase/construct this house, you are eligible for an annual deduction on EMI (interest) of INR 2.5 Lakhs a year.
• To claim this deduction a new column has been introduced under schedule V1-A.

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4. You have to make some mandatory disclosures

• If you have deposited INR 2 Lakhs or more in a bank account during the demonetization period while filing ITR, you have to give details of the money deposited and also details of bank accounts like, Name of the bank, IFSC Code and also bank account numbers.
• If you have any unexplained income/investments you must mention them and these amounts are taxed at 60% + surcharge and cess.

5. You have to make some additional disclosures

• Earlier, if you had an income of more than INR 50 Lakhs a year, you had to declare your assets and liabilities. You would have to declare the cost of your jewelry, property, vehicles, bank and even cash balances.
• Today, if you had an income of more than INR 50 Lakhs a year, you have to declare the address of the immovable property and the description of the movable assets.

You have just over 20 days to the deadline of July 31^st. Gather your thoughts...Get your pen and paper and make a note of all these things before you file ITR. You cannot make mistakes. This is the job of the year. Be Wise, Get Rich.