The Income Tax Department released the tax return forms for filing for FY 2016-17 (AY 2017-18) and income tax return filing has begun. If you are planning to file ITR-1—the due date for which is 31 July—this post will come in handy.
ITR-1 (Sahaj) is for taxpayers who have income from salary, one house property and income from other sources. The maximum amount of agricultural income that can be declared in ITR-1 is ₹5000. So if your agricultural income is more than ₹5000, you cannot file ITR-1.
Here are a few tips that will help you with filing of income tax return smoothly.
Get an Aadhaar Card
Quoting of Aadhaar Card has been made mandatory from 1st July 2017. You can either quote your Aadhaar number or Aadhaar enrollment number in your tax return.
Use Form 16 to include salary income your return
Form 16 is a certificate from your employer. It has details of salary paid by them to you and taxes deducted on it. Form16 is issued once for a particular financial year, on or before 31st May of the next year. The taxable salary as mentioned in Form 16 goes into the income tax return under the salary head.
Have Form 26AS ready to include TDS details
Form 26AS has details of all the TDS that has been deducted against your income(s). It includes TDS deducted on salary and if there's any TDS deducted on fixed deposit interest the same can also be seen in this tax credit statement. This document can be downloaded from the income tax website.
Mention bank account details
Details like your bank account number and IFSC code are required by Income Tax Department for filing your income tax return. So having your bank account statement comes in handy for submitting these details and also for declaring any interest income from your savings bank account.
Make sure that if you live in a rented house HRA exemption has been claimed. These details will be available in Form 16. If you could not submit rent proof and cannot see any amount reduced from your salary as HRA deduction you can claim the same while filing your income tax return. Make sure you have a rent agreement in place and have rent receipts. If you are paying rent to parents make sure they have included this rental income in their tax return.
Recheck deductions claimed
In case you have invested in ELSS, tax-saving fixed deposits, paid any life/medical insurance premium and have not declared the same to your employer, remember to claim them at the time of filing your tax return. These deductions are allowed under section 80.
Any donations made to recognised charitable organisations can fetch you extra deduction under section 80G. You need to declare name, address and PAN of the organisation and amount of donation made. These details are available in the donation receipt.
Tax benefit for house property owned
In case you own a house property via a home loan, a deduction can be claimed for the interest component of the EMI under income from house property. The maximum deduction allowed is ₹2 lakhs in a financial year for a self-occupied house. If you own only one house you can file ITR-1 and claim this deduction in it.
If you have earned income other than salary—such as house property income or interest income—and there is some tax that is required to be paid; make sure you have done so. All pending taxes must be paid and included in your income tax return.