Month of July is the month to file Income Tax Return and every individuals must have received their Form 16 (Salary Certificate) and Form 16A (TDs certificates) of other Income. So, waiting for the last date to file Income tax return is not the smart way. File Income tax return earlier and get it processed faster.
We at Taxmantra.com always advise to file income tax return as early as possible to avoid incorrect filing of Income tax return instead of waiting for the due date to arrive. Here, we describe few key points relating to filing of Income Tax Return:
Legal Obligation to file Income tax return
Every individual whose taxable income during the year has exceeded the basic exemption limit is compulsorily required to file income tax return.
Collate the documents
Before filing Income Tax return, collate all income tax related documents like Form 16, Bank statements, Form 16A / TDS certificate; tax payment challan, Proof of Investments and Home Loan certificate.
Due date for filing Income Tax Return
Individuals who are not required to get their books of accounts audited – 31st July of the assessment year (Like for FY 2011-12 due date would be 31st July 2012).
Individuals who are required to get their books of accounts audited – 30th September of the assessment year (Like for FY 2011-12 due date would be 30th September 2012).
Consequences of Delay in Filing
Taxpayers filing income tax return after the due date should be aware of the consequences owing to delay in filing like interest u/s 234A is chargeable, business loss (Speculation or otherwise), capital loss (short term or long term) and loss due to owning and maintaining of race horses cannot be carry forwarded and even you discover any error on belated return filed, return cannot be revised.
Mode of Filing – Manual or Online
Income tax return can be filed online as well as manually. And in online mode, assesses have two option of filing, to file with digital signature or without digital signature.
Assessee should always prefer for online filing as it ensures faster processing of ITR and quick processing of refunds, if any.
Now the Income Tax Department does not accept any additional documents along with the return of income but, it doesn’t mean that no proofs are required for any investment and expenses as the Income Tax Officer may ask for the documents at the later stage to check the correctness of the claim made. Hence, it is always advised to preserve all the documents required to substantiate the online tax returns.
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