good one but its only for salaried persons
i runs a brothel so its not for me
i am a businessman
Documents needed while filing Income Tax Returns
Typically, as a salaried tax payer you'll need to have the following items at hand for filing your Income Tax Return. This might vary on a case by case basis.
Heres a quick guide to the documents you will need for the Assessment Year 2012-13 that will help you prepare and file your Income Tax Return.
Verify your PAN number online with the Income Tax Department before filing your Income Tax Return.
Form-16 issued by your employer
A Form-16 is a statement issued by your employer which has details of your Salary, the taxable salary amount after various perks and allowances, the TDS deducted by your employer, the deductions you have claimed and the overall tax due. TDS is Tax Deducted at Source. Your employer will have already deducted some portion of your salary and deposited it with the Income Tax Department.
This is a good starting point to start preparing your tax return.
Bank statements / passbook for Interest Income on bank deposits.
Note that you have to declare all Interest Income earned in the Financial Year 2011-12 in your Income Tax Return. A lot of people forget to do this, so please go through your bank statements and find out the Interest received.
Statements of Interest Income besides Bank deposits
Sometimes you may have fixed deposits which may have matured, debentures which yield interest. Take a look and make sure to declare this income on your Tax Return.
TDS certificates issued to you by your bank and others
TDS may have been deducted on your Interest Income by your bank. Check whether any TDS was deducted. You can ask the Bank to issue you a TDS statement. Declare these TDS entries in your Tax Return to reduce your tax liability.
This is one of the most important documents that you should look at while preparing and filing your Income Tax Return.
Form 26AS reflects all the Income Tax received by the Income Tax Department with respect to you. This is a tax credit statement which shows TDS payments, voluntary tax payments made by you.
This Form-26AS should match all your TDS certificates issued to you by your employer, your bank etc.
If there is a mismatch you may have a tough time getting your tax refund. In case there is a mismatch between your TDS certificates and Form-26AS, you should contact your employer or your bank. They might have to inform the Income Tax Department of the TDS they have deducted.
Proof of investment under Section 80C
Investments done under LIC, NSC, PPF, school fees of your children qualify for Section 80C deductions.
Payment towards the principal of your Housing Loan also qualifies for deductions under Section 80C. The maximum limit for claim under section 80C is Rs. 1 Lakh.
Charitable donation statements
Donations that can be claimed for tax deductions under Section 80G.
Typically the receipt issued by the charitable organization you donate to mentions the eligibility under Section 80G.
For making sure you can avail of your tax deduction, make sure you quote the PAN number of the charitable organization.
Interest paid on housing loan.
If you pay EMI towards housing loan for a house that you live in: The Interest paid on housing loan is eligible for tax saving. The upper limit for tax saving is Rs 1,50,000.
If you pay EMI towards housing loan for a property that you rent out to others: The Interest paid on housing loan is eligible for tax saving. There is no upper limit for Interest paid exemption on rental property.
Other (less common) documents:
Proof of investment under Section80CCF:
Investments in Infrastructure bonds upto Rs. 20,000 can be claimed as tax deduction under section 80CCF.
Proof of investment under Section 80E:
Interest Paid on Education loan is tax deductible and can be claimed under Section 80E.
Proof of investment under Section 80D:
Medical Insurance payments for your family and your parents can be claimed here.
Proof of Disabilities
If you have disabilities, you might want to check up on Section 80U. If you have dependents with disabilities then check on Section 80DD.
Stock trading statement:
If you have sold any stock in the Financial year 2011-12, then you might have had Capital Gain or Capital Loss. This has to be declared in your Income Tax Return. Take a look at your brokerage account and then declare your Capital Gain.
Capital gain on sale of property
In case you sold any property or house or land or anything of value, you may have had a Capital Gain or Capital Loss. You have to declare this in your Income Tax Return.
Overall the key take away is - Look at your Form-26AS to ensure that your records match those of the Income Tax Department.
As an Individual you are required by law to file your Income Tax Returns, if your total income without allowing deductions (such as Section 80C etc) exceeds the basic exemption limit.
For Assessment Year 2012-13, the basic exemption limits are the following:
For Men below the age of 60, the exemption limit is Rs. 1,80,000.
For Women, below the age of 60, the exemption limit is Rs. 1,90,000.
For Senior Citizens, whose age is between 60 years to 80 years, the exemption limit is Rs. 2,50,000. This is identical for men and women.
For Super Senior Citizens, of the age of 80 years or more, the exemption limit is Rs. 5,00,000.
What does Total Income without allowing deductions (such as Section 80C etc) actually mean?
Lets say, your gross total Income is Rs. 2,00,000. You have paid Rs. 50,000 in LIC premium for claiming deduction under Section 80C. Your Taxable Income is Rs. 1,50,000 (Rs. 2,00,000 - Rs. 50,000). The tax payable on Rs. 1,50,000 is Zero.
However, even in this situation, you are required to file your Income Tax Return as your gross total Income exceeds the basic exemption limit of Rs. 1,80,000. (assuming you are not a senior citizen).
Exemption for filing Income Tax Return for Salaried Employees
For the Assessment Year 2012-13, there is an exemption from filing the Income Tax Return for Salaried employees, subject to the following conditions.
Your Total Income after deductions (such as Section 80C etc) is upto Rs. 5,00,000.
Income other than Salary should be only from Saving Bank Interest, upto Rs. 10,000. If you have any other source of Income like House Property, Capital Gain, or even interest from fixed deposits, you will have to file your Income Tax Return.
You must declare this Interest Income from the Saving Bank to the Employer. The employer then has to deduct the TDS taking into account your Interest Income.
If you have a refund due, you need to your file your Income Tax Return to claim this refund.
This exemption is difficult to get in actual practice. You will most likely have to file your Income Tax Return.
This is because, you must declare your Interest Income to your employer before 31st March of the Financial Year. But in most cases, the Bank issues the Interest statement after 31st March. So it is virtually impossible to report the Bank Interest to the employer in time.
Compulsory filing of Income Tax Returns if you have foreign assets.
For the Assessment 2012-13, it is mandatory to file your Income Tax Return if you have any foreign assets. Even though you may not have any taxable Income.
When is e-filing your Income Tax Return compulsory?
For the Assessment year 2012-13, e-filing of the Income Tax Return has become compulsory for the following cases:
If your Total Income exceeds Rs. 10 Lakhs, then you must e-file your Income Tax Return.
If you own foreign assets, you must e-file.
I have paid all my taxes, do I still need to file my Income Tax Return?
As explained above, the law has placed an obligation on you to file the Income Tax Return even if you have no tax due.
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