Income Tax Return Filing – Simplified!!!

Last date for filing returns is 31-July. Here are some tips & important points you should take care while filing your income tax returns.

In case you find below details cumbersome & boring, call or email us (22 67413121 or info@moneyfrog.in), we will file your income tax returns online at a nominal fee. All you have to do is to forward or upload your Form16 & other IT related documents, which our advisor will guide you.

1. E filing of income tax return is mandatory – if your total Income is Rs 5 lakhs or more, you need to file Income Tax return online / electronically. Digital signature is not required to file e-returns.
2.  Enter Email Id and Mobile number – Now, you need to mention your email id and mobile number compulsory while filing IT return.

• The Central Board of Direct Taxes (CBDT) has made mobile number and email address mandatory for filing income-tax returns. This additional contact details is expected to improve efficiency and add an extra layer of security.
• “A valid email ID and mobile number has to be registered/updated on the e-filing website of the Income Tax Department so that direct communication with taxpayer can be possible,” the CBDT said in a release issued.
• A one-time password will be sent to the email address and mobile phone to be entered by the taxpayer after logging into his account for authentication. The password will be valid for 24 hours.

3. Any Refund mandatory via ECS – So if you are claiming any refund, you need to provide bank Account number for direct credit via ECS.

• Direct Credit of Tax Refund via ECS – All refunds to be now received via ECS – no refunds via cheques

4. Choose the right Income Tax form – If you are salaried person and have no Income from Business & profession, then it is likely that you need to file return in ITR 1 or ITR2.

Salaried employees will normally need to file their Income Tax returns in ITR 1 or ITR 2 (depending on the conditions below).

ITR 1	You can file return in ITR 1If you have Salary income -If you have income from ONE house property (excluding cases where loss is brought forward from previous years.)If you have income from other sources (except income from lottery or from horse races) However, you cannot file return in ITR 1 – If exempt income (income not chargeable to tax) exceed Rs. 5,000. (fore.g Dividends, PPF Interest etc. This condition is important to note) If any income from Capital Gains – (for e.g Sale/ purchase of shares, property etc) If any loss under the head Income from Other Sources, If such person has assets (including financial interest in any entity) located outside India or such person has signing authority in any account located outside India If claiming any double taxation tax relief under sections 90 or 90 A or 91 of the Income-tax Act, 1961.
ITR 2	If your income doesn’t include Income from Business & profession and you donot meet conditions for ITR 1, then you need to submit return in ITR 2.
ITR 3	For Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship
ITR 4	For individuals and HUFs having income from a proprietary business or profession
ITR 4S	Sugam – Presumptive Business Income tax ReturnForm No. SUGAM (ITR 4S) is provided for filing Income-tax Return by the persons who are taking advantage of computing their income in terms of section 44AD or section 44AE of the Income-tax Act for computation of their business income based on a percentage of the profit.It may be noted that this return form be used only when the turnover of the business is less than Rs. 1 crore.The new amendment to Rule 12 of Income-tax Rules now provides that the provisions relating to filing of Income-tax Return in Form SUGAM (ITR 4S) will not apply : • To a person who is a resident, other than not ordinary resident in India and has any assets (including financial interest in any entity) located outside India or has a signing authority in any account located outside India.• cannot be used by individual claiming Double Taxation Relief. • cannot be filed by persons having income not chargeable to tax exceeding Rs. 5,000 and such persons should file return in Form No. 4.
ITR 5	For firms, AOPs and BOIs
ITR 6	For Companies other than companies claiming exemption under section 11
ITR 7	For persons including companies required to furnish return under Section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D)]

You can download these forms / submit ITR online at link below
https://incometaxindiaefiling.gov.in/

Link to download all ITR Forms & Instructions in pdf (English & Hindi)
http://incometaxindia.gov.in/download_all.asp

ITR 1 / ITR 2 – Exempt Income more than Rs 5000
Last year there was lot of discussion that when to file ITR 1 or ITR 2 and what is the scope for Exempt Income?
For e.g if HRA is exempt for Rs 5000 or more, whether ITR 2 is applicable etc. The Answer is NO.
However, please note that if EXEMPT Income like – Dividend Income, PPF Interest, Agricultural Income etc is more than Rs 5000, then you need to file ITR2.

5. Check Form 26AS (Tax Credit Statement) – Check your Form 26AS to verify the TDS deducted & deposited against your PAN. It includes TDS deducted by your employer, TDS deducted by bank on Interest etc.
   Check your Form 26AS regularly to make sure that TDS deducted are appropriately credited to your account.
   When your employer deducts TDS from your Salary or your bank deducts TDS on your FD Interest, they need to deposit this amount to Government against your PAN. If they enter your PAN incorrectly, you will not get credit for that TDS amount.
   So, It is always better to check your Tax Credit Statement (Form 26AS) before filing your Income Tax return.

What is Form 26AS

Form 26 AS is consolidated tax statement which includes details of

• tax deducted on behalf of the taxpayer by deductors
• tax collected on behalf of the taxpayer by collectors
• Advance tax/self assessment tax/regular assessment tax, etc. deposited by the taxpayers (PAN holders)
• Details of paid refund received during the financial year
• High value Transactions in respect of shares, mutual fund etc.

What if your TDS details not appearing on Form 26AS or appearing wrong

If you think that the details under your Form 26AS is not correct, you should immediately contact your employer / bank who has deducted the Tax for rectification. Common mistakes are wrong PAN number with the deductor (employer / bank etc)

How to check or view Form 26AS online?

There are 3 ways / options to check Form 26AS

• Income Tax India efiling website
• Net Banking of Authorized banks
• through registration at TRACES Website

Option 1 – View Form 26AS on Income Tax India efiling website

To check Form 26AS online on Income Tax efiling website, you need to visit

https://incometaxindiaefiling.gov.in/e-Filing/UserLogin/LoginHome.html?nextPage=taxCred

Register on website for FREE

• After you login, you will find the option to view Form 26AS under “My Account” tab
• You will need to enter Date of Birth verification & Confirm and then select the relevant Assessment year to check the relevant Form 26AS

Option 2 – Check Form 26AS via NetBanking of Authorized banks

You can check your Form 26AS, if you have internet banking at one of the 35 authorized banks. Y can check by logging into your net banking account – there will be an option called View 26AS or View Tax credit Statement.
You can check your Form 26AS without registration at efiling site.

Option 3 – View Form 26AS through TRACES Website

This facility is available to PANs that are registered with TRACES website for view of 26AS statement.

The PAN holder has to Register as new user (as taxpayer) and then fill in the required details from Step 1 to Step 4 during which an activation link and activation code will be sent to the registered e-mail ID and registered mobile number.

After successful registration and login, the taxpayer will be able to view his 26AS statement free of cost in three modes i.e. HTML, PDF and Text format.

Link to TRACES portal.

While accessing TRACES website, you might get an error – Site is not available due to technical reason. If you are accessing this site from outside India, you will get this error.

For NRI who want to check 26AS from outside India, they need to use this link below

TDSCPC services for NRIs are available through https://nriservices.tdscpc.gov.in/nriapp/login.xhtml . Kindly register and access TDSCPC NRI services through same.

Summary

You should check your Form 26AS at least before end of year as well as before filing Income Tax returns. It is convenient to check your Form 26AS either via Net Banking or Income Tax efiling website.

Common Errors (faced mainly by NRI) – Form 26AS site down

Some people gets following error when trying to check their Form 26AS – “Site is not available due to technical reason.”

The reason is that this service is available within India only. So NRIs who are trying to check their Form 26AS from outside India are getting this error.

For NRI who want to check 26AS from outside India, they need to use this link below

A TDSCPC service for NRIs is available through https://nriservices.tdscpc.gov.in/nriapp/login.xhtml . Kindly register and access TDSCPC NRI services through same.

 

6. Include Income from Bank FD Interest / Sweep in FD Interest – Many taxpayers make mistake of not including FD interest in their Returns as they think that TDS is already deducted so there is no need. But this is not correct. You need to show the FD interest under Income from Other Sources and then claim the TDS amount under Schedule of TDS deducted.Bank Fixed deposit is an all-time favorite investment in India as it provides a decent fixed return for the fixed period and relatively safer as compared to other forms of investment products.
   Specially, in current interest rate scenario, the fixed deposit rates are quite lucrative (8.5 – 10%). However, it is likely that rates will go down further, so it is advisable to lock-in your interest rates if you want to invest in FD for longer term.Banks are required to deduct Tax (TDS) @ 10 % if the interest earned on FD exceeds Rs 10,000 in a financial year. This could have a significant impact on the amount received at maturity.

I am sure that everyone wants to save tax and to avoid any deduction from their hard earned money. Most common queries, I received from friends are:

1. My Bank is deducting TDS on FD, can’t I avoid it?
2. Do I really need to pay tax on Bank FD Interest?
3. My total income in under taxable limit, how should I get the refund back?

Let me try to explain answer to above queries in addition to few ways to avoid TDS on Interest on fixed deposits.

• Interest earned on Bank FD is Taxable

First of all, you should know that any interest earned on bank FD is taxable & should be included in your taxable income.

Even if the TDS has not been deducted by bank, you need to include the income from fixed deposits in your tax returns and pay the tax as per your tax slab.

If the TDS has been deducted by bank @ 10 %, you still need to include the income from fixed deposits in your tax returns and claim the TDS amount in appropriate column. For e.g if you are already in 30% tax slab, any interest earned on FD will also be attract 30% tax (even if tax is deducted by banks @10%)

• Tax Deducted by Banks (TDS)

Banks are required to deduct TDS at 10%, if the total interest earned on your fixed deposits in a bank branch exceeds Rs 10,000 in a financial year.

Make sure than your PAN is updated with the Bank otherwise TDS will be deducted @ 20%.

TDS is also applicable on the interest accrued. At the end of fiscal year (31-Mar), tax is deducted on the interest accrued on the fixed deposit(s), even if this interest has not been paid / credited. Check your 26AS to ensure that tax is deducted and paid by bank before you file your return.

• So, is there any way to avoid TDS?

Yes. An investor can save TDS by following ways:

• By submitting Form 15G/15H

If the investor’s estimated total income is below exemption limit, he can submit Form 15G, then the bank would not deduct any TDS from the interest earned. For senior citizens, the requisite form is 15H to avoid TDS.
You need to fill this form at the beginning of each financial year providing details of fixed deposits and submit to your bank.

• By splitting FD across Banks & branches
  Another easy way adopted by many investors to avoid TDS, is to split their FD across banks so that the interest earned does not exceed the Rs 10,000 limits.
  As per new tax rules, TDS will be deducted in respect of FD with ALL the branches taken together in case the bank has core banking solution.
  However, please note that this will just avoid TDS. You will still need to include this while filing your income tax returns for the year. So, if your income is taxable, then you will need to pay taxes according to your income tax slab.
  Suppose you want to invest Rs 1.5 lacs in FD giving 10% interest. If you open FD in one bank / branch, the interest earned per annum will be Rs 15000 and TDS will be deducted. However, you split your investment across 2 banks – Rs 75000 each, then the interest earned on each FD will be Rs 7500 only which will be below TDS limit and no TDS will be deducted by Banks.
  Update Budget 2015– As per new tax rules, TDS will be deducted in respect of FD with ALL the branches taken together in case the bank has core banking solution.

• By Timing the FD

You can also avoid TDS by timing your FD so that the interest earned in one financial year does not exceed Rs 10000.
Suppose you want to invest Rs 1.5 lacs in FD giving 10% interest. If you start this FD for 1 year on 01-April-2013, then the interest earned in one financial year (April 13 – March 14) will be Rs 15000 and TDS will be deducted.
However, if you open this FD in Oct 13, then the interest will be split in 2 financial years (Oct13-Mar14 & Apr14-Sep15) and no TDS will be deducted.

• How to get TDS refund.

If your bank has deducted tax on the interest earned and your tax liability is NIL , then you can claim refund by filing your income tax return. Check your form 26AS to ensure that tax is deducted and paid by bank before you file your return.

7.) Include Income from Saving Bank Account – Many taxpayers wrongly belief that saving bank Interest is not taxable. Please note that Interest earned on Savings bank Account is Taxable and should be included under Income from Other Sources. However, you can claim deduction upto Rs 10000 under Section 80TTA in respect of Savings bank Interest.
As per Section 80TTA of Income Tax Act 1961, Individuals & HUF can claim deduction upto Rs 10000 for Interest earned on their Savings Bank Accounts.

Summary of Section 80TTA of Income tax Act 1961

Through Finance Act, 2012, section 80TTA under Income Tax Act, 1961 is introduced to give additional income tax deduction upto Rs 10000 for Interest on Saving Account with Bank, Co-operative Bank or Post Office.

The section is applicable with effect from April 01, 2013 and will apply from AY 2013-14 and onwards.

Only Individual and HUF are eligible to claim deduction under this section. As, nowhere in the section mentioned that this benefit is available for Residents Only. So, it is assumed that even NRI can claim this benefit. (on their NRO Interest)

Points To Note

Interest earned from Savings Bank, Fixed Deposit, Sweep-in FD is fully TAXABLE. You need to show such Income under “Income from other sources”

• Once you shown this income, you can claim deduction upto Rs 10000 u/s 80TTA for Interest on Saving Bank Account. Note that you CANNOTclaim deduction for Interest on FD or sweepin FD.
• This deduction isnot applicable for FD Interest or Interest received in Sweepin FD accounts.
• You can claim maximum of Rs 10000under this section. So if Interest from your Savings bank is Rs 15000, you can only claim deduction for Rs 10000.
• Some Banks are offering 6-7% in their Savings Account. You can keep approx Rs 1.40 lakhs in such savings account and earn a tax free income of Rs 10000
• TDS is not deducted on Interest from Savings Bank. However, TDS @10% is applicable when Interest on FD exceeds Rs 10000 in a year.
• If you have Salary Income & Interest income (even more than Rs 5000) you may file ITR 1, as this Rs 10000 is deduction & not EXEMPT Income. You need to file ITR 2, if your exempt income is more than Rs 5000.

 8.) Claim Tax Deductions – Make sure you know about the deductions available for certain investment or expenditure and claim these while filing IT returns. Section 80 C, 80D to 80U .

In the month of March, most tax payers rush to invest their money in tax saving instruments. Though it is better to do the tax planning at the start of year & plan your investments over the whole year.

Section 80C of the Income tax Act 1961 provides list of Investments / expenses which is allowed as Deduction from your taxable Salary.

80c tax exemption limit for FY 2013-14 (AY 2014-2015) is Rs 1 Lakh. Under 80C, you can claim maximum deduction of Rs 1 lakh.

If you are an individual / HUF, you can save taxes up to Rs.30,900/- for taxable income up to Rs 1 crore in FY 2013-14. In case the taxable income exceeds Rs 1 crore, you can save tax upto Rs.33,990/-

UPDATE– In Budget 2014, The Exmeption limit under 80C is increased to Rs 1.5 lakhs ( which will be applicable for FY 2014-2015 AY 2015-2016)

Apart from below 80C deductions, you can also check other tax benefits under 80D to 80U

List of deductions under Section 80C –

Investment Eligible for deduction u/s 80C
PF/ EPF (Employee Provident FundPPF – Public Provident FundNSC – National Savings Certificate 5 year Tax Saver Bank FD 5 year Post Office Time Deposit Senior Citizen Savings Scheme NHB Suvriddhi Bonds	ELSS – Equity Linked Savings Scheme Mutual fundLife Insurance PremiumULIP – Unit Linked Insurance Plan Pension Fund NPS – National Pension Scheme	Children Tuition FeesHome Loan Principal RepaymentStamp Duty & registration charges for home

 

• PF / EPF – Provident Fund:For Salaried employees, PF is default investment which qualifies for deduction u/s 80C. Employers take this investment into account while deducting TDS. You can check the monthly PF deduction in your payslip and check what balance amount you need to invest in other 80C securities. Current interest is 8.75%. Interest Tax free. 
• PPF – Public Provident Fund:PPF is available for both salaried & self-employed people . It is one of the best long term saving options which is safe & give assured returns. Maturity period is 15 years &<current interest rate is 8.7% tax free.
• ELSS – Equity Linked savings scheme:ELSS mutual fund are mutual fund schemes which are approved for tax savings. These funds have lock-in period of 3 years and underlying investment in Equity. If you invest for long term, then ELSS has potential to give handsome returns.
• Life insurance premium:Life Insurance premium you, spouse & children is eligible for deduction u/s 80C. You can take insurance policy from, LIC or any private insurer. From 01-April-2013, Only premium equal to 10% of sum assured will be allowed. So make sure, you have sum assured of 10 times the annual premium. If premium is more than 10% of sum assured, you can only claim up to 10% of Sum assured.
• NPS – National Pension Scheme:Under Section 80CCD, any contribution made NPS Tier I scheme is allowed as deduction. But, you can claim a maximum deduction of Rs 1 lakh under Section 80C, 80CCC and 80CCD combined.
• Tuition fees:Any amount paid as tuition fee for the education of the first 2 children is eligible for deduction u/s 80C. The deduction can be claimed for full-time courses including pre-nursery and playschool.
• Stamp Duty and Registration Charges for a home:If you have bought a house and paid stamp duty & registration charges, you can claim deduction under section 80C for these charges.
• Home Loan Principal Repayment: You can claim the Home loan principal repayment as deduction under section 80C. Only principal qualifies for deduction under Sec 80C. The deduction for interest component can be claimed under Section 24 of the Income Tax Act.
• NSC – National Savings Certificate:You can purchase NSC through post office Period of NSC is 5 years or 10 years. Current interest is 8.6-8.9% (taxable). The interest accrued every year is liable to tax (i.e. included in your taxable income) but the interest is also deemed to be reinvested and thus eligible for section 80C deduction.
• 5 year Bank Fixed Deposit:These are special 5 year FD by banks which are eligible for deduction u/s 80C. You need to ask bank that you need “Tax Saver FD”, bank will then put a stamp on your FD regarding 5 year lock-in. Interest Rates are 8.5 -9.5%(Taxable)
• 5-Yr post office time deposit (POTD) scheme:5-Yr post-office time deposit (POTD) qualifies for tax saving under section 80C. Interest – 8.5 %(Taxable)
• NHB Suvriddhi:National Housing Bank (Tax Saving) Term Deposit Scheme is also eligible for deduction u/s 80C. The duration of this scheme is 5 years and Interest rate is 9.25% (taxable, also TDS) See details at NHB website.
• Pension Fund: Any premium paid towards any Pension Fund (LIC or private insurer) annuity plan, whether deferred or immediate will give you tax relief u/s 80CCC. (part of section 80C for overall Rs 1 lakh limit.)
• ULIP – Unit linked Insurance Plan:ULIPs are a combination of life insurance and investments. Few years back, distributors were pushing ULIP to customers because they were getting hefty commission upto 70% of first year premium. But now, IRDA has capped the total charges to 3%. So current ULIP schemes are better than previous ones but still there are other investment options which can yield the same results at a lower cost. SO AVOID.

80C deductions for NRI

As an NRI, you can also claim deduction u/s 80C by investing in all of the products above except

• new investment in NSC
• 5 year post office FD
• new PPF account opening (contribution to existing PPF is eligible)

How to claim 80C deduction

If you are salaried employee, you should normally declare your investments to your employer & submit proofs. Employer will then give you the deduction when calculating TDS.
In case you could not submit proofs to employer, you can still claim the deduction u/s 80C while filing your Income Tax returns.

9. Section 80EE – Additional deduction for Home Loan– Check if you are eligible to claim this deduction.

Section 80EE allows you to claim additional deduction upto Rs 1 lakh for interest payable on housing loan.

This deduction is available for individuals for AY 2014-2015 (FY 2013-2014) subject to following conditions:

• Value of residential house does not exceed Rs. 40 Lakhs
• Loan sanctioned does not exceed  25 Lakhs
• Loan is sanctioned between the FY 1/4/2013 and 31/3/2014.
• Assessee is a first time home buyer.

• Assessee does not own any other residential house as on the date of sanction of the loan. This house is supposed to be his self occupied property
• Loan must be from eligible financial institution – must be either a bank, or a “public company” formed with the main object of providing long term housing finance (registered with NHB).

Points to Note

This is ONE time deduction. Interest payable upto Rs 1 lakh will be allowed as deduction in Assessment year 2014-2015 (FY 2013-2014). If the interest payable is less than Rs 1 lakh, the balance can be claimed in AY 2015-2016.

Under this new Section 80EE, first time home buyers will be able to save upto Rs 30,000 (30% on Rs 1 Lakh)

Section 80EE & Section 24 – Interest on Housing Loan

1) Section 80EE says “ It is also provided that where a deduction under this section is allowed for any assessment year, in respect of interest referred to in sub-section (1), deduction shall not be allowed in respect of such interest under any other provisions of the Income-tax Act for the same or any other assessment year.”

However as per Finance Bill , 2013 contain an announcement of additional deduction of interest on housing loan for first time buyer state that-

“ I propose to allow such home buyers an additional deduction of interest of Rs.100000/- to be claimed in A.Y.2014-15. If the limit is not exhausted, the balance may be claimed in A.Y.2015-16. This deduction will be over and above the deduction of Rs.150000/-allowed for self occupied properties under section 24 of the income tax Act.”

So as per above explanation there is difference between section 80EE(4) and as per announcement under para 132.

So, I think, assessee may claim additional deduction u/s 80EE apart from deduction under Section 24 of Income Tax Act.

Under-Construction properties

Dedcution u/s 80EE can be claim even for under-construction properties.

As per Section 24(b), interest is accumulated upto the period of construction and deduction is allowed in 5 instalments to extent of Rs. 1.50 lakhs after the completion of construction period. ( upto Rs 2 lakhs from AY 2015-2016)

10. Section 87A – Additional rebate of Rs 2000 – Check if you are eligible to claim this rebate.

In Budget 2013, a new Section 87A was introduced under Income tax Act to allow for tax credit / rebate of Rs 2000 to taxpayers whose taxable income is upto Rs 5 lakhs.

Persons whose taxable income is upto Rs 5 lakhs will get a tax credit / tax rebate of Rs 2000 under Section 87A of Income Tax Act 1961. 

As per new section 87A,

“An assessee, being an individual resident in India, whose total income does not exceed five hundred thousand rupees, shall be entitled to a deduction, from the amount of income-tax (as computed before allowing the deductions under this Chapter) on his / her total income with which he/she is chargeable for any assessment year, of an amount equal to hundred per cent of such income-tax or an amount of two thousand rupees, whichever is less.”

Key features

• This tax rebate / credit will be applicable for Assessment year 2014-2015 & onwards. You will get this rebate for the income earned in FY 2013-2014.
• Rebate is only available to Individuals
• No credit u/s 87A to Non – resident
• If total tax payable is less than Rs 2000 before this rebate, then rebate will be restricted to tax payable.

87A Tax Rebate calculation

If your income after all deductions is less than Rs 5 lakhs, then you can claim rebate u/s 87A

• Calculate total Tax payable on your Income after all deductions
• Less – Rebate u/s 87A
• Add Surcharge & Education cess

How to claim this rebate

If you fall in Rs 2-5 lakhs slab, you can claim this rebate while filing the income tax returns. This will reduce your tax liability by that amount.

Ideally, if you are salaried employee & eligible for this rebate, you company should consider this while deducting TDS. However, if they donot give benefit of this rebate, you can claim this when filing income Tax returns.

Can I claim this rebate, if my CTC (salary package) is Rs 6 lakhs ?

May be. It depends on your net taxable income after claiming deductions.

If your Net Taxable income is below Rs 5 lakhs, then you can claim tax credit u/s 87A. Net Taxable Income is calculated after claiming all deductions (80C, 80D etc) from the Gross total taxable income

Whether the basic exemption limit has been raised from Rs 2 lakhs to Rs 2.20 lakhs ?

No. The existing slabs and rates have been kept unchanged.

• Tax on income from 2 lakh to 5 lakh is at 10%,
• up to Rs 10 lakh at 20% and
• above 10 lakh at 30%.

Only taxpayers in Rs 2-5 lakhs slab will get a rebate of Rs 2000 under section 87A

There may be few reasons why Finance minister has not raised the exemption limit to Rs 2.20 lakhs instead of giving this new rebate:

• Those who income is in Rs 2 – 2.20 lakhs, will not be required to file returns as their income will be below taxable limit. And government wants more people to file their returns.
• As Senior citizen income is already exempt till RS 2.5 lakh, they would not have got benefit of this rebate. Now, they can also claim rebate under section 87A if their total income is below Rs 5 lakh. However, Super Senior citizen cannot claim benefit u/s 87A as their income is exempt till Rs 5 Lakh already.

11) Send ITR V – After filing return, you need to print the acknowledgment (ITR V) on A4 paper, sign and send it to Income Tax dept via SPEED POST in A4 envelope. Address is mentioned in ITR V. You need to send within 120 days.

12) No Need to attach any document / evidences – You are not required to attach any documents / investment proofs etc along with the Income tax return. You just need to send ITR V. However, you should keep the supporting evidences / proofs with you as they can be requested by Assessing officer at the time of assessment, if any.

13) Donot forget Exempt Income: Even if you have Income which is exempt from tax – for e.g. Dividends, long term capital gains from stocks and equity funds, PPF Interest, these exempt incomes must be mentioned in the tax return. If the total exempt income exceeds Rs 5,000, you will have to use ITR 2 to file your return.

14) Pay balance tax online: You can pay any tax payable online and enter the reference number in the IT return.