The tax filing process can seem intimidating especially if you are doing it for the first time. Nevertheless, you don’t to need to worry.
Here are some simple yet useful tips that will help you complete the IT filing process in one go:
Keep Your PAN Card Handy
When you are ready to file your tax returns, ensure that you have your PAN card with you. Make sure to quote your PAN number accurately on your income tax return. Furthermore, your date of birth and fathers name mentioned on the income tax return should match with your PAN card details.
Make Sure Your Aadhaar Card Is Ready
Since July 2017, mentioning the Aadhaar card number on the income tax return forms have become mandatory. If you don’t have an Aadhaar card, you will not be able to file your tax returns. So if you don’t have an Aadhaar card, make sure to apply for one as soon as possible.
Get Form 16 from Your Employer
Form 16 is an important document that lists all the information required while filing income tax returns. Generally, the employer provides Form 16 to the all its employees by 31st May of every year. In case you were employed at more than one company within a single financial year, you will have to collect Form 16 from all the companies.
Know the Prevailing Income Tax Rates
Are you aware of the latest income tax slab for AY 2018-19? If not, you must acquaint yourself with it. Understanding the prevailing Income Tax Rates will help you plan your taxes and get a better understanding of the tax filing process.
Utilize Form 26AS
Form 26AS features the TDS details linked to your PAN. The TDS details will include the income deducted from sources such as fixed deposit, rent, commission income, and salary. You can adjust the TDS from your total tax liability, as TDS is already deducted from your income. However, make sure to include details of the corresponding income from which the TDS is deducted.
Furnish the Details of Your Assets If Your Income Is Above 50 Lakhs
If your total income after deductions exceeds Rs 50 Lakhs, you will have to provide additional details regarding your income. Furnish details such as Value of an immovable asset, movable asset, jewellery and liabilities and cash in hand.
Download Your Bank Statements
Including Bank Statements in your IT returns serves two purposes. Firstly, it is mandatory to mention them on your income tax returns. Secondly, it will tell you the amount of savings bank interest credited to your account. Savings bank interest is exempt from tax up to INR 10,000. If you have any dormant bank accounts, you need not mention it in your returns.