Income Tax Return E-filing Checklist for First Timers

Checklist of e-filing Tax Return

Efiling of Income Tax ReturnAs we all know that Finance Minister has made amendment that all the individuals having income more than Rs.5 lakhs is required to file their income tax return for the assessment year 2013-14. Thus it increases the number of individuals who would be filing e-returns significantly.

Due date of filing tax return is not far away so it’s time to revise the procedure of e-filing of tax return or learn the process of e-filing for first timers.

1) Registration or Login

If you e-filing return for the first time, then get yourself registered on the income tax website. If you are already registered then confirm the user id and password by login to avoid last minute worries.

2) Selecting the ITR Form

One of the most important steps is to choose the correct ITR form, which is prescribed by the Central Board of Direct Taxes (CBDT) every year. There are 8 ITR forms prescribed by the CBDT in which ITR 1 and ITR 2 is for Individuals, else all are for firms, companies, partnership or for political parties.

Form ITR 1 (Sahaj) is for individuals having salary income, income from other sources and income from one house property.

Form ITR 2 is for individuals and HUFs who have salary income, income from other sources, capital gains/ loss, income from one house property and also having foreign assets and so on.

Still having difficulty on choosing the right ITR, please refer: Which ITR to Choose?

3) Providing Correct Personal Information

  • Name and PAN: Should be same as in PAN database.
  • Date of Birth: Helps to select the right tax slab, mistakes could result in low or high tax.
  • Address: Address for correspondence should be given accurately, else it will results in delay in tax refunds.
  •  E-mail Address: All the communications with CPC are to be done with this email id, failing in providing correct email id results in non receipt of all intimations from CPC.
  • Mobile No: No need to add +91 before the mobile number, only 10 digit mobile no. needs to be entered. This is essential for all SMS based communication.
  • Residential Status: Some benefits are only available for resident taxpayers, so the status of Not Ordinarily Resident and Non-resident should be mentioned where applicable.
  • Bank Account: Accurate bank account details which is currently in use by taxpayers should be quoted to avoid refund delays.

4) Income Details:

Income from all the sources should be disclosed truly and accurately. Most of the times taxpayer forget to show bank interest or interest from FD under the head Income from Other Sources, results into no credit of TDS deducted by bank. Also disclosing all the income avoids notices from tax officials. Taxpayer should avoid estimation or approximation of income.

5) Claiming Losses

Showing income correctly but leaving losses behind will results into denial of carried forward of losses thus increasing the tax liability in future. So all the incomes as well as losses should be shown clearly under in respective schedule under the correct heads of income.

6) Particulars of taxes paid

Form 26AS should be refer to ascertain and verify all the taxes paid or deducted at source to avoid short or excess payment of taxes. Every challan should be separately claimed, consolidation could lead to mismatch of tax paid. Also TDS on salary should be claimed only in TDS Salary schedule and TDS on income other than salary should be claimed only in TDS on income other than salary schedule.

7) Details of Foreign Assets and Bank Accounts

Finance Act, 2012 made this information mandatory to be filled by Resident and Ordinarily Resident taxpayers.

Refer: New Schedule in Income Tax Return for declaring Assets and Liabilities

8) Incomes charged with Special Rates

Incomes taxed or to be taxed at special rate should be bifurcated and shown separately from incomes taxed at normal rates. Taxpayer should disclose such income in Schedule IS, if there is no provision in respective schedules like CG or OS.

9) Verify the XML

Before uploading the generated XML file on the income tax portal, taxpayer should recheck all the information to ensure the correctness. In case of discrepancy in the xml, the xml should be regenerated and re-checked to ensure accurate uploading of information.

Read: Filing Tax Return without using any software

10) Return Filing acknowledgement (ITR-V)

In case e-filing is done without digital signature, it is mandatory to submit the ITR-V form generated to the CPC Bangalore within 120 days from the date of filing return (Read: No need to send ITR-V from assessment year 2014-15). Always take Xerox of ITR-V before sending it to CPC for uncertainties.

This completes the hassle free filing of tax return electronically. In case any discrepancies found after submitting ITR, you can file rectification online (Refer: How to income tax rectification online?).

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