It is July and the first quarter of the financial year has come to an end. Most of you have got your Form 16 from your employers which paves way for filing of Income Tax (IT) returns as the July 31 deadline is approaching soon. Filing ITR is an important act and has it’s own benefits if you do it before the deadline. The taxpayers are often advised to avoid the last-minute rush as it sometimes causes unnecessary complications. The penalty for filing ITR late is kept at Rs 5,000. If a person files an ITR after December 31, then the penalty is Rs 10,000. However, before filing the ITR, one must know about the changes (if any) in the tax rules.
Here we see following things you must know before filing ITR:
How to file ITR1:
ITR1 has five parts – A, B, C, D, and E.
Part A: Personal details like name, address, Aadhaar number (it is compulsory).
Part B: Salary income and amount of home loan interest paid
Part C: Various deductions you have availed under section 80C and so on
Part D: Here you will have to calculate total income, i.e., income minus deductions, and total tax payable on that amount
Part E: Bank account details.
As per section 159 of the IT Act, 1961, in case of death of an assessee, his legal representative is deemed as an assessee who shall be liable to pay any sum which the deceased assessee would have been liable to pay had he not died. However, the liability of the legal heir to pay the Income-tax shall be limited to the value of assets inherited.
Inheritance-tax was abolished in the year 1986. Therefore, legal heirs are not required to pay any inheritance tax on the inherited property. Though there is no inheritance tax, yet there are certain Income-tax provisions which one should know to understand the taxability of gifts or inherited property.
Mutual fund investments are catching up big time with many coming forward to invest in it and there are many first time investors in India. Though there was no long-term capital gains on equity funds till last financial year, the taxes on short-term capital gains on both equity and non-equity funds were payable. So the case with long-term capital gains on non-equity funds. That necessitates you to run through your mutual fund statements and your bank statements.
One must not forget to mention the interest earned on your saving bank accounts and fixed deposits. You should be adding this interest income to your gross income and then proceed to compute the income tax. Do check your bank account statements for interest earned by various fixed deposits and bonds you hold.
If you have not used DSC, ITR-V (verification form) will not have used the DSC, ITR-V (verification form) will have to be downloaded. You will also have to choose to generate electronic verification code (EVC) through your bank ATM/net banking or use Aadhaar-based OTP for re-verification.
