Make your tax e-filing process a cakewalk

Vikram Ramchand

www.makemyreturns.com

We are almost approaching the end of a financial year, the time when most companies have started asking their employees to submit investment declarations. Soon after this, it will be time to file your income tax returns.

While we all like to avoid this bit, it’s important that we file our taxes correctly and on time. To make sure that this process is smooth and hassle-free for you, we’re listing down some points that you need to keep in mind while filing your tax returns:

1) Pick up the right form

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Vikram Ramchand

Founder|www.makemyreturns.com

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The first thing you need to ensure is that you pick up the correct return form, which is prescribed by the Central Board of Taxes (CBDT) every year.

The Income Tax Return (ITR) form by CBDT depends on the various streams of income. Getting the correct form will ensure that that the complete details are filed.

2) Thoroughly check your bank account statements

It is imperative that you check your bank account statements carefully as this will give you an idea of the various streams of income which you need to disclose in your return.

This will not only clarify the type of forms you need to use for filing your return, but will also spare you the error of not including a particular income. For instance, one of the most common errors observed is non-disclosure of income exempted from tax, such as dividend income from mutual funds or capital gain on securities.

3) Include all your tax saving investments (Deduction under Chapter VI)

This is one of the most important part of the process as your tax saving investments will reduce a considerable part of your taxable income. Make a note of all your investments, especially the tax saving ones and include them along with its details correctly.

4) Double check your Permanent Account Number (PAN)

PAN is an important identification number by way of which the income tax authorities identify a particular taxpayer and records his income, taxes deducted on his behalf and the taxes paid by him.

Quoting of incorrect PAN may cause inconvenience to both taxpayers and income tax authorities. So make sure you double check your PAN before giving out the details.

5) Correct address and bank account number

Be very careful while filling in these details as the timely delivery of claimed refunds will entirely depend on this. Make sure you mention the correct address and bank account details along with the MICR code in your return form. This will also help in timely correspondence with the Income Tax authorities.

6) Overseas income

In case you have invested in the overseas markets or have received some income outside India, certainly include this in the return form. Moreover, don’t forget applicable treaty benefits available under the law to avoid double taxation.

7) Stay updated with the current tax law

Ensure you’re well versed with the current tax law before you start preparing your return. The deductions and exemptions available as per the law or the provisions of clubbing of income ensure that the income disclosed in the return is complete and the benefit available under the law is considered.

The author is a founder at www.makemyreturns.com