6 steps to e-filing your income tax return

TEP 1. Register yourself
To e-file your income tax return, you will have you register on the income tax Department's online tax filing site (incometaxindiaefiling.gov.in). You have to provide your permanent account number (PAN), name and date of birth and choose a password. Your PAN will be your user ID.


STEP 2. Choose how you want to e-file
There are two ways of e-filing your income tax return. One is to go to the download section and select the requisite form, save it on your desktop and fill all the details offline and then upload it back on the site. Or you can choose to fill the form online by selecting the quick e-file option.


STEP 3. Select the requisite form
ITR-1: For individuals earning a salary, pension, or income from property or sources other than lottery.
ITR-2: For those earning capital gains. ITR 2A for those owning more than one house but no capital gains.
ITR 3, 4 and 4S: Professionals and business owners.

STEP 4. Keep the documents ready
Keep your PAN, Form 16, interest statements, TDS certificates, details of investments, insurance and home loans handy. Download Form 26AS, which summarises tax paid against your PAN. You can then validate your tax return with Form 26AS to check your tax liability.

If you earn more than Rs 50 lakh, from this year you will have to fill an additional column —"AL" or assets and liabilities. You will have to disclose the value of your assets and liabilities. Assets have to be declared at cost.

STEP 5. Fill form and upload
If you choose to fill the form offline, after you have downloaded the form and filled all the details, click on 'generate XML'. Then go to the website again and click on the 'upload XML' button. You will have to first log in to upload the XML file saved on desktop and click on submit.

STEP 6. Verify ITR V
On submitting your ITR form, an acknowledgement number is generated. In case the return is submitted using digital signature, you just have to preserve this number. If the return is submitted without a digital signature, an ITR-V is generated and is sent to your registered email ID.

The tax filing process is incomplete and ITR is invalid unless your ITR V is verified. You can electronically verify or mail the signed ITR V to the processing centre in Bengaluru within 120 days of filing the return. 

Premature withdrawal of PPF

The Finance Ministry has announced new rules allowing for premature withdrawal of the Public Provident Fund (PPF) account deposit for reasons such as higher education or treatment of serious ailments.

The premature withdrawal will, however, be allowed only after the subscriber's deposit scheme account has completed five years, the ministry said in a notification.

"A subscriber shall be allowed premature closure of his account or account of a minor of whom he is the guardian on ground that the amount is required for treatment of serious ailments or life-threatening diseases of the account holder, spouse or dependent children on production of supporting documents from competent medical authority," the notification said.
Withdrawal will also be allowed if the amount is required for higher education of the account holder or the minor account holder, on production of documents and fee bills in confirmation of admission in a recognised institute of higher education in India or abroad, the notification said.

ITR form which applies to U

The July 31 deadline for individual income tax return filing is knocking on our doors but as you rush to file your return make sure you choose the correct ITR form that applies to you. A correctly filed ITR in a form which is not applicable to you would be treated as defective. You would have to rectify such a defective return which would involve additional time and effort. Here's a guide to help you choose the correct return form which applies to you for financial year 2015-16.

TR-1 or Sahaj
This tax return form is to be used by an individual whose total income for the financial year includes any one or all of the following:-
* Income from Salary/ Pension; or
* Income from One House Property; or
* Income from Other Sources
* Any exempted income

Who cannot use ITR-1
An individual having incomes from sources mentioned above still cannot use this form if any of the following condition is fulfilled in the financial year for which the return is being filed:
* If you have any foreign assets located outside India. Foreign assets include foreign bank accounts, immovable property located outside India, financial interest in any entity located outside India and other assets held abroad for investment purposes (like shares listed on NASDAQ).
* If you have agricultural income exceeding Rs. 5,000.
* If you have income from Capital Gains (except for those which are exempted from tax. Capital gains from sale of equity shares or units of mutual funds(equity schemes) which are sold after one year from date of purchase and on which STT (Securities transaction tax) is charged on sale are exempt.)
* If you have income from Business or profession.
* If you have lottery income or winn ..

ITR-2A

This Return Form is to be used by an individual or HUF (Hindu Undivided Family) whose total income for the financial year includes any or all of the following:-
* Income from Salary/ Pension; or
* Income from multiple House Property; or
* Income from Other Sources (including lottery income and winning from horse races)
* Any exempted income (even if agricultural income is exceeding
Rs 5000).
* NRIs can also file ITR-2A, if applicable.

Who cannot use ITR-2A
An individual or HUF having incomes from sources mentioned above still cannot use this form if any of the following condition is fulfilled in a particular financial year:
* If you have any foreign assets located outside India.
* If you have income from Capital Gains (except for those which are exempted from tax)
* If you have income from Business or profession.

ITR-2
This Return Form is to be used by an individual or a HUF whose total income for the financial year includes any or all of the following:-
* Income from Salary/Pension; or
* Income from multiple House Property; or
* Income from Other Sources (including Winnings from Lottery and Income from Race Horses).
* Any exempted income (even if agricultural income is exceeding Rs 5000).
* Income from Capital Gains
* If you have any foreign assets located outside India.

Who cannot use ITR-2
You cannot use ITR-2 if you have any Income from Business or Profession for the relevant financial year.

ITR-3
This Return Form is to be used by an individual or a HUF who is a Partner in a firm or LLP (Limited Liability Partnership). Further, the form should be used if the total income for the year includes any or all of the following:
* Income from Salary/Pension; or
* Income from multiple House Property; or
* Income from Other Sources (including Winnings from Lottery and Income from Race Horses).
* Any exempted income (even if agricultural income is exceeding Rs 5000).
* Income from Capital Gains
* If you have any foreign assets located outside India.
* If you are partner in a Partnership Firm or LLP and where you only receive interest, salary, bonus, commission or remuneration from such firm. If the partner does not have any income from the firm by way of interest, salary, etc. and has only exempt income by way of share in the profit of the firm, then also he has to  file his return using this form only.

ITR-4
This form is to be filled by Individual/ HUFs only if they have income from a proprietary business or profession.

ITR-4S OR SUGAM
This Return Form is to be used by an individual, HUF and small businessmen who has Presumptive business income along with other income mentioned below:
* Income from Salary/ Pension; or
* Income from One House Property; or
* Income from Other Sources
* If you have any exempted income
* Income from Presumptive Business Income (like CAs, Doctors, Lawyers, small businessmen)

Who cannot use ITR-4S
An individual/HUF/ Small Businessman having incomes from sources mentioned above still cannot use this form if any of the following condition is fulfilled in the financial year for which the return is being filed.

* If you have any foreign assets.
* If you have agricultural income exceeding Rs. 5,000.
* If you have income from Capital Gains (Chargeable to tax), or income from Business or profession.
* If you have lottery income or winnings from race horses.
* If you have income from more than one House property.
* If you have any brought forward loss under House property.
* If you want to carry forward any losses from previous years.