Things to do before filing Income Tax Return

Jun 24th, 20117 Comments

Most of us wake up only when the deadline for filing the ITRs(Income Tax Return) is near, and then rush for documents and the entire process of filing your income tax return (ITR) is quite exhaustive.

Is there something you can do right now, so that your tax return can be filed smoothly?

Yes,there are few things which you can do right now, so that your return can be filed smoothly.

  • Collect Form 16: All of us who are salaried employees receive the Form 16 every year – it is a statement of your income and the tax deducted at source (TDS) on in by your employer. This is one of the most vital documents needed to fill an ITR form.

Form 16 is usually handed out to you in May or June , so collect it from your employer. If you have worked for more than 1 employers during the financial year, collect a From 16 from each of them

  • Collect Form 16A: Form 16A is also a statement of income and tax deducted at source (TDS) – but by entities that are not your employers. Normally you get this from banks and financial institutions that pay interest to you and deduct TDS from it. You should get one Form 16A from each bank that has deducted TDS on your income.
  • Collect your Bank Statements: In your income tax return, you need to mention all your income – and not just your salary income. This includes interest earned on the money lying in your savings account, interest earned on your fixed deposits (FD), etc.You also need to mention income on which there is no income tax – like dividends received from the companies whose shares you own.Your bank statement would come handy to collect all this information.
  • Collect Home Loan Statements from your Bank: If you have taken a home loan and are paying EMIs, you would definitely claim the income tax benefits.In order to do this, you need a certificate from your bank / financial institution that mentions the amount of interest they have collected from you, and the principal repayment you have done during the financial year.Again, this certificate is normally issued in May / June – so please collect it and keep it safe.
  • Collect Information about any sale of Real Estate: If you have sold any real estate – house or land – this information would be vital for your income tax return (ITR).Do all the calculations about capital gains, etc in advance so that you just have to fill in the details in the ITR.
  • Collect Information about Stock Market Activity ( Stock and Mutual Funds): You also need to pay capital gains tax on any profits made from stock market – irrespective of whether it is through direct investment in stocks or through a mutual fund.It is best to collect all your buy and sell data in advance and do all the capital gains calculations from your Stock Broker.

If you follow the above guidelines you would be best prepared for the ITR filing time, and there would be no last-minute surprises!

Kevin Gala

7 Responses to “Things to do before filing Income Tax Return”

  1. Ketki says:

    “Things to do before filing Income Tax Return”
    thanks a lot for giving the information

  2. Viswanathan says:

    The article is very much informative. Can you also give the step by step procedure on filing the Income tax Return ON LINE by the tax payer himself ?.

  3. T A PATIL says:

    what is due date for filing IT return for Individual ?

  4. ramani says:

    Fine to see the procedure before filing of IT. Good.

  5. admin says:

    July 31 – Last date for filing your Income Tax returns

  6. Kunal Faria says:

    Hey good info…
    If you can also provide some info about people who file IT Returns for us other than the CA’s, it would be great.

  7. shilpa says:

    i want to know that how i calculate the tax benifit on lic pemium

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