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Now, It is time to file your Income Tax to Avoide unnecessary dues & penalties.

Friends, Remember "July" is the month of the year which provides us lots of rains after dry hot days, when freshness and life re-tunes to schools and college, when mangoes are in plenty and there is happiness all around. July is also the month when one has to file his or her annual income tax returns for the previous year ended in March. 31st July is the last date to file tax returns for individuals and those whose accounts are not subject to any audit. The options available to assessee is to do it himself or to call on his chartered accountant who can file the tax returns by just asking for few information and papers. Tax returns are however, now a days an easy job as returns can be filed with case and online.

Tax filling:
Do list:
* Collect PAN Number
* Salary income – Form 16/ Form 16A
* Compile proof of other incomes
* Calculate gross total income
* Detail your eligible investments
* Keep TDS Certificates handy
* Pay taxes due if any, after TDS / advance tax
* File appropriate return form

Income tax return forms are simple now a days and one can file them on own, online or offline. Form 1 TR-1 is used for individuals with income from salary and interest, Form ITR-2 is used for individuals and Hindu Undivided Families (HUFs) not having income from business or profession, Form ITR-3 is used for individuals /HUFs being partners in firms and not carrying out business or profession under any proprietorship, Form ITR-4 is used for individuals & HUFs having income from a proprietary business or profession, Form ITR-5 is used for firms, association of individuals (AOPs) and body of individuals (BOIs) and form ITR-6 is used for companies other than those claiming exemption under Section 11 of Income tax Act. One should choose the right form applicable to him or her depending upon status and sources of income. Now a days, no documents are to be attached with the return.

If filing return for the first time, most important document is PAN card / number which should be mentioned in the returns form. It is very important to mention PAN correctly as wrong number would attract penalty. All financial documents should be collected and kept handy as particulars have to be filled in.

In case of salaried assessees (employees), remember to collect Form 16 from the employer, if not done so far. Though last date for issuance of Form 16 is 31st May, please ensure to collect. This contains the details of salary income. In case of more than one employer, Form 16 will be required from all such employers and income aggregated. Form 16A provides the details of tax deducted at source from non salary incomes such as bank interest, income from other sources etc.

Documents should also be kept ready for income from house property (tenant’s particulars, TDS, gross rent, taxes), income from other sources, capital gains (details of shares sold, contract notes, movable / immovable assets, costs, dates) and income from business or profession (such as share of profit, financial statements, TDS etc.)

One also needs to collect all the documents relating to savings, investments and tax exemptions under section 80C, 80CCF, 80D, 80E, 80G etc. The payments actually made are deducted and not the payables. Details of tax payments made, besides TDS are also needed, if tax has been paid on self assessment or as advance tax.

Once all details are ready, returns can be filed. One only needs to do some home work before actual filing. It you are not able to file your return by July 31, don’t panic. You still have time upto 31 March 2012 to file return without any penalty, if no taxes are due.

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