What All You Need to Know Before You Make Your Income tax payment?

Not just the newbies in the field, but those who are filing the tax return for a long time also find the procedure taxing. However, the importance of filing the tax cannot be denied. If you have due taxes, you can pay them, and if you have a tax refund to be availed, you can get that. So, here are some of the things that you should know before filing the taxes.

Although the tax laws are there to help taxpayers, still, most of the people end up getting entrapped in the complex web. The moment they feel July 31 coming nearer, the uneasiness and hastiness to do everything increases.

With confusions elevating and time decreasing, mistakes become unavoidable. Thus, here are some of the essential things every tax payer must know before filing the income tax. Read on and check out.

The difference between AY & FY:

In this country, the accounting year of the taxes, which is financial and assessment year, commences from 1st April and ends on 31st March. The Financial Year (FY) is the year in which you have earned money. And, the Assessment Year (AY) is the year in which your income is going to be evaluated. For example: If you have earned within 1st April 2017 – 31st March 2018, then 2017-2018 is the FY and 2018-2019 is the AY. Thus, while making the income tax payment, you must keep this thing in mind.

TDS Details & 26AS Form:

These days, it has become quite easier to find out the already paid TDS details. You can check out this information from your bank, employer, online, or any other party. It is recommended to cross-check the TDS before filing the return and to avoid mistakes and errors. These details are revealed under Form 26AS.

ITR Forms & Structure:

As per your source of income, the government has differentiated the forms to file ITR. Here is the list of forms:

  • ITR-1: Salary/Pension, Exempted income, Income from the house, Other sources
  • ITR-2A: Agricultural income above Rs. 5,000, Every income from ITR-1, Income from race horses and lottery, Income from more than one house
  • ITR-2: Every income from ITR-2A, Income from foreign assets, Capital gains
  • ITR-3: Every income from ITR-2, share of profit from a partnership firm
  • ITR-4: Every income from ITR-3, income from proprietary professions
  • ITR-4S: Every income from ITR-1, income generated from reasonable business

What is ITR-V?

After filing the ITR online, you will get the Return Form, which is known as ITR-V. It is a receipt of acknowledgement that you have filed your ITR. Once you have done the e-filing, you would then have to send this ITR-V to the Central Processing Centre of the Tax Department with 120 days of filing. You must get two photocopies of this form. One for posting to the department and one for your usage. In case if you wish to avoid the hassle of sending physical copy of your ITR-V to CPC you can opt for e-verification method of verifying the tax return.

Some important things:

Here are some of the important things that one must keep in mind:

  • Quoting of Aadhaar is essential
  • In case the data of PAN and Aadhaar mismatched, you would have to make the corrections
  • If you own cash deposit more than Rs 2 lakh between 9 November and 30 December 2016, then you will have to give the details.
  • If you earn more than 50 lakh then you are required to fill the asset liability schedule.

So, these are some of the factors that one must know before filing and paying the ITR. Stay up-to-date and file on time to avoid unnecessary hassles in the future.