Sunday, May 15, 2016

Income Tax Filling Online

File your Income Tax Online
 Financial year-end paperwork for individual tax filing The financial year has just ended, and it is important for individual taxpayers to start putting together the documents necessary for initiating the process of filing their tax returns.

Documents

Typically, three sets of documents need to be collected by the taxpayer: Proof of income earned Proof of tax paid Proof of expenses incurred that are subject to deduction Proof of investments that are allowed as deduction

Proof of income

Salary slips, bank statements, shares and other investments transaction statements, property sale papers and all documents that reflect income during the financial year need to be collected to calculate the total income received by the taxpayer.

Proof of tax paid

Form 26AS lists all the tax payments made by or on behalf of the taxpayer. Salary earners need to collect Form 16 from their employer, and others need to collect form 16A from those who have deducted tax on their behalf. Advance tax challans for tax paid during the year also need to be submitted.

Proof of deductible expenses

Bank statements, receipts for deductible expenses incurred for business or profession, as well as receipts for medical and life insurance premiums need to be filed.

Proof of investments

This includes investment holding statements and proofs of investment in securities that are allowed as deduction under Section 80C, such as PPF account statements, NPS statements, salary slips, premium receipt for investment in life insurance, etc.

 

The documents can be submitted in the form of hard copies or soft copies.

Receipts issued for donations made during the year to approved institutions also need to be included to take advantage of the deduction provisions.

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