As the deadline to file your income tax returns (ITR) draws nearer, there might be many questions on your mind while filing the same, especially after the recent announcements related to linking Aadhar with PAN.
The last date of filing your ITR for financial year 2016-17 is July 31.
To help you out with the process, we have listed out important things to remember while filing the ITR:
ITR forms have been reduced from 9 to 7:
For financial year, 2016-17, the Central Board of Direct Taxes (CBDT) has made some relevant changes to the ITR forms. To make the process less tedious, the number of ITR forms have been reduced from nine to seven.
Earlier, there used to be three forms: ITR-2, ITR-2A and ITR-3, now all these are now have been now replaced by just one form, which is ITR-2.
The new form ITR-2 should filled by those who have income of more than Rs 50 lakh or own more than one house property.
ALSO READ: Income Tax Department working on mobile app to help taxpayers with IT returns
Necessary to quote Aadhaar number:
Tax payers now have to quote their 12-digit Aadhaar number or the 28-digit Aadhaar enrolment number while filing the income tax return. Supreme Court is yet to give a final verdict on whether it will be mandatory, but the CBDT has mentioned that tax payers need to mention Aadhar Number to file returns.
Form 16 and Form 26AS:
All of you salaried people must have received Form 16 by your respective employers by now. Form 16 has all the details regarding your salary and taxes deducted on it.
Form 26AS is a document that a salaried individual should access before filing tax returns. This is a tax credit statement which includes all taxes received by the Income Tax Department, the same can be accessed from the tax department's website: incometaxindiaefiling.gov.in
ALSO READ: Last date for filing income tax return approaches: What is Form 26AS?
If you have paid taxes on your income or tax has been deducted from your income, the Income Tax department already has these details in their database.
Form 26AS can be downloaded from the income tax website.
A tax payer also required to disclose his/her bank account number along with the IFSC code. However, dormant accounts which have been in use for the past three years or more need not to be mentioned.
According to the Income Tax Department now, tax payers have to disclose information of cash deposited in their bank account aggregating to Rs 2 lakh from November 11 to 30 December, 2016.
ALSO READ: Here's a financial guide for couples in mid-thirties with income of Rs 2.5 lakh per month
Besides that, if any assessee has any unexplained income or investments, he has to report such unexplained income in the new ITR forms and such amount will be taxable at the tax rate of 60 percent plus surcharge and cess.