How to be your own ITR manager- Business News

How to be your own ITR manager

Get equipped with the essential knowhow this filing season.

 Jinsy Mathew   
  • April 26, 2016  
  • |  
  • UPDATED   16:28 IST
Photo: Chandradeep Kumar

Confusion seems to be the byword when it comes to tax filing. Last year, there was considerable delay in the finalising of the ITR form. From a 14-page document that required filling in details of foreign travel and dormant back accounts, it was renotified after being pared down to three pages. This year, even though the forms have been notified in time, there is confusion regarding mandatory disclosures for taxpayers with an annual income of more than Rs 50 lakh. Besides, here are some of the other points to keep in mind this return filing season.

Declare interest income earned

  • Income tax (IT) department has asked taxpayers to declare income earned from interest on various deposits in their returns. Such income cannot be hidden from taxmen, as banks, financial institutions, treasuries report details regarding interest paid to institutions and individuals directly to the tax department.
  • Interest received on deposits is taxable unless exempt under Section 10 of the I-T Act.
  • Section-10 of I-T Act relates to income which is tax free and not included in gross total income.

New ITR for rich tax payers
  • Individuals earning over Rs 50 lakhs a year will have to disclose additional information starting assessment year 2016-17.
  • The new ITR released has a separate section- Schedule AL-where all the details of assets and liabilities have to be provided.
  • Immovable assets such as land and building have to be declared.
  • Possession of moveable assets such as cash in hand, jewellery, vehicles, yachts, boats and aircraft all figure in the list of declaration.
  • Liabilities of the taxpayer too have to be reported which is the outstanding loan amount.
  • All the above is applicable to the HUFs or Hindu Undivided Families as well.

E-filing vault
  • A new measure, it has been introduced by the I-T Department to safeguard individuals against any fraudulent activity with respect to their ITR account.
  • It is an additional level of authentication required before logging into one's e-filing account.
  • Once you opt for this service, a one-time password (OTP) is required each and every time to login to the account.
  • You can link your Aadhaar to generate OTP, net banking or digital signature certificate.
  • Once, one of the above option is chosen, you will have to stick to that during subsequent logins.
  • Incase if the login ID and password have been shared with someone in the past, activation of this service will ensure that the individual will no longer be able to access the account.