Tax laws can often seem like a cross between a Rubik’s cube and Muttiah Muralitharan’s spin bowling. The three private tax websites get around this by making themselves friendly to taxpayers and not making the filing of returns dependent on an intricate understanding of the workings of tax laws. They empower with information and knowledge while taking the taxpayer step-by step through the entire process of tax filing. The details of the return filed get saved in the database of these websites and can be accessed anytime in the future.
If you have any specific doubts concerning the filing process, email the tax website to clear them. Getting clarity is important as some websites do not include things such as income from business or profession, losses of earlier years brought forward or clubbed income. If tax is due, check if you can pay it through the website.
Stick to the deadline
Whether you are going offline or online, make sure your are on the right side of 31 July. If tax is due and the return is not filed till 31 March of the following year, a penalty of Rs5,000 is levied. Penalty may also have to be paid in the form of interest. Check out the answers to some frequently asked questions (FAQs) to get on top of tax returns. And then go ahead and file with a smile.
GET THE RETURNS RIGHT
What if I have not received my Form 16?
Employers are supposed to hand over Form 16 within 30 days of the end of a financial year, that is, by 30 April. Ask your employer to issue Form 16 immediately so that you don’t miss the 31 July deadline for filing return for salaried employees. If you think that your employer might not issue the form in time, you can write a registered letter to him on the issue and send a copy of this to your assessing officer. The employer can be penalized for not issuing the form in time. If no tax was deducted at source, you can ask your employer for a salary certificate on his letterhead stating your salary during the financial year. This certificate can be used to file a return.
I have earned under two heads—salary and capital gains. Which form should I use to file my return? How will my tax be assessed?
As an individual assessee, if you have earned income from capital gains in addition to your salary, you will have to file your return in form ITR-2. For taxation, you will have to first segregate capital gains into short-term (STCG) and long-term (LTCG).
Any gain from selling shares held for more than a year is termed long-term. Gain from sale of shares held for a year or less is called short-term. If you have paid the securities transaction tax on all share trading, LTCG will be exempt from tax and STCG will be taxed at 10% for fiscal 2007-08. Your gross tax outlay will depend on your salary income, income from capital gains, income from other sources such as interest on bank deposits, and the deductions you are entitled to.
I have misplaced my insurance receipt. Is it necessary to attach it and other relevant documents with the tax return?
No attachments are needed with the current ITR forms as the forms themselves capture most of the required information. You don’t even need to attach the computation sheet with the form. After you submit the form, the I-T department cross-references the TDS details using Oltas (the online tax accounting system). However, make sure to carry the photocopies of all the relevant documents to the income-tax office.