The 5 step process to filing your Income Tax Return 2017

I filed my Income Tax Return for FY 2017.

The online e-filing system of the Income Tax Department has only become more convenient. Like last year, I used it this time too for filing my income tax return.

It took me less than half an hour to do it.  This is how I went about it. 

5 Steps to filing your Income Tax Return

Step 1: Choose your income tax return

I logged into www.incometaxindiefiling.gov.in and selected the ITR 4S (SUGAM), where I use a presumptive income as the basis for tax return filing.

Note: You should use the Tax Return form as applicable to you. Here is a quick list for you.

Step 2: Enter Income Details

If you are a salaried individual, then you would refer to your Form 16 to enter details in your income tax return. That’s not my case though.

2.1 I entered my presumptive income in a different tab (part of ITR 4S) and then a profit based on the same. This profit shows up on the main screen of the form.

2.2 I then included my Savings Account interest earned as “Income from other sources”

2.3 I have an active home loan so I get to take the benefit of Income from House Property, which is negative, since I pay interest. Of course.

Step 3: Claim Deductions

The list of all deductions is mentioned in the main ITR 4 in a single screen.

I claim the regular deductions such as Life insurance term plan (Section 80C) and Health insurance premium (myself and parents, under Section 80D).

I and took a deduction under Section 80TTA (allowed upto Rs. 10,000 of savings account interest across all your bank accounts).

You have to ensure that you include necessary proofs against such deduction claims.

Step 4: Finally, I input my occupation type (Financial Services Provider) and my trade name, Unovest, in this case. I input the bank accounts details. You can enter multiple account and one of them is marked for receiving the tax refund, if any.

I had a TDS or Tax Deducted at Source from a content writing assignment. This reflected in my Form 26A (filed by the other company). The online e-filing system captured it automatically into my tax return.  You should independently verify such TDS deductions.

Why? I discovered that one company in a previous year had paid TDS on my behalf, showing that I had received income from it. That was not the case. I had not received any payments from the company.  

Step 5: I previewed my tax return and I proceeded for submission. But before that, I had to e-verify my tax return. There are multiple options to do so such as digital signature or Aadhar based OTP. I chose Aadhar based OTP.

From this year onwards, if you are resident Indian with an Aadhar, you will have to tag it to your PAN too. 

That’s it. The return was filed. I got an email acknowledgement confirming the submission.

Now, I await my tax refund.

What about your Income Tax Return?

Well, filing a tax return may not as simple if you have other things such as capital gains, foreign income, ESOPs, dividends, etc. to be taken care of as well. However, just go step by step and you will get all the relevant instructions to file your income tax return by yourself.

Most important is that you should choose the correct form basis your situation and mention all the relevant details, even the smallest ones such as savings account interest.

Capital gains will include any mutual funds (equity, debt or otherwise) that you might have sold during the year. It also includes gains realised from sale of property. The distinction between short term and long term gains has to be made appropriately.

If you have sold a share or an equity fund before 1 year of purchase, short term capital gains tax @15% is payable. If you have sold a debt mutual fund in less than 1 year of purchase, you have to pay tax as per your income tax bracket.

The following gains or income exempt from tax have to shown under Exempt Income

• Life Insurance maturity receipts or
• Receipt from sale of Equity mutual funds sold after 1 year of purchase
• Dividends received from your shares or mutual funds

If you have surrendered a pension plan during FY 2016-17, then the entire surrender value (and not just the gain, as per current rules) is to be shown under Income from other sources.  The same is true for most single premium policy surrender values too.

In the income tax returns filed currently, mention any cash deposits over Rs. 5,000 made during Nov 9, 2016 to Dec 12, 2016.

Remember, the last date for filing your income tax return is July 31, 2007. Good luck!

Here is an older post about filing your income tax return.