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Irrespective of whether your employer has deducted tax at source (TDS) on your salary or you have paid tax on your own, you should file your income tax return (ITR) if you fit certain criteria.

The official website of the Income Tax Department lists several forms that taxpayers may be required to fill up based on their income. While some of these forms are easy to fill, others require additional disclosures such as your profit and loss statements. Below is a summary of the various ITRs:

• ITR-1 Sahaj: or ITR- 1 is to be filed individuals being a resident (other than not ordinarily resident) having total income upto Rs.50 lakh, having Income from Salaries, one house property, other sources (Interest etc.), and agricultural income upto Rs.5 thousand.
• ITR-2: This form should be filed by Individuals and HUFs not having income from profits and gains of business or profession.
• ITR-3: This form is for individuals and HUFs having income from profits and gains of business or profession
• ITR-4 (Sugam): If your business attracts presumptive income for you, then you need to fill this form. This form is to be filed by Individuals, HUFs and Firms (other than LLP) being a resident having total income upto Rs.50 lakh and having income from business and profession which is computed under sections 44AD, 44ADA or 44AE.

Only eligible taxpayers can claim these deductions in their income tax returns. Such eligible taxpayers have been specified under various sections of the Act. In some cases, it is individual in some companies, HUF, etc. It is pertinent to note that the taxpayers who opt to pay tax under the new tax regime can claim only deductions under sections 80CCD(2) and 80JJAA.

Income tax deduction needs to be claimed at the time of filing your Income Tax Return, and no separate disclosure compliances are required for claiming such deductions. The number of deductions should be reduced from the gross income to reach the taxable amount.

Below documents are important to have in handy before you start your e-filing process.

• Bank and post office savings account passbook, PPF account passbook
• Salary slips
• Aadhar Card, PAN card
• Form-16- TDS certificate issued to you by your employer to provide details of the salary paid to you and TDS deducted on it, if any
• nterest certificates from banks and post office
• Form-16A - if TDS is deducted on payments other than salaries such as interest received from fixed deposits, recurring deposits etc. over the specified limits as per the current tax laws
• Form-16B - from the buyer if you have sold a property, showing the TDS deducted on the amount paid to you
• Form-16C - from your tenant, for providing the details of TDS deducted on the rent received by you, if any
• Form 26AS - your consolidated annual tax statement. It has all the information about the taxes deposited against your PAN
• TDS deducted by your employer
• TDS deducted by banks
• TDS deducted by any other organisations from payments made to you
• Advance taxes deposited by you
• Self-assessment taxes paid by you
• Tax saving investment proofs
• roofs to claim deductions under section 80D to 80U (health insurance premium for self and family, interest on education loan)
• Home loan statement from bank

Apart from making you a responsible citizen, filing tax returns allows you to-

• Claim tax deductions under several sections of the Income Tax Act to reduce your tax outgo.
• Claim refunds on excess tax payments, particularly when TDS is subtracted from your income, and the total taxes you are eligible to pay are less than the tax amount deducted.
• Adjust your capital gains and losses. The Income Tax laws allow you to adjust capital losses against capital gains, and also to carry forward capital loss for the next 8 consecutive financial years.
• Avail a loan or opt for a credit card easily.
• Smoothen your visa process while traveling overseas as many countries need proof of your regular income.

The following are key instances when an Income Tax Refund can be claimed:

• You did not furnish all the investment proofs to your organization. As a result, the amount of taxes deducted by your employer exceeded your actual tax liability for the particular FY.
• Excess TDS was deducted on your interest income from bank FDs or bonds.
• The advance tax paid by you on self-assessment exceeded your tax liability for the applicable FY as per the regular assessment.
• In case of double taxation, for example - when a person is a citizen of one country but derives income from another country. However, there are a few countries with which India has Double Taxation Avoidance Agreement (DTAA). This means you can claim a tax refund if you are a non-resident Indian working in a foreign country with which India has DTAA. For example, you hold a non-resident ordinary (NRO) deposit in an Indian bank. The interest earned on such deposits shall be taxed as per the applicable slab rate. However, if you qualify to be a tax resident of the foreign country where you reside, you may claim a tax refund for the TDS deducted on interests earned in India on your NRO deposit.

Filemyreturn has AES-256 Encrypted System which ensures Full-Proof Data & Identity Security and ensure that the data is not share with any third party.

You need to verify your Income Tax Returns within 120 days to complete the return filing process. Without verification within the stipulated time, an ITR is treated as invalid. e-Verification is the most convenient and instant way to verify your ITR.

• OTP on mobile number registered with Aadhaar, or
• EVC generated through your pre-validated bank account, or
• EVC generated through your pre-validated demat account, or
• EVC through ATM (offline method), or
• Net Banking, or
• Digital Signature Certificate (DSC).