Things You Need to Prepare Before Filing ITR 1 for FY 2017-18
31st July is already being in talks. Specially for the newly levied penalties under section 234F, which can cut down your pocket up to additional ₹10,000/-.
Before you start filing ITR for FY 2017-18, let’s get handy with the documents and details needed in the process. For a hassle free ITR filing, first requirement is the correct selection of ITR form.
Selection of ITR Form mainly depends upon
- Your Residential Status
- Income Sources
- And Quantum of Earnings
ITR 1 or Sahaj Form being the simplest is apt to be furnished by a salaried individual being resident and earning income up to ₹50 lakhs. The income may also arise from one house property and other sources such as interest on FD or saving bank account etc.
Things to be kept handy
There are series of documents suggested to be kept handy for fast & easy Income Tax Return filing. These documents can mainly be categorized as
- Your Basic details
- Income proofs
- Details of investments made
- Taxes paid and payable
- Bank Details
Your Basic Details
These documents are very important as furnishing correct details will only entitle you to proceed with tax filing & processing of refunds. Basic documents include
- PAN details,
- Aadhar Number,
- Mail ID and
- Other contact details.
It is crucial to identify all your sources of income including the miscellaneous ones like FD etc Non disclosure or under disclosure of income can result in penalties, interest and litigations. So, take a glimpse of these key income proofs to gather before you start filing ITR 1 for FY 2017-18
- Form 16 or salary certificates to know your income from salaries
- Form 26 AS to know income from other sources
- Bank account details or rent receipts for rental income
Details of investments made
Eligible investments and expenditures can benefit you with reduction in overall tax liability. For ITR 1 such deductions shall fall in nature of those specified under section 80C to 80U. A summary list of such popular deductions is as follows
- Contributions made to PPF
- LIC premiums paid
- Tax saving mutual funds purchased
Taxes paid and payable
Income tax department trusts you to calculate correct tax liability & this is called self-assessment tax. This becomes your gross tax payable to the government.
From this, you can further claim tax credit of any advance tax & TDS paid. Form 16, Form 16A, Form 26AS etc helps you to determine the amount of taxes already paid by you.
This net amount of tax liability is your tax payable to the government.
While filing ITR 1 Sahaj Form, your bank details are asked. This is to ensure smooth payment of any refund amount (if you become eligible for it). Please keep the following details in handy
- IFSC of your bank
- Name of bank
- Your correct Bank Account Number
Filing income tax return is very simple & easy given proper knowledge of important details is known.
And we at Tax2Win aim to provide you with regular tips & updates to make ITR filing process more approachable.
Now, you can also file ITR with us for FREE! Visit our website & file today. Happy Filing 🙂