If complex tax forms and tax terms bewilder you, let's break down your return filing process in segments. By taking these small, careful steps, you will be on a roll with your return filing this year.
Step 1: Get hold of your Form 16
Form 16 is a certificate your employer gives you when the TDS deducted on your salary is certified. Form 16 has most of the information you need to fill in your return. PAN and TAN details of your employer, name and address of your employer and similar details for you are mentioned which have to be filled in the return. You will see a number which is your 'total taxable salary' and that is the number you will have to pick to submit under the head salary in your return. Several tax filers allow you to upload your Form 16 and with that all this information gets picked up automatically in your return.
Step 2: Find out your income other than salary
Most of us earn a savings bank account interest or have some fixed deposits put away. This interest earned has to be added to your return under income from other sources. Get hold of your bank statement or look up online for credits to your account by the bank towards interest in your savings account. Most online banks also show a fixed deposit statement, where you can see the interest earned during the year. If you have any other bonds you subscribed to, where interest is accumulated, add this interest to your return. As a thumb rule, offer interest income on deposits and bonds when it is accrued each year, rather than when it is paid on maturity.
If you have taken a home loan to own a house and you live in that house, you get a deduction for the interest for the financial year. The interest amount is your loss, which will get adjusted against your salary and other income. If you have rented out your house, the rental income is offered for tax. You can deduct property taxes paid by you and a standard 30 per cent from the net amount (rental income less property taxes) is also allowed. For a rented property the entire interest on home loan is deductible. You'll also need to provide details of the property, address, date of construction, information about co-owners etc.
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| File your Income Tax Returns before end of August |
Step 1: Get hold of your Form 16
Form 16 is a certificate your employer gives you when the TDS deducted on your salary is certified. Form 16 has most of the information you need to fill in your return. PAN and TAN details of your employer, name and address of your employer and similar details for you are mentioned which have to be filled in the return. You will see a number which is your 'total taxable salary' and that is the number you will have to pick to submit under the head salary in your return. Several tax filers allow you to upload your Form 16 and with that all this information gets picked up automatically in your return.
Step 2: Find out your income other than salary
Most of us earn a savings bank account interest or have some fixed deposits put away. This interest earned has to be added to your return under income from other sources. Get hold of your bank statement or look up online for credits to your account by the bank towards interest in your savings account. Most online banks also show a fixed deposit statement, where you can see the interest earned during the year. If you have any other bonds you subscribed to, where interest is accumulated, add this interest to your return. As a thumb rule, offer interest income on deposits and bonds when it is accrued each year, rather than when it is paid on maturity.
If you have taken a home loan to own a house and you live in that house, you get a deduction for the interest for the financial year. The interest amount is your loss, which will get adjusted against your salary and other income. If you have rented out your house, the rental income is offered for tax. You can deduct property taxes paid by you and a standard 30 per cent from the net amount (rental income less property taxes) is also allowed. For a rented property the entire interest on home loan is deductible. You'll also need to provide details of the property, address, date of construction, information about co-owners etc.
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