Filing Your Income Tax Returns

Taxing times are at our door. Read on to learn more about claiming deductions on Income from Salaries and filing your income tax returns.

Q 1) I am a salaried employee working in a private company. What deductions can I claim? Are there any lucrative investment plans that I can use to save tax?

- Jaideep Rodage, Bidar

Some of the investment options which may reduce your tax liability are as follows.

Under Section 80C of the Income Tax Act, 1961, an assessee is entitled to claim deduction of upto Rs 1 lakh or the actual amount invested/paid as specified in that section. The various investments/expenses enumerated under the said Section 80C are listed below:

a. Life insurance premiums (for self and family) (internal limit is fixed, whereby the premium amount in excess of 10 per cent is not eligible for deduction)
b. Provident fund contributions (for self and family)
c. Specified mutual fund contributions
d. Public Provident Fund (PPF)
e. Tuition fees (for self and family)
f. Repayment of loan being the principal portion of the EMI of a housing loan
g. Fixed deposits with banks for a term exceeding five years
h. NABARD and other bonds/certificates as specified from time to time

Deductions in respect of certain pension schemes are also available under sections 80CCC and 80CCD, provided that the total deduction u/s 80C, 80CCC and 80CCD does not exceed Rs 100000.

Further, deductions are also available to an individual under the following sections of the said Act:

a. Mediclaim insurance premium [being Rs 15000-Rs 40000, depending on the age of the assessees covered by the policy] is eligible for deduction u/s 80D
b. Interest paid on loans for higher education of self or dependant is eligible for deduction u/s 80E
c. Donations paid in cash to specified funds/institutions not being less than Rs 250 are eligible for deduction u/s 80G. Certain funds are eligible for 100 per cent or 50 per cent of the amount donated whereas the other donations are restricted to 100 per cent or 50 per cent of the qualifying amount, the qualifying amount being 10 per cent of the adjusted gross total income.
d. The interest portion of EMI in respect of the housing loan is eligible for deduction up to Rs 1.5 lakh u/s 24 of the said Act.

These are only a few of the available deductions. The actual deductions/exemptions can be determined based on the facts and circumstances in question.

Q 2) I want to file my income tax returns for the first time. What is the procedure to do so?

- Manisha Malhotra, Mumbai

First of all, you must apply for and obtain a Permanent Account Number (PAN) by filling Form 49A. Prepare a list of all assets owned by you, with their cost of acquisition and the sources of finance thereof. Also prepare a note of antecedents, stating in brief what you have done till date as also how you have accumulated your assets.

Thereafter, depending on the sources of your income, you need to select the appropriate form of return. You may also use the Sahaj (ITR 1) form, if applicable.

The following are the list of Income Tax Return forms to be filed by assesses, as required:

ITR-1 SAHAJ: Indian Individual Income Tax Return

ITR-2: For Individuals and HUFs not having Income from Business or Profession

ITR-3: For Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship

ITR-4: For Individuals and HUFs having income from a proprietory business or profession

SUGAM (ITR-4S): Presumptive Business Income Tax Return

ITR-5: For firms, AOPs and BOIs

ITR-6: For Companies other than companies claiming exemption under Section 11

ITR-7: For persons including companies required to furnish returns under Section 139(4A) or Section 139(4B) or Section 139(4C) or Section 139(4D)

ITR-V: Acknowledgement

For the financial year ended March 31, 2013, you will have to file your return of income on or before July 31, 2013. However, in case you need get your books audited under Section 44AB of the Income Tax Act, 1961, the due date to file your return of income would be September 30, 2013.