7 smart things to know about filing Income Tax return of salaried employee

This is the tax filing season. Many of you may have queries and doubts about payment of taxes and filing returns. Through a series of articles, we are trying to address the commonly asked questions. Hope this helps.

1. My company has deducted tax (TDS) and issued form 16. As I know there is no tax due from me, Should I still file Income Tax return (ITR) or will Form 16 suffice?

Form 16 is a TDS certificate issued by the employer to you. This document is not a replacement for Return of Income. Return of Income is a prescribed form through which the particulars of income earned by you in a financial year and taxes paid on such income are communicated to the Income-tax Department. So, filing of ITR is mandatory and TDS certificate is not a replacement for ITR.

2. Is it compulsory to file Income Tax return electronically?

For certain type of taxpayers such as companies, firms, etc., e-filing of IT return is mandatory. However, taxpayers having total income of less than Rs.500,000 can file returns manually by submitting the return to the tax department.

3. Is it necessary to attach any documents along with the return of Income?

​​ITR return forms are attachment less forms and, hence, the taxpayer is not required to attach any document (like proof of investment, TDS certificates, etc.) along with the return of income (whether filed manually or filed electronically). However, these documents should be retained by the taxpayer and should be produced before the tax authorities when demanded in situations like assessment, inquiry, etc.

4. What are the benefits of e-filing the return of income?

E-filing can be done from any place at any time and it saves time and efforts. It is simple, easy and faster. The e-filed returns are generally processed faster as compared to returns filed manually. The taxpayer using his login credentials can download ITR copy of the previous year from the tax portal. So, there is no fear of losing IT return!

5. If I have committed any mistake in my original return, am I permitted to file a revised return to correct the mistake?

Yes, provided the original return has been filed before the due date and the Department has not completed the assessment. It is expected that the mistake in the original return is of a genuine and bona fide nature and not rectification of any deliberate mistake. However, a belated return (being a return filed after the due date) cannot be revised.

E.g., In case of income earned during FY 2014-15, the due date of filing the return of income (considering no audit) is 31st August, 2015. If the return of income is filed on or before 31^st August, 2015 then the return can be revised upto 31st March, 2017 (assuming assessment is not completed by that date). However, if return is filed after 31st August, 2015, then it will be a belated return and a belated return cannot be revised. ​

6. How many times can I revise the return?

A return can be revised any number of times before the expiry of one year from the end of the assessment year or before assessment by the Department is completed, whichever event takes place earlier.

7. Why is return filing mandatory, even though all my taxes and interests have been paid and there is no refund due to me?

Amounts paid as advance tax and withheld in the form of TDS will take the character of your tax due only on completion of self-assessment of your income. This self-assessment is intimated to the Department by way of filing of the return of income. Only then the Government assumes rights over the taxes paid by you. Filing of return is critical for this process and, hence, has been made mandatory. Failure will attract levy of penalty