Tax Time!!
It is that time of the year when you look for TDS certificates, insurance receipts, medical bills or even capital gain statements to begin filing your income tax returns. As always, this year too brings some changes to the data collected by the ITR forms but the general structure and format of the forms remain the same.
Which form to use?
By now the newspapers and online portals would have elaborated on who should use which form to file their returns. A gist of it is given below:
Which form to use?
By now the newspapers and online portals would have elaborated on who should use which form to file their returns. A gist of it is given below:
- ITR-1: To file income from salary/pension, rent from one house property and interest
- ITR-2: To file rental income from more than one property, capital gains and interest
- ITR-2A: To file rental income from more than one property, capital gains from shares/MFs and interest income
- ITR-4S: To file income from business or profession
Doubts on what to file!
Most people know what incomes to file. However doubts arise as to whether one should report income(s) to which TDS has not been applied - such as interest from bonds, post office deposits, gift or loan received from family/friends etc. In some cases such as NRIs or the elderly, assessees even forego refunds due to the trouble of having to go through the return filing process itself!
Whom to engage for eFiling services?
These days we have plenty of options to choose from - self/family, CA/Auditor, TRP (Tax Return Preparer), eFiling intermediaries, online portals, financial planners etc. The question is not about who the right person is, but about who could file your returns right. The person you choose should be able to give you adequate time and attention to thoroughly study your income(s) and expense(s) over the last year and carefully determine eligible tax provisions for deductions.
TRPs, efiling intermediaries and online portals work well if your income source is only salary and expenses are simple. CAs/Auditors suits better if you run a business, have a proprietorship, LLP or Company setup. However for individuals who have different sources of income (salary, rentals, interest or capital gains), NRIs and investors of financial products, Financial planners with taxation expertise would be more suitable as they cater to the customized needs of an individual. Whoever you choose to engage for your eFiling services, make sure to verify your income returns have been filed right!
Most people know what incomes to file. However doubts arise as to whether one should report income(s) to which TDS has not been applied - such as interest from bonds, post office deposits, gift or loan received from family/friends etc. In some cases such as NRIs or the elderly, assessees even forego refunds due to the trouble of having to go through the return filing process itself!
Whom to engage for eFiling services?
These days we have plenty of options to choose from - self/family, CA/Auditor, TRP (Tax Return Preparer), eFiling intermediaries, online portals, financial planners etc. The question is not about who the right person is, but about who could file your returns right. The person you choose should be able to give you adequate time and attention to thoroughly study your income(s) and expense(s) over the last year and carefully determine eligible tax provisions for deductions.
TRPs, efiling intermediaries and online portals work well if your income source is only salary and expenses are simple. CAs/Auditors suits better if you run a business, have a proprietorship, LLP or Company setup. However for individuals who have different sources of income (salary, rentals, interest or capital gains), NRIs and investors of financial products, Financial planners with taxation expertise would be more suitable as they cater to the customized needs of an individual. Whoever you choose to engage for your eFiling services, make sure to verify your income returns have been filed right!
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