Income Tax Return
Income Tax Return (ITR) Latest Updates : Income Tax

Income Tax Return (ITR) – What you must do before you get your Form 16

If you are a salaried person, you would normally start thinking about filing your tax return after you get your Form 16 from your employer. Employers are bound to issue Form 16 to employees by 31 May 2018. #incometaxindia, #sgcservices

However, this year you have to extra careful to ensure that you file your Income Tax Return (ITR) within the due date because from this year there is a late fee for filing your ITR after the due date.

Before filing your ITR, you must ascertain which Form of ITR will be applicable to you. Click here to Know more..

 

You will file your details in ITR 1 (called Sahaj) if:

a) You only have Income from salary/pension and other income like interest from bank deposits
b) If you are a ordinarily resident person and
c) You have Income or loss from one house property only (excluding brought forward and carried forward losses) and
d) Total income does not exceed Rs. 50 lakhs
e) Dividend income does not exceed Rs. 10 lakhs

If you are a house owner, you have to specify if it is

i) self‐occupied
ii) a let‐out property. In case of let‐out property, you need to provide a break‐up of
(1) gross rent received
(2) tax paid to local authorities
(3) Annual value of property. This is required as people were claiming losses on house property by letting them out at much lower rates than the annual value of the property.

 

The information that you will collect and collate from your Form 16

a) Salary received, excluding all allowances, perquisites and profit in lieu of salary
b) Amount of allowances not exempt from tax
c) The details of perquisites received like accommodation, car or driver provided by the
employer
d) The amount related to profit in lieu of salary. These could comprise of joining bonus, exgratia
amount received on retirement, retrenchment compensation and so on are
considered as profit in lieu of salary

Please also ensure that you link your Aadhaar to your PAN by 30 June 2018.

 

Form 16 – All You Need to Know About it

Form 16 is essentially a certificate issued by an employer validating the fact that TDS  has been deducted and deposited with the authorities on behalf of the employee.

 

Form 16 is a certificate issued by an employer evidencing the TDS which is deducted from your salary and deposited with the authorities. It contains the information you need to prepare and file your income tax return.
It is issued annually, on or before 31 May of the next year, immediately following the financial year in which tax is deducted.

 

Form 16, essentially has two components to it- Part A and Part B.

Part A of Form 16

This part of Form 16 is generated and downloaded through the TRACES portal, by the employer. Prior to issuing the certificate, it will be authenticated for correctness of it’s contents by the employer.

It is important to note that if you change your job in one financial year, every employer will issue a separate Part A of Form 16, for the period of employment.

Some of the components of Part A are:

  • Name and address of the employer
  • TAN & PAN of employer
  • PAN of the employee
  • Summary of tax deducted & deposited quarterly, which is certified by the employer

Part B of Form 16

Part B of Form 16 is an annexure to Part A. If you change your job in one financial year, then it is for you to decide if you would want Part B of the Form from both the employers or from the last employer.

Some of the components of Part B are:

  • Detailed breakup of salary
  • Deductions allowed under the income tax act (under chapter VIA)
  • Relief under section 89

 

Form 12BA

Form 12BA is issued by an employer evidencing of benfits / perk along. this form issued with form 16.

 

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