Monday, June 18, 2012

filing income tax return online

Filing the income tax return is seen with trepidation by many (most?) people. Some of the pain associated with it can be reduced by knowing more about the process. Encouraged by this post by a colleague, I decided to try and file my own return this year. Keeping at hand income statement, investment and other transaction history, LIC and other receipts, PAN numbers of all entities, etc. is of course necessary, so I invested in a (physical) folder to keep all the papers in one place. Even after doing so, I was initially stumped while entering the numbers - the deductions need to be grouped according to section! (Section of the IT Act).

Some googling + a couple of phone calls solved the questions in my mind.

If I have to mention losses like short term capital loss - investing in a fund and then redeeming it at a loss during the financial year - then I have to use not the ITR1 form, but the ITR2 form.

LIC premia for simple life insurance come under 80C, Health Insurance premia under 80D, Infrastructure bonds under 80CCF

Specific LIC schemes come under 80CCC - specifically mentioned in the premia receipts.

Tax saving mutual funds come under 80C, as mentioned in the mutual fund transaction statement.

SSSIHL donations come under "100% deduction without qualifying limit" in the 80G section since universities come under this ambit,

Now there may be misconceptions or errors in this post - in case you notice any, please let me know in the comments or by email to hn_88 at rediffmail dot com

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