FINANCE TIP OF THE DAY
Can you afford your loan?!
Know the quantity of loan you can afford. The banks may sanction loan based on your income but you should look at your monthly expenditure and see if you can afford the maximum that banks offer. As a thumb rule, remember not to let your credit exceed 40% of your income!
Steps to file tax returns online!
Despite the innumerable advantages of filing tax returns online, many people still take the tedious route of filing returns on paper. This is primarily due to ignorance of the simple processes involved in filing online. Most people are yet to develop confidence in the online system and try to avoid it year after year. However one has to appreciate the fact that filing online is a simple and hassles free practice that can be done anywhere and anytime even from the comfort of home itself.
Advantages of Filing Tax Returns Online
The biggest advantage of filing returns online is that one doesn’t have to run around income tax offices unnecessarily which consumes time and effort. The whole process takes just about 15 minutes if one knows the details of filling the forms. Moreover the copy of the return is available to you instantly and it has been proven over the years that refunds are more readily disbursed by the income tax department in cases of online filing as compared to traditional paper returns. Several problems caused by wrong addresses is virtually eliminated in case of online tax returns.
Step by Step Guide to Online Filing
All that one needs for online tax filing is access to an internet connection and all relevant data ready at hand.
1st Step: One will have to access the website for online tax filing which is http://www.incometax-india.gov.in/ and then go to “file returns online” tab followed by “income tax returns” to start off the process.
2nd Step: There are different kinds of forms for various types of returns. One needs to download the relevant form and save the zipped file. The required return file can then be extracted from the zipped file.
3rd Step: The details and particulars required will have to be filled in the form and finally validated by clicking the”validate” button on the last page. One has to then access the ‘Generate XML’ link and then subsequently save the XML file.
4th Step: The details will have to be now entered in the income tax website mentioned above. For this an existing user can log in with the PAN number and secret password. For new users an account has to be created. In order to register first time on the IT website the following steps need to be taken:
- Fill in the PAN, name, father’s name, date of birth, e-mail address and contact number.
- You will be forwarded an automated activation link on the mail ID provided by you, which has to be clicked from that ID and activated.
- The PAN number is the user ID in this link. Follow the steps to choose a secret password which has to meet the laid down specifications in the website.
- If the secret password is lost or forgotten one can reset the same using the PAN number and the secret question that has been previously entered.
5th Step: Now you have to log into the website and look for the ‘submit return’ tab. Here the relevant year i.e. 2012-2013 has to be selected. The XML file that was generated in 3rd step will have to be uploaded here.
6th Step: The acknowledgement of the return having filed will be generated now under the heading ITR-V. The file can be opened with a password which your PAN followed by the date of birth in DDMMYYYY format. This file will have to be saved for future reference.
7th Step: In case of an electronic signature on the tax return the procedure is over at this stage. Otherwise a print out of the ITR-V will have to be taken and physically signed before sending it to the nearest IT office within 120 days. One has to keep a track for the acknowledgement of the receipt of ITR-V on the website itself.
8th Step: When the ITR-V acknowledgement is received you will have to log in to your account and acknowledge the completion of the process.
People who have been using the online tax return filing facility have been quite satisfied with the results. The system has proven to be stable after a few initial amendments and is a sure way to file returns without extra effort or time being consumed in the process.