Page 23 - Mousumi: Unbelievable Transformation

4. Based on the status of the taxpayer and sources of income, being one or two
or more, one has to file Income-tax Return (ITR) form which is of different
types from ITR- 1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 and ITR-7. All the
different forms are applicable as per the status of the taxpayer and having a
diverse source of Income. A tax professional should be very cautious while
selecting the Form-type before the filing of the Income-tax return.
5. For e-filing of Income-tax Return, one needs to go to the Income-tax e-filing
portal and register the PAN to obtain e-filing account and its password.
6. For filing of Income-tax return, the income should be calculated first, and true
account of income should be declared in Income-tax return. In ITR, there is a
column for exempt income and deduction. One should be very cautious about
the claim of exempt income and deductions. Section 10 of the Income-tax Act,
1961 (amended time to time), describes the exempt income. Such income is
exempt from tax. Chapter VIA of Income-tax Act gives details of deductions
and section 80 has a wide variety of deductions which is claimed on investment
or expenses to meet certain expenditure like medical treatment, investment in
Insurance premium etc.

Exempt income is part of income which is not subject to tax. For example,
Agricultural income is exempt from tax, yet it is taken into account for rate
purposes, and income other than agriculture is chargeable to tax on changed

tax slab after considering the income as total income including agricultural
income. However, the basic exemption limit of Income is applicable in such
case for income other than agriculture source.
Deduction is part of income which is investment and expenditure-based in
nature. Deduction is claimed and is deducted from Gross total income to

7. Various websites are there to assist computation of total income which comes
in handy for calculating income tax. The period of April to March is taken as a
financial year, and the corresponding next April to March is called an
Assessment year. For any assessment year, if the ITR is filed within due date, and
not late-filed, it can be revised. But late-filed ITRs cannot be revised and hence
filing of ITR on or before the due date is always advisable to avoid last time
rush.
Steps to file Income-tax Return
1. Collect required documents such as TDS certificates (Form 16 /16A) and
see the details of deductor and amount of TDS, especially in case of Salary
and pension.
2. Download and check form 26AS.

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