Tips on filing I-T returns

 With just seven days left for the salaried class and the business class (non-company assessees whose accounts need not be audited) to file income tax returns for the financial year 2011-12,
Y Maheswara Reddy asks BS Manohar, a consumer activist, for some tips on filing I-T returns
 

How can one file returns manually?
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The returns can be filed using the ITR-1 Sahaj form by salaried people and pensioners or those having income from a single house property. Those whose income comes from more than a single house property or those who have capital gains or those whose income is not from business/profession can use ITR-2 form.
 
What deductions are available under Chapter VI-A of the
I-T Act for fiscal 2011-12?
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•    Sections 80C, 80CCC and 80CCD: Maximum deduction allowed is `1 lakh. The deposits eligible under these sections include LIC premium, PF, PPF, NSC, NLSS, post office five-year time deposit, bank five-year fixed deposit, senior citizens savings scheme, repayment of principal of housing loan, tuition fee (for up to two children), premium paid towards pension funds such as LIC’s Jeevan Suraksha and contribution to central government’s pension/NPS schemes.
•  Section 80 CCF: Deduction of additional `20,000 over and above the limit of `1 lakh, for investment in long-term infrastructure bonds.
•   Section 80D: Medical insurance premium paid by cheque for policies of GIC/IRDA-approved insurers (up to `15,000 for self/spouse/children and additional `15,000 for parents). For senior citizens, the limit is `20,000.
• Section 80 DD: Expenditure for medical, nursing and rehabilitation incurred on dependent relatives suffering from permanent physical disabilities and in insurance schemes floated by IRDA-approved insurers. The limit is `50,000. It will be `1 lakh, if the disability is severe—that is, exceeding 80%.
•  Section 80DDB: Up to `40,000 incurred on medical treatment of self/dependent relatives suffering from serious diseases such as cancer, AIDS and renal failure (`60,000 for senior citizens).
•  Section 80E: Interest on loan taken from financial/charitable institution for self/spouse/children for higher education above Class X (up to eight years).
• Section 80G: 100% of donation given to National Defence Fund and  PM’s Relief Fund; 50% of donations made to PM’s Draught Relief Fund, Jawaharlal Memorial Fund and National Children’s Fund.
• Section 80U: Up to `50,000 for those who are suffering from permanent physical disability as specified in Rule 11D;  up to `1 lakh in case of severe disability.
•  Section 24: Interest on housing loan: `30,000 for loans taken before March 31, 1999, and up to `1.5 lakh for loans taken after April 01, 1999, This applies to those having self-occupied housing property.

Has the I-T department made any special arrangements for
filing the returns this time?
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Yes. The I-T authorities have made arrangements for receiving the I-T returns in major cities. In Bangalore, the department has made arrangements to open nearly 100 counters under one roof at the Gayathri Vihar, Palace Grounds, from July 25 to 31. The counters will be open from 9.30 am to 5 pm on all the days, including Sundays. In addition to access to facilities such as Xerox, ATM, canteen and restroom, nearly 200 I-T department personnel will assist those who will come to file returns. Assessees can walk in, collect I-T return forms, fill and file them and walk away with the acknowledgement receipts given by the I-T officials.
 
What are the points to be remembered while filing the returns?
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•  It is necessary to enter the correct PAN number in the form; the assessee should also enter his/her name as mentioned in the PAN card.
•  All columns in the form must be filled legibly and if there is nothing to be mentioned, it should be marked as Nil.
•  It is necessary to fill in assessee’s jurisdictional circle/ward number.
•  The latest address, email-id and telephone/mobile number should be filled.
• Whether the assessee is eligible for a refund or not, it is necessary for him/her to give his/her bank account details. For those seeking a refund, MICR code of the branch/bank also needs to be furnished.
•  Deductions under Chapter IV-A and details of various exemptions have to be filled by the assessee.
• Salaried assessees should, apart from furnishing their salary income, provide details of Tax Deducted at Source (TDS) as mentioned in their Form-16.
• Those who have income from other sources should furnish details such as interest from bank deposits, etc, as per Form-16A.
• The ITR-1 form consists of a single sheet and needs to be filled on both sides. The ITR-2 form consists of eight pages. I-T officials will provide separate acknowledgements for both after affixing their seal and signature.

 
Is it true that all salaried individuals whose taxable income is less than `5 lakh are exempted from filing the I-T returns?
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No. This exemption is applicable to only those salaried individuals whose taxable salary income is less than `5 lakh and who receive interest income of less than `10,000 from their savings bank accounts only. This applies to those individuals whose salary is from one employer only, without any other sources of income.
 
Any other tips?
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Keep all the relevant documents/certificates such as PAN card, Form-16/16A, statement of income, interest received, etc, handy before filling up the form. Do not wait till the last day—that is, July 31, to file the return.