
Those who are earning rupees five lakhs or above on an annual basis should pay tax. You have two options to file return of income. Either you can go for electronic filing or physical filing. Most of the people are interested in using the electronic filing option as it takes less time to do all tax filing processes. All they have to do is get their tax return in a valid XML format. This can be done with the assistance of an online tax preparation site like Simplifiedlaws.com, or the income tax site. After that you have to log on to the income tax site and click the Income tax return form. There are various types of ITR forms. One should check which form is apt for their purpose. A tax consultant is able to provide guidance on this regard. You have to log in to the income tax site with a valid ID and password. Your pan card number will be your user ID. After log in to the website you can check your tax credit statement. This is form 26AS where details related to the taxes deducted by your employer can be checked. The TDS provided in the Form 16 should tally with the statements in the tax credit statement. If this wont tally, and you wont try to solve it. Then will get a query on this from the tax department. Next step is to upload the XML file. After uploading the file you will get an acknowledgment. If you have uploaded the file with a digital signature then can say you have finished income return filing successfully.
There is tax reduction at source or TDS on certain payments. The tds exemption is meant for reducing the burden on business by individuals, firms, companies and other corporate firms. One has to check this before filing tax returns. Mostly tax exemptions are given on Demat account maintenance charges, warehousing services for commodities, cash management services, underwriting services by banks etc. It is better to check whether you get tds on purchase of property from nri.
Nowadays it wont take much time to file income returns. You can ask the assistance of private portals for this. Many sites are able to offer income return filing services at affordable rate. A private portal will hire a chartered accountant for doing the service. He will help you in preparing and filing return without any difficulty.
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