A complete guide to filing your I-T return (Part 1)

Every year we go through the tough task of compiling various documents  required for preparing and filing our tax returns. Timely and meticulous  planning on your part, however, can make this task easier for you. After all, filing of tax return is compulsory for everyone whose gross total  income exceeds the basic exemption limit, which is Rs 1.90 lakh for women below  65 years of age, Rs 2.40 for senior citizens and Rs 1.60 lakh for any other  individual, for the financial year 2009-10 (ie for income earned between April  2009 and March 2010).

1. Due date for filing tax returns: The due date for filing the tax returns  for financial year 2009-10 in case of individual tax payers (who generally get  salary income) is July 31, 2010. The due date could be September 30, 2010 in  case of individuals carrying on business, subject to certain additional  conditions.

2. Documents to be compiled: The current tax return doesn’t require any  documents to be annexed. However, in order to determine your own income, the  following documents will be helpful. These documents will also help if any  questioning comes up by the tax officer at a later stage. Form 16: This is the certificate issued by an employer and helps the  individual to know his salary income for the year and tax deducted by the  employer. Form 16A: It’s a certificate issued by banks, companies and other parties  providing a summary of interest, rent, commission, professional fees, etc, paid  to an individual during the year. Form 16A also provides a summary of tax  deducted on such payments. Bank statements/ passbook: Analysis of statements of accounts operated during  the year will help collate / reconcile the details of income received,  investments made during the year. House property details: In case you have income from let out house property,  copies of lease deed, details of rent received and receipts of municipal tax  paid during year would be required to compute your income. In addition, if you  have taken a housing loan, a certificate from the lending bank specifying the  principal and interest payment during the year would also be needed to compute
the exemptions. Bills / Contract notes in respect of shares purchased or sold: You may find  it comfortable to prepare a statement of sale and corresponding purchases of  shares and other investments. This will help in arriving at the correct amount  of long term/short term capital gain or loss. Your statement of demat account  should help in case of investments made through such account. In case of sale of immoveable property, documents such as sale agreement,  documents evidencing the cost of acquisition, period of holding the property,  any cost incurred for addition/ improvement to property etc also need to be  collated to determine your own income. Compiling details in respect of ‘Annual Information Return’ (AIR): Every  individual is required to report specified transactions as part of the tax  return. This involves transactions like: Cash deposits aggregating to Rs 10 lakh or more in a year; Credit card payments aggregating to Rs 2 lakh or more; Payment of Rs 2 lakh or more for purchase of units of mutual fund; Purchase/ sale of any registered immovable property valued at Rs 30 lakh or  more Payment of Rs 5 lakh or more for acquiring bonds or debentures issued by an  Indian company or institution Payment of Rs 1 lakh or more for acquiring shares issued by an Indian company  through a public or rights issue Details of advance tax payments: Acknowledgement for advance tax paid during  the year needs to be compiled for computing the balance tax liability. Copies of donation receipts: A deduction is available against taxable income  in case of donations made to specified charitable and other institutions. Copies  of donation receipt shall be required to compute your deduction. Proof of investment in specified saving schemes/ expenses: Deduction is  available in case of investment in PPF, NSC, payment of life insurance premium,  etc. Proof of investment/ expense will be help in computing the deduction.
source - staffcorner