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Sunday, July 30, 2017

Filed your Income tax Return? Do not forget to verify it..!


By on Sunday, July 30, 2017

Filed your Income tax Return? Do not forget to verify it..!

SURAJ GOEL & PREETI MOTIANI, ET

Filing your tax return is not enough. You also need to verify it to complete the process.

Here's how to do it.

Though the tax filing deadline is still a week away, many taxpayers have al ready filed their returns. However, many of them have not completed the entire process.

After filing the tax return, the taxpayer also needs to verify the return. If this is not done within the stipulated time, the return will be deemed invalid and the taxpayer will have to file it again.

Taxpayers who e-file have the option to e-verify their returns.This can be done at the time of uploading or even after uploading.

They also have the option to take the physical route by sending the signed verification to the Centralised Processing Centre (CPC) at Bengaluru.

FIVE WAYS TO E-VERIFY YOUR TAX RETURN..!

1. AADHAAR LINKED OTP

Can be used only if the Aadhaar is linked to your registered mobile number. An OTP is sent to your mobile number. Enter the OTP and click on submit to verify the return.

2. OTHER OTP

If gross income after deductions is below Rs. 5 lakh and or the refund or demand is less than Rs. 100, the taxpayer can e-verify using an OTP from the tax department's e-filing portal.

This OTP is sent to mobile phone and e-mail.

3. THOUGH NETBANKING..!

Log in to Netbanking and click on tax filing to go to e-filing website.
Then generate the EVC. An EVC will be sent to your email and mobile number. Use it to verify return.

4. USE BANK ACCOUNT TO VALIDATE

Taxpayer must first pre-validate his bank account using the profile settings of the e-filing account.

Possible only if PAN and name match with bank records. Enter the registered mobile number.After it is validated by the bank, generate EVC. Only 12 banks offer this facility.

5. USE DEMAT ACCOUNT TO VERIFY

Similar to the val idation using the bank account.

Taxpayer must first validate his demat account.

Once validated by the depository, generate the EVC.

6. TAKING THE TRADITIONAL PHYSICAL ROUTE
If you are not able to e-verify your return because of any reason or are not comfortable with e-verification procedures, download the ITR-V (also known as the acknowledgement receipt), sign it and send it to CPC at the following address:

CPC, Post Box No 1,
Electronic City Post Office,
Bangalore - 560100, Karnataka, India.

Here are a few things to keep in mind when you do so.

The ITR-V should reach the CPC within 120 days from the date of e-fil ing the return.

Sign in blue ink and send via ordinary post or speed post. Do not use a courier to send the ITR-V.

ITR-V is auto-generated and is emailed to you after you successfully uploade-file your income tax return.

It can also be downloaded from the e-filing website under the 'View ReturnsForm' on the 'Dashboard'.

You are not required to send any supporting document along with the ITR-V. Just send the one page signed ITR-V.

When your ITR-V is received at the CPC, you will receive an email and an SMS alert. Processing of your return will only start after verification.

Note:

HUFs and individuals using ITR 3 for the financial year 2016-17 (ITR 4 for 2015-16) to file their tax returns and whose accounts are required to be audited under section 44AB have to mandatorily verify their returns using the digital signature certificates.

Returns filed using the digital signature method are not required to be verified further.

DO NOT MISS THIS INCOME IN ITR

Though fully taxable, some interest often gets ignored when filing returns, says  PRAGATI KAPOOR

1. INTEREST ON LOCKER FDs
Customers seeking lockers in a bank are often pushed to invest in FDs. The income from these deposits often goes unnoticed by the investor.
In most cases, the fixed deposit is linked to the locker and the interest earned is adjusted against the annual locker rent. If the fixed deposit is cumulative, there is no periodic interest entry in the savings account.

As a result, the taxpayer forgets to include this inter est even though it is fully taxable.

2. INTEREST ON APPLICATIONS

The year 2016-17 witnessed several public issues, many of which were oversubscribed. Oversubscription means that a large number of appli cants get partial allotment and the balance application money is refund ed to them with interest.

Since this interest is not a very large sum, it is often overlooked by individuals. How ever, this interest has to be included in the tax return.

3. INTEREST ON SECURITY SUMS..!

Some power and telecom companies ask subscribers to make a one-time security deposit at the time of apply ing for a connection. Many suppliers pay interest on these deposits to the subscribers.

Mostly, the interest is adjusted in the last bill of the finan cial year instead of being actually paid out. This interest is also fully taxable and has to be reported.

4. INTEREST EARNED ON NSCs

NSCs offer cumulative interest which is paid on maturity after five years.

The interest earned every year is reinvested and therefore qualifies for deduction under Section 80C. Howev er, interest accrued on the NSC in the last year is paid on maturity and not reinvested. So, it cannot be claimed as a deduction.

5. TAX FREE INTEREST ON PPF..!


Interest on the PPF is tax free, but has to be declared as `Income claimed exempt from tax' on an year ly basis in one's tax returns.

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