Tax Filing Guide For a First Timer

As the deadline to file taxes is drawing closer, a first timer filing taxes will be having a million queries on how to go about it. Here is a guide for all the first-timers out there-

Is filing taxes mandatory?

According to IT departments anyone who is earning more than Rs 2,00,000 is required to file taxes. Anyone not doing so may have to pay penalties.

What is Form 16?

The Form 16 is similar to a certificate an employer gave you for all the taxes they deducted. In fact, anyone who deducts tax before paying you is required to give you a certificate of it. But you will still have to file your IT Return. 

Employer is deducting taxes

While, TDS may already have been deducted from your earnings, disclosing all your incomes and filing your return timely is still needs to be. Even if all taxes have been deducted on your income and your total income is more than Rs 2,00,000, the IT department needs you to submit your IT Return.

What happens if the deadline is missed?

In case you fail to file your return by the due date as prescribed by law, you can still file your return of income by March 31, 2015 for the year ended March 31, 2014 but you will not be able to revise your return of income in case you notice any mistakes or errors in the return of income filed beyond the due date of July 31, 2014.

How to file taxes?

A CA can guide you through this. You can also now do it online on sites like ClearTax, Taxsmile, and Taxspanner.  

Image Courtesy.