Steps involved in filing a tax refund

Keywords- Tax returns, financial planner, tax accountant, financial advisor

Date - 29^th May, 2015

Smart ways of filing tax form

Filing the Tax form has become easy today and even more convenient than it was earlier. Some of the taxpayers are still finding it difficult to file their returns and subcontract the total process to a tax professional. There are some e-filing portals guiding the taxpayers to undergo the entire process and guiding the person to find a way.

How to make a taxpayer file his tax form by himself?

The entire process is divided into five steps to the benefit of the people. It is necessary to crisscross your tax credit statement and resolve it with the tax paid during this year. Then you can select the right form that is needed for filing the tax refund. The form in which you have to file the tax returns is based on your income type. You have to be smart enough to fit yourself in the right area depending on your income type. Later, you have to focus on the mode of filing the return. The government has made e-filing compulsory for those who are earning more than five lakhs a year.

Steps involved in filing a tax refund

Check the TDS details

You can begin the process by checking the tax paid with that of the TDS details in the 26AS form. The employees have to match the TDS details in the form16 from the employer with the form26AS details. Form26AS can be accessed from the income tax department official website, https:// incometaxindiaefiling.gov.in/. The tax credit statement can be accessed from the site by registering your name on it. When you click on credit statement, you will be directed to TDS Reconciliation Analysis and Correction Enabling System page. Any mismatch found in the tax credit statement with that of form 26AS should be brought to the notice of the officials who have deducted tax for you. It has to be rectified immediately.

You should select the right form

Filing tax refund in a wrong form will be rejected. The most used form is ITR-1. If the exempt income of the taxpayer exceeds Rs.5000, then ITR-2 has to be filed. The exempt income includes PPF, life insurance policies, EPF withdrawals and dividend income.

You should choose the right filing mode

E-filing is made compulsory for some people, and it is made simple for the taxpayers to file a return through the internet. The private Portal charges you a small fee and helps you in choosing a right form and give relevant instructions.

Monitor the changes

Detailed information as per the updated tax laws regarding the new tax reliefs, capital gains, exempt allowances, refunds and house property has to be provided.

Preventing the mistakes

Filing the return as early as possible and submitting ITR-V by post within 120 days of submitting the return to CPC have to be followed.

A guide to filing tax forms

Filing the tax refund forms after the last date involves a lot of complications. Electronic tax filing is allowed for those who earn more than five lakhs per annum. To file a tax form, you can take the help of a private portal or at the official website of the income tax department or take the help of a professional. People with an exempt income of more than Rs.5000 will not be able to file their returns using ITR-1 from 2013. The individuals, who get the salary and having tax-exempt income through house rent allowance, leave travel allowance, and transport allowance should use ITR-2 from now on.

Income tax official website for filing returns

The tax filing process has to be started by keeping a copy of the last year’s return, Form 16 and bank statements. The official website (www.incometaxindiaefiling .gov.in.) has to be visited, and you have to log-in to the site.

• The individual has to register on the website with his PAN number as the user ID.
• Tax credit statement has to be opened through Form26AS for the current year. This statement is supposed to reflect the tax amount deducted by the employer from your salary and deposited into the income tax department account.
• The TDS in the form16 has to match with that of the Form 26AS. If there is any mismatch or any other problem with the figures, you might receive a notice from the IT department.
• The current year income tax forms from the menu can be downloaded according to your eligibility.
• The return preparation software has to be downloaded and opened. The form has to be filled with all the details by referring to form16.
• A button called ‘Calculate tax’ can be used to calculate the payable tax, and you can confirm your payable tax. You have the option of entering the Challan particulars in the tax returns.

Further steps to be followed after filing the return

A tab named as “Validate” has to be clicked to confirm the data that you have entered in the Form. An XML format of the Form can be generated through an option, and it can be stored on your PC. You have to upload the XML file through a button named as “upload Return” by picking the year of your return filing. You can sign the file with the digital signature. After completing the above process, you will receive a message telling you about your successful attempt in submitting your return. An acknowledgment ITR-V will be created, and you will be allowed to download it. You can take a print of that Form and sign on it. This signed acknowledgment has to be sent to the IT-department CPC. The submission has to be done before 120 days from the day of filing your return.

Management of finances through a strategy

Planning your financial issues and meeting the life goals through proper management is essential for an effective planning process. Any individual will have dreams of buying a house, child education and retirement plans. The planning of financial matters is a process that involves collecting current financial information, setting goals of life, monitoring the existing financial status and generating a new way of handling the current situation to meet the goals.

Advantages of financial strategies

Planning the financial matters can help in taking financial decisions. Planning of the finances and taking relevant decisions influencing other financial issues have to be properly monitored and managed. A financial decision like purchasing a product might help you to pay for the mortgage faster or delay the retirement. All the financial decisions will have either long-term or short-term impact on the life goals. You can get adjusted with the changes in your life and feel comfortable about having the goals on track.

Individuals helping you to plan your finances

The process of planning your finances is guided by certain personnel to meet your goals in life. The planners will take note of the financial situations and recommend you with certain steps suitable for you to follow. The person planning your finances will have to monitor all your activities like taxes, insurance, budgeting and saving, retirement planning and investments. The financial planner will deal with one of your financial issues and will have an idea of the context of the entire situation. The planner considers the large view of your financial situation to help you in reaching your goals. In this way, planners of finances are different from financial advisors. The advisors are taught to concentrate on the specific area of the financial life.

Anyone will be able to do planning of the finances with the help of certain magazines, self-help guidelines, and websites. A professional also can be consulted for planning your finances.

• You have to gain some experience and expertise in certain financial areas. The professional planner will help you to assess the risk levels in the investment group. The planner will also help you in adjusting the retirement strategy as per the changes occurring in the family.
• A professional opinion has to be developed from the planning of your finances, and it can be confirmed with the experienced person.
• If you are in need of finances due to a sudden birth at home, or a major illness or inheritance, a professional help can be sought.
• If you believe that the financial advisor will be able to help improve your financial condition and in managing them, a professional help is necessary.

• If you want to improve your finances and are not clear about where to start with, a planner can be consulted.

Assistant in preparing the income tax and financial statements

An accountant helps the individual to prepare his or her statements of the income tax and finance. These accountants will have hectic weeks in the tax season and have usual and normal work during the other seasons. The accountants of the income tax department have to be aware of the latest and old tax laws that can show an impact on their clients. Accountants of income tax should have a bachelor’s degree in accounting or in any related field. If the accountants desire to become a certified public accountant, then they have to complete 30 hours of education after finishing their bachelor’s degree.

Role of the accountants of income tax

The accountants assist the individual and business clients to prepare Forms for state, federal and local taxes. An individual can look for an accountant who can protect your money and resolve any problem that arises for you with IRS. The accountant will provide relevant and useful information that is essential for running your business. The clients will be in need of an accountant who has a good knowledge of running a business or managing the income. The accountant must have good experience in handling businesses and knows much about the intricacies of the industry. The individuals must check with the accountant first and then decide whether he is suitable for their business or not. Some of the accounting companies will not work all through the year. They remain open during the tax season. If an individual is running a small business, he might need the help of the tax accountant all through the year.

Functionalities of the accountants of income tax

The basic responsibility of an accountant is gathering tax related information, reporting to federal, county, state and local level taxation authorities and suggesting the influence of tax on corporate planning. The accountant of income tax has liabilities such as

• Designing tax strategies to reject tax payments and generating tax data collection systems
• Complete tax reporting in the given time and update the schedule of tax provisions
• Update the sales tax database of the company and conduct audits through some authorities
• Correct the wrong tax filings and negotiate with tax authorities on tax payment aspects
• The basis for tax positions is studied and researched.
• Manage the outsourced tax preparation work.
• Emerge with tax savings strategies in prospective procurement circumstances.

If you want your tax returns to be accurate and avoid confusion, stress and wastage of time, it is necessary to hire an accountant of tax. If your tax issues are complicated and you are in need of an expert to give you a right advice in right time, an accountant can help you well. An accountant of tax will be able to resolve tax problems like back tax filing, paying a tax debt and confronting an IRS audit.

Professionals offering financial services

People who provide financial assistance and guidance to the clients and charge for their services are advisors of financial issues. Financial guidance is giving by the professionals who can also do the income tax preparation, estate planning and investment management. These professionals are required to possess series 65 licenses to carry out business with the public clients.

What can you do to become a financial guidance professional?

The professionals help the individuals in providing advice concerned with mutual funds, investment strategies, stocks, and bonds. Providing financial assistance is a rewarding career, and it requires certain skills involving exhausting hours. Financial assistance is not just involved with numbers and calculations but involves communication skills and ability to assist people to understand their current position and their crucial existing options. The investment science in the current world is much easier than the past due to advanced technology.

• It is necessary to obtain a basic bachelor’s degree to become a financial advisor followed by a certification program such as CFP or CFA. The major subject in the degree program is not that important as long as the person is in line with the program and meets deadlines.
• Degrees in finance, accounting, mathematics, computer science and economics are an added advantage.
• To build yourself as an adult and professional financial guide, it is necessary first to enter into an internship and learn the basic things in the profession.
• The individual has to learn many things related to the job and identify the different career paths of this job. Learning gives the candidate enough experience and confidence to start a new career.
• Training programs for people assisting in financial matters are offered by big investment companies. These companies will extract work experience that you have and allow you to get ready for license exams.

Training and license details of the job of financial guide

The training programs are competitive, and the investment companies allow you to learn the rules and regulations. A student in the program will not be forced to think seriously about the job. The student has to have a passion for becoming a financial guide. If not with a large company, a student can begin with a small company to complete the training program. There will be opportunities to have one to one teaching and hence a student can expand his knowledge effectively by working with different tasks and clients.

It is essential to have a professional license to get involved in the business. Any person claiming to be a financial guide has to be a member of FINRA or have to be a registered investment advisor. A registered member will be eligible to assist their clients regarding investing. The person completing the bachelor’s degree can opt for a certified financial planner course or a chartered financial analyst course or registered investment advisor course.