July 31 is fast approaching and its the  time for tax payers to file IT- returns, Its compulsory for any person to file whose gross total income exceeds the basic exemption limit. This year the exception limit has been increased see ” New Income Tax Rates and Slabs”. You should file your return even if you do not have to pay any tax and even if your employer has paid yours in advance. We can discuss some of the things that you should keep in mind before filing the returns to avoid confusions.

The first thing would be to identify the sources of income you are having, its classified under different heads under like income from salary, income from house or property, income from business or profession, income from capital gains, and income from other sources. Just make sure that you have not missed out any income leads.

Some basic documents like Form No 16 (issued by employer) – This form details the income from salary and tax deducted by the employer. All bank accounts summary for the year which would make sure that the total money earned and spend without missing out any expenses or incomes that you have come through your way. Tax paid details during the year which for some needs to be paid as advance.

Income of a minor child is to be included even if its a small amount (bank interest). Now you have scanned your sources and now you can compute your tax liability for the year, if you know how to work that out you can do the calculation or get the help of a CA, or tax expert. Its an important step as calculating a wrong computation can increase your future troubles. Once you have the details corrected at par its time that you should pick the correct form which is based on the nature of your income earned.

Make sure that you provide all your details correctly in the form that is meant fro you. Your name, address, bank account numbers, bank’s MICR code, importantly your PAN number, Its too important for persons who have a tax refund and for others too. If you quote it wrongly the tax law has option to fine you.

Recheck that you have claimed all tax deductions that you are eligible like Section 80C, 80G. Its important that you should quote other income like dividend received and receipt of PF balance on the IT form or it can bring in future trouble. If you are getting your forms to claim a loss to carry forward the same can be done only if you have filed by the due date, if it does not happen by the due date you would not be able to carry forward for future set off.

After all done the next job would be to file it on the correct time. For salaried people and those earning income from interest the due date is July 31,2009. The return can be filed electronically or in print form. Make sure that you see “How to file your Taxes”