The
Income Tax Act, 1961 makes it mandatory for every individual with an annual
income of over Rs.2.5 lakh to file ITR as per their income tax slab. However, filing income tax is often
considered tedious and prone to manual errors that often delay the filing
process or lead to ITR rejection.
Notably,
delaying the filing process subjects taxpaying entities to a late fee of
Rs.10,000. To resolve such issues and make ITR filing simpler, individuals
should consider filing their returns of income tax online.
Process of filing income tax returns
By
following these instructions, one can make the process of filing ITR online easy -
●
Log in or get
registered
Registered
entities have to click on the ‘Login Here’ option. In case an
individual is not registered on the IT portal, he/she should click on the
‘Register Yourself’ button to use the income
tax login option.
●
Collect
essential documents
Taxpaying
entities must accumulate documents like TDS certificate, capital gains
statement, interest certificate, salary slip, etc. These documents will come in
handy for computing gross taxable income and will also provide insight into
TDS.
●
Identify and
rectify errors in Form 26AS
Firstly,
download Form 26AS then check it for errors and rectify them readily. In case
the tax amount mentioned in the TDS certificate and the Form 26AS does not
match, the taxpayer will not be able to claim a credit on the deducted tax.
●
Compute total
income and tax liability
Individuals
can find out total income by adding earnings generated from all 5 sources and
subsequently by claiming the applicable deductions like home loan tax benefits for
under-construction property and then proceed to set
off losses.
After
computing income, individuals have to calculate tax liability with the
applicable rate as per their income tax slab. Once the tax liability is
computed, individuals should deduct the amount that has been paid in the form
of Advance Tax, TDS and TCS. Subsequently, they must add interest payable under
Section 234C, 243B and 243A and pay the liability of income tax online to avoid
penalty.
●
Select the
relevant form
Taxpaying
entities must fill up the relevant form from any of these to initiate the
filing process.
●
ITR 1 – It is filed by entities that generate
income from salary, pension or other income sources.
●
ITR 2 – It is filed by entities who own multiple
properties.
●
ITR 3, 4 and 4S – Professionals and business
owners file these.
One
must note that filing ITR using the wrong form is treated as a ‘defective
return’ and taxpayers have to go through the hassle of refiling it to avoid
penalty or other repercussions. Also, ITR forms serve as one of the vital documents one needs for a
home loan, so intending borrowers should keep it
handy during the application process.
Ideally,
one should pick a lending institution that extends a simple home loan application process and is transparent in levying charges.
Leading
HFCs also provides pre-approved offers to make the borrowing experience less
cumbersome. Such offers are available on home loans, loans against property,
etc. Check
your pre-approved offer online with name and phone
number.
Individuals
may also consider calculating their home loan eligibility in just a few clicks and finding the other requirements to streamline the
process.
●
File ITR
Individuals
can file ITR by simply downloading the Java or EXCEL software, fill up the
relevant form and upload the same from their Income tax India login account. On
the other hand, taxpayers filing ITR-1 and ITR-4 can carry out the process
online, and they do not need to download any software to complete the same.
Once
the ITR form is submitted, taxpayers will receive an acknowledgement number.
Taxpayers who have filed ITR without attaching a signature will be required to
verify the ITR-V within 120 days from filing their income tax online returns.
In case, one fails to verify the same, he/she has to file tax returns again.
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