Taxes and ITR Filings SIMPLIFIED

Imagine you are a student who just got his/her first job appointment letter, an employee who files a tax return every year, or just an individual who is curious to know more about taxes and how to file a tax return. Tax is something that is important for all the sections.

What are taxes? Why paying tax is important?

Taxes are compulsory payments made by individuals (whose total income exceeds the basic exemption limit fixed by the Government) to their respective Governments (Central/State/Local). These individuals pay taxes to the Governments for the development of public infrastructure, improved healthcare facilities, and for various other developmental initiatives undertaken by them. These public expenditures by the Governments largely contribute to the growth of a nation as a whole.

What are the five main income tax heads which are subjected to tax?

· Income from salary

· Income from house property

· Income from profits and gains from business and profession

· Income from capital gains

· Income from other sources

How do you file an online ITR (Income Tax Return) or pay tax in this 21st century?

You can file income tax returns online, either on the income tax department's website by yourself or take the help of a registered tax practitioner or firm by providing them with supporting documents to file your income tax return on your behalf.

Now we live in a world where the internet is cheaper, knowledge is free and information is easily accessible. Considering you as an individual who does not have multiple income streams or just a salaried individual with few income streams, it is very easy to file your income tax all by yourself. So, why not file your income tax return (ITR) online by yourself by following some simple steps and saving some bucks on tax consultancy fees!

Steps to file income tax return online by yourself:-

1) Go to the Income Tax e-Filing portal: https://www.incometax.gov.in/iec/foportal/

2) Log in to the e-Filing portal by entering your user ID (PAN), Password, and Captcha code and click 'Login'.

3) Click in the 'e-File' menu and click the 'Income Tax Return' link.

4) On Income Tax Return Page: select: Assessment Year, ITR form number, Filing Type, Submission Mode, and click continue.

5) Read the instructions carefully and fill all the applicable and mandatory fields of the online ITR form.

6) Choose the appropriate verification option in the 'Taxes Paid and Verification' tab.

7) Choose the mode in which you are going to verify your filings as per your convenience.

8) Click on the 'Preview and Submit' button and verify all the data entered in the ITR.

9) 'Submit' the ITR.

10) View the uploaded ITRs for your reference.

5 things to keep in mind while e-Filing(online filing) of Income Tax Return:

1) Even though ITR return forms are attachment less forms and you need not have to attach any documents while e-Filing of ITR, you still need to keep the supporting documents handy like salary slips, TDS certificates, proof of investments, and other proofs which are to be produced when demanded by tax authorities.

2) The documents required for filing ITR are the following: -

· Form 16: The TDS certificate.

· Pay slips: Basic Salary+ DA+ HRA+ TA + Tax Deducted + Other Relevant details.

· Form 26AS: Information such as TDS, advance tax, self-assessment tax, etc.

· House property details.

· Capital gains details: Both short-term & long-term.

· Other income details.

3) Delaying in filing a return or filing an incomplete return may attract penalties from the tax authorities so while e-Filing ITR check and enter the details carefully before the due date.

4) If you have paid excess tax in advance you can claim a refund against it. After successful assessments by tax authorities, the extra amount paid by you as tax will be credited to your account through ECS transfer.

5) If you are unable to do an assessment of your own tax liability or find it difficult to file your income tax return (ITR) by yourself and are having doubts about certain rules and procedures then do not hesitate to seek professional advice from a registered tax practitioner. If your income streams are multiple and complex it is better to seek professional advice to take the advantage of different tax benefits offered by Government. For further details keep on checking the official site of the Income Tax Department and stay updated.

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The ITR filing season is on! The due date for filing an income tax return (ITR) in India without penalty is 31st JULY, 2022. BE AN EARLY TAX FILER.

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Let us know if you have any doubts about filing your ITR in the comments.