Individuals/HUFs/Associations/Businesses provide information about their income throughout the financial year and, if applicable, file their Income tax return electronically. Once the assessee’s final income is computed from all sources and subsequent income tax is computed, the process of Online Income tax filing begins. Different ITR Forms are required depending on the sources of income.
The Indian government has launched a user-friendly IT Return filing portal for 2020-21. The IT Return filing process has also been improved as a result of the advent and expanded the reach of technology.
Who is Eligible for an Online Income tax filing?
Any taxpayer who has paid too much tax is eligible for an Online Income tax filing. Section 238 contains the following provisions regarding claim eligibility:
- When one person’s earnings are combined with the earnings of another. If the income of a minor child is combined with the income of the parent, the latter can claim the excess amount.
- If a taxpayer is unable to file a claim due to unforeseen circumstances such as bankruptcy or death, his guardian or representative can receive the refund.
- If the amount of TDS deducted by the taxpayer’s employer or bank crosses the taxpayer’s regular assessment tax burden,
- In cases where a taxpayer’s income is taxed in both India and a foreign country (with which India has an agreement to help avoid double taxation)
- If the taxpayer hasn’t declared an investment that gave him a tax break.
Benefits of IT Return filing
- It qualifies a taxpayer for loan processing.
- It aids in obtaining a TDS refund or any other overpayment of tax.
- It also allows losses to be carried forward.
- It transforms a person into a responsible citizen.
- It aids in the avoidance of penalty provisions.
- Considered a form of financial proof when applying for a loan or a visa.
- Helps the government in keeping a record of taxpayer income.
Penalty for late IT Return filing
If the returns are not filed by the due date, the taxpayer faces steep penalties. If the Online Income tax filing is not filed, the individual may face other inconveniences and consequences, in addition to the penalties. Individuals could face penalties ranging from Rs.1,000 to Rs.10,000 depending on when their Income tax return is filed after the due date. The deadline to file an income tax return for the fiscal year 2021-22 is December 31, 2021. Take help of Online Ca services to avoid penalties.
Process of Online Income tax filing
The following steps must be followed in order to complete the Income tax return filing 2020-21 procedure:
- Go to the www.incometaxindiaefiling.gov e-Filing portal on the tax filing website .in].
- Enter the PAN Card number, which serves as the user ID, as well as the password and captcha code, and then click ‘Login.’
- Select ‘e-File’ and then ‘IT Return’ from the drop-down menu.
- Submit Online after selecting the Assessment Year, ITR Form Number, Filing Type, and Submission Mode.
- Select ‘Continue’ from the drop-down menu.
- Verify your IT Return via e-mail (ITR)
- Verify all of the data entered in the ITR by clicking the ‘Preview and Submit’ button.
- Fill out the ITR and send it in.
Q-What are the 3 things you need to file a tax return?
- Interest income and TDS certificates or Form 16A from banks and post office.
- TDS certificates from other incomes.
- Form 26AS.
- Tax-saving investment and expenditure proofs.
- List of Capital gains.
- Proof of Information about investment in unlisted shares.
Q-Which income is exempted from income tax?
Allowance for House Rent. Allowance for transportation, education for children, and a hostel fee subsidized. Housing Loan Exemption. Sections 10 and 54 of the Income Tax Act of 1961 define income. Allowance for time off and travel.
Q-What is the income limit for filing taxes?
People must file an ITR if their gross total income exceeds Rs.2,50,000 in a business year. For senior citizens, this limit crosses Rs.3,00,000, and for super senior citizens, it exceeds Rs.5,00,000.
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