New to Income-Tax Return Filing?
Know about it before stepping into many more ITRs year on year
The hustling month of tax calculation is around the year. Yes, the month of Income Tax returns filing is back. After so many deadlines, the final date to file returns is now September 30.
From getting all the documents to uploading the correct ones, choosing the right returns, scrolling through the tax portal, avoiding pitfalls, calculating pays and dues, we have all the information you need to proceed with ease. Here is our detailed coverage for ITR filing season FY21.
What is Income Tax Return?
Income Tax Return is a form that has to be filled by a person giving income tax every year, to the Income Tax Department of India. The form contains information about the person’s income and the taxes he has to pay on it. There are various types of Income-tax return forms viz. ITR-1, ITR-2, ITR-3, etc. depending upon the nature and amount of income of a taxpayer.
If you approach us then you need not worry about the type of form you have to fill.
ITR form has to be filled every year before a specific deadline. If the returns show that you have paid the excess tax then you can claim an ITR refund.
Why is it essential to file Income Tax Returns in India?
Filing Income Tax Returns proves your responsibility as a responsible citizen. The information provided helps in the calculation of GDP and it further helps the nation to take further steps for its growth and development. A small amount from your salary, savings, interests, etc is getting back to you in various facilities that a government provides.
What if I don’t file Income-Tax Return?
If you come under the category of Tax-payee and you don’t file ITR then you can expect the following:
- Notice from Income Tax office for filing ITR. You won’t be given any refund. In case, the filing exceeds the deadline penalty keeps on adding until you pay your ITR.
- The income-tax department can summon the prosecution against you for not filing ITR.
- 3 years of imprisonment which can be extended to 7 years.
How to check your previous years’ e-filed ITR?
You can check the previous years’ e-filed ITR by following certain steps:
- Go to https://www.incometax.gov.in/iec/foportal
- Click on ITR-V receipt status.
- A dialog box will open.
- Add your PAN number and the year for which you want to see your ITR.
- Submit by verifying with Captcha code.
If you have filed ITR in the previous years’ then you will receive, “Your ITR-V has been verified.”
If you haven’t filed any ITR against that PAN number then you will receive, “No ITR-V has been found for this PAN Number and assessment year (the year for which you are looking for ITR).”
In this way, you can check your previous years’ e-filing ITR.
When do you get your Income Tax Refunds?
Income Tax refunds can be claimed if you have paid excess tax the given year. You can check on the Income Tax Department’s website for your eligibility to claim tax. To check whether you are eligible for a tax refund or not, follow the following steps:
- Go to Income Tax Department’s Website.
- Track your filing status. A refund is usually given within 10 days of filing.
- Enter your PAN number and assessment year.
- Verify with captcha.
Now you can see your eligibility for a refund.
Does everyone has to file ITR?
It depends on your income. If your income falls under the category of tax payees decided by the Government of India in the Union Budget then you are liable to pay taxes and file ITR. Otherwise, there is no need to file ITR.
How to download ITR form?
Downloading an ITR form is not at all difficult. Here is a step by step procedure to download the ITR form:
- Go to Income Tax Department Website https://www.incometaxindia.gov.in
- On the Home, click on the menu bar> Forms/ Downloads option and navigate to the “Income Tax Returns” menu.
- A new page will be opened where you can see a list of all the ITR forms. Click on the PDF next to the documents and download them.
How can you file your income tax return?
Filing ITR is not a hard nut to crack. You can file ITR by visiting the Income Tax Department website. Registration must be done carefully for faster processing and quicker refunds. You can follow the steps given below for the e-filling of ITR.
- Find out your Income Tax Liability based on the provisions provided by Income Tax rules.
- Refer to Form26AS to get insights about your TDS payments for different quarters of the assessment year.
- Determine the category you fall in, based on the criteria given by Income Tax Department.
- Visit the official website for e-filing of ITR. Register yourself if you are a new member.
- Click on the “File Income Tax Return” option under e-file.
- Follow the questions asked and answer each of them carefully.
- Type in your details mentioned and confirm once done.
- Once it is done, verify the returns and send a hard copy to the Income Tax Department.
Which ITR form to fill?
Depending upon the pay and occupation, ITR forms differ. The various forms can be downloaded and filled in before filing ITR. You can download these forms from the Income Tax Department website.
Here is the list of ITR forms that you can encounter. Fill the form that suits your pay and occupation.
|ITR-1||This form must be filled by the individuals who make an annual income of less than 50lacs via pension, salary, or single house property.|
|ITR-2||This form must be sued by the shareholders of the private companies, Directors, and NRIs(Non-Residential Indians) who make income from capital gains, two or more house properties, foreign sources, or makes an income of more than 50Lac annually.|
|ITR-3||This form must be used by the individuals who run proprietorship or are professionals in India.|
|ITR-4||Individuals under a presumptive taxation scheme must fill this form. In order to fill this form, they must earn less than 50 LPA from the profession or less than 2 crores from business income.|
|ITR-5||LLP and partnership firms must use this form.|
|ITR-6||Companies that are registered in India are allowed to use this form.|
|ITR-7||The entities claiming to be schools, colleges, universities, religious trusts, and parties must use this form for tax exemption.|
What is Form-16?
Form 16 is a certificate issued to the salaried employees by an employer when he deducts a certain amount of tax from their salary. These are important for the tax payee as they provide details about TDS (Tax Deduction Services) between an employer (deductor) and an employee (deductee).
Any firm which has employees responsible for ITR must issue Form-16 to them.
Documents Required to File ITR
- PAN Card
- ITR form
- Salary Slips
- Bank Statements
- Interest Certificate
- TDS Certificate
- Proof of Tax saving investments
Frequently Asked Questions on ITR Filing
- What is Income Tax?
Income tax is deducted or paid on a certain amount of income decided by the Government of India in the Union Parliament Budget. Your income could be from salary, shares, trading, or interests on the savings. Every year, the percentage of tax deducted or paid changes as per the new policies. This is known as income tax.
There are two types of taxes- direct tax and indirect tax.
Direct Tax- Tax that is calculated and paid directly on your income. For example- a tax on salary, savings from interest, trading, etc. Income tax is a direct tax.
Indirect Tax- Tax that is paid on the commodities we purchase. For instance, the extra service tax we pay while purchasing a car, mobile phone, or at a restaurant. It comes under one tax known as Goods and Services Tax (GST).
- Can I file ITR myself?
Yes, you can file ITR by yourself by visiting the Income Tax Department website(https://www.incometaxindia.gov.in) and following the instructions.
- Is ITR filing mandatory in India?
Yes, if you fall under the income tax bracket then it is mandatory to file ITR. Otherwise, there are penalties and punishments that one has to go through.
- Why is it important to file ITR?
By filing ITR you are showing your responsibility as a citizen. The tax collected helps in the development of the country which in turn is beneficial for citizens only. It is adding to the GDP of the country by contributing a small amount to your income.
- What is TDS full name?
Tax Deduction at Source. It is a specific amount that is deducted from the salary, commission, professional sources, interests, etc.
- What is the benefit of an income tax return file?
There are many benefits of filing an ITR. Some of them are:
- Easy loan approval from the banks.
- Quick Visa Processing as and when needed
- No Penalty
- Works as Income Proof
- Easy returns if you paid extra taxes
- What is the time limit for filing a return of income?
Every year government gives a deadline of 31st July to file ITR. For 2021, the deadline has been extended till 30th September.
- What are the eligibility criteria for ITR filing?
As per the IT tax of 1961, if any individual who is under 60 years and earns more than 2,50,000 annually is liable to file ITR.
- How to file ITR without form 16?
There are few steps to follow to file ITR without Form-16. The steps are as follows:
Step1: Determine the collective income you earned from all sources viz. Salary, interests, property, etc.
Step2: Calculate TDS (Tax Deducted at Source) with the help of Form-26AS. You can download this form from ITD (Income Tax Department Website).
Step3: Calculate TDS on income. And then calculate your income for the entire financial year. Total income is the sum of all the incomes received and the TDS that has been deducted from them.
Step4: Claim the deductions on your investments and provident funds that you are eligible for.
Step5: Calculate the total taxable income by deducting the total deductions that can be claimed from the sum total of your income earned.
Step6: Calculate your tax liability for the year by considering the tax slabs you are applicable for.
Step7: Determine the tax payable from your income. If the TDS is deducted from your income, then the tax payable would be different. If you have paid the extra tax then you claim refunds while filing ITR.
Step8: Now, you can apply for ITR without Form-16.
- How to file a revised income tax return?
On the ITD website, follow the steps given below to file the revised ITR.
- While filing online, under the General Information tab, choose ‘Return Filing Section’ as ‘Revised Return’ under section 139(5) and ‘return filing’ type as ‘revised’.
- Type acknowledgment Number and Date of filing of the original return.
- Fill in the correct details and then proceed.
- E-verify ITR for faster processing and quicker refunds.
- What happens if you miss the tax deadline?
Government usually extends the deadline if you have missed the last date. But even after the final deadlines, you haven’t filed ITR then you have to bear penalties and no refunds will be claimed on extra taxes paid by you.