File Your Income Tax Return hassle free; Check Here How
An Income tax return (ITR) is a form used to file information about your income earned during the Financial year and tax to be paid to the Income tax Department. The tax liability of a taxpayer is calculated based on his or her income. In case the return shows that excess tax has been paid during a year, then the individual will be eligible to receive an income tax refund from the Income Tax Department.
A person or corporation that receives any income during a financial year is required by Income Tax Act to file a return each year. The Income may come from a Salary, Business Profits, Rental Income from real estate, dividends, capital gains, interest payments, or other sources.
Either an individual or a firm must file tax returns by a certain deadline. A penalty must be paid by the taxpayer if the deadline is missed.
Various Income Tax Return forms are ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7.
Don’t Wait For Extension, File Your Return Before Due Date
As the last date for filing income tax returns approaches, many taxpayers are hoping that the deadline will be extended.
But recently when the central government clarified that there will be no extension of the due date. Now, taxpayers are in a rush to file their returns.
In order to avoid mistakes while filing a return, let’s check how you can file your return in very less time or say in 30 minutes:
Gather All Documents
If you have all the required documents, the procedure shouldn’t take longer than 30 minutes. These methods will enable you to File your ITR hassel free in less than 30 Mins.
Get Form 16 (For Salary) or 16A (Others)
Obtaining Form 16 from your employer is the initial step for salaried taxpayers. In Form 16 basic salary, HRA, and other benefits like LTA and uniform allowance must all be mentioned. So it will be easy if Form 16 is available to add the information in ITR Form. In many circumstances, Form 16 will just include a gross salary amount rather than a full breakdown. The taxpayer will have to declare his basic salary from the remaining amount after deducting the amounts claimed for the various exemptions from the gross compensation. It is very important to verify that the income from the final Salary matches Form 16 otherwise notice from the income tax department will be received if the income reported is less than the income shown in Form 16.
Verify TDS/TCS Details in Form 26AS
Verify that you have received credit for all taxes withheld on your behalf before doing the form. All payments made to you and the TDS on those payments are listed in detail on Form 26AS. This includes TDS on bonds, bond interest, and dividend income. It will also include information on source tax collected (TCS). You can check 26AS by log in to the Income Tax Website. Contact the deductor right away if you discover that some TDS or TCS has not been credited to your account. One should take early action because it takes 7–10 days for a correction to appear on Form 26AS.
Verify the details of AIS
After verifying the TDS and TCS information in your Form 26AS, now verify the details mentioned in the Annual Information Statement. It contains information about all of the individual’s earnings from several sources, including salary, employment, rent, interest, etc. Even though the AIS includes every conceivable financial transaction, it is still under development, therefore some information might not be recorded in the form. In some cases, mismatches may exist in AIS because the government’s system may not have collected all the necessary data. Taxpayers should use the actual transaction when filing ITRs rather than relying on the AIS numbers.
Include Interest on Bank Balance and Deposits
Many people fail to include other income, such as interest from savings and deposit accounts, in their tax filings. All of a PAN cardholder’s income information is contained in the AIS. Each rupee that is earned in interest will be recorded in the AIS. The interest earned would be included in the AIS even if you have several deposits spread across different banks and no TDS has been deducted. Don’t forget to include the interest earned on tax-free investments like PPF and the Sukanya Samriddhi Yojana in your tax return. Despite the fact that this won’t increase your tax obligations, you’ll be able to account for the money when the account eventually matures after a few years.
Get Capital Gain on Shares and Mutual Fund Statement from Broker
Download the capital gains statement from your broker and mutual funds portal if you have invested in equities and mutual funds. Short-term profits are taxed at 15% whereas long-term gains from stocks and equity-oriented ETFs are taxed at 10% after Rs 1 lakh rebate. Long-term gains are taxed at a rate of 20% following indexation, whereas short-term gains are added to income and taxed at regular rates. After indexation, the average individual won’t be able to calculate his mutual fund gains. You can quickly obtain a capital gain statement by logging into your mutual fund service provider’s website. A mutual fund transfer agency’s consolidated statement is a preferable option.
Furnish Details of Foreign Assets and Immovable Property
It is important to fill in the information of Foreign assets if any in the income tax return form. Regardless of the individual’s overall income, any overseas assets, including foreign bank accounts, Foreign Company shares, financial interests, immovable property, and any other capital assets they may own outside of India, must be declared in the tax return. Many people could be tempted to omit this because filling in this information is a lengthy task. According to the Black Money (Undisclosed Overseas Income and Assets) and Imposition of Tax Act, 2015, knowingly withholding information about foreign assets may result in significant charges.
The Black Money Act imposes penalties for misreporting that can be as high as ’10 lakh per year. Without taking into account any expenses, the unreported income will be taxed at a rate of 30 percent and subject to a penalty of up to 90 percent. Additionally, it might result in a seven-year prison sentence.
Check Details of Deductions and Exemptions in Final Form
Don’t rush to submit your return once you have completed all the details. The pre-filled forms and integration of data from numerous sources have made filing tax returns easier in recent years. Make sure that no exemption or deduction was overlooked and left to be reported in the ITR Form. Before submitting the form, carefully review each part to ensure that all the information is accurate.
Paying a financial expert to help you with the project is a smart choice. In exchange for a nominal fee, tax portals offer aided filing, in which a tax professional reviews your return before it is sent to the department.
Lastly, Verify Your Income Tax Returns
Submitting your ITR is not the end of the tax filing process. Within 120 days after submitting your return, you must Verify it. The return becomes invalid if it isn’t verified within this time frame, and you possibly pay a non-filing penalty.
There are six ways to verify your income tax return:
Net banking: By checking in to the tax filing portal using your Net banking account, you can confirm the return.
Bank account: Use your bank account to generate an Electronic Verification Code (EVC). You need a pre-validated bank account for this.
Aadhaar-based OTP: You will received OTP on mobile number registered with Aadhaar. For this, your mobile number and PAN must be linked to your Aadhaar.
Demat account: To generate an EVC, follow the same steps as with a bank account.
Bank ATM: Your ATM card has the ability to produce an EVC, however only a few institutions have this capability.
Signed ITR-V: A signed copy of the ITR-V should be sent to the tax division at CPC, Post Box No. 1, Electronic City Post Office, Bengaluru – 560100, Karnataka.