The issue of taxes is usually a real headache for all taxpayers. However, it does not have to be if you keep your finances in order and up to date. Moreover, this process can be beneficial if you know how to handle your deductions and receive a balance in favour. The income tax department has simplified the filing process of income tax for every individual. But many people still misunderstanding the concept to fill the tax returns and find it very complicated.
The people are also afraid that giving details would result in a deduction of tax from their salaries. In the tax department, you can build your financial record with filing your tax returns yearly. This process of filing your income tax details benefits if you apply for home loans to buy a house or apartment in Hyderabad, personal loans, and also when you apply for a visa. Also, large investments require proof of one’s financial record and income tax returns to bear testimony to the same.
Hassle-Free Income Tax Return Filing
- Income tax return filing contains different tax slabs, and you have to find under which slab you are considered.
- You have to choose the correct form to fill your Income Tax Return because recently some changes are made by the tax department in the ITR forms.
- Submit all the required documents and your taxable income with accurate details.
- It is essential to link your Aadhar card with PAN card as per the notice is given by the Government of India.
- You have to maintain all your TDS records.
What Documents Are Required To File The ITR?
To file the Income Tax Returns, you should ensure to have all the needed documents. The important documents required include
- Form 16
- Aadhaar Card
- PAN Card
- Rental agreement
- Sale deed and purchase deed (on sale of assets)
- Proofs for taxes deducted by the employer
- Bank statements
- Transaction statements for shares/mutual funds
- TDS certificates
The details of investment like LIC, PPF, NSC, NPS, Health Insurance, housing loan certificate, tax paid proofs, the purchaser of the property, proofs for deductions, foreign tax return, etc.
Filing Income Tax Return
The people who have to compulsorily file the income tax returns are as follows.
- Every individual can file an income tax return even if they don’t have taxable income.
- HUF, AOP, BOI who have taxable income before making a deduction under section 10A or 10B or under chapter VIA exceeding the basic exemption limit.
- An individual who claims relief under sections 90 or 90A or deductions under section 91.
- People who not have taxable income and deposited TDS or advance tax payment should file income tax.
- The ITR filing is compulsory for assesses whose gross total income is over the exemption limit for the year. The limit for below 60 years is Rs 2.5 lakhs, people between 60 and 80 years income limit is Rs 3 lakhs, and those more than 80 years is Rs 5 lakhs.
- The NRI’s can file returns except those who covered u/s 115AC having taxable income.
- People who have suffered a loss from business or profession or speculative business or a capital loss.
- A citizen who has signing authority in any account located outside India.
Is There Any Penalty for Late ITR Filing?
You should enter correct details while filing ITR forms such as your name as per bank records, postal address, email ID, PAN number, AADHAAR number, Bank account number, investment details, and IFSC code. Filing ITR form with wrong information may cause a delay in your ITR processing. By submitting correct data, you can lower your tax liability by claiming deduction up to a certain amount. The penalty is charged for late Income Tax Return filing, and you should file tax returns before the end of the financial year.
Benefits of ITR Filing
- Income Tax Returns filing helps you as a proof for future investments, to get a required visa, home loan to buy a property in Hyderabad, etc.
- You would be a responsible citizen of India by filing ITR (Income Tax Returns)
- Before issuing a credit card, some companies ask tax returns as evidence.
- Tax department income records help every individual to make future transactions easily without any risk.
- ITR filing helps you to claim adjustment against past losses.
- Filing ITR may prove useful when any individual needs to file a revised return. An individual cannot file a revised return unless he/she has filed the original return.
Filing income tax returns can be done online to make the process easy and save your time. You can find different forms based on different criteria for filing returns. You can avoid trouble in the future and file the returns in an easy way with understanding the process carefully.
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By: Shailaja K