According to the Income Tax Rules and Regulations, every person of India is required to pay tax on their earnings to the Indian government. Your income for each financial year is taxed in line with Income Tax regulations, whether you are an individual, an association or a corporation, an LLP, a loTax consultantl government, or a Hindu undivided family. As a result, filing your annual income tax return (ITR) is critiTax consultantl. You Tax consultantn file your income tax return either online or offline, depending on your preference.

What is Income Tax Return?

The acronym ITR stands for “Income Tax Return.” It is a required form that communiTax consultanttes to the Income-tax Department the details of a person’s income received in a financial year as well as the taxes paid on that income. It also permits you to Tax consultantrry a loss forward and receive a refund from the IRS. For submitting returns for various statuses and types of income, multiple kinds of income returns are required. These forms are available for download at www.incometaxindia.gov.in.

Is it mandatory to file ITR?

If your income exceeds the basic exemption limit, you must file your income tax returns according to Indian tax legislation. Taxpayers’ income tax rate is pre-determined. A delay in filing returns will not only result in late filing costs, but it will also make it more difficult to obtain a loan or a visa for travel. Here are 5 reasons to file your ITR on time.

Advantages of Filing ITR on time

  • When ITRs are filed on time, current-year losses can be carried forward to the next fiscal year.
  • To avoid interest liability, all applied taxes must be paid in full before filing an ITR. If you file your ITR beyond the due date, you will be charged an extra interest rate of 1% per month or part of a month on the remaining tax owed under Section 234A of the Act for the period of delay. It’s better if you pay your taxes and file your ITR by the dates.
  • If an ITR is filed beyond the deadline, late fees of up to Rs. 10,000 may be imposed under section 234F of the Income Tax Act. It is in addition to any other penalties that the Act may impose.

Different modes of filing Income Tax Returns

The Income-tax Department receive the Return Form in one of the following ways: –

  1.  By submitting your IT return with the help of a Tax consultant

When the income sources are simple and limited to one or two, a Tax consultant is not necessary. Consultation with a Tax consultant is essential in complex circumstances including tax audits, alternative sources, write-offs, and other issues. It’s a good idea to double-check the Tax consultants credentials.

A Tax consultant is someone who is well-versed in all aspects of taxation and company law. He acts as an intermediary for businesses and people dealing with the government on all legal problems. A Tax consultant accomplish something with far less effort than the average person.

  • Even if you contact him at the last minute of the filing time, he understands where you may save money on taxes.
  • He’ll always advise you on the finest strategy to make only those investments that will not only decrease your taxable income but also add future profits.
  • He has a thorough understanding of legal sections and subsections, allowing him to deduct as much as feasible from your taxable income.
  • As a financial advisor, he will keep an eye on your company’s finances and provide you with sound advice in any situation.
  • When it comes to tax techniques, a tax consultant can assist you in constructing various tax and cost statements that will provide you with an exact estimate of your tax liability.
  • He’ll always keep you up to date on new policy adjustments in tax laws that you won’t be able to comply with when self-filing.
  • He’ll keep track of all your tax deadlines and returns in progress, allowing you to focus on your business.
  • In the instance of a business filing where an audit report is necessary to file an ITR, the aid of a tax consultant is required as a minimum requirement.

If you are looking for a Tax consultant in Tambaram, Chennai then get in touch with us today!

(ii) By filing the return by yourself

The returns Tax consultant be directly filed. There are two ways to do it: online or on paper. Furthermore, if the income is less than Rs. 5 lakhs and no refund is claimed, an offline filing is only feasible. Furthermore, in order to file returns offline, no income should be earned in foreign nations. The applied Tax return forms be filled out and sent to the Income Tax Office in the relevant jurisdiction. The person filing the return should get a numbered and stamped acknowledgement slip after submitting it. There are two choices for online submissions: totally online and partially online. This will be discussed in more depth later. Individuals should use this way of filing returns.

To file your returns yourself follow the following steps.

STEP 1: Create an account.

To e-file your income tax return, you must first create an account on the IRS’s online tax filing site (incometaxindiaefiling.gov.in). You must provide your permanent account number (PAN), your name, and your date of birth, as well as a password. Your user ID will be your PAN.

STEP 2: Select the requisite form

  • ITR-1: For people who earn a salary, a pension, or income from real estate or other sources other than the lottery.
  • TR-2: Those who make capital gain earnungs. ITR 2A is for people who own multiple homes but haven’t made any financial gains.
  • Professionals and business owners are eligible for ITR 3, 4, and 4S.

STEP 3: Prepare the documentation ahead of time.

Maintain a record of your PAN, Form 16, interest statements, TDS certificate, investment, insurance, and house loan information. Form 26AS, which summarizes tax paid against your PAN, is available to download. Then use Form 26AS to examine your tax liability and validate your tax return.

STEP 4: Fill out the form and submit it.

If you want to fill out the form offline, click ‘create XML’ once you’ve downloaded the form and filled out all of the fields. Then return to the website and select the ‘upload XML’ option. To upload the XML file saved on your desktop, you must first log in and then click submit.

STEP 5: Examine ITR V.

An acknowledgement number is generated when you submit your ITR form. You only need to keep this number if the return was submitted with a digital signature. An ITR-V is generated and delivered to your registered email address if the return is submitted without a digital signature. Unless your ITR V is verified, the tax filing process is incomplete and your ITR is invalid. Within 120 days of submitting the return, you can electronically verify or mail the signed ITR V to the Bengaluru processing center.