“Nothing displays your economic insight and morals like tax compliance by filing your ITR on time.”
An income tax return is a system where taxpayers pronounce their taxable income, conclusions, and tax expenses. This practice is stated as income tax filing. While filing, the overall income tax you be indebted to the government is also calculated. If you’ve paid excess tax than needed for the financial year, the Income-tax Department after verification will refund the extra money to your account. If you have low paid the taxes for the year, you need to pay the outstanding amount, and then file your income tax returns. Phoenix Tax the best tax consultant in Chennai explains the need and benefits, documents required, and the tips to file an income tax return in a hassle-free way.
Need & benefits of ITR
- Income tax return filing is mandatory for all residents of India or if you are an NRI if the annual income exceeds INR 2.5 lakhs.
- No matter if you don’t meet the threshold, it is a decent practice in filing your return for your own aids.
- ITR proof plays as an important document at the time of availing of a home loan, this reflects your financial discipline and wealth as well as shows your ability in repaying the credit.
- If you are planning to make your academic or any higher studies overseas or PR with job assurance you will need to submit your previous subsequent year ITR as proof, which your financial status can support to make the process much better.
Documents and Details to file ITR
Let us maintain the below documents before starting the filing to make to process easier.
- FORM 16
- BANK ACCOUNT DETAILS
- SALARY SLIP
- Any FD, SAVING IN PP
- TDS details
Now let us know the details and step by step procedure to file the ITR,
- Login to the income tax portal by using the PAN number register yourself and place the USER ID.
- Be careful in downloading the suitable ITR form based on nature whether salaried or business. Under the “Download” tab select the “e-filing” and to download the form enter the applicable year.
- Enter the mandatory details in form 16
- Calculate all relevant tax details that are applicable to your taxable
- Now after filling all the details confirm the page and generate the XML file which may automatically save in the system.
- It’s time to submit the return and to upload the XML file.
- Validating the digital signature is one of the options here, if you have not opted for this you may skip this step.
- Successful filing of your return is popped in your system with a fifteen-digit acknowledgment number confirming your proposal, following in which it gets completes only after the verification process.
- The verification process can be done anywhere based on our convenience and comfortability. I.e. with the below-mentioned option, a filer can go ahead and complete the verification.
- Bank ATM
- Net banking
- Aadhar OTP
- Demat A/c
- Bank A/c
- Registered mobile and Email
Tips to make the Income Tax filing in a hassle free way
- We should not confuse with filing tax with tax deducted service option, both are different. The TDS will be an automatic by the employer and filing is must by the employee.
- Direct tax paying option is available in the IT website by using the challan 280 via net banking.
- After the submission a verification of ITR a single page document called ITR-V is available in system, which you need to print and send the same to Income tax department within 120 days from the time of e-filing.
- Don’t leave filing on your desk, if you are not paid for a specific period by the organisation, even now you need to file your Nil ITR.
- Privilege all available deductions and don’t forget to include your charitable contribution.
- Do not try to hide any additional income you get out of any other source.
- Be a mathematical expert because the calculation is very important in saving money.
- Try to meet the deadline based on the announcement or extension provided by the IT department.
In this article, the detailed information for income tax return filing is passed on and you may become an expert in the nook and corner of the filing process.