5 Quick tips to ensure easy and quick IT return filingby kapil Mehta # Guest Blogger
The last date of filing ITR is the 31st of August, so everyone will have to hurry to avoid the last-minute rush. Submission of the ITR can be a challenging affair, especially for new 1.10 crore tax filers this year. If your total income exceeds the Rs. 2.5 Lacs before allowed deduction under section 8oC to 8oU, then you should submit your ITR. Even if you do not come under the radar, then you should submit the nil return just for the record. Before filing your ITR, it is crucial as a business to choose the right structure.
LLP is most preferred among entrepreneurs as it provides limited liability to everyone. Online LLP formation can be done with required documents under the LLP act, 2008. Along with that, income tax return filing is also compulsory. Here are the 5 tips to make sure that you submit your ITR correctly and without any issues.
- Compulsory E-filing.
All the individual taxpayers are now needed to submit ITR electronically, although there is an exception for senior citizens, who can opt to submit ITR-1 or ITR-4 in the paper form. That means, unlike the preceding year, individuals whose income is not more than Rs. Five lacs with no refund are obliged to submit online if their income exceeds the basic exemption threshold.
To make the submission process more efficient, the income tax department would now offer pre-filled ITR-1 forms describing your salary, TDS details and FD interest income. Earlier, these details were to be filled in manually by the taxpayers. Nonetheless, you should keep in mind that such a facility is for only ITR-1 of income tax return filing form submission on the department's e-filing website.
A 'lite' e-filing facility has also been put into place by the income tax department at the beginning of this month to facilitate quick and easy submission of returns by the individuals. The same can be done via clicking on the 'e-filing lite' button on the department's website's home page. A pre-filled arrangement has also been given in this case on the filing of the ITR-1 form.
- Confirm the pre-filled details.
The pre-filled ITR-1 form would list data garnered from the various sources like form 26AS, banks, the TDS return submitted by your employer, stock exchange, proceeding year's ITR, EPFO, mutual funds, the state registration department and so forth. Confirming the pre-filled data is a must for tax compliance for accuracy and avoiding the multiple revision of it. Doing so would also reduce the scrutiny, avoiding tax penalties and make sure quick refunds.
To make sure that information is intact and authenticate that the IT department has in its server and what you are offering via ITR submission, verify your form 26AS as it lists all TDS paid and incomes. This form can be downloaded either on the TRACES website (assurance of the income tax department for smooth submission of TCS/TDS correction statement by the deductors) or via the banks' net banking facility. If you locate any discrepancies in the two form, then reach out to your deductor/employer to bring into their attention. Then they can submit the correction statement.
- Keeping the details of investment at hand.
From this year, taxpayers are required to furnish more details than ever before. Along with a detailed break-up of interest earned from saving bank accounts, income tax refunds, and FD, you are obliged to share details of capital gains from the selling of equity mutual funds, equity shares, or property. In case of selling of property then you will have to give buyer's details as well.
Also, taxpayers with foreign assets and overseas incomes must give all the details of the same. For ROR (resident and ordinarily resident), foreign bank account details have been re-framed to mention information related to the foreign depository, custodian, debt interest accounts and equity can also calculated my zakat calculator
. This would help in minimizing tax evasion.
Hence, before you start your submission, keep your investment proofs at hand with form 26AS, form 16, Aadhar card, PAN and bank statements. If you have not given your investment details to your employer beforehand, your form 16 will not provide all tax advantages that you are entitled to receive.
- Choose the right ITR form.
The income tax department has 7 ITR forms currently, so ensure that you do not submit the wrong one under the pressure of a deadline. In case of such a scenario, your submission will be rejected, and you might receive a notice related to that from the tax department.
For example, if your salary is less than Rs. 50 lacs (including income from other sources), you can submit ITR-1, so long as you are not a company director, have not possessed shares of an unlisted financial year and do not have foreign assets. ITR-2 is for the person whose earning is more than Rs. 50 lacs yearly, those who have more than one house property with a directorship in the company. A self-employed person is required to submit ITR with ITR-3 or ITR-4 forms, relying on the type of income in the financial year 2018-19.
- Confirm the submission on time.
Filing your ITR is not enough. You are required to confirm it within the given timeframe of 120 days, or your submission would be cancelled. You can digitally sign the return or e-verify it online via net banking or Aadhar OPT. Or else, send a duly signed ITR-V to CPC (centralized processing center) located in Bengaluru by Speed post or ordinary post.
Missing the deadline of 31st of August for submission of ITR can be costly. The penalty would be Rs. 5000 but double that amount for later submissions. Nonetheless, if your taxable income is not more than Rs five lacs, the maximum fine would be Rs. 1000. If the tax evasion goes beyond Rs. 25 lacs, then the punishment can be six months to seven years as per the income tax departmental website.
Created on Mar 2nd 2021 07:46. Viewed 122 times.