How do you file an income tax return

Income Tax Return

Income tax filing is critical for developing and advancing the country's citizens. Filing income tax returns on a regular basis teaches you financial responsibility. This article will go over the significance of ITR filing as well as how to file an ITR in detail. Income tax filing is important because it is a moral and social obligation of every responsible citizen. Furthermore, the Government of India determines the number of expenses of citizens. It creates a platform for citizens to claim refunds, in addition to other forms of consolation, based on the ITR filed by us. Apart from these, there are several other reasons why ITR filing is essential. Individuals and businesses who file ITRs help the Income Tax Department of India keep track of these transactions. 

The ITR is filed in accordance with the income slabs into which your income falls. Even if your income does not fall into one of the income brackets, it is best to file the ITR voluntarily. Most of us prefer to use home loans to finance the construction of our own homes or other expenses. If you have a good track record of ITR Filings on your credit and are applying for a home loan, it will help you get the loan without any problems. Furthermore, credit card companies review an individual's ITR filing history before approving a credit card application. It is, therefore, essential to have a solid ITR notice track record to demonstrate your financial responsibility.

How do you file an income tax return?

An individual must compute the net taxable income, complete the relevant ITR form, and pay any necessary taxes in order to file an income tax return. Once all required taxes have been paid and the ITR has been submitted on the new income tax portal, make sure it is verified. The tax department will start processing the ITR as soon as it has been verified. A notification notice informing you whether your income tax calculations match or diverge from those of the income tax department will be sent to the email address you have on file once the ITR has been processed. If they match, the process of filing an income tax return for that fiscal year is complete. If it does not match, you either have a pending income tax refund or a pending income tax payment. If you are due an income tax refund, it will be sent to your linked bank account if it is pre-validated on the new income tax portal. If your income tax payment is overdue, the IRS will request that you make the payment along with any applicable interest.

What different income tax regimes are there for filing an income tax return (ITR)?

Individuals can choose between the old, existing income tax regime and the new, lower, concessional income tax regime beginning in the fiscal year 2020-21. If an individual maintains the old income tax regime, they will continue to pay income tax at the current tax rates. Furthermore, the individual will be able to claim any tax exemptions or deductions that they are eligible for.

If a person chooses the new income tax regime, he or she will calculate income tax based on the lower, concessional income tax rates. It should be noted that by choosing the new income tax regime, individuals forego nearly 70 tax exemptions and deductions.

What paperwork is needed to submit an ITR?

The new income tax portal now offers pre-filled ITRs. It is possible, though, for the pre-filled ITR to contain mistakes. People must, therefore, verify the information. The following documents must be gathered to double-check the information: Aadhaar number, bank accounts, Form 26AS, annual information statement (AIS), TDS certificates (Form 16, Form 16A), interest certificates (savings accounts, fixed deposits, and so on), and repayment certificates are all types of certificates (if you have a home loan or education loan).

Is it possible to correct mistakes made at the time of filing an income tax return?

Yes, a person has the option to make corrections when filing an ITR. Under section 139(5) of the Income-tax Act, 1961, a person who makes a mistake must file an ITR again with the correct information. Unless the government grants an extension, December 31 is the deadline for filing a revised ITR.

How can you figure out which income tax return filing form is right?

It's critical to understand the sources of your income in order to determine which ITR form applies to you. If a person has income from salaries, one residential property, and income from other sources, he or she may file an income tax return using the ITR-1 form. The ITR-1 cannot be used to file an income tax return, though, if the taxpayer's sources of income also include capital gains. If a person's source of income includes capital gains, they must file an income tax return using Form ITR-2.

Offline Income Tax Filing Procedure

• You can find the ITR form at the official e-filing portal
• From the "Download > IT preparation software" section, download the appropriate form.
• The zip file that has been downloaded requires extraction.
• Open the tab and enter the information requested by the Income-tax Department of India.
• Confirm all of the details before calculating the tax.
• Keep the XML file. 
• Log in to the e-filing website by entering your password and completing the captcha.
• Choose the best e-file option and then click the "Income Tax Return" link.
• Fill in the assessment year and ITR Form number, and select Original/Revised as the filing type. Set the submission mode to XML. The PAN will automatically update.
• Then, confirm the ITR by providing information such as Aadhaar OTP, EVC, or Demat account details.
• Tap on the Continue button to start the further process.
• Finally, submit the form by attaching the XML file.