Income tax return (ITR) filing is essential, yet many Indians are unaware of this. In this article, we discuss the significance of doing so. There is much more to it than merely declaring, paying, and claiming taxes. Read the entire article to learn why an ITR filing is crucial.
What is ITR?
You must submit the income tax return (ITR) form to the IT division. It includes details about your earnings and the taxes you have paid or owe for the current fiscal year. The revenue may come from wages, business and professional profits, rental income from real estate, capital gains, or other sources. ITR filing forms come in a variety. You must choose the appropriate option depending on the nature, income level, and type of taxpayer you are.
When to file income tax return?
ITRs are submitted for a specific fiscal year or between April 1 and March 31 of the following year (financial year). You must file an ITR in the ensuing year. ITR filing deadlines often fall on July 31. If you submit your ITR before the deadline, you are eligible for all ITR filing benefits.
Benefits of filing income tax return online
These are the benefits of filing an income tax return:
If you file income tax returns, it will be simple for you to claim your tax refunds:
Once a particular type of tax is deducted, the only way to request a tax refund for that specific fiscal year is to file an income tax return. Once the ITR filing for that year is complete, you must use the portal to receive your refund. You must complete your returns to be eligible for a refund if you are an NRI who pays TDS on his rental money or if TDS is being deducted from your bank accounts' fixed deposits.
It will be pretty simple for you to seek tax deductions:
You must file income tax return for that specific fiscal year if you earn more than Rs. 3 lakhs (the basic exemption limit) and request various exemptions to bring your income below that amount. If you want to claim any future deductions, you must file an income tax return even if you have no current tax due.
You will receive an adjustment to your capital gains and losses:
If investing in the equity or stock market has been your main priority, then timely filing your income tax return will be quite beneficial. Your capital losses can be offset against your capital gains if your total yearly pay is less than the basic exemption level, even though filing an ITR may not be necessary for that situation. Depending on whether you have submitted your return for that specific financial year, you can also ensure that your losses (if any) are carried forward for the following eight years.
If you have been accurately completing your tax returns, loans will be easy to acquire by:
Your income tax return serves as documentation of your income in addition to being another crucial financial record because it lists all of your earnings for a given year. As a result, when you ask for a specific loan amount, NBFCs and other financial institutions actively look for this document. Even though you have a lesser taxable income, filing a return will still be advantageous in this situation.
How to file an ITR online?
To file income tax return online, follow these steps:
- Enter your user ID (PAN), password, and captcha code to log into the e-Filing portal, then click "Login."
- You may find the "Income Tax Return" link by choosing the "e-File" menu option.
- PAN will automatically fill in for you on the income tax return page.
- Select "Assessment Year."
- Specify an "ITR Form Number"
- For the "Filing Type," Select "Original/Revised Return."
- Prepare your submission in "Submission Mode" online.
- Choose "Continue"
- Make sure you carefully read the instructions before filling out every field on the applicable online ITR form that needs to be filled out.
- An appropriate Verification option should be selected on the "Taxes Paid and Verification" page.
- Pick one of the following choices to examine the income tax return:
- I want to use e-Verify.
- Within 120 days after the ITR filing date, I want to e-Verify.
- I choose to transmit my signed ITR-V to the "Centralized Processing Center, Income Tax Department, within 120 days of the filing date" without e-Verification.
- Verify all the information submitted in the ITR, then click the "Preview and Submit" button.
Submit the ITR.
You can e-Verify utilizing any of the following processes when choosing the "I would want to e-Verify" option by entering your EVC or OTP when prompted.
It will automatically submit the Income Tax Return (ITR) if the EVC/OTP is not entered within 60 seconds. The submitted ITR needs to be verified later by either utilizing the "My Account > e-Verify Return" option or emailing a signed ITR-V to CPC.
The process for submitting an ITR can be a little challenging. In that case, a reputable business consulting company like LawgicalIndia might help you file income tax return.
Please get in touch with Lawgical India's tax experts if you need help in filing your ITRs.