Income Tax Return (ITR) is a form which a person is supposed to submit to the Income Tax Department of India. It contains information about the person’s income and the taxes to be paid on it during the year. Various forms are ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7. When you file a belated return, you are not allowed to carry forward certain losses.
Importance of Income Tax Return (ITR) Filings:
1. It helps in Nation Building as Taxes is one of the primary sources of income for the government.
2. It helps in getting personal loan or home loan etc. In order to process your Loan Application, the bank / Lender will require you to submit your income related proof (ITR).
3. ITR can be used as address proof. It is a tax assessment documents.
4. We can claim tax deductions to reduce overall tax liability.
5. High-value investments such as purchasing a property are reported to the IT department. When you pay taxes and file returns, these transactions can be reported and substantiated as per your income.
6. Individuals cannot carry forward losses of the current financial year to the next financial year until an ITR is filed. It is important to file your income tax return on time in order to claim the losses in future years.
Due Date for filing ITR for this year:
The due date for filing Income Tax Returns has been extended to September 30, 2021.
Penalty, if ITR not Filed:
Note: If a person who is required to furnish a return of income under section 139 fails to do so within time prescribed then they will have to pay interest on tax due, according to Income Tax Department.
Quick Steps to file ITR – Online
1. Visit https://www.incometax.gov.in for e-filing the return of income.
2. Create you login Id and Password on Income tax portal. (Register Yourself).
3. Login to e-Filing portal by entering user ID (PAN), Password, Captcha code and click ‘Login’.
4. Click on the ‘e-File’ menu and then click ‘Income Tax Return’ link.
5. Select ‘Assessment Year’, Select ‘ITR Form Number’, Select ‘Filing Type’ as ‘Original/Revised Return, ‘Select ‘Submission Mode’ as ‘Prepare and Submit Online’ and then Continue.
6. Fill all the applicable and mandatory fields of the online ITR form.
7. Choose the appropriate Verification option in the ‘Taxes Paid and Verification’ tab.
8. lick on ‘Preview and Submit’ button, Verify all the data entered in the ITR.
9. ‘Submit’ the ITR after complete check.
7 Key Things to take care of before filing the ITR:
i. Clubbing Income
ii. Non-reporting of Exempt Income
iii. Correct Bank Account Number
iv. Profit on sale of jewellery, paintings and more
v. Income where tax has been deducted
vi. TDS & TCS details
vii. Deduction for Investment claim
Key Point – Must remember:
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