Whether you have a personal or business income tax liability, filing the Income Tax Return (ITR) on time is important. The government has introduced an income tax e-filing system @ https://eportal.incometax.gov.in/ to make filing your taxes easy. Using the system, you can check the status of your ITR online, save your ITR details as a draft, and refund excess tax, if any.
Refund of excess tax paid
Those who have paid excess tax can claim the tax refund. However, the claim is only valid if it is made correctly. The process is simple and involves the following:
Assess the income for filing an income tax return.
Verifying the return with your 26As, etc.
Get the excess tax to the bank account.
The refund can take up to 3 months to 1 year to process.The claim is made using online-ITR form1 to 7 (depending on your nature of your income), a request for excess tax refund. It has to be filed by on or before 30th July of the financial year, or before the end of the December with late fee, depending on the tax year. It is prescribed under Section 139 of the Income Tax Act, 1961.Aside from filing an ITR, the refund is processed through Electronic Clearance Service (ECS). The e-transfer of refunds is an easy and convenient way to claim the refund.
Saving ITR details as a draft
Depending on the type of income, there are different types of ITRs available to file. Some are for individuals, while others are for business and profession. The income tax return is tailored to the taxpayer, depending on his/her answers to a few simple questions.The income tax return can be filed only on online. The online version is available on the Income Tax Department’s website. All taxpayers must file a return to pay taxes. There are a number of schedules and questions to answer. You must ensure that you fill all the mandatory fields on the online ITR form.The ITR has been designed to be simple and easy to fill. This is done by incorporating a series of wizard questions to guide the user. You will be asked to answer questions regarding your income, deductions, assets, and other details. These questions will be used to generate schedules and questions that are applicable to you. These schedules and questions will then be used to calculate your total income and taxes.
Checking ITR status online
During your Income Tax e-filing in India, you may want to check the ITR status. This will let you know if the tax department has accepted your income. You can do so by visiting the Income Tax department’s e-filing website.The e-filing portal offers various filters to help you choose the correct form for your return. These filters can be found on the left hand side of the page. You can also download the complete ITR form in PDF form. The e-filing portal also offers a feature to export the data in Excel format.The e-filing portal allows you to check the ITR status and the ITR-V Acknowledgement. This page also contains a re-issue and re-issued button. To check the ITR status, you should first log in with your PAN card details.
New income tax regime
Depending on the source of income during the year, a person can opt for either the old or the new income tax regime. However, it is important to understand the pros and cons of both tax regimes before deciding.The new regime offers a reduced tax rate and a greater disposable income to taxpayers. It also simplifies tax filing. However, it requires an individual to give up many benefits like rental benefits, savings exemptions etc. Several deductions have been eliminated, thereby making tax filing less cumbersome. In addition, fewer exemptions have been introduced, leaving individuals with a lower net taxable income.The new regime also allows individuals with a taxable income of up to Rs 5 lakh to claim a rebate of INR 12,500 under Section 87A. Individuals who opt for the new regime will pay tax at the reduced rate of 10 percent, rather than the previous rate of 20 percent on the income slab from 5 lakh to 7.5Lakh.
How to File ITR 1
Depending on the source of income, you need to fill the form accordingly. You can check your ITR by logging in to the Income Tax portal using your PAN number.Individuals with salary income up to Rs 50 lakhs can file ITR-1. This is the simplified one-page form. The new ITR-1 retains the most commonly used deductions under Section 80D, 80C and 80G. It also omits columns that are rarely used by taxpayers.
How to File ITR 2
Individuals with salary income more then Rs.50 lakhs, and also income from foreign sources are required to file ITR 2 in India. They can also file this return for capital gains on sale of investments. In this form, the individual taxpayers must provide information about the type of company. Moreover, they should also provide details of their unlisted equity investments.
How to File ITR 3
Business people who are not a company, are required to file ITR 3 in India, you need to ensure that you have all the required documents and information at your disposal. You can get a copy of the ITR 3 Form by logging on to the official website of the Income Tax Department. Alternatively, you can also use an excel utility available on the e-filing website to fill in the form.
How to File ITR 4
Generally, ITR 4 in India is used by individuals, professionals, and Hindu Undivided Families (HUFs) and firm to file the income on the presumptive basis. If you have business income up-to 2 Crore. then you can file ITR 4 in India by using the e-filing portal of Income Tax Department. If you are a HUF, you can also file it through the e-filing portal. However, you will not be able to use ITR 4 if you are a director in a company or have invested in unlisted equity shares.
Whether you are an individual, NRI, company, or firm, you must file income tax returns. It is important to understand the ITR rules and procedures before filing. The process for filing tax returns is different for residents and non-residents. If you are an NRI and have income in India, you are required to file ITR in India.
Income tax filing
Getting your ITR filed in time is an important legal obligation for taxpayers. In the event that you do not, you are bound to face multiple-fold penal consequences.For more about Income tax India e-filing kindly contact us.