ITR filing deadline nears: Here are some of the key things that individual taxpayers should keep in mind while filing their tax returns this year.
The deadline to file income tax return (ITR) for the financial year 2021-22 or assessment year 2022-23 without any penalty will end on July 31, 2021 and it is advisable to file it before the due date. The department has also been issuing reminders for the same.
Now, this means you only have 11 days to file ITR.
If you are the one who has not yet filed it, this checklist is for you:
Why should you file ITR?
ITR filing is an annual activity seen as a duty of every responsible citizen of the nation. You can claim the refund of the excess tax paid/deducted during a financial year by filing it.
Also, ITR can be used as proof of income and address.
Where can you file ITR?
The I-T department has established an independent portal for e-filing of income tax returns -- incometaxindia.gov.in. Additionally, there are certain private entities, registered by the Income Tax department that allows you to e-file through their websites.
Also, offline filing is available.
Why is it better to file income tax return online?
As the returns are filed online, they are processed by the systems automatically and, hence, the refunds are issued faster. It's vital to note that online filing is mandatory if your income exceeds Rs 5 lakh in a financial year or if you want to claim the refund.
Which forms are available for filing ITR?
Under the current income tax laws, 7 forms are available for different types of assessees to file their income tax return- ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7.
ITR-1 is available for resident individuals having income up to Rs 50 lakh and only for those having income from salary, one house property and other sources. ITR-2 is available for individuals and Hindu Undivided Families (HUFs), whether resident or non-resident, in respect of following incomes -- salary or pension, income or loss from one or more house properties, income or loss under the head ‘Capital Gains’.
Similarly, other forms are specified for different purposes.
What happens if you use wrong ITR form?
In case you file the income tax return in the wrong form, the tax officer may consider your return as defective under the provision of section 139(9) of the Income Tax (I-T) Act. The tax office may intimate about the defect and you will be require to remove the defect within 15 days of such notice by filing a revised return with the correct ITR form.
What are the documents required to file ITR?
Aadhaar card, Permanent Account Number (PAN) card, Form 26AS and Form 16 are some of the major documents required for filing ITR.
Why and how should you verify your ITR?
After filing ITR, it is imperative to verify it. In case the verification is not done, ITR cannot be regarded as legal and may not be processed by the department.
I-T Department offers five ways for verification of an ITR: net banking, bank ATM, Aadhaar OTP bank account and demat account.
What are the mistakes you should avoid while filing ITR?
While filing the returns, you must ensure to provide the correct assessment year. For FY 2021-22 the correct corresponding AY is 2022-23.
Additionally, you should verify the TDS and tax payments with form 26AS before filing. The ITR forms carry several rows and columns that need to be filled out at the time of filing one’s income tax returns. The details have to be entered in a particular format, which if not done properly can lead to errors.
What happens if you don’t file ITR?
If you fail filing return within the deadline, you can file a belated one at a later time. However, certain penalty charges are applicable in this case under Section 234F of the Income Tax Act. Besides this, a delay in filing ITR will also make you liable to pay interest.
In case you do not file ITR at all, you will not be able to carry forward the losses of the current assessment year. Also, a penalty may be levied which is a minimum of 50 percent of the assessed tax or a maximum of 200 percent of the assessed tax. Additionally, you can face prosecution in extreme and high-value cases.