An Income Tax return is a form that allows a taxpayer to declare his income, tax deductions, expenses, investments, and taxes, etc. Under the Income Tax Act 1961, the income tax department makes it compulsory for a taxpayer to file income tax returns while following the guidelines.
There might be various sources of income. A taxpayer can check the income tax returns guidelines to find out if his/her income falls within the tax returns rules or not. A taxpayer might like to file the income tax return of the financial year to claim forward closes, income tax refund, or tax deductions.
The Income Tax Department offers two ways to file ITR, online and offline. Under online mode, there are two methods by which taxpayers can successfully file their returns. Below are the things a taxpayer should consider while filing E-ITR:
The taxpayer has to follow all the guidelines to file the income tax return as per law. While calculating income tax returns, consider all sources of income like salary, freelancing, house rent or interest income, etc. Under section 80 C, taxpayers can claim the deduction to save taxes and money
Don’t forget to consider the credit for TDS, TCS, or any advance tax paid.
A taxpayer has to summarise the TDS amount. The TDS amount can be summarised using the TDS certificates for 4 quarters of the financial year. 26AS Form helps the taxpayer with the summary of the TDS and tax paid in the financial year.
It is important to choose the right income tax form to file your income tax return. After downloading the form, a taxpayer can proceed with the form filling process. Income Tax Department offers two methods to file E-ITR
The online mode is only available for the ITR 1 and ITR 4 taxpayers and not for other categories. The offline mode of generating XML file and uploading it online is available for all the categories of taxpayers.
Visit the Income Tax Department official website at www.incometax.gov.in and click on IT Return Preparation Software on the right menu.
Choose your assessment year and download the offline utility software that is Microsoft Excel or Java or JSON utility based on your requirements. The income tax department has discontinued the excel and java utility from AY 2020-21. Choose the offline utility wisely before filing ITR.
After downloading the offline utility, fill in all the required details of your income.
Check your calculator for tax payable or refund receivable as per the calculations of the utility. However, you can fill in the details of the income tax challan in offline mode in the downloaded form.
Can you see the few buttons on the right-hand side of the downloaded from? Click on the “validate” button and ensure that all the required information and documents submitted are correct.
Upon successfully completing the above validation, click on the Generate XML button to generate the file in XML format.
Moreover, if you are filing a return on the JSON utility, Download JSON.
Login to the income tax e-filing portal. Click on the e-file tab and select the Income Tax Return option.
Attach the XML file from your system and submit it.
Choose any one verification mode to verify all the documents. The verification modes are – Aadhaar OTP, EVC, or sending manually signed copy to CPC, Bangalore.
There are two ways to file Income Tax Online. The first way is to fill the form and upload all the required documents or generate an XML file and upload the file to File your ITR.
You can save income tax with the help of legal advisors. Income Tax offers tax deduction benefits on the numerous income under Section 80. The best way is to save income tax, by filing it on time and avoiding the penalty charges.
You can skip filing income tax returns when you have minimal or zero income. It is legal to show zero income if you can’t file the income tax return.