Income Tax Filing

• ● Claim a Refund: Filing an income tax return allows you to claim any excess tax paid & receive a refund from the tax department.
• ● Loan Processing: An income tax return is necessary to apply for a loan, be it for personal or business, as it serves as proof of income & financial stability.
• ● Avoid Penalties Delay in income tax e filing return attracts a late filing penalty, interest on unpaid taxes, & other charges. Filing on time helps you avoid these penalties.
• ● Build Financial History: It also helps build a strong financial history, which can improve your credit score & increase your chances of getting approved for bigger loans.
• ● Visa & Passport Processing: Many foreign countries require tax returns as proof of financial status to process visa & passport applications.
• ● Reduced Scrutiny: Income tax filing signifies your compliance with the law & reduces scrutiny from the tax department.
• ● Legal Evidence: t serves as legal evidence of income & reduces the chance of any legal or tax-related disputes.
• ● Increased Pension Benefits: If you contribute to the Employee Provident Fund (EPF), income tax filing is necessary to receive your contributions back with interest when you retire.

• ● Directors of Private Limited Companies or Partners of LLPs
• ● Individuals receiving income from trusts or voluntary contributions
• ● Salaried individuals with gross income above exemption level
• ● Individuals who have earned capital gains from the sale of property, stocks, or mutual funds.
• ● Every private, LLP, or partnership firm.
• ● NRIs, tech professionals on onsite deputation, & foreign income earners.
• ● Individuals & businesses seeking tax refunds.

Filing your income tax return online has become increasingly convenient with the advent of technology. Here's a simplified guide in 9 easy steps

• 1. Gather Your Documents Collect all the necessary documents such as Form 16/16A, TDS certificates, bank statements, & investment receipts.
• 2. Register Yourself - Go to the official Income Tax filing website & register yourself using your PAN card number.
• 3. Select the Right Form - Choose the appropriate ITR form based on your sources of income. For most salaried individuals, it's usually ITR-1 (Sahaj) or ITR-2.
• 4. Verify Your Details - Double-check all of the info. before submitting.
• 5. Compute Taxable Income - Calculate your total taxable income after considering all deductions and exemptions available under the Income Tax Act.
• 6. Compute Tax Liability - You must use any reliable online calculator to compute your tax liability.
• 7. File Your Return - As everything has been successfully verified, tap on the Submit button to file income tax return.
• 8. E-Verify Your Return - After submitting the return, you will then receive an acknowledgment no. You can also e-verify your tax return using this number & your Aadhaar card.
• 9. Pay any Outstanding Tax - If you owe any tax, be sure to pay it before the due date.

• ● PAN Card - It is one of the most essential documents for filing ITR in India. In case you don't have a PAN card, you can apply for it online or offline
• ● Form 16 - If you are a salaried individual, your employer has to issue you a Form 16 indicating your total salary & TDS deducted.
• ● Form 26AS - It is a consolidated tax statement containing details of tax deducted on your behalf by your employer, banks, & other entities.
• ● Form 15G - But what is form 15G, it is a declaration form falling under section 197A of the Income Tax Act, 1961. Use to declare your total taxable income when lower than the max exempt limit.
• ● Bank Statements - You must have your bank statements to prove your income, deductions, & investments.
• ● Investment Proofs - You need to produce income proof of investments made, such as insurance premium receipts, mutual fund statements, & National Savings Certificate receipts.
• ● Rent Receipts - If you are claiming HRA (House Rent Allowance), make sure to have rent receipts from your landlord.
• ● Medical Bills - You can claim deductions for the medical bills incurred for yourself, your spouse, & dependent children under Section 80D.