A country runs on the taxes paid by its citizens. These taxes are then utilized for infrastructural improvements, educational programs, medical innovations and overall welfare of the society. Hence, it is important that you as a citizen of India need to pay your taxes on time so you can enjoy the benefits.
What is income tax?
Income tax is a
type of direct tax that is paid by individuals directly to the government. Income tax is levied on a certain percentage of the income earned in a financial year. This percentage is defined by the income slab that you fall under.
Also Read: Comparison of Old Regime Tax Slab With New Regime Tax Slab: Which Is Better For You? What are income tax slabs?
As per the fiscal year 2021-2022, if your income is up to 2.5 lakh, you do not need to pay any tax. With income between 2.5 lakh and 5 lakhs, you will need to pay 5% tax on the amount exceeding 2.5 lakh, between 5 lakh and 7.5 lakh you need to pay 10% tax and so on and so forth. First, find out the income slab you belong to and then accordingly pay the tax. The tax percentage also depends on the age bracket, which is basically
- below the age of 60 years
- between the ages of 60 – 80 years (senior citizens)
- above the age of 80 years (super senior citizens)
What does income tax return filling mean?
An income tax return or ITR is a form that contains information regarding a person’s income and the taxes to be paid. It is submitted to the Income Tax department of India by individuals, businesses, HUFs, etc. There are different types of forms meant for different kinds of taxpayers. For any individual who receives a regular salary, pension, or has an income from properties or other sources, the ITR-1 or Sahaj form is to be filled.
The benefits of filing your income tax return vary across taxpayers. But mainly they are important:
How to file income tax returns online in India?
- For claiming returns, in case there were any TDS deducted under your name
- For seamless processing and approval of various loans
- For easy Visa application process and approval
- For businesses, you can claim losses in a fiscal year
- For senior citizens, you can claim medical insurance premium up to INR 50,000 under section 80D
- Gone were the days when you needed a tax practitioner to file your returns. With online tax return filing, everyone can do so with ease. By following the steps below, one can file an income tax return online.
Before you start e-filing, it would help to keep the following documents handy:
- PAN card
- Aadhar card
- Bank account details
- Form 16
- All receipts and investment details. This includes LIC receipts, housing loan details, rent agreement or receipts, receipts for donations made, etc.
Also Read: Impact of GST on Two-wheelers and Bikes in India Steps to follow to e-file
- Log on to the income tax e-filing website:
- Login using the ID and password. In case you are new to e-filling, then create a login ID and password to proceed.
- Once you have logged in, click on e-file, and then select the assessment year on the next page. The assessment year will be the current year 2021-2022.
- Next, you need to choose the ITR form. Only ITR 1 and ITR 4 can be filled online.
- Read instructions available on the next page and fill out the form accordingly. Every page will have enough information to fill in the details
- To avoid loss of data while filing online, you need to click on the ‘Save Draft’ button at regular intervals. The saved data can be retrieved 30 days from the start session, so you can always finish filing at a later date too.
- Next, you need to choose the verification option under the ‘Taxes paid and Verification’ tab. You can either e-verify immediately or within 120 days from the date of filing or you can even choose to verify through offline by sending signed copies to "Centralized Processing Center, Income Tax Department, Bengaluru - 560 500" within 120 days from the date of filing.
- If you choose to e-verify, then the same can be done through an EVC or OTP verification.
- Verify all the information and documents in the ‘Preview and submit’ page and click on Submit once you are confident.
In this way, you can complete e-filing. It is advisable to file your returns before the due date to avoid penalties. Be a responsible citizen and pay your taxes and file your returns on time.
