What is the Best Way to File Income Tax Returns on Time?

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Are you too tired or busy to file ITR? Well, people find it hard to file ITR. But you know what? The future benefits of filing your ITR are much more than the current hardship you are facing. But that’s how the human brain works though – it just focuses on the current hardships, even when we know the future holds something better for us when we are done with it.

Just like endorphins after a tedious, painful workout – or should we be saying the healthy body after that workout. You would still want to know the easy way around. So, let’s talk about it. But before that, let us know our basics.

What is ITR?

ITR stands for the tax return form that is used by Indian taxpayers to report income and assets to the income tax department. It has all the information about your financial data, and also, it acts as a self-declaration form for your income, assets, and applicable taxes. You can file it offline or manually, but that’s mostly for senior citizens. When you file for ITR it’s mostly in the electronic mode.

Do you Have to file ITR?

There are certain criteria that come under the requirement to file income tax returns. Read on to find out if you come under that list too.

If you are a company or firm.
If you are a resident who holds an asset that has signing authority outside the country, are an asset beneficiary outside India.
If you have deposited more than 1 crore in a bank account.
If you have spent an aggregate of more than a lakh in electricity consumption.
If you have spent an aggregate of more than 2 lakhs for self or another person.
If you have an annual income above the exemption limits.

Are you one of these people? If it’s new. Then you don’t have to be doing anything. If you aren’t, we’ve got your back. Let’s find you a simple way to file your ITR.

How to File ITR?

First and foremost let’s know the ITR meaning; ITR is short for Income Tax Returns you have to file every year. But here is a step-by-step guide on how to get it done. Do you know what proves your financial ethics and wisdom the most? It’s compliance. Compliance with ITR means timely filing. It’s not as difficult as it sounds or how people make it look. It’s quite simple, easy, and fast. So, let’s find out how to do it online.

Step 1: Log in to the official website, and click on form 16.

Step 2: Start entering your personal details, such as PAN, name of Father, DOB, and address.

Step 3: Now, enter your salary details and your employer’s name.

Step 4: Enter the information of taxes paid.

Step 5: After you’ve done this you can enter your bank account info and proceed to an e-filing.

Note:- After this, if you see a refund or no tax due. Click on continue, and you’ll find an acknowledgment number.

Step 6: Once it’s filed, you can complete the verification, and you are done.

Yay! That’s the end of the procedure. Was not hard, was it? Also, today there are several websites that give you the option to e-file ITR online. You can maybe try a website that has a user-friendly interface to make things much easier than it already is.

Due Dates – The Crucial Factor of Filing your ITR

Well, the most important thing while you file your ITR is that you don’t miss the due dates. You don’t want to be late for something like this.

ITR needs to be filed in the financial year from April 1st to March 31st. Also, within specific dates.

For the taxpayers who need to furnish transfer pricing report: November 30th.
For companies, partnership firms, and companies that need auditing under the law: October 31st.
For other Taxpayers: July 31st.

What are the Benefits if you File your ITR on Time?

You know the pros of doing things at the right time, so is ITR filing. Let’s look at how you can benefit from filing your ITR on time.
You can carry forward unabsorbed losses.
You can prevent interest liability.
You can avert penalties and late fees under Section 234f.

As an added note, there is something else you need to know. There are 7 ITR forms with different purposes, and you’d have to go into a deeper analysis to know more about it. Apart from this, you can also save up on income tax.

How to Save on Income Tax?

Additional deduction of Rs 50,000 in excess of Rs 1.5 lakh in 80 CCC (1b) for contributions to federal government national pension plans.
Deduction of up to Rs 1.5 lakh under 80C – Investing in tax-saving choices such as 80 C- investing in ELSS, LIC, mutual funds, the deduction for tuition expenses for children, the deduction for the principal amount of house loan, and so on.
Medical insurance premiums paid for yourself, wife/husband, children (Rs 25000 / 50,000) and parents (Rs 25000 / 50,000) are deductible under Section 80D.
Donations given to authorized institutions and trusts are tax-deductible up to certain limits under Section 80G.
Exemption from house rent allowance permitted in part or in whole under 10 (13A).
Deduction for house loan payments made under Section 24 up to 2 lakhs for self-occupied property and the whole amount for rented property.
Deduction for student loans under 80E.

Conclusion

If you don’t comply with ITR. It could lead to a multi-fold penal consequence. Also, by filing ITR – you can have hassle-free loans, easier visa processing, and tax claim benefits.