Every year, on 30 June, there is a huge rush to file Income Tax Return. This year, as the nation went into lockdown on 25 March, healthy life was disrupted severely. The Income Tax dept declared an extension of the ITR filing date. This year due to COVID 19, the IT department has postponed the ITR filing date till 30 November.
Who should file an ITR:
Anybody who is less than 60 years of age and has an annual income of more than Rs2.5 lakh has to file income tax returns, according to the Income Tax Act. For senior citizens, the cut-off is Rs3 lakh, and for those who are more than 80 years old, the cut off is Rs5 lakh.
However, there are several other criteria for an individual or a company to fulfill for filing income tax returns. They are as follows:
- A company must file income tax returns if it has incurred an income or a loss during the financial year.
- Return filing is compulsory if you want a refund.
- You have to file your income tax return if you are a resident of India but have property or financial interest in an entity outside India. The same is true is you are a resident of India but have signing authority in a foreign account.
- The return has to be filed for any income from property under a charitable trust, religious purposes, research, or for a political party, medical institution, hospital or any other institution.
- You must file a return if you have entered into any transaction under the Annual Information Return.
It is suggested that an individual holding a PAN card should file an ITR irrespective of his earnings. There is an option to file Nil return as well.
Importance of filing Income Tax Return
An income tax return is a legal document that stands as your proof of income. Even if you are not eligible for filing a profit and are not mandated by the Income Tax department, it is advisable to file your IT return. Apart from financial discipline, filing income tax returns has several advantages.
If you are looking for a personal or home loan, you will be required to submit your previous IT return documents. Some banks also ask for IT returns for approving credit card requests. For those eligible for a refund, i.e., if they have paid taxes more than what they are liable to pay– filing an income tax return is mandatory.
How to file ITR:
- Visit the IT dept. website e-Filing Home Page, Income Tax Department, Government of India
- Register/Log in
- Fill the ITR form 1 or 2, whichever applies to you.
- Also, to form 16 issued by your employer, you’d need Form 16A or TDS certificate issued by a bank, if you have invested in fixed deposits.
- Fill up the ITR form according to the info in way 16’s
- After filling and validation, generate the tax. If you’ve to pay a Self-Assessment Tax, then fill it through the website.
- A final ITR V is generated, which needs to be printed out, signed, and mailed to the address given in the form.
- If you’ve paid tax in excess and are eligible for a refund, you can give your bank account no. in the ITR form.
- You’ll get confirmation messages from the IT dept. After-tax payment, ITR V generation, and final receipt of a signed copy.
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