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If you are going to file ITR for the first time, then first of all you should know some important things. So that you do not face any kind of problem. If you are a salaried employee, then you must have received your Form-16 from the company. When you start filing your Income Tax Return (ITR). So you do not know that how to start filing ITR. Here, first of all, get complete information about some important rules of the Income Tax Department.
The process of e-filing ITR has become faster and easier and can be completed from the comfort of one’s home. Now the whole process of filing ITR can be challenging for first time filers. Because the IT department has changed many rules. That’s why you should be well informed about the rules of the Income Tax Department.
keep these things in mind
The most important question for new taxpayers would be to find out whether they want to choose the new tax slab or the old tax slab. While the new tax regime offers lower tax rates. The old regime has certain deductions and tax benefits which allow a taxpayer to save tax.
Let us tell you that online tax calculator can prove to be very helpful for you so that it can be found out in which tax slab you will have to face less tax and in which more. If you opt for the new tax regime, you should still consider some options like EPF, PPF and life insurance policies as a means of investing. So that you can take advantage of some tax exemption.
First find out the taxable income
Your taxable income is your gross income (earned from your salary and other sources) less your tax saving deductions.
collect your form 16
Form 16 is a TDS certificate provided by an employer to salaried employees. This form contains all the salary details to be entered while filing income tax return. This includes information on deductions claimed by you, wages earned and exemptions availed.
What is the work of Form 26AS
Form 26AS is a very important document that should be relied upon for filing tax returns. It records the details of all income on which TDS has been levied. You can view and download your Form 26AS online. The details in this form are updated with every TDS return statement.
annual information details
New information in the Annual Information Details (AIS) includes interest, dividend, securities transactions, mutual fund transactions, foreign remittance information, etc. When a taxpayer uses the ‘Prefill’ option, the information from the AIS is fed into the ITR form.
Which ITR form for whom
- ITR-1: For resident individuals having income from salary, one house property, other sources (interest, etc.) and total income up to Rs.50 lakh.
- ITR-2: For individuals and HUFs not carrying on business or profession under any proprietorship.
- ITR-3: For individuals and HUFs having income from proprietary business or profession.
- ITR-4: For presumptive income from business or profession.
These are the important documents
- bank account details
- PRAN card
- Aadhaar details
- Form 16 for Salaried Individuals
- investment certificate
- Home Loan Interest Certificate
- Insurance premium payment receipt
Penalty will be imposed for not filing ITR
If you do not file ITR, you can be fined up to Rs 5,000. Even if you have paid tax. Also, if a person is seeking a loan, planning to buy a property, going abroad, or buying a bigger insurance cover, it is important to show tax returns as proof.
This is the deadline for ITR
The last date for filing income tax return is 31st July of every financial year.
How to do ITR verification
After filing ITR, taxpayers have to verify their returns in the last step. You can verify your return online or offline. For online option, you can get information through Aadhaar OTP. IT department will send you an e-verification mail to confirm the verification through online electronic mode.
And for offline system, you have to send the signed printout of ITR to CPC, Bengaluru. The Income Tax Department has reduced the deadline for submission of e-verification or hard copy of ITR-V to 30 days from August 1, 2022, after filing returns on behalf of taxpayers.