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5 Reasons Why You Should Not Hesitate To File ITR

IndianMoney.com Research Team | Updated On Tuesday, July 24,2018, 06:01 PM

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5 Reasons Why You Should Not Hesitate To File ITR

 

 

 

July is the season of Taxes! If total income for the financial year 2017-18 is more than Rs 2,50,000 (for citizens less than 60 years), you are liable to file income tax returns by July 31st 2018. If you are between 60-80 years, the tax exemption limits are Rs 3 Lakhs and its Rs 5 Lakhs if you are over 80 years.

While in earlier times taxpayers could only file returns through the paper mode, the Income Tax Department has introduced various processes to ease tax filing and increase compliance. With an aim to reduce the processing time and human intervention, technological initiatives such as e-payment of taxes, simplified tax return forms, e-verification of ITR-V, e-assessments, and so on have been undertaken by the Income Tax Department.

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5 Reasons Why You Should Not Hesitate To File ITR

 

IT Department also uses digital modes of communication like e-mails, text messages and advertisements. With the introduction of many unique initiatives by the Income Tax Department, there has been a significant increase in the taxpayer base.

Many taxpayers run around the city to Chartered Accountants and Tax Consultants to get their returns filed. Unless you require professional guidance in filing returns, with all such initiatives in place, you should not hesitate to file ITR by yourself. You may also visit websites that help in filing tax returns. All you have to do is follow certain steps. Below are 5 reasons for filing returns yourself:

 

1. Easy to register:

 

First-time taxpayers and those who want to file tax returns on their own, need to get themselves registered. You will have to create your login ID on the ITR filing website. The link to e-filing is:

https://www.incometaxindiaefiling.gov.in/home

Registration is simple and easy. You need:

 

  • PAN card
  • Follow the necessary steps

 

Once done, you can file your returns with ease.

 

2. Pre-fill text option:

 

Tax return forms for individual taxpayers have been re-worked to make them less complicated. The IT Department has also introduced features like the pre-fill option for tax returns. Details like personal information and tax details are pre-filled as available in the tax department’s database. Therefore, you no longer have to manually feed these details. Data is pre-populated with details that are available from PAN and Form 26AS.

 

3. Pay digitally:

 

The e-payment option has made it possible for taxpayers to pay tax anywhere and at anytime. You can find a link in the tax return form which will redirect you to the portal for e-payment of taxes.

 

4. E-verification of tax returns:

 

Filing income tax returns are deemed to be complete only if the taxpayer verifies them after filing the return. Verification of returns are mandatory for the Centralized Processing Centre (CPC) to accept and process them. You can verify your income tax returns in the following ways:

 

  • Digital Signature
  • Electronic Verification Code (EVC)
  • Aadhaar based OTP
  • Submission of acknowledgement to CPC Bangalore

 

Verifying tax returns is now uncomplicated. You can verify your income tax returns by visiting the website: www.incometaxindia.gov.in.

Prior to e-filing and e-verification of income tax returns, it was mandatory to send a signed physical copy of the ITR acknowledgement (ITR-V) to CPC Bengaluru for processing. Now that the IT Department is promoting Electronic Verification Code to verify ITR, you need not send a signed physical copy of the signed ITR-V to the CPC.

 

5. E-assessment of tax returns:

 

The Income Tax Department has now undertaken electronic assessment. E-assessment has revolutionized communication of notices. Tax notices are now sent via e-mail. Taxpayers can also furnish responses online.

 

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How to file returns easily?

 

Now that you know the tax filing process is not complicated, take note of the following points:

 

1. Timely Filing of ITR:

 

If you are filing returns for the first time, it is important not to delay tax filing. You must do this in order to avoid the last-minute rush. Chances are you might commit mistakes while filing tax returns in a hurry. Mistakes in filing taxes can cost you dearly. You might be penalized and prosecuted depending on the severity of the mistake.

 

2. Keep the documents handy:

 

If you are a first-time taxpayer or filing returns for the very first time, take note of the following documents that you will need:

 

  • Savings bank account statement
  • Form 16
  • Form 26 AS
  • PAN Card
  • Aadhar Card
  • Bills of expenses eligible for reimbursement
  • Salary Slip
  • Rental agreement of home
  • Rent receipt
  • Investment related documents

 

Conclusion:

 

Remember, if you do not file your income tax returns in time, you will be charged a late filing fee under Section 234F of the Income Tax Act, 1961. You will be charged a penalty up to Rs 5,000 between August 1 and December 31 and up to Rs 10,000 after that. Also, you will not be allowed to carry forward losses during the year. Therefore, be wise and file your returns in time!

 

Be Wise, Get Rich.

 

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IndianMoney.com Research Team

The research team at IndianMoney.com comprises of certified and experienced professionals who share the company's vision to make every Indian financially literate by equipping every Indian with right and unbiased advice. IndianMoney.com research team provides newsletters, articles, videos and FAQs on various financial products and concepts only to help you make wise financial decisions.

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