You have finished filing the Income Tax Return or ITR. Is the job done? No, the job begins after filing ITR. You have filed ITR for the Assessment Year 2019-20. Now, make sure you get the income tax refund. You have avoided the income tax penalty. Now, get the income tax refund.
Follow some of these important tasks after you file ITR and enjoy a hassle free tax filing process. Want to know more on Tax Planning? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.
After filing ITR, make sure to e-verify tax returns. You can track ITR status on the Income Tax Department website to know if it’s processed. After the processing is done, ITR status changes to ITR processed showing there was no discrepancy in ITR. The Income Tax Department sends you a message or a notice under Section 143(1) telling you if any discrepancy was found.
See Also: Avoid These Mistakes While Filing ITR
STEP 1: You must first visit the income tax e-filing website.
STEP 2: You then click on the ‘Portal Login’ which appears on the Right-Hand side of the page.
STEP 3: Use PAN to log in to the account. Fill in the e-filling password and enter the captcha code given.
STEP 4: You then click on ‘View Returns/Forms’ which appears on the screen.
STEP 5: You then select Income Tax Returns from the drop-menu and click on the Submit button.
STEP 6: You then click on the hyperlinked acknowledgement number on the screen.
STEP 7: If Income Tax Refunds fail; you will get to know of it on the same screen.
After e-filing ITR, you can do the verification with the Aadhaar OTP. The Aadhaar card must be linked with the PAN card. (This is compulsory for filing ITR).
You select the 3rd option which says, “generate Aadhaar OTP.” A one-time password which is valid for 10 minutes is sent to registered mobile number.
If you have filed wrong ITR (Lets say there is an omission), you can file revised ITR. Yes, you have filed ITR; but there was a mistake. This could be like a wrong bank account, missing a vital tax deduction, or forgetting some important income factor.
You must file a revised ITR before the end of the relevant assessment year. If you have filed the ITR before the deadline; you can submit revised return within the requisite deadline.
You might have noticed shortfalls when filing the income tax returns. You might have still gone ahead and completed the tax filing process. Yet, you face problems. Why?
You could have availed a tax deduction which you may have forgotten. There could be a capital loss set-off against a capital gain to reduce tax liability, you might have missed. Make a list of things missed when filing ITR and work on covering the loopholes. This makes sure you maximize tax benefits and plug all loopholes so that you enjoy tax gains at least for the following year.
Filing your ITR doesn’t guarantee that the tax department won’t give you an income tax notice. This is why you must keep all supporting documents like medical bills, investment details showing proof of investment in PPF, ELSS, tax-saving FD, home loan interest statements and so on.
So, why does this help you? Well, you can respond really quick if you get an income tax notice. How long do you need to keep these documents for your record? Well, there’s no definite period here. The Tax Department could send an income tax notice to you or any taxpayer, up to 7 years after the end of the relevant financial year.
What does this mean? Well, you can get an income tax notice for the ITR filed in 2013-14. So, keep tax related documents for at least 7 years. This helps if the income tax department opens any old cases. (This could be as old as 10 years).
See Also: Steps To File Income Tax Returns Easily
Keep these records safe:
If you anticipate a TDS (Tax Deducted at Source) refund from the income tax department, wait before you start spending the money. This money is for investment to enjoy a better future.
This is your own money and not a gift from the income tax department. So plan on how to spend the income tax refund and don’t just waste it.
How can you use income tax refund? You can use the tax refund to invest in a tax-saving investment, (This would minimize tax outgo for current year), use it to clear an outstanding loan like a car loan or personal loan. This helps achieve financial goals faster.
The key to enjoying the income tax refund is planning. Filing ITR isn’t the end of the job. You have to verify ITR, check the ITR processing status, store tax-related documents for future use and also respond to the Income Tax Notices.
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