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Filing of income tax returns is an obligation for individuals and entities if their income of the preceding year exceeds a certain specified amount that is not chargeable to tax, as mandated by the Income Tax Department of the Government of India. The process of filing of Income tax return (ITR) has moved from the traditional offline mode involving paperwork to a fast & more accurate online mode, thanks to the online portal launched by the I-T department that offers citizens a single-window access to all income tax related services.
Here’s a comprehensive guide for taxpayers on everything about the ITR filing process:
What are e-return intermediaries?
Under the Electronic Furnishing of Return of Income Scheme, 2007, authorized intermediaries provide services for electronically filing Income tax return on behalf of taxpayers, thus helping them save time & efforts. A noteworthy industry leader with over two decades of experience, Alankit Limited is a registered e-return intermediary. The company delivers professional & efficient e-filing services for lakhs of non-resident Indians in the UAE.
Alankit plays the key role of a tax consultant, led by a committed team of qualified chartered accountants & tax experts who are abreast with the latest taxation laws & rules. This greatly benefits taxpayers especially first-timers who thus find the entire Income tax return filing process to be smooth and hassle-free.
How does ITR filing help a taxpayer?
Besides being an obligation, ITR filing benefits taxpayers in enhancing chances of availing loans like home loans & personal loans as well as avoiding penalties or legal notices by filing Income tax return every year. NRIs planning to return & settle to their home country for retirement will not find any difficulty once they have filed their I-T returns. Moreover, ITR filing ensures that compliance is taken care of with the I-T department.
Who must filing I-T returns?
Individuals whose gross total income exceeds the basic exemption limit of Rs 2.5 lakh are required to file their Income tax return . The basic exemption limit is Rs 3 lakh for senior citizens above 60 years and Rs 5 lakh for those above 80 years. All NRIs, with exception of those covered under section 115AC having taxable income, are also required to file ITR. Furthermore, filing I-T returns even when one’s income is below the basic exemption limit comes with its own benefits.
The following category of people must also file their Income tax return , as defined by the government:
– Any resident having signing authority in an account located outside India.
– People having suffered any loss from a business or profession or a capital loss.
– Individuals, HUF, AOP, BOI, having taxable income or with taxable income before making deduction under Section 10A or 10B or under chapter VIA when surpassing the exemption limit.
– Those claiming relief under Sections 90 or 90A or deduction under Section 91.
– Anyone without any taxable income & deposited TDS or any kind of advance tax payment to avail refund.
Benefits of the e-filing process
The best way to file Income tax return is through the online mode. E-filing is beneficial in terms of easy tracking of ITR status, quicker tax refund claim, access to database information, faster processing, accuracy, confidentiality of assesse information and timely acknowledgement of e-returns.
Also, before e-filing, taxpayers must be ready with a list of vital information entailing PAN, Passport Number, Aadhaar Number, residential address, e-mail address & mobile number, bank account details in the given financial year and additional income sources. The e-filing process starts with submission of ITR form. Proper selection must be made by individual taxpayers from a list of forms viz. ITR 1 (SAHAJ), ITR 2, ITR 3, ITR 4 and ITR 4S (SUGAM), depending on their income source; whereas, companies/firms must choose from ITR 5, ITR 6 and ITR 7.
By keeping the above points in mind and through timely assistance by Alankit, taxpayers will be able to fulfil their duties in a much simplified and smooth way.