10 things to know before filing an ITR for the 2021-22 financial year


2021-22 tax return Filing of the latest update: A few days before the end of the ITR filing deadline, taxpayers must have started filing their ITR. If you are a salaried person, July 31 is the deadline to file an income tax return (ITR) for fiscal year 2021-22 and tax year 2022-23. Taxpayers are advised to file their ITRs before the deadline to avoid last minute hassles.Also Read – 4 Money Changes That Will Impact Your Pocket in July | Full list here

For the filing of the ITR, the Income Tax Department (IT) provides pre-filled forms to make filing tax returns easier. However, taxpayers should keep all documents handy when filing the return and cross-check each field of the pre-populated form. Also read – TDS rules have changed! Doctors, social media influencers have to pay extra tax; Check details here

If you are filing an ITR for the first time, here are the key things to keep in mind: Also Read – TDS on Crypto, Digital Assets: CBDT Issues New Guidelines | Check details here

Correct selection of ITR form

It is always advisable to select the applicable ITR form based on the residency status of the taxpayer and income from various sources for accurate filing. If you use the wrong tax return formthe return will not be processed and you may receive a defective return notice from the tax department.

Choose between new tax regime or old tax regime:

The Income Tax Department, through the Finance Act 2020, introduced a new optional tax regime for taxpayers with modified tax brackets and rates, instead of waiving exemptions and deductions prescribed. Individual taxpayers will have the possibility to choose between the old and the new tax regime when filing the tax return.

Choosing the right tax regime is of great importance for business owners because they can only do it once. Once they have chosen their tax regime, it cannot be changed. However, salaried persons with salary, house and property income can change it every year.

Pre-filled ITR forms:

The Income Tax Department has introduced a new utility named JSON for pre-filling FY21 tax return forms. from the electronic filing portal. Pre-populated data includes personal details, salary, dividend income, interest income, capital gains and all information available in Form 26AS. This form helps taxpayers to easily file an ITR, as most of the essential details would already be entered there.

However, if the details are incorrect, it may be advisable to contact the bank / revenue payer etc. to correct data in their quarterly TDS statements/other filings so that accurate information is reflected in your Form No. 26AS.

Verification of prepaid taxes:

It is also crucial for taxpayers to verify their prepaid taxes, including withholding tax, withholding tax, and self-assessment tax with Form 26AS. In the event of a discrepancy, this must be notified either to the employer (in the case of wage income), or to the other payers (in the case of other income) or to the banks (for withholding tax/ self-assessment) for necessary corrections.

Payment of taxes on the balance

Once the total taxable income has been determined, after including the income under all headings and claiming the necessary deductions available under Chapter VI-A of the Act, the applicable tax rates should be applied to calculate the total tax to be paid. pay. However, if there are taxes due on the tax return after claiming the prepaid tax credit, they must be paid, including applicable interest, if any, before filing the tax return.

Disclosure requirements

Declarations of various assets and financial investment forms are an integral part of the ITR filing:

# Specified details of all Indian bank accounts

# Specified details of unlisted shares

# Detail of mandates exercised in Indian or foreign companies.

Payment of the balance of taxes

To avoid mistakes, you should estimate the tax payable in advance and make the necessary tax payments on time. This will help you avoid interest charges applicable on late tax payments. After determining your total taxable income, including income under all headings and claiming the necessary deductions available under Chapter VI-A of the Act, the applicable tax rates should be applied to calculate the total tax payable. pay.

Declaration of exempt income

Taxpayers must also report exempt income under “Schedule EI”, such as agricultural income, exempt income of a minor child, income not taxable under the agreement to avoid double taxation, etc. .

Job change

If a taxpayer has provided the required salary and details of income earned from the previous employer to the current employer, a Consolidated Form 16 and 12BA may be issued by the current employer on the basis of which an ITR can be filed.

In case of missing RTI deposit

If a taxpayer could not provide the ITR on the due date due to multiple reasons such as non-availability of relevant documents/information, lack of time, personal requirements, etc., there may be various consequences in under the Income Tax Act, such as the levy of late filing fees, payment of interest on the balance of tax payable, ineligibility to carry forward certain losses, etc. Be sure to file your return before the deadline.

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