How to file a tax return
Update: Dec 17 2021 19:35 STI
New Delhi [India], Dec. 17 (ANI): If we are measuring the growth and prosperity of a country, there are many criteria, including the number of people in that country who file their income tax return (ITR). Filing the RTI is a growth path for the nation, from infrastructure to energy, from social protection to grants, and it can make a huge difference. It is a matter of pride for an individual if he or she is a taxpayer and files the tax return on time. In an advertisement for the Income Tax Department, there is a slogan that “On-time tax compliance makes your nation shine” and this compliance started with the filing of the income tax return. Now the fundamental question arises; how to make an income tax return? This article discusses various issues for individuals who wish to file their income tax return because they do not have the help of knowledgeable staff and accountants available to businesses, businesses and NGOs. I hope this article will help and improve the knowledge of individuals to file their RTIs.
Kalidas in Raghuvansham, said: “It was only for the good of his subjects that he collected taxes from them, just as the Sun draws moisture from the Earth to return it a thousand fold.” Article 265 of the Constitution of India provides that “no tax shall be levied or collected except by the authority of law, therefore the Income Tax Act 1961 was enacted for provide for the collection and collection of tax on income earned by a person.
For filing income tax returns, one can register on the income tax website, that is, eportal. Incometax.gov.in via PAN (permanent account number). The main consideration should be given to the status of residence, the person, the extent of income, the tax year i.e. the previous year between April 1 and March 31 . In accordance with the income tax law, any person whose total income exceeds the maximum amount of 26 AS (annual declaration) non-taxable is subject to tax at the rate (s) prescribed by the law of finances. The Income Tax Act defines the term “person” u / s 2 (31) includes individual and undivided Hindu family (HUF), business, enterprise (including LLP), association of persons ( AOP) or an Individual Organization (BOI); a local authority, and any other artificial legal person. Article 2 (24) defines the word “income” as including not only the things that this definition explicitly states, but also all the things which the word means according to its natural meaning. There are four types of forms for filing the income tax returns of the people described in the flowchart, as follows:
Mainly, there are five parts in the tax return in which we have to provide the information provided:
Part A: General informations on the Individual Fiscal. It contains the PAN, name, date of birth, Aadhar number, cell phone number, email address, address, the section under which the declaration will be filed, whether at the due date or before. [u/s 139(1)]; Late [u/s 139(4)]; amended [u/s 139(5)], Nature of employment, etc.
Part B: Total gross income, which is taken from various sources on the reporting forms like salary, home ownership income, business or professional income, capital gain, income from other sources
Part C: Deductions and total taxable income, this contains various deductions under Chapter VI A of the Income Tax Act. Like 80C: Deduction for the life insurance premium, annuity, contributions to the contingency fund (PF), tuition fees, etc. The deduction limit is Rs 1.5 lakh with articles 80CCC and 80CCD (1).
80CCD (1B): Deduction up to Rs 50,000 for the contribution to the central government pension scheme (NPS).
80D: Medi-claim premium deduction. The premium paid up to Rs 25,000 is eligible for the deduction for people other than the elderly. For seniors, the limit is Rs 50,000 and the overall u / s 80D limit is Rs 1 lakh.
80DD: Deduction for support payments including the medical treatment of a dependent who is a disabled person. The maximum deduction limit under this section is Rs 75,000.
80DDB: Deduction in respect of expenses up to Rs 40,000 for the medical treatment of a specified disease of a neurologist, oncologist, urologist, hematologist, immunologist or any other specialist prescribed.
80E: Deduction of loan interest contracted for higher education without ceiling.
80EE: Deduction of interest up to Rs 50,000 on the loan taken out for the ownership of a residential house.
80EEE: Deduction of interest up to Rs 1.5 lakh on the loan taken out for certain real estate (on affordable housing).
80EEB: Deduction of interest up to Rs 1.5 lakh on the loan taken for the purchase of the electric vehicle.
80G: Donations to certain funds, charities, etc. depending on the nature of the gift, the limit varies from 100 percent of the total gift, 50 percent of the total gift, or 50 percent of the gift with a cap of 10 percent of gross income.
80GG: Deductions on rents paid by self-employed persons who do not receive housing allowance. The deduction limit is 5,000 rupees per month or 25 percent of a year’s total income, whichever is less.
80GGA: Full deductions for certain donations for scientific research or rural development.
80GGC: Total deductions in respect of donations to political parties, provided these donations are non-monetary donations.
80TTA: Deductions for interest on savings bank accounts up to Rs 10,000 in case of assessment other than senior residents.
80TTB: Deductions for interest on deposits up to Rs 50,000 in the case of senior residents.
80U: Deduction in case of disabled person. Depending on the type and extent of the disability, the maximum deduction allowed under this section is Rs 1.25 lakh.
Part D: Calculation of tax payable, Income Tax, Health and Education Cess, Refund u / s 87A and Interest u / s 234A, 234B and 234C of Income Tax Act are calculated automatically by the software income tax, whether online or offline or through any other software available in the market.
Part E: Other information, includes details of bank accounts with IFSC code and account number and has the person done any of the following, in the past year, – (i) hold, as a beneficiary beneficiary, beneficiary or otherwise, any asset (including financial interests in any entity) located outside of India; or (ii) have signing authority over any account located outside of India; or (iii) have income from any source outside of India [applicable only in case of a resident] [MakesurethatappendixFAisfulfilledheanswerisYes[EnsureScheduleFAisfilledupiftheanswerisYes[Assurez-vousquel’annexeFAestrempliesilaréponseestOui[EnsureScheduleFAisfilledupiftheanswerisYes
Apart from the above, we need to provide the details of the tax payment; like TDS which is captured automatically, however, we have to check with the 26AS return which provides details of any amount deducted as TDS or TCS from various sources of income of a taxpayer. Details of withholding tax and self-assessment tax payments –
And finally the Verification in the following format:
I, son / daughter of, …… solemnly declare that to the best of my knowledge the information given in the return and its schedules is correct and complete and in accordance with the provisions of the Income Tax Act, 1961. I further declare that I am making a return in my capacity as ___________ and that I am also competent to make this return and verify it. I hold a permanent account number (if assigned) (Please see instructions) I further declare that the critical assumptions specified in the agreement have been met and that all terms and conditions of the agreement have been met. (Applicable in a case where the return is provided under Article 92CD).
After filling out the ITR form, we do an online verification where the software verifies and correlates the information we provided. If there is a discrepancy, an error will be displayed and we will have to rectify it to move to the next level, i.e. electronic verification. You can check your returns online (electronic verification) using:
* OTP on mobile number registered with Aadhaar, or
* EVC generated via your pre-validated bank account, or
* EVC generated via your pre-validated demat account, or
* EVC via ATM (offline method), or
* Net Banking, or
* Digital Signature Certificate (DSC).
After the electronic verification now, one can download the copy of the RTI and the acknowledgment of receipt for the file. If the return is not electronically verified, take a copy of the receipt from RTI, sign it where specified, and send it to CPC Bangalore within 120 days of filing the RTI.
Disclaimer: The author of this article is Shankar Mishra, a chartered accountant with over 20 years of experience in direct and indirect tax and corporate law matters. (ANI)