HOW TO PREPARE AND E-FILE YOUR INCOME TAX RETURN?

HOW TO PREPARE AND E-FILE YOUR INCOME TAX RETURN? Every year ITR needs to be filed if income is exceding the taxable limit.In this Article you will come to know about  How To Prepare And E-file Your Income Tax Return, Documents Required To File Income Tax Return, The Process To Set Off The Tax Liability And To Claim The Tax Refund, ITR Acknowledgement LATEST UPDATE: On 9th September, 2021 CBDT has issued a circular regarding the extension of timelines for some direct tax compliance for Assessment Year 2021-2022. 1. Due date for filing ITR:

• ITR filing which is not covered under audit is increased from 30th September 2021 to 31st December 2021.
• ITR filing which is covered under audit is increased to 15th February 2022.
• ITR filing which is related to transfer pricing is increased to 28th February 2022.
• ITR filing which is related to Belated or Revised Return for Financial Year 2020-2021 is increased from 31st December 2021 to 31st March 2022.

2. Audit Report:

• Last date for filing the Audit Report is increased to 15th January 2022.
• Last date for filing Audit Report which is related to transfer pricing is increased to 31st January 2022.

Process of Income Tax Return is as follows:

STEP NO	DESCRIPTION OF STEP
1	Calculate the Income of taxpayer and tax which is applicable as per the slab rate.
2	Summarize TDS (Tax Deducted at Source) Certificates and Form 26AS.
3	Choose the correct form for Income Tax.
4	From Income Tax portal download the ITR utility.
5	Fill in your all the details in the form which was downloaded in step 4.
6	Check whether your information is correct or not by clicking on the button ‘validate’.
7	Now you have to convert the file to XML format.
8	Upload the XML format file on the portal of Income tax.

DOCUMENTS REQUIRED TO FILE INCOME TAX RETURN:

For salaried employee:

For salaried employee they need furnish the following documents for filing the Income Tax Return in India:

• PAN;
• Form-16 that is issued by employer;
• Salary slips that shall be monthly.

Document for income that is related to interest:

• Bank statement/passbook for interest on saving account;
• Interest income statement for fixed deposit;
• TDS certificate issued by bank or others.

Form 26AS: This form gives details of tax deducted by deductors on your behalf. It contains details like tax that is deposited by taxpayer and tax refund received in financial year.  Section 80 Investment: The investment that are made under ELSS, NSC, PPF, LIC and ULIPS are qualify for deduction under Section 80C of the act. So, you have to make sure that you have all the slips for all the investment that is made for tax saving purpose. Documents that are required to claim the following Expenses as deduction:

• Your contribution to provident fund;
• Your children’s school tuition fees;
• Life Insurance Premium payment;
• Stamp-duty and registration charges;
• Principal repayment on your home loan;
• Equity Linked Saving Scheme/Mutual fund Investment;
• The maximum amount that can be claimed under Section 80C is Rs. 1.5 lakhs.

Other documents for investment:

• Education loan payment;
• Stock trading statement.

HOW TO CLAIM THE INCOME TAX REFUND:

PROCEDURE:

A taxpayer can claim the refund of the extra or excess tax which is paid or it is deducted during any financial year of the income tax returns for that particular year. First, the taxpayer has to calculate the tax liability for the amount shall be refunded.  Then the payment shall be made which is really simple process. The payment for this can be done by cheque or it can be direct credit to the bank account.