Income Tax Return
7 Points You Must Know About Income Tax Return
1. Correct Income Tax Return Form Selection :
You must file your Income Tax Return using the correct form. In other words, if you file using the wrong ITR form, it will result in the rejection of your ITR.
2. Cross-checking of Figures with 26 AS:
We must check the figures mentioned in the Income tax return with the form 26 AS generated by the income tax website. Both the figures must tally, Otherwise, it will result in a notice from the department.
3. Outstanding Demand :
You must check any demand raised by the department by clicking the relevant section of the website. In other words, If you are unaware of the demand, then the interest in this demand will keep increasing with time.
4. Personal Assets and Liabilities :
If you are a salaried employee with a total income of more than Rs.50 Lacs, you must correctly mention your assets and liabilities in the ITR form. However, in many cases, a salaried person tends to forget this column or fill it incorrectly.
5. Next Year Tax Planning :
When you file your income tax return, you come to know the various ways you could have saved your taxes but missed them. By the way, this is the right time to sit with your consultant and ask him about the tax planning tips you can implement in the coming year.
6. E-Proceeding Tab :
It is a good practice to check your E-proceeding tab so that you don’t miss any important mail or communication from the department. This tab contains all records of any notice or communication sent to you by the income tax department.
6. Correct Deductions :
Before filing your return, you must cross-check that you are claiming all the available deductions correctly.
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FAQ`s About Income Tax Return
1. What is EVC in ITR?
The acronym EVC stands for Electronic Verification Code. It is a 10-digit alphanumeric code that the income tax department sends to your registered mobile. In the context of ITR, it is used for electronically verifying your income tax return. You do not need to sign the income tax return acknowledgment and send it by post after verifying by this method. So, it makes the verification process simple and effective.
2. What is ITR v means?
The acronym ITR-V means Income Tax Return Verification. This is a one-page summary of your return which you need to sign and send to the income tax processing office in Bangalore. However, you can do electronic verification by using a digital signature, Aadhar OTP, or through Net banking. But if you don’t verify it, the return will be treated as invalid.
3. What is ITR acknowledgement download procedure?
To download the ITR acknowledgement we need to perform the following steps:
1: Log in to the Income Tax website with your PAN number and password.
2: Click on “View Returns / Forms”> “Income Tax Return” > “Assessment Year”. Click “Submit”.
3: Click on the acknowledgment number link which you want to download.
4:Now, your required ITR-V is downloaded.
4. What is the penalty for late filing of income tax returns?
The amount of penalty depends upon your total income.
The penalty is Rs.1000 if the total income is below Rs. 5 lacs and,
If the total income is Rs. 5 lacs or more, then the penalty is Rs.10000.
5. What are the benefits of income tax returns?
There are many benefits to filing an ITR. Some of them are:
1. Easy loan approval from the banks.
2. Quick Visa Processing.
3. Carry Forward of Losses.
4. Works as Income Proof
5. Easy returns if you paid extra taxes
6. What is ITR 2?
ITR-2 is a type of income tax return form, which can be used by individuals and HUFs who are ineligible to file Form ITR-1. Also, there should not be any income under the head profits and gains from business or profession to use this form.
7. What is the income tax return filing date?
The income tax return filing date for FY 2020-2021 has been extended. The new due dates are as follows:
a. Non-Audit Cases (General Due date): 31.12.2021
b. Audit Cases: 15.02.21
c. Transfer Pricing Cases: 28.02.21
8. What is ITR 4?
ITR-4 is a type of income tax return form, which can be used by individuals, HUFs, and firms (other than LLP). Further, to use this form, they must be residents of India, have a total income of up to ₹ 50 lacs, and have income from business or profession computed under section 44AD, 44ADA, or 44AE.
9. What is ITR 3?
An individual or HUFs can use the ITR-3 return form. But to use this form, they must have income from profits and gains from business or profession. Apart from income from business or profession, their income may also include income from house property, Salary, Capital gain or Income from other sources.
10. How to e verify ITR?
You can e verify your ITR in any one of the following ways suitable to you.
a. Aadhar OTP
b. Net Banking
c. EVC on Income Tax Website
11. What is ITR 1?
Only a resident individual can use the ITR-1 form. Further, to use this form, the total income must be less than Rs.50 lacs and from the following sources only :
1. Salary Income
2. Income from one-house property
3. Income from other sources (excluding winning from lotteries and income from horse races)
4. Agriculture income up to ₹ 5,000.
If the total income is 50 lacs or more then this form can not be used.
