Income tax return filing: Here's your step by step guide
The deadline for the filing of the income tax return (ITR) for the 2019-20 financial year has been extended to 31 December 2020. You will have to pay late filing fees of up to Rs 10,000 if you request your ITR after the deadline. Here is a step-by-step guide to how to e-file your ITR once you have registered on the e-filing website.
1. Collect the required documents
The first step is to gather all the paperwork you need such as Form 16, salary slips, and interest certificates, to file your ITR. Form 16, if tax is deducted from your taxable income, is a TDS certificate issued by your employer. Similarly, for TDS, Form-16A is deducted on payment of interest to you on fixed deposits.
2. Download Form 26AS and check.
Type 26AS is your tax passbook consisting of all the taxes that were deducted from your income during the 2019-20 FY and deposited against your PAN during the 2019-20 FY.
3. Rectify the Form 26AS errors, if any.
If the amounts indicated in the TDS certificates (Form-16, Form-16A etc and Form 26AS do not align, then to correct the errors, you must take up the subject to your deductor.
4. Compute total income for the financial year
When you have received all the necessary paperwork and checked all the taxes deducted from your revenue, you are required to determine the total taxable income.
5. Compute your tax liability
By applying the tax rates in effect for FY 2019-20 as per the income slab, you must measure your tax liability. For FY 2019-20, the revenue tax slabs and rates have remained unchanged.
6. Calculate final tax payable, if any
Deduct the taxes that have already been paid by you through TDS, TCS and Advance Tax during the year once you have calculated your tax liability in the earlier step. Add interest payable, if any, under sections 234A, 234B and 234C. Remember this year if your tax liability for self-assessment is higher than Rs 1 lakh and you have not paid the same before 31 July 2020, you will be charged a penalty.
7. File income tax return
You can start the process of filing your ITR once taxes are paid by you. If you want the tax department to claim any refund, you can do so only if you file your ITR. For every assessment year, the income tax department reports ITR forms.
8. Verification of ITR
You will not be required to send any documents to the tax department if you want to verify your tax return electronically. However, if you wish to physically verify your return, you will be required to send a duly signed ITR-V/Acknowledgment copy. After you file ITR, remember that you have 120 days to verify it.
9. E-verification acknowledgment
If you use an automated system to validate your ITR, you will obtain immediate confirmation from the tax department concerning the verification of your ITR. If you have sent ITR V to the IT department by mail, they will send you an email confirming that the IT department has received your ITR-V, i.e. your return stands confirmed.
10. IT department will process return after verification
The income tax department will start processing your tax return after the return is checked and also cross-check the information filled in. The IT department communicates the same thing to you by email once the tax return is processed. They can ask you to further clarify or correct the errors made in the event of any inconsistencies being found.
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