Jan 11, 2021Other Loans
Filing income tax returns is important for every salaried employee, even if you don’t have any tax liability towards the government. The tax returns act as proof of income, which helps you to get access to various financial products like loans.
For the assessment year (AY) 2021-2022 or Financial Year (FY) 2020-21, the last date to file your income tax return is 31st December 2021. Therefore, before this date, you need to file your income tax returns or else you have to pay late fees.
Any person employed in a public or private enterprise, drawing monthly remuneration in the form of salary needs to file income tax returns. If you are confused or don’t know how to file income tax returns online, this blog is for you.
Before starting to file your income tax returns online, you need to calculate your total income for the financial year 2020-2021.
The Form-16 issued by your employer helps to find out the total income you have earned through salary and total taxes deducted from the source. But, if you have other income sources like capital gains, house rental income, then you need to calculate beforehand.
For salaried employees, there are two types of income tax return forms, ITR-1 and ITR-2. The ITR-1 is for individuals who have a total income of not more than Rs 50 lakh from salary. Those whose income has crossed this threshold and who wish to claim expenses under the head “income from other sources” should consider filing ITR-2.
You need to keep the following documents handy in digital copy.
If it is your first time filing your income tax return, then register yourself in the income tax portal using your PAN card and AADHAR card. For best results, please ensure that your mobile number is updated against your Aadhaar card, and that your bank account(s) are linked to your PAN, Aadhaar and mobile number.
Others who are registered on the portal can log in with their credentials.
Now comes the most important part in the process of filing an income tax return.
In the current tab, there are five tabs, which you need to validate. It consists of personal information, gross total income, total tax deductions, total tax paid and total tax liability.
Now, in the next step, after confirming all the details provided in the tax return form, click on proceed. A tax summary will be generated by the system, in which it will mention your total tax liabilities. In case, there is a refund, the system will register the request for a refund to the bank account. If there are any dues, you need to pay the amount.
Once all steps are completed, you need to preview the return and submit it. Post successful submission, you need to successfully validate the tax return electronically either through net banking or AADHAR OTP. Alternatively, you can also send the signed income tax return copy to CPC, Income Tax Department within 120 days of filing the tax return.
Compared to earlier times, filing income tax returns online have become easy and can be done without seeking the help of any professional. For any person, it is an important document and one should file an income tax return even if he/she doesn’t have any significant income. It comes in handy and allows you to negotiate a competitive interest rate when taking a personal loan for salaried employees.