Filing Your Income Tax Made Easy: Simple Steps for a Stress-Free Process

As a taxpayer, it's crucial to understand the different aspects of income tax.

Here are some key points that you need to know:

Taxable Income: Income tax is calculated on the taxable income of an individual. The taxable income is calculated by subtracting the allowed deductions and exemptions from the total income.

Income Tax Slabs: The Indian income tax system has different income tax slabs for different income levels. The income tax rate varies from 0% to 30%, depending on the income level.

Advance Tax: Advance tax is the tax that you need to pay in advance if your tax liability for the year is more than Rs. 10,000. It's paid in four instalments throughout the year.

TDS (Tax Deducted at Source): TDS is a system in which the payer deducts tax from the payment made to the payee and deposits it with the government. TDS is applicable to various types of payments, such as salary, rent, commission, etc.

Filing Income Tax Returns: Every taxpayer needs to file an income tax return at the end of the financial year. The due date for filing the return is usually July 31st of the assessment year. Filing returns on time can avoid penalties and interest charges.

Benefits Of Income Tax return Filing in Delhi, India

ITR Receipt is an important document: Having an ITR receipt is important because it is more detailed than Form 16, entailing your income and taxation along with revenue from other sources. Use as address proof: ITR receipt is sent to your registered address, which can serve as residential proof. Helps the bank loan documentation process easier: Being a diligent income tax filer makes it easier for banks to assess your source of income when you apply for loans like an auto loan, home loan, etc. “Banks usually ask for copies of tax returns filed for the previous 2-3 years at the time of applying for the loan to ascertain the income capacity of the individual. Hence, to apply for loans a tax return would be required to be filed, Compensate losses in the next financial year: Unless you file the ITR, you cannot recompense your expenses/losses in the previous financial year to the current.

As per the income-tax provisions, if tax returns are not filed on time, unadjusted losses (with some exceptions) cannot be carried forward to future years. Hence, to ensure that the losses are carried forward for future adjustment, a tax return would be required to be filed. Helps to avoid extra interest: If you don’t file ITR, the belated return could lead to extra interest at 1% per month for the remaining tax payable by you. For example, banks would deduct tax from interest on fixed deposits exceeding a certain threshold. To claim a refund of tax deducted by the bank (if any) on the interest income, a tax return would be required to be filed regardless of the taxable income. To buy an insurance policy with a higher cover: If insurance companies have reasons (non-compliance) to believe that you are a tax-evader, they will not give you policies with more cover.

Tips Related to File Income Tax Return online in India