If you are filing your tax return online for the first time, then you might get confused. Today, we are going to tell you some Income tax Return filing tips, which can be of great help while you file your returns without making any errors. So, remember these things while filing your income tax return form.
Choosing The Right Form
There are seven different kinds of forms available for you to select from. You have to know which one is applicable to you and select the right one according to that. Some of these are just for specific companies and trusts, while others might be applicable to certain individuals or Hindu Undivided Families (HUF). Most of all, the Central Board of Direct Taxes (CBDT) has released new forms for the assessment year 2020. Some of the previous forms have been replaced as well making it, even more, important to choose the right one.
ITR Filing made Easy
If you miss the specified deadline, then you will have to pay a late fee depending on your income. Wherever you always have the option of filing a belated return. However, it is not the right thing to do, a belated e tax filing for the financial year 2019 can be done within 31st March 2021.
TDS And Rent Paid
If you are a tenant paying rent above 50,000 INR a month, you will have to subtract 5% in the form of TDS. However, you won’t be able to show it as your own tax liability during e tax filing, this has been made compulsory by the central authorities. You also require to keep in mind that your landlord will get the credit for TDS paid
Income Tax Return
You might be working as a salaried employee in a company that subtracts a specific amount in the form of TDS each month. Even if Form 16 is issued, it does not release you of your responsibilities to pay your taxes. You have to figure out if you are applicable for income tax e-filing and according to that choose the related form to file your returns with the Income Tax Department of India.
Income Tax Rates
The income tax rates differ depending on your income bracket. If your income is 2,50,000 INR or less, then the tax rate will be 0%. If it lies between 2.5 lakh- 5 lakh INR, then the tax rate will be 10% of the amount exceeding 2.5 lakh INR. The tax rate will keep increasing after this. For example, if your income falls between 5-10 lakh INR, the tax rate will be 20% of the amount exceeding 5 lakh. Similarly, for income above 10 lakh, the tax rate becomes 30% of the amount exceeding 10 lakh. This however is not applicable to you if you are a senior citizen.
Income tax e-filing can prove to be a tedious procedure because of regular changes in the forms. With more columns and tables being added for making sure the better presentation of information related to the sources of income it becomes all the more necessary to know these Income Tax Return filing tips in detail. Alternatively, you can also take the assistance of tax advisory firms if you are not feeling very confident about doing it by yourself.