The government provided relief to taxpayers by extending the deadline as the nation is suffering from a frightful coronavirus pandemic. Filing ITR ( Income Tax Return) this year is extended to 30th September 2021 for Financial Year 20-21. Therefore it is essential to keep in mind some points before you do ITR Filing. In this article, we will discuss all these 5 major points.
Decide the Best Option before filing ITR
Budget 2020 established a new tax system that allowed taxpayers to pay tax at reduced rates.
Furthermore, If taxpayers do not claim deductions or exemptions, they may choose to pay tax under the new tax system.
However, experts advise that you, as a salaried taxpayer, plan your tax-saving investments. Besides, It is now feasible to do so for the upcoming financial year 21-22.
Additionally, the new tax system may provide you with a lesser fiscal responsibility when you have not made any tax-saving investments and have no gross income deductions.
Club the Spouse’s or child’s income to taxpayers’ income
There may also be instances in which the income of the taxpayer’s spouse or minor kid might be clubbed on taxpayers’ income, per tax regulations. Essentials point to keep in mind before filing ITR this year. Therefore, It is appropriate to utilize the right return form to file the income return in such a circumstance.
Maintain all the necessary documents in Advance
Taxpayers should collect the provision of a loan certificate and the sale and the acquisition deed (in cases of any sale of assets during the year) for the income earned during the year to avoid haste while filing returns. Moreover, It is advisable to collect the necessary documents such as
- bank statements for the fiscal year,
- Aadhar and Pan Card
- Month-wise salary slips
- interest income statement for fixed deposits.
- TDS certificate issued by banks and others.
- form 26AS and Form 16 etc.
Important Note: All supporting documents and forms must be retained for a few years so that they may be given to tax authorities in the event of any questions being made for the financial year.
Consider Filing ITR online
Filing ITR Online with the assistance of Taxpayers is seamless and minimizes errors considerably. Offline filings can be prone to errors. Besides, taxpayers get quick confirmation of filing, both at the time of filing and afterward, via email on your registered email id. Last but not least, – e- filing ITR facility is available 24/7, and you can file anytime, anyplace, as per your comfort.
Evaluate your Residential Status through ITR
Knowing your Residential Status in India is very important before filing ITR. The reason is taxation on Income depends on your residential status too. For instance, if the taxpayer’s physical presence in India is less than 182 days and is a citizen of India but leaves India in any financial year for employment outside India, it may come under NRI(Non-Resident of India) Status as per the ITR Rules.
Consequently, if an individual qualifies as a non-resident of India, he or she will be liable to pay tax only on his Indian sourced income or any income received in India.
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