Let us have a sneak peek into the Income Tax Returns of India. The Government of India creates India’s income tax laws. Individuals, Hindu Undivided Families (HUFs), corporations, firms, LLP, associations of persons, bodies of individuals, municipal authorities, and any other artificial juridical person are taxed on their taxable income by the government. The imposition of tax on a person is determined by these laws based on his residency status. Every individual who qualifies as an Indian resident is expected to pay tax on his or her worldwide income. Taxpayers must follow certain requirements while filing their Income Tax Returns each fiscal year (ITRs).
On the other hand, individual taxpayers in India pay income tax based on a slab structure. A slab system means that different tax rates are set for different income groups. It means that the tax rates continue to rise as the taxpayer’s income rises. This sort of taxation allows the government to have progressive and equitable tax systems. These income tax slabs are subject to change with each budget. These slab rates differ for different types of taxpayers.
Tax Slabs in India
As you already know, there are always changes in the tax slabs in India, and it varies from individual to individual. Here are is the tax slabs for the years 2021 – 2022:
Income tax slab and the new regime income tax slab rates, respectively.
- Rs.0.0 – Rs. 2.5 lakhs = NIL
- Rs. 2.5 lakhs – Rs 3.00 lakhs = 5%
- Rs. 3.00 lakhs – Rs. 5.00 lakhs = 5%
- Rs. 5.00 lakhs – Rs. 7.5 lakhs = 10%
- Rs. 7.5 lakhs – Rs. 10.00 lakhs = 15%
- Rs. 10.00 lakhs – Rs. 12.50 lakhs = 20%
- Rs. 12.50 lakhs – Rs. 15.00 lakhs = 25%
- Rs. 15.00 lakhs – more = 30%
Is it Mandate to File ITR?
According to Indian tax legislation, if your income exceeds the basic exemption amount, you must file an income tax return. The rate of income taxation is predetermined for taxpayers. A delay in filing returns will not only result in late filing fines but will also reduce your chances of obtaining a loan or a visa for a trip.
Here is a Step-by-Step Process on How to File ITR
If we look back in time, filing income tax returns is not as hard as it used to be back then. It is quite a hassle-free process.
Step 1: Log in to the Income Tax Department Website to file your Income Tax Returns, and register on the portal with your PAN.
Step 2: Go to e-filing under the applicable assessment year and choose the appropriate Income Tax Return (ITR) form under ‘Download.’ If you are a salaried individual, you should download the ITR-1 (Sahaj) return preparation program.
Step 3: Open the downloaded Return Preparation Software, follow the instructions, and enter all of the information.
Step 4: Calculate the tax payable, pay the tax, and input the challan data in the tax return. If you do not owe any taxes, you can skip this step.
Step 5: Confirm the information you submitted and create an XML file, which is automatically saved on your computer.
Step 6: Upload the XML file in the ‘Submit Return’ area.
Step 7: When requested, you can digitally sign the file. You can skip this step if you do not have a digital signature.
Step 8: Your screen displays a message verifying successful e-filing. The acknowledgement form – ITR-Verification – has been prepared and can be downloaded. It is also sent to your registered email address.
Step 9: You can e-verify the return using any of the six methods listed below:
1) Netbanking,
2) Bank ATM,
3) Aadhaar OTP,
4) Bank Account Number,
5) Demat Account Number,
6) Registered Mobile Number and Email Id The use of e-verification eliminates the need to send a physical copy of the ITR-5 acknowledgment to the CPC in Bengaluru.
You can Even Download Income Tax Return
It is critical to understand how to file an ITR on time in order to prevent last-minute stress and fines. The income tax verification form is generated by the IT department after you have filed your ITR so that taxpayers can verify the legality and legitimacy of e-filing. These only apply if you filed your returns without a digital signature.
In a few simple clicks, you can download the income tax return verification form.
By logging in to the income tax India website, and following the given steps:
View Returns>Forms option
Don’t Forget These Things Before you File your Income Tax
- Keep in hand your Aadhaar card and PAN card.
- You need your bank and post office savings to account passbooks, PPF account passbooks, and salary slips.
- Know the following forms:
Form 16 – When a TDS certificate is issued to you by your employer to give the details of the salary paid to you and the TDS deducted over it.
Form 16A – If TDS is levied on payments other than salary, such as interest from fixed deposits, recurring deposits, and so on.
Form 16B – If you have sold a property, from the buyer, demonstrate the TDS deducted on the money received to you.
Form 16C – From your tenant, in exchange for giving information on the TDS deducted on the rent you received, if any.
Form 26AS – Your consolidated yearly tax return It contains all of the information about the taxes that have been deposited against your PAN.
Conclusion
Filing your Income Tax Returns is not as hard as it used to be. It also means you cannot let it come in between your financial competency. Keeping the Income Tax Department updated about your income and taxability will, without a doubt, keep you on the right side on all financial aspects.
