Income Tax filing

Income Tax filing is good for both salaried and Businessmen. It is companies duty to deduct Income Tax according to their salary slabs and pay it to Income Tax Departments, at the same time it is the duty of the Businessmen to calculate their income every year and pay Income Tax accordingly. Employees working with companies Income There are many benefits of filing returns. It helps the Income Tax applicant to get help in all Government schemes and recognition in all fields. Income Tax filing is to be done every financial year from 1st of April to March 31.

For the year 2020-2021, the last day for filing Income tax returns is 31st December 2021 for individual taxpayers. Filing of return beyond the deadline can attract a penalty of up to Rs 10, 000.

By filing Income come tax returns, the applicant would come to know about various kinds of rules in Income Tax and various sections by which most of the Tax can be saved.

ITR filing due date for AY 2021-22 extended!

But you should not delay in filing the returns. 

Benefits of Income Tax filing :

• To get loans: your return shows your credibility
• To claim a refund of excess tax paid/deducted.
• To get the Visa processed
• To carry forward losses to future years
• To buy a high-value life cover

Benefits of e-filing the return of income:

• Saves time and effort.
• The e-filed returns are generally processed faster.
• Easy to maintain the copies of the Return Filed.

Paper returns can only be filed by those who are above 80 years of age OR by an individual or HUF whose income does not exceed five lakh rupees and who has not claimed any refund in the return of income.

What is a Financial Year?

The Financial Year (FY) is the year in which you can earn an income. 

What is Assessment Year?

The Assessment Year (AY) is the year following the FY in which the income is evaluated and filing is made.

Return of income:

• The Particulars of income earned by a person in a financial year and taxes paid on such income are communicated to the Income-tax Department through a return of Income.
• The return forms are known as ITR forms (Income Tax Return Forms).

 Income tax filing would be beneficial in many ways for the Income Taxpayers.  It would make the Taxpayer, accountable and help to save for the future also. Income Tax section 80C makes the Taxpayer save and use it in the future. On buying Health Insurance for self, family, and Parents the Taxpayer gets Tax-saving under Section 80D of the Income Tax Act.