YOU NEED TO KNOW HOW TO FILE INCOME TAX RETURN CORRECTLY IN PUNE?
Introduction to Income Tax Filing in Pune
Income tax is a direct tax that individuals and businesses pay on their earnings to the government. Filing income tax returns is a mandatory requirement for most taxpayers in Pune, as in the rest of India. It is an annual process that helps the government collect tax revenue and enables individuals and businesses to report their income, claim deductions, and avail of benefits. Filing your income tax return accurately is essential to avoid penalties and legal complications.Visitofficialwebsite
Preparing for Income Tax Filing
Before you start the income tax filing process, it’s crucial to prepare by gathering the necessary documentation and understanding your financial situation:
a. Documentation and Record Keeping:
- Collect documents like PAN card, Aadhaar card, Form 16, and any Form 16A for other income sources.
- Maintain records of investments, bank statements, rent receipts, medical bills, and other supporting documents.
- Keep track of TDS certificates, if any.
b. Understanding Income Sources:
- Identify all your sources of income, including salary, rental income, business income, capital gains, and any other sources.
- Understand the tax implications of each income source.
c. Eligibility for Filing Income Tax Return:
- Check whether you meet the criteria for mandatory income tax return filing based on your income level.
Choosing the Correct Income Tax Form
The next step is to choose the appropriate income tax return (ITR) form. The choice of form depends on your income sources and status (individual, HUF, company, etc.). In Pune, most individuals with salary income file ITR-1 (Sahaj), while those with business or professional income may file ITR-3, ITR-4, or other applicable forms.
Filling Out the Income Tax Return Form
Once you’ve chosen the appropriate ITR form, follow these steps to fill out your return correctly:
a. Personal Information:
- Provide your personal details, including your name, PAN, Aadhaar number, and contact information.
b. Income Details:
- Report all your income sources in the relevant sections, such as salary, house property, business income, capital gains, and other sources.
- Declare any exempt income and other income sources.
c. Deductions and Exemptions:
- Claim deductions under sections like 80C, 80D, and 80G, if applicable.
- Report exemptions under sections like 10, 10A, and 10B, if applicable.
d. Taxes Paid:
- Provide details of any taxes paid, including TDS (Tax Deducted at Source) and advance tax.
- Calculate your tax liability and determine whether you are eligible for a refund or need to pay additional taxes.
- Sign and date your return form. You can file electronically by using an Electronic Verification Code (EVC), Aadhaar OTP, or other methods, or by sending a physical ITR-V to the Centralized Processing Center (CPC) in Bengaluru.
How do I file my income tax return in detail
- Who has to file ITR.
- Collect Documents/Information.
- Check ITR form.
- Login to file ITR.
- Fill the Form.
- Claim Deductions.
- Pre-validate Bank Account.
- ITR Verification.
What happens if we file ITR incorrectly
Section 139(5) of the Income-tax Act, 1961, allows taxpayers to file revised income tax returns if they have made a mistake while filing their ITR. Under Section 139(5), if an individual after filing their tax return, discovers any omission or wrong statement, then he/she can furnish a revised return
What is TDS in income tax
TDS or Tax Deducted at Source is income tax reduced from the money paid at the time of making specified payments such as rent, commission, professional fees, salary, interest etc. by the persons making such payments. Usually, the person receiving income is liable to pay income tax.
E-Verifying Your Income Tax Return
E-verification is a convenient and secure way to confirm the accuracy of your income tax return. You can e-verify using one of the following methods:
- Electronic Verification Code (EVC): This is a 10-digit code sent to your registered mobile number and email address. It can be generated on the e-Filing portal.
- Aadhaar OTP: Use the OTP sent to your registered mobile number linked with your Aadhaar.
- Net Banking: If you have internet banking, you can e-verify through your bank’s online platform.
- Bank ATM: Visit your bank’s ATM and use the ATM-based e-verification method.
- Demat Account: E-verify using your Demat account, if you have one.
- Bank Account Number: You can use your bank account number for e-verification
What is the best time to file ITR
As most people do, it’s more efficient if you do it early rather than during the far end of the year. The first date you should remember is 31st July. You must file your income tax returns (ITR) for the financial year ending 31st March by 31st July of the same year.
Benefits of Filing Income Tax Return Correctly
Filing your income tax return correctly offers several advantages:
- Compliance with tax laws and regulations.
- Eligibility for loans and visas, as an updated income tax return is often required.
- Refund of excess taxes paid.
- Avoiding penalties and legal issues.