ITR Filing basics Every business organization and individual earning taxable income has to file the income tax returns. A tax return is the for m or set of forms filed with the income tax department; that reports income, expenses and other pertinent tax information. It is mandatory to annually file the ITR by the businesses and individuals with reportable income; that includes wages, interest, dividends, other profits or capital gains.
Filing of the income tax return is not a cake walk affair. There are chances that one can commit mistake while filing the returns. Some mistakes committed will be beyond repair and might cause good damage to your earnings and business as a whole and while some errors mi ght invite legal enquiries too. It is therefore imperative to hire professional ITR filing expert to file income tax return for your business. Filing of ITR in time has its own rewards. The very first thing one must know is the income sources. The next thing being to find out which part of the income is taxable say income tax is applicable on basic salary, bonuses etc and the housing rent allowance is not taxable. The next vita part is identifying the deductions. If you have invested in saving schemes, insurance policies etc, you are eligible for the deduction in income tax. The experienced ITR filing expert; will identify all your sources of income, will find ones are taxable and which are exempt. He/she will then calculate the taxable income; which is the balance of all the taxes; which you are eligible to pay and the taxes you have pai d by the end of financial year. The filing expert will adjust any difference and in case you have paid more, you will be liable for refund; else you have to pay the difference. ITR can be filed online. One has to keep all the documents ready and fill the accurate details by clicking the ‘Pre-fill’ option. Once all the details are filled, click on the calculate button to find the liability of the tax. The final amount is either refundable or payable. However, it must be noted that the ITR form has to be filled accurately and with correct details. Certain aspects should be k ept in the mind before filing ITR: 1. 2. 3. 4. 5. 6. 7. 8.
Keep all the required documents like TDS certificates, capital gain statements ready. Download and check for Form 26AS If there are any errors, rectify those errors in Form 26AS Calculate the total income for the financial year Calculate the tax liability by applying the tax rates in sync income slab and rates mentioned. Then calculate the final tax payable. Filing of income tax return after all the taxes are paid Verify the ITR