An individual must determine their net taxable income, complete the appropriate ITR form, and pay any necessary taxes in order to file an income tax return. Make sure the ITR filed is checked once all necessary taxes have been paid and it has been uploaded on the new income tax portal. After the ITR has been validated, the tax department will begin processing. If your income tax estimates differ from those of the income tax department, an alert will be issued to your registered email address once the ITR has been processed. If they are identical, the ITR filing process for that financial year is over.
If they don’t match, you either owe back taxes or have payments that need to be made. If you are entitled to an income tax refund, it will be credited to your bank account if it has already been pre-validated on the new income tax portal. If your income tax payment is overdue, the income tax agency will request payment plus any applicable interest.
How much must total taxable income be reported on an ITR?
To determine the amount of income tax a person owes, the total taxable income must first be computed. The total taxable income is broken down into the following five groups:
- earnings from salary
- revenue from a home investment
- Gains from capital investments
- income from a job or business
- earnings from unrelated sources
Income from salaries
Salary and pension income are included in the first head of financial information. The employee’s salary or pension is taxable under this area. Salary/pension slips or Form 16 (TDS certificate) can both be used to get information about the salary/pension you received during a specific financial year. A person’s salary or pension income qualifies for a number of tax deductions and exemptions. The housing rent allowance (HRA), leave travel allowance (LTA), etc. are tax-exempt. As long as they are paid by the employer, these tax exemptions will be available. Additionally, those who receive a salary or pension are also entitled to the standard deduction for such income.
Income from House Property:
The computation of any rental income from a house is done under the heading “Income from house property.” Self-occupied rent is a concept that is used to determine how much is taxable under the heading “revenue from house property.” Self-occupied housing is that which is occupied by the taxpayer personally. A house is on rent if it has been given for rent. A taxpayer’s home is “deemed to be on rent” if they own more than two residential properties and none of them are rented out.
The individual is qualified to claim a standard deduction at 30% of paid municipal taxes if the house is rented or presumed to be rented. The interest paid on the mortgage might also be deducted by the individual.
What alternative income tax regimes exist for submitting an income tax return (ITR)?
Individuals will be able to select between the old, existing income tax system and the new, reduced, concessional income tax regime beginning in FY 2020–21. An individual will continue to pay income tax at the current tax rates if they stick with the previous income tax system. Additionally, the person will be able to claim any tax breaks and deductions for which they qualify.
If a person chooses the new income tax system, their income tax will be calculated using the lower, concessional income tax rates. Be aware that choosing a new income tax regime prevents a person from claiming over 70 tax exemptions and deductions.
What paperwork is needed to submit an ITR?
Pre-filled ITRs are available on the new income tax portal. It is possible, nonetheless, for the pre-filled ITR to have mistakes. People must therefore verify the information. To double-check the information, the following papers must be gathered: Aadhaar number, bank accounts, Form 26AS, annual information statement (AIS), TDS certificates (Form 16, Form 16A), interest certificates (savings accounts, fixed deposits, etc.), and repayment certificates (if you have a home loan or education loan).
Can I fix errors that I committed when filing my ITR?
Yes, a person has the option to make corrections while filing an ITR. Under section 139(5) of the Income-tax Act, 1961, a person who makes a mistake must file an ITR afresh with the proper information. Unless the government grants an extension, December 31 is the deadline for filing a revised ITR.
What filing form do I need to use to file my income tax return (ITR)?
The sources of your income must be known in order to determine which ITR form applies to you. If a person has a salary, one residential property, and other income, they may file an income tax return using the ITR-1 form. But he or she cannot use ITR-1 to file an income tax return if his or her sources of income also include capital gains. If capital gains are included in the source of income, an individual must submit an income tax return using Form ITR-2.