TYPES OF INCOME TAX RETURN AND ITS BENEFITS: Hey guys, How are you? Today I am welcome you all on Income Tax Return topic but some different subtopics on it because I had already Posted it’s part 1. You can say that topic is same but contents are different. Here we will cover the types of ITR and different types of benefits of filing ITR every year. So guys stay connected to our website to know more about these things.
Income Tax Return Extended Filing Deadline
I know guys that many of you not filed their ITR till the time due to any reason. You are also in fear about the late charges fee or news about the extended date of filing ITR. So friends do not get panic. Here is the good news for you. The Central government has now extended the deadline for filing the income tax returns for the Assessment year 2021-22 to March 15, 2022 due to the difficulties faced by taxpayers in filing return in the electronic mode. We cannot say that it is the last date because if difficulties are still there then this date may be extend for more days but for now this is the last date.
Different Types Of ITR Form.
On the Official website of the Income Tax Department lots of forms are listed. Taxpayers are required to fill according to their income. Some of these forms are very easy to fill but others require additional disclosures like your profit and loss statements. The Some major types of Income Tax Return forms are as follows but this list is not limited only to these-
ITR- 1 is file by the individual who is resident (other than not ordinarily resident) and who have total income up to Rs.50 lakh from the sources like Income from Salary, house property, Interest etc. and agricultural income up to Rs.5 thousand.
This form is filed by Individuals and Hindu undivided families ( HUFs) who do not have income from profits and gains of business or any profession.
In against to ITR-2 This form is filed by individuals and HUFs who have income from profits and gains of business or from any profession
If business of any person attracts presumptive income then that person need to fill this form. We can say this form is filed by Individuals, HUFs and Firms (other than LLP) having total income up to Rs.50 lakh and have income from business and profession which is computed under sections 44AD, 44ADA or 44AE.
Benefits Of Filing Income Tax Return
Filing ITR is not just a normal responsibility but it is a social responsibility. It offers lots of benefits to the person who files it every year. Some of the major benefits of filing ITR are discussed below-
1. Claiming A Tax Refund
Certain passive income like term deposit interest or dividend income suffers tax withholding. Most of the individual taxpayers having only these kind of income therefore they are required to file the tax returns for claiming refund of taxes.
2. Processing Of Documents
ITR is a key document for the purpose of processing applications for various purposes. For example, when we are applying for any type of loan like person loan, bike loan etc. bankers demand the copy of ITR filed to verify the individual’s sources of income. Income tax return also helps in processing of documents for obtaining credit cards, insurance policies, etc.
3. Application For VISA
When an individual plans to do business in any foreign country in the world the immigration authority demand copies of tax returns filed in the past. The copies of tax return filed helps in smooth processing of VISA applications. It is observed that certain embassies like the US, Canada, the UK, etc. are particular about the tax return records of the individual.
4. Claiming Losses
Filing of tax return within the due date is necessary to claim specified losses (such as losses from capital gains, business, or profession, etc. ) for an individual taxpayer. Filing ITR not only benefit the individual to claim the losses carried forward in future years but it also serves as a document to track losses that can be claimed in the future. For example, an individual taxpayer who makes a profit from the sale of mutual funds or equity shares but he or She has incurred losses in past then in this case he / she can adjust these profits with losses incurred in the past by filing tax returns within the timeline.
5. Serves As Proof Of Income
Self-employed taxpayers do not have any proof of income like a salaried individuals have. A salaried employee receive a salary certificate in Form 16. Therefore, the ITR serves as a proof of income for these self-employed taxpayers with detailed explanation of income and expenses incurred by these individuals in any financial year.
What Is E-Filing Of Income Tax Return (ITR)?
The Process of filing Income Tax Returns (ITR) by using the internet is called E-filing. The process to e-file ITR is quick, easy, understandable and comfortable i.e. can be completed from any where like home or office of an individual. E-filing ITR also help in saving money as well as time because we are not require to hire an individual to file ITR.
Note: Now we can file our taxes through the New income tax portal. The New portal comes with a plethora of features and is designed to ease the tax filing process.
Steps Of E-Filing Of ITR At New Portal
1) Take a visit on e-filing website https://www.incometax.gov.in/iec/foportal
2) Click on Register or Login to e-file of return.
3) If we are already registered on the portal earlier then click on the ‘Login Here’ button. But in case we are not registered on the portal then click on the ‘Register Yourself’ button.
4) Now Click on ‘Taxpayer’ and then enter the details of your PAN and click on ‘validate’. After that click on ‘Continue’.
5) Here fill your personal details such as your name, address, gender, residential status, date of birth, etc.
6) At this step you need to fill your Email ID and registered mobile number.
7) Once the form has been filled up properly then take a look towards the details filled so that chances of mistake can be avoid, then click on ‘Continue’ option.
8) You will receive a 6-digit One Time Password (OTP) on your registered mobile number and Email address.
9) Enter the OTP and follow the instructions given to complete the registration process successfully.
10) After verification of OTP, a new window will open where we have to verify the details provided by us. In case detail given is incorrect then here we can change it and for this another OTP will be sent to validate the change.
11) The final step is set up a password and secure login message.
12) Click on ‘Register’ in which we will receive an acknowledgment message stating that the registration process has been completed successfully.
I hope guys this article will give you lots of information about Income Tax Return. Friends, if you have any kind of query or suggestions regarding this topic then feel free to drop a message in the comment box. I will definitely resolve all your queries and will work on your suggestions.