After the Central Board of Direct Taxes (CBDT) extended the timeline for filing returns for FY 2021-22 to December 31, 2021, from the aforementioned September 30, 2021, you surely got a little relaxation. But filing the income tax returns correctly is a meticulous process, and you are advised to complete this carefully within the prescribed time. You can file your ITR online on https://www.incometax.gov.in/ in a few simple steps discussed below.
7 Steps to File Income Tax Returns Smoothly
With the launch of the new income tax portal, there is a chance of making mistakes. There is also a chance for the process to take longer than usual. So, follow the below steps to file your tax smoothly.
- Use the right ITR Form: The forms to file Income Tax Return are segregated based on annual income, sources of income, and residential status of assessees or individuals. You must fill in the right form that is exactly provided for your type of income and its sources. In case of any wrong submission, you will attract notices U/S 139(9) from CBDT for a defective return. Before you start filing your ITR, you must check all these details and then begin the filing process.
For instance, if you are an individual whose annual income is lower than Rs. 50 lacs and has no agricultural income over Rs. 5,000, you can fill the form-1 to e-file your income tax return. But you must not own more than one house, not have income under the heads “capital gain” or “Profit and gains of business or profession” or have unlisted shares of any company to use the Form-1.
- Add correct basic details: You must provide correct PAN and Aadhaar numbers while filing your ITR. Before you begin the filing process, you must assess your correct residential status. Also, before submitting, cross-check all the inputs to trace and edit errors if any.
- Provide correct contact details: In your income tax return form, you must provide correct and current communication details such as; your email id, residential address, contact number, etc.
- Report income from all the sources: Providing correct figures of the income from all the sources, based on your residential status is a must. If you have earned some income from fixed deposits, capital gains, mutual funds, equity shares or sale of any other asset, dividend income; all must be disclosed correctly in full and tax must be paid thereon.
Resident and ordinarily resident individuals are required to provide details of your income from foreign assets including overseas pension, ESOPs, foreign bank accounts, etc. If you claim any benefit under the double taxation system, it must be declared as well.
- Reconciliation of income in form 26A: For correct processing of returns, it’s important that you check all the details entered in your income tax return form and see if it matches with the details entered in form 26A. How much tax you have paid and the sum you are filing the return for should be in sync to not attract any notice from the tax department.
- Mentioning income from the previous employer: As an assessee, you must provide details of your total income for the previous year. If you changed the job, it should reflect in your income tax return form. Also, the standard deduction is restricted up to Rs. 50,000, you must apply accordingly. If you have a tax refund, you must provide the correct details of your bank account and IFSC code, so that your refund is surely credited.
- E-verify ITR: After the e-verification of the income tax return filed, the ITR filing process is completed for that it’s important that your Aadhaar and PAN numbers are linked, and the provided mobile number is active. E-verification is done through Aadhaar OTP, Net banking, Demat account, bank ATM or simply sending the signed physical copy of Form ITR-V to CPC Bangalore. After the verification is completed, tax authorities will consider the returns to have been filed.
Following the above details, you can complete the ITR filing correctly. In case of any error, you have the option to file a revised income tax return but within the prescribed time limit only.