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How to file ITR Online AY 2021-22

Introduction

This would be the first time that Rohan would be filing an ITR, and this is an income tax return which is a form that allows a person to record their income, spending, tax deductions, investments, and taxes, among other things. An efiling income tax return is a form used to disclose a taxpayer’s annual income. Rohan can find the proper measures to ensure that he files his ITR on time with these easy steps, especially with e file income tax.

Income and Tax Calculation

The estimate should account for all sources of income, including salary, freelancing, and interest income. A taxpayer should also consider credit for TDS, TCS, or any advance tax paid for e file income tax.

Certificates of Tax Deducted at Source (TDS) and Form 26AS

The taxpayer should total his TDS amount based on the TDS certificates he got for all four quarters of the fiscal year. Form 26AS summarizes the TDS and tax paid throughout the fiscal year to the taxpayer with e file income tax.

Select the appropriate Form of Income Taxation

The taxpayer must determine the income tax form/ITR Form with e file income tax used to file his income tax return. 

There are two filing options: online and offline. The online method is only available through the taxpayer’s login for ITR 1 and ITR 4; it is not available for forms for other categories of individual taxpayers. The offline option (creating XML and uploading) is available for all indian income tax e files.

Get the ITR utility from the Income Tax Portal.

Go to www.incometax.gov.in and choose ‘Downloads’ from the top menu bar for the indian income tax e file.

Homepage of the Income Tax Portal

Select the assessment year and download the offline utility software, such as Microsoft Excel, Java, or JSON, depending on your preferences. The income tax agency will terminate the Excel and Java utilities in 2020-21, so know before for indian income tax e file.

Fill out your information in the downloaded file. 

Fill in the required facts of your income and examine the tax payable or refund recoverable based on the utility’s calculations after downloading the offline utility. The downloadable form can be used to fill out the information of an income-tax challan for efiling income tax return.

Validate the Data You’ve Entered

A few buttons may be found on the right-hand side of the downloaded form. To check that all essential information is entered, click the ‘Validate’ button for efiling income tax return.

Convert the document to XML format.

After verifying the file, click the ‘Generate XML’ button on the right-hand side of the file to convert it to XML file format.

Insert the XML file into the Income Tax Portal.

Log in to the income tax e-filing portal and pick the ‘Income Tax Return’ option under the ‘e-File’ menu. Provide the required information, such as PAN, assessment year, ITR form number, and submission mode. Remember to select ‘Upload XML’ from the drop-down menu next to the field name ‘Submission Mode’ for efiling income tax return

The Income Tax Department has developed a new ITR filing system this year. Before you file your taxes, here is a list of tasks you should perform this year:

  1. Connect PAN and Aadhaar: The linking of PAN and Aadhaar is required. You cannot e-verify ITR using the Aadhaar-OTP option unless you have linked your Aadhaar and PAN. The deadline for PAN-Aadhaar linkage is September 30, 2021, with e filing of income tax return.

 

  1. Connect your bank account and PAN: Because refunds are immediately deposited to the taxpayer’s bank account, linking the PAN with the bank account. Furthermore, without linking your PAN to your bank account, you will be unable to start an FD or make a cash deposit over a particular amount before e filing of income tax return.

 

  1. Obtain Form 16/ Form 16 A from your workplace: For ITR filing, you must get them and verify them using Form 26AS and bank statements as you for e filing of income tax return.

 

  1. Determine the amount of capital gains tax you owe: After selling any capital asset, such as shares, mutual funds, residential property, gold, and so on, you must pay capital gains tax. You should keep track of your capital gains.

 

  1. Fill out Form 15G/ 15H and submit it: There is a provision for claiming a tax deduction for interest paid on bank accounts. However, if you do not have taxable income, you can avoid this tax deduction by completing Form 15G / Form 15 H. (whichever is applicable) for indian income tax e file. 
  2. Additional documentation is necessary: You should have a few additional documents on hand before submitting your taxes and before e filing income tax return. As an example:
  • The bank’s interest certificate
  • Dividend income specifics
  • Certificates of interest for house loans (if any)
  • Tax savings investments must be documented to file taxes.

 

Conclusion

Individuals must file ITRs if their taxable income exceeds Rs 250,000 per year. According to the Income Tax Rules, ITR filing is also required for persons who paid more than Rs 1,00,000 in energy bills or spent more than Rs 2 lakh on international travel within a fiscal year. Experts suggest, however, that even if a person’s income is below the taxable limit, they should submit a tax return. Filing a tax return has several advantages.

FAQs:

Who is qualified to submit ITR-2 for 2021-22?

Individuals or HUFs can submit ITR-2 if they:

Are ineligible to submit an ITR-1 (Sahaj)
Do not have income from business or profession profits and gains, and do not have income from business or profession profits and revenues.
Allow another person's income, such as a spouse or minor child, to be combined with their own.

What steps can I take to avoid problems with my ITR?

To avoid problems with completing your return and receiving your refund, make sure you have done the following:

Aadhaar and PAN were linked.
Pre-validated the bank account where you wish your refund to be deposited.
Choose the right ITR before filing.
Returns must be filed within the timeframes stated.

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