Owning the COVID-19 pandemic, the finance ministry of India has extended the timeline for tax returns for the filling of FY 2019-20. There has extension and updates in income tax slab for financial year 2019-20.
On account of the extended timeline, taxpayers will be able to avail the benefits of savings and investments made between 1st April 2020 to 30th June 2020 for the income tax return filling.
Return of income can be filed either online or manually with the income tax department. The era of the internet has made everything convenient. A question is frequently asked – how to file it return online? With the advent of technology, online return filing has become an easy and hassle-free process. Various websites provide assistance for income tax online filing and making payment of taxes.
Process for Submitting Income Tax Form 2020-21 and Filing Your Return of Income
- Register yourself on http://www.incometaxindiaefiling.gov.in
Provide the requisite details such as your PAN card number, Aadhar card number, registered email id, etc.
Finally, you will be provided with a username and password.
- Log into your account and download Form 26AS. Form 26AS contains details of TDS and advance tax paid, credit of which should be considered while calculating the tax liability.
- Download the income tax return form. ITR is based on the heads of income which forms part of your total income. Typically, these would include salary, income from house property, profits and gains from business and profession, capital gains and income from other sources.
- Fill in the requisite details as required in the ITR. This would include:
- General details such as name, PAN card number, Aadhar card details, residential status, address, date of birth, email id, etc.
- Gross Total Income which includes all heads of income earned in the previous year.
- Deductions under Chapter VI-A arising on account of investment in endowment insurance, ULIP, medical insurance, donations, contribution to the pension fund, etc.
- Computation of Total Income after considering rebates and reliefs which can be availed. Due consideration must be given to deduction under section 10AA for SEZ units.
- Other Information consisting of details of income tax paid and TDS paid, pending proceedings, etc.
- Finally, the Digital Signature Certificate is uploaded. In case the taxpayer does not have a digital signature, he must download the requisite ITR and sign it manually. Further, it must be sent to CBDT in Bangalore within 120 days of submission of form online.
- Any tax payable can be paid online through Net Banking or card payment. Refund is processed and sent at the taxpayer’s official address.
- Income tax must be paid on or before the due date of payment for each taxpayer. Failure to pay income tax may result in levying interest and penalty by the department. However, the department is empowered to condone delay for just and equitable reasons.
- Department can proceed with scrutiny or best judgement assessment if the taxpayer fails to file the return of income on or before specified due date.
Tax returns are required by banks or borrowers to assess the creditworthiness of any taxpayer in order to grant loans. It also helps taxpayers to claim income tax benefits arising from ULIPs, endowment insurance, tax saving schemes, insurance policies, donations, tax saving mutual funds etc. Further, it enables the government to ascertain the income accruing to its citizens and the corresponding tax thereon.
Hence, in conclusion, it is essential to file timely income tax returns.