ITR Filing: Things You Must Know Before Filing Returns

26 May

The time is coming when people rush to file their income tax returns (ITR) for the financial year. Income tax returns filing can be an arduous task as it requires patience and time, one can opt for income tax filing services. The tax is even more complicated for those who are earning from more than one source and also for first-time filers.

Here are some key points that can help you understand the process and help you in income tax filing online without any errors.

income tax filing online: Why filing ITR is necessary?

It is mandatory to declare details of income to the tax department, this help in asses the amount you need to pay as tax for a particular year. Declaration of income under ITR also helps to avail deductions in taxation and then claiming refund for any additional amount that might have been deducted at source earlier. Declaration of income via ITR filing is necessary as the tax department can impose a fine and even send individuals to jail in certain cases.

income tax filing online

Who need to file ITR?

An individual whose gross annual income exceeds the taxable limit needs income tax filing online. The current tax exemption threshold is Rs 2,50,000. The limit is Rs 3,00,000 for senior citizens and Rs 5,00,000 for super senior citizens above 80 years. The tax department, advises all individuals to file a return as it helps them in keeping a clear record of the total taxpayer base.

Know your ITR slabs

People earning anything between Rs 2,50,001 and Rs 5,00,000 fall under the 5 per cent category while those earning over Rs 5,00,000 to Rs 10,00,000 fall under the 20 per cent tax slab.

Income above Rs 10 lakh will be taxed at 30 per cent; between Rs 50,00,001 and Rs 1 crore are required to pay an additional 10 per cent surcharge. People earning more than Rs 1 crore but less than Rs 2 crore will have to pay a 15 per cent besides the 30 per cent base tax. Those earning between Rs 2 crore and less than Rs 5 crore will have to pay a 25 per cent and whose incomes exceed Rs 5 crore will have to pay a surcharge of 37 per cent. 4 per cent additional cess also applies to all income groups except who are earning up to Rs 2.5 lakh. Full rebate of Rs 12,500 can be claimed by people whose net taxable income do not exceed Rs 5 lakh.

Why you should file ITR online ?

The process of filing ITR, income tax TDS return filing has become far simpler. The process of filing offline is complex as compared to the online as it requires pinpoint accuracy. Filing online also help you get a quick acknowledgment of filing returns, thus reducing chances of making mistakes and ensures utmost privacy. Therefore, most tax experts recommend filing ITR online to complete the process in one go, E M S Tax Filing Solutions provide various services for your comfort such as income tax filing services, GST filing services, GST return filing services, and more.

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