A step-by-step guide to file tax return. This post explains in detail how to file your tax returns online while seated comfortably at home/office. Here are some simple steps to get your tax figures right...
Step 1:
Few warm-up questions before start!
Q. I have a permanent account number (PAN). Do I still need to file I-T return?
A. Just having a PAN number does not mean that you need to compulsory file your tax return. As per Income Tax Act, you are required to file a “Return of Income”, if your taxable income exceeds Rs 2 lakh in a particular financial year. However, you need to have a PAN in order to file tax returns. It’s like having a driving licence does not mean that you have to compulsory drive but if you want to drive then you must have a driving licence.
Q. Who needs to file Income Tax return?
A. As seen above, everybody earning more than basic exemption limit need to file his or her return and till last year, two assessment years salaried taxpayers earning less than Rs5 lakh p.a. and having income from interest less than Rs10,000 p.a. were exempted from filing Income Tax return. This said exemption is not extended to this assessment year as seen in my previous article.
Q. What are the benefits of filing income tax returns (ITR)?
A. Filing returns or not has never been a choice as it’s a legal obligation and must be fulfilled by everyone who falls under the prescribed category. Though apart from a legal obligation, filing tax return is always helpful in the following situations:
- For availing loan facility like home, or personal.
- For visa and immigration processing
- You can use it as an income proof/ Net worth certificate
- For claiming excess tax paid via refund
- Applying for a higher insurance cover
- And last and most important is your peace of mind
