20 Jul 2021, 12:03 — 6 min read
Income tax returns (ITR) is the form or forms explaining the details of income earned throughout the year of an individual or business with the Income Tax (IT) Department. According to the law, income tax returns need to be filed every year for an individual or business irrespective of whether they earn it through regular income, dividends, interest, capital gains, etc. The Income Tax department also has a specific date for filing returns, before which both individuals, as well as businesses, need to file their ITR. The IT department has a standard predefined worksheet based on which the tax liability of each assessee is calculated.
Most people see income tax filing as a burdensome obligation and often end up neglecting it. However, it is actually a moral and social duty of every responsible citizen. Although it is usually voluntary in nature, it could be mandatory in a few cases. It could prove very useful to file IT returns especially when one wishes to claim past losses or when the returns are being revised.
With the improved technology and digitalisation of every government department, ITR filing could also be done online. The process is quite simple. One can download the ITR preparation software for the relevant year from the official website and follow the instructions given by the software. Once the tax return is calculated, the assessee can pay the tax amount and save the document in XML format. Then by simply logging in to the official website, the saved XML file and the Digital Signature Certificate (if applicable) can be submitted online. With just a few steps, the IT returns could be filed online, easily.
However, there are certain common mistakes that need to be avoided while filing income tax returns, namely:
Although ITR filing could be seen as a dreary process, it is mandatory to follow the rules and avoid committing the above-mentioned mistakes.
Also read: Benefits of filing Income Tax Returns (ITR)
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Posted byVakilsearch Staff
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