Every earning individual in India must mandatorily pay taxes as per the country’s laws. This includes the salaried man, Limited Liability Partnership (LLP), firm or association, Hindu undivided family (HUF), and local authorities. Taxes payable are calculated as per one’s annual income, which is declared to the government by filing your income tax return (ITR).
Proper documentation of income and taxes payable is essential for every earning individual. Failing to do so can lead to serious repercussions and penal actions. The ITR forms, consisting of your financial records of the previous fiscal year, are expected to be submitted by June-July every year.
You filed your taxes on time and did everything that was asked of you. But you still haven’t received your tax returns? You can do more than just wait. Here are some things that you need to check:
Your first step is to check if your file has been processed yet. You will receive a return only if the tax department confirms that you are eligible for it.
If your ITR has been processed and you are eligible for a return, but you haven’t received the amount yet, then check your refund status. To do this log on to NSDL’s official website.
Now all you need to do is enter your PAN (Permanent Account Number) Card details, relevant assessment year, and captcha. Then click on submit and the status of your refund will be displayed on the screen.
It is possible that the refund has been delayed due to a bank account pre-validation error. To check this, open the e-filing portal and click the ‘My Bank Account’ option in your profile section. Similarly, if your PAN Card is not linked to your account, it can result in failure to receive the amount.
If you have any pending outstanding demand from the previous fiscal year, then it is likely that you will not receive your return. In this case, your returns will be used to adjust your pending payment. But don’t worry, you will be informed through an intimation notice as per Section 143(1).
If you have never filed your ITR and want to educate yourself, then please continue reading:
Not filing your ITR can lead to penalty and repercussions.
To learn more, check out: Repercussions of Not Filing Your ITR in 2022
To avoid penalty, let us understand how to properly file an ITR. You can contact your financial advisor to help you with the process or do it yourself online.
For the e-filing process, you need the following documents:
At some point in their career, every individual has heard of Form 16, but what exactly does it contain? As per the Income Tax Department, Form 16/16 A is the certificate of deduction of tax at source (TDS) and is issued on behalf of the employees by the employer. This certification validates financial deductions and helps not just in ITR filing but also in clearing tax credits and visa processing.
Form 26AS is a statement that has details of any TDS or tax collected at source (TCS) deducted from other income sources of a taxpayer. Simply put, it shows details of the sale/purchase of cash deposits, mutual funds, immovable property, or withdrawal from the savings account, etc.
With advancing technology, government processes have also become easier, hassle-free, and convenient. The online application for ITR has helped taxpayers complete the procedure in a quick and simple manner.
Once you have your documents ready, you can move onto filing. The steps to filing an ITR online are as follows:
If you are not liable to pay any additional tax, skip this step.
Following this, a message stating the successful completion of e-filing will show up on your screen. The ITR-Verification will then be sent to your registered email ID. You can e-verify your return without having to send the physical copy to the Centralised Processing Centre (CPC) in Bengaluru. This can be done through bank ATM, Aadhaar OTP, net banking, bank account number, Demat account number, or via your registered email ID and mobile number.
Receiving a certification from the Income Tax Department is important for your finances. It acts as an income and identity proof and enables easy availability of loans. It acts as a prerequisite in most cases when trying to get a home loan, applying for a new credit card, and so on. Furthermore, it also improves your chances of getting travel visas.
If you have paid more tax than you are liable for, the government will return the excess amount. This happens if you have made tax-saving investments under certain sections of the Income Tax Act (ITA) but did not declare them earlier. Section 80C allows you to reduce taxable income through investments like ELSS, EPF, ULIP, PPF, and LIC premiums, while 80D includes health insurance premiums.
At the time of a taxpayer’s demise, their ITRs serve as a record of all their liabilities and assets. This helps in an amicable distribution of these among the legal heirs.
We know understanding taxes can be difficult for beginners. However, it isn’t impossible. With the right guidance and knowledge, you can learn how to save on taxes and even reap the benefits of investments at the same time.
To save on taxes, move on to Bajaj Markets and check out the tax-saving investments we have to offer.