ITR Filing- Everything You Should Know & More

It might be right to say that most of us heard our parents or elders talk about ITR filing while growing up.?Some years later, we are on the same path as our elders- filing ITR.

Who said adulting is easy? But filing ITR can be.

This article may ease your panicky mind that is still perplexed by the whole ITR process.

First, let’s clear some basics.

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What’s ITR or Income Tax Returns?

An Income tax return (ITR) is a form used to file information about your income and tax to the Income Tax Department. Income determines a taxpayer's tax liability. During a year, if excess tax has been paid, the individual may be eligible for an income tax refund from the Income Tax Department.

?As per the income tax laws, the return must be filed every year by an individual or business that earns any income during a financial year. The income could be in the form of a salary, business profits, income from house property or earned through dividends, capital gains, interests or other sources.

Tax returns have to be filed by an individual or a business before a specified date. If a taxpayer fails to abide by the deadline, he or she has to pay a penalty.

Is it mandatory to file ITR?

According to the Income Tax Act, income tax has to be paid only by individuals or businesses who fall within certain income brackets. Mentioned below are entities or businesses that are required to compulsorily file their ITRs in India:

1.???All individuals, up to the age of 59, whose total income for a financial year exceeds Rs 2.5 lakh. For senior citizens (aged 60-79), the limit increases to Rs. 3 lakh and for super senior citizens (aged 80 and above) the limit is Rs. 5 lakhs. It's important to note that the income amount should be calculated before factoring in the deductions under Sections 80C to 80U and other exemptions under Section 10.

2.???All registered companies that generate income, regardless of whether they've made any profit or not through the year.

3.???Those who wish to claim a refund on the excess tax deducted/income tax they've paid.

4.???Individuals who have assets or financial interest entities that are located outside India.

5.???Foreign companies that enjoy treaty benefits on transactions made in India.

6.???NRIs who earn or accrue more than Rs. 2.5 lakh in India in a single financial year.

If you fall in any of these categories, it’s mandatory for you to fill income tax returns.

Now that you know that you’re required to file ITR, what’s the next step? Probably collecting documents that you need to file.

It is important to have all the relevant documents handy before you start your e-filing process.?

●????Bank and post office savings account passbook, PPF account passbook

●????Salary slips

●????Aadhar Card, PAN card

●????Form 16, 16A, 16B, 16C or Form 26 AS

●????Tax saving investment proofs

●????Proofs to claim deductions under section 80D to 80U (health insurance premium for self and family, interest on education loan)

●????Home loan statement from bank

What’s Form 26AS?

Form 26As is a vital document showing the portion of tax deducted at source on payments/investments made by individuals, employees and freelancers. This enables the taxpayers to claim refunds for any additional tax or overdue tax payments made.

In short, this helps you get returns, if eligible.

Thanks to technology, Income tax returns can now be filed online. But, haven’t you come across any meme that says how painfully difficult the process is? Some do not have the right information, while sometimes, the site wants to compete with a snail.

The internet is filled with blogs on how to file ITR smoothly. But what if there’s an efficient way?

File Income Tax Returns on FLOATR

FLOATR is not?an app only for budget control, tracking expenses, and investment, it is a platform that offers individuals a safe, easy, and simple way to file for ITR.

Taxes are Simple.?

On FLOATR, get simple on-boarding, easy FORM 16 upload, cover all deductions, claim TDS, and e-file online.

Tax Planning: Visualize Tax P&L, compare tax regimes, spot tax saving opportunities, calculate and pay advance tax.

Tax Filing: Prefill incomes, tax credits, bank accounts, maximize deductions, e-file instantly and track your refund.

Get experts to help you out at every step of the process; let them do your taxes for you. The platform makes tax planning and scheduling efficient for you so you don’t have to break into sweat.

Happy ITR Filing with FLOATR!?