Complete Guidance on Easy and Hassle-free ITR filing

Complete Guidance on Easy and Hassle-free ITR filing

Filing of income tax returns is an obligation for individuals and entities if their income of the preceding year exceeds a certain specified amount that is not chargeable to tax, as mandated by the Income Tax Department of the Government of India. The process of filing of Income tax return (ITR) has moved from the traditional offline mode involving paperwork to a fast & more accurate online mode, thanks to the online portal launched by the I-T department that offers citizens a single-window access to all income tax related services.

Here’s a comprehensive guide for taxpayers on everything about the ITR filing process:

What are e-return intermediaries?

Under the Electronic Furnishing of Return of Income Scheme, 2007, authorized intermediaries provide services for electronically filing Income tax return on behalf of taxpayers, thus helping them save time & efforts. A noteworthy industry leader with over two decades of experience, Alankit Limited is a registered e-return intermediary. The company delivers professional & efficient e-filing services for lakhs of non-resident Indians in the UAE.

Alankit plays the key role of a tax consultant, led by a committed team of qualified chartered accountants & tax experts who are abreast with the latest taxation laws & rules. This greatly benefits taxpayers especially first-timers who thus find the entire Income tax return filing process to be smooth and hassle-free.

How does ITR filing help a taxpayer?

Besides being an obligation, ITR filing benefits taxpayers in enhancing chances of availing loans like home loans & personal loans as well as avoiding penalties or legal notices by filing Income tax return every year. NRIs planning to return & settle to their home country for retirement will not find any difficulty once they have filed their I-T returns. Moreover, ITR filing ensures that compliance is taken care of with the I-T department.

Who must filing I-T returns?

Individuals whose gross total income exceeds the basic exemption limit of Rs 2.5 lakh are required to file their Income tax return . The basic exemption limit is Rs 3 lakh for senior citizens above 60 years and Rs 5 lakh for those above 80 years. All NRIs, with exception of those covered under section 115AC having taxable income, are also required to file ITR. Furthermore, filing I-T returns even when one’s income is below the basic exemption limit comes with its own benefits.

The following category of people must also file their Income tax return , as defined by the government:

– Any resident having signing authority in an account located outside India. – People having suffered any loss from a business or profession or a capital loss. – Individuals, HUF, AOP, BOI, having taxable income or with taxable income before making deduction under Section 10A or 10B or under chapter VIA when surpassing the exemption limit. – Those claiming relief under Sections 90 or 90A or deduction under Section 91. – Anyone without any taxable income & deposited TDS or any kind of advance tax payment to avail refund.

Benefits of the e-filing process

The best way to file Income tax return is through the online mode. E-filing is beneficial in terms of easy tracking of ITR status, quicker tax refund claim, access to database information, faster processing, accuracy, confidentiality of assesse information and timely acknowledgement of e-returns.

Also, before e-filing, taxpayers must be ready with a list of vital information entailing PAN, Passport Number, Aadhaar Number, residential address, e-mail address & mobile number, bank account details in the given financial year and additional income sources. The e-filing process starts with submission of ITR form. Proper selection must be made by individual taxpayers from a list of forms viz. ITR 1 (SAHAJ), ITR 2, ITR 3, ITR 4 and ITR 4S (SUGAM), depending on their income source; whereas, companies/firms must choose from ITR 5, ITR 6 and ITR 7.

By keeping the above points in mind and through timely assistance by Alankit, taxpayers will be able to fulfil their duties in a much simplified and smooth way.

How GST Accounting Software Can Help You?

There is a huge demand among business owners in India for reliable GST solutions. The GST system was introduced to simplify the system of indirect taxation and to ensure ease of doing business and transparency. With the help of robust IT infrastructure, including advanced gst accounting software, businesses can aim to achieve compliance as registrations, returns and payments can be done at the click of a button. An authorised GST Suvidha Provider (GSP), Alankit Limited empowers businesses with superior GST solutions and brings timely assistance through a team of qualified professionals.

Nowadays, organisations, whether big or small, require technological support to stay at par with the evolving market trends and be ahead of their competition. A gst accounting software would offer the required support for management of accounts, ledger, inventories and other financial operations. All businesses including service enterprises are required to submit their GST revenues and file annual and monthly GST returns. Alankit provides seamless services through its technology-based GST solution – E-Raahi, a cost-effective GST Billing Software.

Benefits of GST accounting software

With support from competent GST consultants at Alankit, GST compliance and meticulous execution of accounting functions is possible. According to the GST council, a dealer registered under GST must file returns that include purchases, sales, GST on sales, etc. and this can be done using the gst accounting software which also offers a gamut of benefits:

• (i) Convenience of filing data: The software supports businesses in keeping track of financial data, inventories, calculation of different types of taxes, generation of invoices & bills, as per the guidelines of GST. Filing of complex data becomes simpler using the software. A cloud-based system replaces the manual feeding of repetitive entries and ensures data safety.
• (ii) Speed and accuracy: The software application reduces the chances of errors and maintains accuracy of data. The system provides accurate & up-to-date information in a timely manner, thus helping businesses save crucial time and achieve efficiency.
• (iii) Cost-effective: Using a software programme, all financial operations from tax filing to invoicing, payment to filing reports, are done at the click of a button. This helps avoid paperwork and manual efforts as well as save costs.
• (iv) Easy Access Data: The data and documents are stored in the system at one place and accessible from any location at any time. Users can check and verify the data, track cash-flow and perform real-time analysis of payments.
• (v) Option to customise: The gst accounting software automates tax and other rates in accordance with the business process. That is, the software is customisable as per the specific business requirements.

The gst accounting software is designed and developed to assist taxpayers to register and migrate their businesses on the government portal. The software is user-friendly to make the process of calculation of the different category of taxes, filing of returns, invoice generation, etc. extremely easy and error-free. The system is enabled with the technology to adapt to changing taxation and other business rules and end-user usage models. If the business owner is engaged in exporting goods and service, the software facilitates production and helps in export of more goods without any heavy charges. Moreover, the software is designed in a way to appropriately address tax penalties.

Alankit enables systematic accounting processes by delivering GST Accounting Software at competitive prices. The GST application is linked with the GST system and has varied interfaces on desktop, laptops, and mobiles. Since a comprehensive IT system is crucial for GST compliant business operations, using the gst accounting software will empower businesses who aim for business growth as it simplifies their accounting functions and helps them focus on providing customer service.

What is ITR 1 and how to file it online?

Filing of income tax returns is a must for all taxpaying individuals and entities. The task of ITR filing has become easy with the introduction of e-filing facility. Moreover, authorised e-return intermediaries provide valuable support in ensuring smooth ITR filing process that starts with submission of the ITR form. Alankit Limited is a registered e-return intermediary which delivers professional & efficient e-filing services. Based on their income source, individual taxpayers must know how to fill itr 1 or other forms namely ITR 2, ITR 3, ITR 4 and ITR 4S (SUGAM).

There are different forms which are applicable for different assessees, and the factors depend not only on income source but quantum of income, type of income, residential status of the taxpayer, etc. Many taxpayers, especially first-timers ask the question what is ITR 1 Form? Here is a comprehensive explanation.

What is ITR 1?

Before we proceed to understand how to fill itr 1, it is important to know the answer to the question — what is ITR 1 Form? Also called SAHAJ, the ITR 1 Form is applicable for salaried individuals who file their Income Tax Returns. They include individuals who are Resident and Ordinarily Resident (ROR) having annual income amounting to Rs 50 lakh. The income could be through the below-mentioned sources.

• Income from salary or pension, family pension and interest income.
• Income from a single House Property (excluding losses brought forward from previous years).
• Income from other sources excluding income from winning lottery/ horse racing.

In case of clubbed I-T returns, the income from spouse and a minor child is also included, in such cases the ITR 1 can only be filed if the aggregate income of assessment year fulfils the above-mentioned specifications.

Some facts about ITR 1

• The ITR 1 was initially applicable for all Residents, Residents Not Ordinarily Resident (RNOR) and Non-residents. However, now Resident and Ordinarily Resident (ROR) can file this form.
• In the financial year 2017–18, a major change was announced regarding requirement to provide a break-up of salary components along with the details of exemptions claimed by the taxpayer. These details, earlier, were only reflected in the Form 16 and there was earlier no requirement of disclosing them in the I-T return.
• In addition, the assessee will be required to provide a break-up of Income under House Property which was earlier mandatory only for ITR 2 and other forms.

Who cannot file ITR for AY 2019–20?

• Individuals with income above Rs 50 lakh.
• Individuals — either a company’s director who has invested in unlisted equity shares cannot use this form.
• Residents not ordinarily resident (RNOR) and non-residents.
• Individuals having earned income from sources as mentioned below:
• More than one House Property
• Lottery, Racehorses, Legal Gambling, etc.
• Taxable capital gains (short term and long term)
• Agricultural income exceeding Rs. 5,000
• Business and Profession
• Individuals who are Residents and have assets (including financial interest in any entity) outside India or signing authority in any account located outside India
• Individual claiming relief of foreign tax paid or double taxation relief under Section 90/90A/91

How to fill ITR 1

The information mentioned above provide a clear answer to what is ITR 1 Form? The next step is to understand how to fill itr 1? The ITR 1 can be filed through both the online and offline mode as explained below:

Offline mode

Only individuals, as mentioned in the category below, can file the return in paper form.

• Individuals aged 80 years or above can file return in paper form anytime during the previous year.
• Individual or HUF (Hindu Undivided Family) having income which does not exceed Rs 5 lakhs and those who have not claimed any refund in the return of income, can file return in paper form.

The income tax return, in the offline method, is furnished in the physical/ paper form. An acknowledgment will be issued by the Income Tax Department, at the time of submission of physical tax returns.

Online Mode

• It involves transmitting the data electronically and then submitting the verification of the return in the form of ITR-V to CPC Office in Bengaluru.
• The process involves filing the online income tax returns and e-verifying the ITR-V through net banking/Aadhaar OTP/EVC.

An acknowledgement is sent to the taxpayer’s registered e-mail Id, in case ITR-1 Form is submitted electronically.

Why it is important to file ITR on time?

Why it is important to file ITR on time? The income tax department has made the process of filing of Income tax return extremely convenient for taxpayers by introducing the online facility. This e-filing facility is speedy and accurate, and provides convenience not just for local residents in India but non-resident Indians (NRIs) as well.Tax consultant Dubai and authorised intermediaries offer services for electronically filing I-T returns on behalf of taxpayers, under the Electronic Furnishing of Return of Income Scheme, 2007. A registered e-return intermediary, Alankit Limited has over 13 years of industry presence in the UAE and offers professional ITR filing services.   When should taxpayers file their returns? The last date of filing of income tax return (ITR) for a financial year, say, 1st Apr 2018 to 31st March 2019, is 31st July 2019, unless extended by the I-T department. Taxpayers can e-file their tax returns any time before the specified date. Avoid penalty If taxpayers do not submit their income tax return (ITR) on or before the deadline, they are liable to pay a penalty of up to Rs 10,000 for late payment. If they file their returns after 31st July and on or before 31st December, they are required to pay Rs 5,000 as a penalty. Also, in case taxpayers file their returns after 31st December, the penalty levied on them will be Rs 10,000 which is applicable for those who have taxable income of over Rs 5 lakh. If the taxable income of taxpayers is up to Rs 5 lakh and they have delayed their ITR process, they must pay a penalty of Rs 1,000. Avoid one percent monthly interest Besides the penalty stated above, taxpayers must file income tax return (ITR) in order to avoid additional interest charges. By not making timely payments and having tax dues, taxpayers need to pay 1 percent penal interest on the tax amount which is due. This is in addition to a higher penalty of Rs 5,000 or Rs 10,000, whichever is applicable. Avoid last minute hassles or stress Although the online facility makes things a lot easier for professionals, yet, the task of e-filing should not be done at the last minute. This is because the chances of errors or missing out on one or more tax savings which were due to you could become higher. Moreover, a taxpayer gets enough time to arrange relevant documents viz. TDS certificates, loan repayment statements, interest certificates, Form 26AS, etc. Also, one should try to e-file early in order to avoid heavy website traffic. Avoid mistakes work to support taxpayers who usually tend to make mistakes in terms of overlooking income, extra tax paid or missing important tax benefits. Revising the returns after the due date is not possible. Such mistakes can often result in fines imposed by the IT Department or loss of tax refunds. Thus, taxpayers must ensure they file their well in advance so that they have sufficient time to file the revised returns any time before the end of the current financial year. This means, if a taxpayer has filed his or her returns by 31st July 2019, he or she can file the revised returns any time before 31st March 2020. Avoid interest loss on refunds When taxpayers file within the due date, the interest accrued on refund would be calculated from 1st April of the Assessment Year to the date at actually processing of refund amount is done. But, in times of late filing by taxpayers, the interest would be computed from the actual date of filing up to the date at which refund was processed. This would result in interest loss of about four months from April to July leading to substantial loss in case of large tax refund due to a taxpayer. In order to ensure financial discipline, it is highly recommended to file income tax return well before of the specified due date.