Filing your IT Return is a legal obligation of every tax payer in India. It prevents you from penalties and guarantees compliance, as well as makes you eligible for various tax benefits in the event you have a correct and timely filed ITR. Take a look at this brief guide on income tax ITR filing in Gurgaon — its relevance, the steps, and things to avoid.
Importance of ITR Filing
- Legal Obligation: According to the provisions of the new Income Tax Act, every person and every firm, company, etc., which earns a certain minimum amount is supposed to file an ITR. Failure to do may attract penalties.
- Loan Applications: Like most other lending institutions such as banks and other financial institutions, ITRs may be necessary when you are applying for loans such as home loan and personal loans.
- Tax Refunds: When you have paid more tax than you should, an ITR enables you to reclaim the cash from the Income Tax Department.
- Carry Forward Losses: You can carry forward losses in order to be set off against future income. 5. Proof of Income: An ITR acts as one of the legal documents required for proving income during essential financial transactions.
Procedure for Income Tax Return Filing in Gurgaon
Gather Necessary Documents: Most of the information needed for ITR filing purposes can be obtained through the websites. These include Form 16 (if you are employed and paid salary), Investment support documents (for example PPF, EPF, insurance premiums) and other income related documents which are receipts or confirmation of the income generated such as rental receipts, capital gains receipts.
Choose the Right ITR Form: Based on the source of your income, you would need to fill out the respective ITR form. For instance, the people who earn salary need ITR-1, and people with other income sources may have to fill ITR-2 or ITR-3.
Register on the Income Tax Portal: First register on the website owned by the Income Tax Department. This will allow to login and file the ITR online against your profile.
Fill in the ITR Form: Goto your account and then choose the correct form. Enter all your details such as name, date of birth, salary, expenses, taxes paid etc. As a precaution, please double check the information.
Claim Deductions: It is best to claim rebates under sections such as 80C (PPF, ELSS, etc.), 80D (health insurance..), etc., and get your taxable income lowered.
Validate Your Return: Click on the “Validate” button in the portal to check the validity of your return.
Submit Your ITR: After validation, you should submit your return. There will be an acknowledgment receipt where you will find the ITR acknowledgment number.
E-Verify Your ITR: E-verify your ITR after filing it. This can be done by using AADHAR OTP, net baking or by sending the signed physical copy of ITR-V to CPC within 120 days of filing.
Common Mistakes to Avoid
- Not Filing on Time: When filing an ITR, make sure it is done in the set time as after that it will attract fines.
- Wrong Form Selection: Failure to select the right ITR form results in rejection. It is important to choose the one that will relate to the income-generating activities you undertake.
- Inaccurate Information: Verify all information including income and other deductions. Wrong information can be penalized.
- Not Keeping Records: In case of an audit, you would have to produce all the documents on income and deductions, therefore, you need to retain all these documents for at least 6 years.
- Ignoring Tax Liabilities: It is important you recognize all sources of income and provide for tax where necessary.
Local Assistance in Gurgaon
If these seem too much for you, you can always hire the services of tax consultants in Gurgaon. They can offer consulting services, assist in filing and also offer compliance to regulation of tax laws. They are aware of the latest in tax laws. So reach out to the experts for a hassle free income tax ITR filing in Gurgaon.
