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Consider Important Keys Before Filing I-T Returns for AY 2021-22

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By Arpit Kulshrestha
Basic Things to Know Before ITR Filing for FY21

The date of filing Income Tax has yet not expired. Just like other years, there are certain new attributes or some key takeaways that are to be considered for filing the Income Tax Return of this year. For Instance, there is a JSON-based mechanism for filing I-T returns and soon the I-T department shall launch a mobile application that shall have all the attributes of the new web portal of the i-t department. 

Worth mentioning here is the fact that the last date for filing the income tax return for the financial year 2020-21 has been stretched to September 30, 2021. Though the last date is far away, it is advisable to file returns promptly as there may be technical glitches on the new web portal which has been launched by the I-T department or there may be errors in filing the I-T return. Following are the 5 key takeaways that you should consider while filing I-T returns this year:

  1. This attribute holds historical significance. Probably for the first time since 1961, taxpayers shall have optioned based tax regime. There shall be 2 tax regimes — Old and new tax regime from which taxpayer has to choose the one tax regime. Moreover, the salaried class can change from one regime to another tax regime which shall be difficult for businessmen.
  2. A new attribute of JSON-based file has been incorporated this time. The new forms shall automatically import the data that shall be pre-filled such as personal details, dividend details, salary details, and all that information that is available in Form 26 AS.
  3. It is advisable that while filing ITR, collect and combine all the relevant information and relevant documents that are required for filing the income tax return. Thereafter, cross-verify the facts and figures from the JSON-based file with that of the documents. This shall ensure transparency. "It's important that you have all the necessary documents like a form 16, 26AS, bank statements, rent receipts, investment proofs, donation receipts, etc when filing the tax returns. Also one must start the process in time to ensure that the timelines are met for filing," added Aarti Raote, Partner, Deloitte India.
  4. In case of a taxpayer misses the extended deadline of filing an I-T return that is September 30, he can file a belated return by January 31, 2022. However, a late fee of Rs 5000 shall be applicable along with interest on tax that is due.
  5. In cases of interest on tax, the CBDT has provided a relief from the levying of tax if the self-assessed tax payable does not exceed Rs 1 lakhs. This relief has also been extended to those senior citizens who are not carrying on any business or profession.

Lastly and Importantly, Worth mentioning here that use the correct ITR form that shall be based on your source of income. Using a wrong tax return may lead to complications i.e. defective return notice from the tax department. "When filing the tax return one must be careful to select the right tax form.  For example, ITR 1 is applicable to only those taxpayers having income from salaries, one house property, and other sources. This form cannot be used where the individual taxpayer has income from capital gains," said Raote. 

In this modern world, every eligible citizen gives taxes to the Indian government every year without any hassle. SAG Infotech offers the most affordable Gen income tax return filing software that follows government guidelines. This software easily prepares your ITR error-free like self-assessment tax, income tax, advance tax, and interest calculation, u/s 234A,234B,234C.

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