Most Dependable and Easy Way to File Income Tax Return Online
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E-file your returns directly. We guarantee the calculations are 100% accurate. Thousands of error checks are done as you go. And your tax return is double-checked before you file.
Kickstart e-filing by uploading your Form-16. Our software will obtain information automatically. Verify your data, and watch as your information is securely put into the correct form
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Benefits of Filing Income Tax Returns
Many investors have very low or zero tax liability and therefore this section does not have to file returns mandatorily. Even though they have some sort of income occurring.
And there is another section that only file returns when something urgent requirement comes up asking for their last few years of ITR. They approach a nearby CA and file their old tax returns.
There has been low-Income Tax filing Compliance in India. However, in recent years, the Govt. of India has taken some stringent measures to enforce the Income Tax Law by linking various benefits for prompt tax filers.
Advantages of tax filing are, but not limited to:
Processing of Loans & Visa: If you apply for any loans such as a home loan, car loan, etc., the eligibility and quantum of loan would depend on your income. This can be established through filed ITRs. ITR will help your lender to assess your repayment capacity.
If you plan to travel overseas, proof of earning is required. If you are salaried then a certificate from the employer will work. But if you are self-employed then income proof & details need to be submitted.
Claiming Refund: There could be some TDS cut on some investment. And you will have to file the ITR to claim a refund of the same. Or you may have paid excess tax on your income. To get this refund, you must file ITR.
Many salaried individuals don’t file ITR as they think that the tax on their income has already been deducted and they have Form 16. But your employer may have paid more tax on your behalf. Not taking into consideration your actual house rent, children’s school fees, tax-saving investments or insurances. So, the filing of ITR will enable you to get a refund from the IT department.
Carry-forward Losses: As per Income tax rules, losses are allowed to be carried forward and set off against capital gains. But this applies only to those individuals who file ITR in the relevant assessment year. If you have incurred losses for a year and you have earned below the exemption limit. You must file your returns to be able to carry forward the losses you have incurred. And it gets balanced against future gains and income.
The capital losses can be carried forward for 8 consecutive years, as per the IT Act.
Establishing Income in Compensation Cases: Although the Motor Vehicles Act does not make it compulsory to present the ITR while calculating the compensation in case of accidental death or disability, the procedures approved by Delhi High Court mention the need for ITR for self-employed persons.
This helps to establish the income of the person to arrive at appropriate compensation.
- Self-Employed Individual Filing for Tenders: Businessmen, consultants, and partners do not get any Form 16. For such self-employed individuals, ITR receipts become an important document. ITR is the only proof of income and tax payment for them, in all sorts of financial transactions. And if they want to take up some contract or tender, they may be asked to show their tax return receipts of the previous 3 to 5 years.
- Being a Responsible Citizen: Staying on the right side of law helps. Similarly, keeping the income tax department informed about your income and taxability helps too. This is only possible when you file your ITR. Those who earn less than the prescribed slab of income can file returns voluntarily. Filing returns are a sign that you are a responsible taxpayer.
Common Mistakes While Filing ITR
Listed below are some of the most common tax filing mistakes you can avoid.
Selecting an Incorrect Form
The appropriate ITR form for filing of returns must be selected. Failure can result in your return not getting processed by the income tax department.
Which form is to be selected depends on the sources from which income is earned in the financial year and the category.
All incomes that are taxable and/or tax-exempt are to be reported using the correct ITR form applicable. If the ITR is filed in the wrong type of Form, then the return will be termed as “defective”. Then, you will have to file a revised return using the correct form, within a certain time frame.
By using LegalRaasta e-filing platform, where the selection of form is done technically, you do not have to worry about choosing the right form.
Not reporting all sources of income
A common mistake taxpayers make is failing to disclose all the sources of their income. The income must be disclosed whether it is taxable or exempt.
All incomes, not only the primary one earned from employment, profession or business, are to be reported. Whether they are savings account interest, fixed deposit interest, rental income from house property, income from short-term capital gains and any other source.
Remember, any income earned by a minor from interests, investments, etc. is taxable for the parent. According to the tax slab, an exemption up to Rs. 1,500 u/s 10(32) can be claimed when minor’s income gets clubbed with the parents.
Not reporting such incomes might attract a notice from the income tax department.
If you have switched jobs, make sure you report the income earned through your previous employer also. Not reporting such incomes might attract notice from the income tax department.
Providing incorrect personal information
Because all information will get recorded in the Department’s databank and may be verified, it is extremely important to enter the personal details correctly before filing your taxes. PAN number, name, address, mail id, phone number, date of birth, bank account number, IFS Code, etc. must be accurately mentioned. A minor mistake in these details means that you may miss your refund claim or some other important notifications. So check and re-check before filing.
Failure to Reconcile TDS with Form 26AS
It is important to compare ITR with Form 26AS before filing. Form 26AS includes all the income details, Tax Deducted at Source (TDS), advance tax paid by you, self-assessment tax, etc. TDS may have been deducted from your salary. You must verify the details of Form 16, issued by the employer, with the Form 26AS.
If the TDS is not reflected in Form 26As, your refund and tax deduction credit will be lost. The mismatched would lead to more tax being paid.
Not including exempt income
Income tax laws require all income to be reported, whether exempt or not. Many types of incomes are exempt from tax. For example, long-term gains, dividends, etc. Although you do not have to pay any taxes on them, you still need to report them.
Also, though your gross total income may not exceed the basic exemption limit, you are to file ITR in certain situations.
Entering the details manually
There is a set format for filing returns. All details are to be entered in a particular format, in the rows and columns provided. If incorrectly put in this complicated format, the returns will have errors. This is where taking professional assistance from LegalRaasta is recommended.
TDS paid then no need to file ITR
Employers are required to deduct tax at source from salary, and interest income respectively. It is mandatory to file an income tax return when your annual income exceeds Rs. 2.5 lakh. And report the interest income in those returns. You should disclose the income on which tax has been deducted and claim credit for TDS in the income tax return.
The interest on deposits with banks is provided after deducting a flat tax rate of 10%. You can claim a deduction under section 80TTA up to Rs 10,000 for interest earned on your deposits. For senior citizens, a deduction of interest up to Rs 50,000, can be claimed u/s 80TTB.
Missing out on the Deductions that can be claimed
A deduction of up to. Rs 1.5 lakh in a financial year by investing in certain funds and schemes. But how much can be claimed from these schemes is complex. Similarly, most taxpayers are not aware of some expenses that are eligible as deductions.
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How LegalRaasta Works
We understand the process is complex and confusing. So we put in extra efforts to stay with you every step of the way – preparation, scrutiny, assessment, filing, liaison, rectification or refund.
ITR-1, ITR-2, ITR-2A, ITR-3, ITR-4, ITR-5, ITR-6, ITR-7, we file all. And that’s not all. Our CAs are experts in the reconciliation of ITR data with 26AS. We assist in TDS & GST compliance.
We do not try to sell any financial products in the guise of filing your returns. We do not advise you buy a higher product than the one you actually require. Even the prices quoted here are exhaustive.
Our interface is Ad-Free and well-designed to keep it straightforward and practical. No clutter means nothing to divert your mind.
When it is about uploading sensitive information on the World Wide Web, the speed of the website matters. And matters BIG. Our site gives you an interruption-free experience.
Store all the tax documents in one place and retrieve it as per requirement. So you don’t have to maintain a separate tax file. And your desk is always organized.
To maintain our spot under the government and preserve our position as the largest E-Filing Intermediary of the Income Tax department, we strictly adhere to the legal guidelines of data privacy.
Our server uses 128-bit encryption over the network and automatically backs up all your valuable data. All nationalized banks in India use the same level of encryption.
Concerns Related To Private Limited Company
- Pvt. Ltd company requires few more ROC compliance translating into an additional cost of 5000 to 10000/annum.
- Minimum capital required is Rs.100,000.
- Private limited company can have a maximum of 200 members.
Still, entrepreneurs prefer private limited for the ease in share transfer and potential for future growth.
Penalties Provisions in LLP annual compliance default
- According to Limited liability partnership Act 2008, it is compulsory to register all the prescribed compliance yearly. There is a provision for a penalty in case of any failure in registering Form 8 and Form 11 for reporting LLP’s financial statements and annual return. A fixed amount of Rs. 100 per day for each agreement that is not registered. No maximum limit is specified.
- Every registered LLP is expected to do Income tax return filing with Annual filing. This filing should be done by 30th September all year. After LLP registration, any LLP fails to reach this deadline then a penalty of Rs. 5,000 is forced on it and filing is to be made by 31st December of that year. If the LLP fails to reach this deadline, then the penalty amount will is double i.e Rs. 10,000.
It takes 15 to 30 working days (approx.) to finish the Limited Liability Partnership Registration procedure. The timeline may vary depending on responses from ROC department.
What is Form 16?
Form 16 can be termed as Salary TDS (Tax Deducted at Source) Certificate that an employer issue to you for the TDS deducted. Form 16 is an Income tax form, used by the companies to provide their salaried employee’s information on the tax deducted.
As soon as the income from your salary for the financial year exceeds the basic exemption limit, the employer is required to deduct TDS. The deducted amount is to be deposited to the Government.
After deducting TDS from the salary, the employer is required to give a certificate to the employee consisting of the details. This certificate is known as Form 16.
It consists of two parts i.e. Part A and Part B. Part A consists of details about the employer & employee, name and address, PAN and TAN details, TDS deducted & deposited, etc. And Part B consists of details related to other income, deductions allowed, etc.
- If no TDS has been deducted, you may not be issued Form-16.
- The employees need this at the time of filing for tax returns.
- You can directly upload your Form 16 and file your income tax return quickly.
- Form 16 is annually issued by the employer by June 15th.
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