Owing to the COVID-19 crisis, the tax filing deadline for FY 2019-20 has been extended to July 31, 2020. Filing of tax returns on time helps greatly at the time of applying for loans. All banks ask to provide the last two years’ salary slips, TDS certificate / Form 16 at this time. It is also crucial to recover excess tax paid to the IT Government. For instance, even if your income falls below Rs. 2.5 lakhs, you would still have to paper-filing or e-filing your income tax return to claim the TDS deducted from fixed deposits back as a refund.
Importance of income tax filing
In order to adjust short-term/long-term capital loss against future capital gains, filing tax returns is a must. Travel overseas necessitates the submission of ITR receipts, and so does the purchase of life insurance cover. Similarly, for the self-employed, who do not get the Form 16, ITR receipts accept as financial statements serving as income proof.
You will have to register on the income tax filing website providing relevant details. On successful submission of your return, the acknowledgment needs to be printed out, signed and posted to the IT office. If your PAN & AADHAR are linked, it is easier – instead of leaving a paper trail, you can verify the acknowledgment online, and complete the process.
E-filing your income tax return has various benefits when compared to paper-filing.
- E-filing helps in swift processing. This ensures minimal errors.
- The taxpayer will receive an immediate confirmation on the submission of tax returns.
- E-filing offers the convenience of filing your tax returns anytime anywhere.
- The clear instructions and hassle-free form filling make e-filing more convenient. The auto-filled feature makes it easier during the filing process.
- E-filing ensures tracking the status of your filed returns is easier through the income tax portal.
- You can also opt to e-file from the convenience of your net banking account, and opt for direct deposit in case of refunds and direct debit for tax payments.
- E-filing ensures the confidentiality and security of your financial information.
The emphasis on going completely digital is at an all-time high now, considering the COVID-19 crisis. E-filing income tax returns is an integral part of the Digital India push.