No change in income tax bracket for fiscal years 21-22
The central government has decided not to introduce changes in the income tax bracket for the fiscal year 2020-21 and to continue it until the new fiscal year 2021-22 unless there is a change. A derogation has been introduced in the new slab. According to the last slab, citizens over the age of 75 who depend mainly on their pension and income interests remain exempt from filing tax returns. In their scenario, the TDS or withholding tax will be automatically deducted by the banks.
How to complete the income tax?
Gone are the days of tax filing full of paperwork and long queues. Now, with the introduction of online tax return known as e-filing, taxpayers can easily file returns without having to venture outside at the earliest. Below are the steps you can take to file your tax returns:
Step 1: Log in to the portal www. incometaxindiaefiling.gov.in to file your tax returns online. Register now using your PAN (permanent account number) which will also serve as your user ID.
Step 2: Now, under “Download” option, visit e-filing under the specific tax year and choose the appropriate Income Tax Return (ITR) form. Download the ITR-1 tax preparation software (Sahaj) now if you are an employee
Step 3: You need to enter the details in Form 16 in Step 3. Open the return preparation software (Excel utility) you downloaded, follow the instructions and fill in the relevant details from your Form 16.
Step 4: Calculate the tax payable, pay the tax and fill in the appropriate challan details in the tax return. If you are not subject to tax, you can skip this step.
Step 5: This step will ask you to confirm all the above details. You need to confirm all the details filled in so far and create an XML file which will be automatically saved on your computer.
Step 5: Now visit the “Submit Return” option and upload the XML file.
Step 6: You will need to digitally sign the file when prompted. If there is no digital signature, you can skip this step.
Step 7: You will receive a message confirming successful e-filing on your computer screen. The acknowledgment form, namely the ITR verification, is produced and can be downloaded. It will be emailed to your registered email address.
Step 8: You can also electronically verify the return through one of the six modes i.e. a) Netbanking, b) Bank ATM, C) Aadhaar OTP, d) Bank Account Number, e) Registered Mobile Number and ID E-mail. Electronic verification will remove the requirement to send a physical copy of the ITR-5 acknowledgment to CPC, Bengaluru.
It is important that you file your ITR in a timely manner to avoid any penalties. After filing the ITR, the Income Tax Verification Form will be produced by the Department of Income Tax and it will help taxpayers verify the validity and legitimacy of the e-filing. It will remain applicable when you have filed your declarations without making a digital signature. Government of India collects income tax through three means namely a) Voluntary payments made by persons in various designated banks as withholding tax and self assessment tax, b) TDS on behalf of taxpayers and tax collected at source and, c) (TCS) of certain transactions of taxpayers at the time of expenditure.