Why is IT Filing Mandatory in India
For the first time, e-filing is not only mandatory but also convenient for taxpayers with income below Rs 3 lakh (for individuals), Rs 5 lakh (for senior citizens) and Rs 1.5 crore for businesses and professionals. The new process is based on simplified returns and provides several benefits.
While e-filing is a simple process and requires basic information such as name, address, PAN, income and deductions claimed, the most important factor is to choose a trustworthy tax preparation software. The software will guide the taxpayer through the entire process, including selecting the correct form to file, calculating taxes payable and refunds, and providing the necessary documents.
Moreover, the software will also check for errors in data entry. This will help the taxpayer avoid mistakes and errors in filing, which may lead to penalties and interest payments.
Once the taxpayer has filed his or her return, he or she must verify it online using either an Electronic Verification Code (EVC), Aadhaar OTP, or Net Banking. He or she must also dispatch the signed ITR-V slip through normal or speed post to the CPC, Chennai within 120 days of e-filing.
Several misconceptions have led to non-filing of returns in the past. These include the belief that taxes deducted at source are a substitute for tax paid
and the belief that NRIs do not need to file returns. In reality, NRIs who receive income or accrue assets in India and those with treaty-based benefits must file ITRs.
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