How to use the new ITR Form?

Filing your returns need not be a difficult chore - as long as you know what to do!

How to use the new ITR Form?

The taxman comes calling once a year – and it is that time. The due date for filing tax returns has been extended to September 30 this year – and it's time to pull the proverbial socks up and get ready. The government has further simplified the ITR form (Income Tax Return)  from the booklet running into pages into the singe page sheet that is to be filed.

The process involved in using an ITR form

Once you know that you are liable to pay income tax under the Income Tax Act – the process of filing the tax return starts. The first important part of the process of filing your tax return is to determine which ITR form applies to you. The Income Tax Forms are labelled as ITR 1, 2, 3, 4, 5, 6 and 7.

Individuals use forms ITR - 1, 2, 3 or 4, depending on their sources of income. Learn about these different types of ITR forms here and find out which ITR form to file. 

ITR 5 is to be used by Firms, LLP's (Limited Liability Partnerships), AOP's (Association of Persons) and BOI's (Body of Individuals).

Companies use ITR 6 and 7.

There are some logical steps to filing your tax returns:

  • Collecting all relevant paperwork
  • Creating your computation of income under all heads of income and filling them accurately in the form
  • Calculating all deductions allowed under Section 80
  • Calculate the tax payable on the income calculated and deduct the rebates available under Section 88
  • Deduct the tax already paid such as TDS, etc
  • In case you are submitting it online – look below for some more details.

The paperwork which needs to be taken care of

The paperwork required to file the Income Tax Returns can be classified in some broad categories. For the maximum convenience – collect all the papers and data – in a properly arranged file to simplify the process of filing your return.

Income papers: All documents relating to your income should be collected so that the income can be calculated under the appropriate heads of income.

  • Form 16 and monthly salary slips for income from salary
  • Rent receipts for income from house property
  • Details of purchase and sale of property or shares for income from capital gain
  • Bank interest passbook, interest on Fixed Deposits receipts, interest on government securities for Income from other sources

Expense papers: Papers for all deductible expenses from the incomes chargeable to tax – as well as expenses which are eligible for deductions – these would include – maintenance expenses on rented property, expenses incurred in sale of property as well as expenses incurred LIC, PPF, NSC, NPS, Health Insurance etc. which are eligible for deduction.

TDS Certificates and Form 26AS (TDS): Form 26AS can be downloaded from the TRACES website and contains all TDS details. This should be reconciled in case there is any discrepancy between actual TDS and Form 26AS.

Related: What documents to keep ready while filing your ITR?

The dates to be kept in mind

The due date for filing returns is usually 31st July. This year the date for filing the returns for the Financial year 2020-21 has been extended to 30 September 2021.

In the case of returns filed by businesses that need to be accompanied by an audit report– the due date of filing the return is 31st October 2021.

In the case of returns filed by businesses that need to be accompanied by a transfer pricing report – the due date of filing the return is 30th November 2021.

The other important dates from a tax filing point of view are:

Dates for payment of instalments of Advance Tax – these are:

15th June – first instalment

15th September – second instalment

15th December – third instalment

15th March – fourth instalment

30th January 2022 – last date by which belated return of income can be filed for the year 2020-21.

Related:  How to File your Income Tax Returns (ITR) Online 

List of requirements in case e-filing of ITR is being processed online:

In case you choose to file the return online:

You will first log in or create an account – you will need details such as PAN, AADHAAR number, Bank Account Details, a valid email and a valid mobile number.

On creation of account or logging in – you will have to fill salary income details- such as employer name and type, salary, TDS deducted, allowances deductible and salary chargeable to tax. Details of other income will have to be accordingly entered.

Thereafter, the details for deductions claimed under Section 80 will be filled out. The next step is to fill in the details of taxes paid in the form of TDS as well as Advance Tax and Self Assessment Tax.

Once all details are complete – it is advisable to recheck the same.

As a final step, e-verification has to be done by the person filing the return to get the process fully and finally complete.


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