Income Tax Return filing for AY 2021-22: ITR filing is mandatory for individuals if their taxable income is more than Rs 250,000 per year.
Income Tax Return filing for AY 2021-22: ITR filing is mandatory for individuals if their taxable income is more than Rs 250,000 per year. As per the Income Tax Rules, ITR filing is also a must for individuals who have paid more than Rs 1,00,000 in electricity bills or undertaken foreign travel for more than Rs 2 lakh during a financial year. However, experts advise that even if an individual’s income is below the taxable limit, he/she should file a tax return. As return filing comes with several benefits.
This year, the Income Tax Department has launched a new ITR filing portal. Before filing the returns, here’s a list of things you should complete this year:
1. Link PAN and Aadhaar:
It is mandatory to link PAN and Aadhaar. You cannot e-verify ITR through the Aadhaar-OTP option without linking Aadhaar and PAN. The last date for PAN-Aadhaar linking is 30th September 2021.
2. Link bank account and PAN
Linking PAN with the bank account is required because refunds are directly transferred to the bank account of the taxpayer. Also, without linking PAN with the bank account, you cannot open an FD or make a cash deposit beyond a certain limit.
3. Collect Form 16/ Form16 A from the employer
Form 16 provides details of the taxes deducted from your salary. The employer is responsible to issue this. Form 16A is provided by other deductors like banks. The last date for the issue of Form 16 and Form 16A was 31st July 2021. You need to get them and verify with Form 26AS and bank statements for ITR filing.
4. Check your Capital gains tax liability
You need to pay a capital gains tax after selling any capital asset like shares, mutual funds, residential property, gold, etc. You should check your capital gains tax liability if you made any such transactions during the FY 2020-21.
5. Submit Form 15G/ 15H
There is a provision for deduction of tax on interest paid on your bank accounts. However, if you don’t have income under the taxable bracket, you can avoid this tax deduction by submitting Form 15G /Form 15 H (whichever is applicable).
6. Download Form 26AS
Form 26AS is your annual tax credit statement. It is one of the most important documents for ITR filing. Several changes to Form 26AS were made this year. You can download this Form from the new Income tax website, TRACES website, or from your net banking account.
7. Other documents required
You need to keep some other documents handy before tax filing. Such as:
- Interest certificate from the bank
- Details of dividend income
- Interest certificate for home loans (if any)
- Proof of tax savings investments for filing taxes