How to pay income tax? Learn in few easy steps

Income Tax Return: Income tax refers to the tax that is levied on a person’s income (salary). However, there are many rules in it, such as it is not charged on income below a certain limit and on income above that limit, its slabs are fixed, that is, different tax rates are prescribed for different categories of income. You must be finding it complicated to hear, but it is not that difficult to understand.

In India, the government has created a slab system to make the methods of collecting income tax easy and equitable. This means that with the increase in the salary of the taxpayer, the tax rates also keep on increasing. This categorization of tax rates enables a progressive and fair tax system in the country. Changes are made in every year’s budget in this tax system or slab.

At present, income tax covers three categories of “individual” taxpayers, residents and non-residents below the age of 60 years, resident senior citizens between the ages of 60 and 80 years, and super senior citizens residents above the age of 80 years.

Now, it is also important for you to know that in March 2020, the country had entered the Corona period, due to which the Central Government has decided not to make any change in the income tax slab for the financial year 2020-21 and to implement it in the new financial year 2021-22. decided to implement. However, relaxation was given in the new slab, according to which, senior citizens above the age of 75 years who are largely dependent on their pension as well as income interests were exempted from filing tax returns and this rule Fire is also applicable. In these cases TDS (Tax Deducted at Source) is automatically deducted by the bank.

How To File Income Tax Return?

Filing income tax return has now become very easy. Gone are the long queues and myriad hassles of meeting tax-filing deadlines. Now people can also file their income tax online, which is also known as e-filing.

You can file your income tax return online by following the steps given below.

Income tax department for online return filing Portal log on. Register using your permanent PAN, which will act as the user ID.

Under ‘Download’, go to e-filing under Current Assessment Year and select the appropriate Income Tax Return (ITR) form. If you are a salaried individual, download ITR-1 (sahaj) return preparation software.

Open the return preparation software (excel utility) that you downloaded. Follow the instructions and enter all the details from your Form 16.

Calculate the tax payable, pay the tax and enter the required challan details in the tax returns. If you don’t have any tax liability, you can skip this step.

Verify the information you entered and generate an XML file, which automatically saves on your computer.

Go to the ‘Submit Return’ section and upload the XML file.

You can digitally sign the file if asked. If you don’t have a digital signature, you can skip this step.

A message will flash on your screen confirming successful e-filing, following which an acknowledgment form called ITR-Verification will also be generated. It can be downloaded. It is also emailed to your registered email ID.

You can e-verify the return through any one of the six methods, including 1) NetBanking, 2) Bank ATM, 3) Aadhaar OTP, 4) Bank Account Number, 5) Demat Account Number, 6) Registered Mobile number and e-mail ID are included. With e-verification, you will not need to send a physical copy of the IRT-5 Acknowledgment to CPC, Bengaluru.

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