What Factors should you know for an Online Tax Filing Service in India?

 The last date for filing ITR (Income Tax Return) for this particular financial year was extended to 15th March 2022 by the Central Board of Direct Taxes (CBDT). An income tax return, often known as an ITR, is a document that you use to disclose your gross taxable income for a certain financial year. It includes all sources of income and determines which income tax bracket you fall into. You can file tax online in India. The service of online tax filing service, India is available on the Income Tax department’s website

There are some factors that you should keep in mind while filing an ITR online. 

1. Residential status

It's critical to get the residential status right because it affects a lot of things, including the ITR form you use, the taxability of overseas income, and reporting requirements.

2. Choosing the correct ITR form

For an accurate filing, it is critical to select the appropriate ITR form based on the taxpayer's residency status and income obtained from various sources, as a mistake here could result in the tax return being invalidated.

3. Prefiled ITR Forms

For taxpayers' convenience, the government has authorised pre-filled information in tax returns. While this makes life easier, it is critical to ensure that the prefilled information matches the taxpayer's various supporting documents, such as Form 26AS (tax credit statement), Form 16 (salary certificate), and Form 16A (tax withholding certificate), to avoid any instances of non-reporting or misreporting. Exempt income, such as dividends, interest from the Public Provident Fund, and National Savings Certificates, should also be reported.

4. Verification of Bank Details

To guarantee that refunds are not missed, make sure the bank account information is valid. In addition, if you haven't already done so, integrating your PAN and Aadhaar numbers on the income-tax portal is a requirement for filing a tax return.

5. Choice of Tax Regime

In lieu of renouncing mandated exclusions and deductions, the Finance Act of 2020 proposes a new optional tax framework for taxpayers with updated tax slabs and rates. Taxpayers will be able to choose between the existing and new tax systems when filing a tax return. Salaried taxpayers can also amend the tax regime they declared to their employer when they filed their ITR. 

6. Reporting Exempt Income

Exempt income, such as agriculture income, the exempt income of minor children, Income not subject to tax because of the Double Taxation Avoidance Agreement, for example, must be recorded on 'Schedule EI.'

7. Verification of pre-paid taxes 

Form 26AS should be downloaded and thoroughly checked to ensure that no income was overlooked in the tax return.

8. Change of employment during the year

If the taxpayer has provided the current employer with the required wage and income details from a previous employer(s), the present employer can issue a consolidated Form 16 and 12BA on which an ITR can be submitted.

It is essential for taxpayers to assess their taxable income in accordance with the Act's provisions and to check all underlying documents/information when computing the final tax payable/refundable, as applicable. To prevent penalties and guarantee a seamless return filing procedure, taxpayers should remember the above-mentioned suggestions. Now that you’re aware of all the factors that should be kept in mind while online tax filing services, go ahead and file your tax.