New Delhi/Mumbai, March 31: The Union Government on Friday notified simplified Income Tax Returns (ITR) form for individuals looking to file the ITR for Assessment Year 2017-18 from Saturday. Only 6 crores out of 29 crore persons holding Permanent Account Number (PAN) file Income Tax Returns at present. Currently, Income Tax Return form 1 is filed by salaried employees and Income Tax Return 2 by individual and HUFs whose income does not include income from the business. However, the Union Government this year has made the ITR filing process simpler as the e-filing will start tomorrow from April 1.
According to a report, the Income Tax department has reduced the lengthy three-page form for the salaried employees into a single page for, which is easier to understand. The tax assessment for the financial year 2017-18 will become much smoother as most of the unwanted columns have been removed and replaced by a simple and crisp IT returns to form. The Income Tax department is also planning to introduce its own online tax calculator to check the tax liability and calculate the tax which is to be paid by individuals.
Meanwhile, there are 18 different columns for claiming IT deductions under section 80 of the Income Tax law. These sub-sections help taxpayer to claim IT Returns through deductions by investments in LIC, PPFs as well as repayment of housing loan and payment of medical insurance premium. Also Read – How to file advance tax in India? Steps to file Income tax online, eligibility criteria & last date of filing returns.
Here is a step by step process of filing Income Tax Returns online:
1) Register on the Income Tax Department tax filing website incometaxindiaefiling.gov.in.
2) As per new law, it is mandatory to have a PAN card, Aadhar number to register for ITR.
3) Download the form (IRS-1 or ITR-2), fill is and then upload the completed form online or chose to fill the form online by selecting the quick e-file option.
4) Once the ITR form is uploaded, submit it with the required documents. Salaried taxpayers need to attach Form 16 from their employees and other relevant documents for the deductions.
5) After completing the online process, an acknowledgement receipt is generated. This is a final process which validates tax filing process.