What is an Income tax return filing ?
An Income tax return filing is a document or a set of forms and schedules that individuals and entities use to report their income, calculate the amount of tax they owe to the government, and provide other relevant financial information to tax authorities. In most countries, including India, the United States, and many others, individuals, businesses, and organizations are required by law to file an annual Income tax return filing.
What are the prerequisites for Income tax return filing?
Depending on the platform or web portal you are using and the tax laws in your country, there may be changes to the requirements for online Itr registration. These are, however, the basic prerequisites forIncome tax return filing registration form.
Permanent Account Number (PAN)Â
In many countries, including India, a valid PAN is a mandatory requirement for online Income tax return filing registration. You need to have a PAN card to register.
Aadhar Number (if applicable)Â
Some countries, like India, may require linking your Aadhaar number with your PAN for Income tax return filing.
Valid Email AddressÂ
You will need a valid and accessible email address to receive communication and updates regarding your ITR.
Access to the InternetÂ
You must have an internet connection to access the online Income tax return filing.
Personal InformationÂ
You should have your personal information, such as name, date of birth, and contact details, ready for registration.
Income DetailsÂ
All of your income sources, including capital gains, company income, rental income, and pay, should be disclosed to you.
Bank Account DetailsÂ
For the purpose of getting refunds and handling any financial activities connected to your ITR, you might require the information about your bank account, such as the account number and IFSC code.
Digital Signature Certificate (DSC) or Aadhar OTP (if applicable)Â
You can use a DSC to digitally sign your Income tax return filing in some countries. Aadhaar OTP-based verification is accessible in the case of India. Make sure you have the required equipment or Aadhaar credentials if you decide to use these techniques.
Form SelectionÂ
Depending on your income sources, you should be aware of which Income tax return filing form to use. Different forms are used for different types of income and taxpayers, so you should know which form suits your situation.
Income tax return filing Acknowledgment (ITR-V)Â
If you have filed a previous ITR, you may need the acknowledgment receipt (ITR-V) to link or reference your past filings.
Login CredentialsÂ
If you’ve previously registered on the tax portal, you should have your login credentials (username and password) ready.
How do someone report income from interest, dividends, and royalties in my Income tax return filing online?
Reporting income from interest, dividends, and royalties in your Income tax return filing typically involves providing the relevant details and figures in the appropriate sections of the Income tax return filing form. Here’s a general guide on how to report these types of income
Select the Appropriate Income tax return filing FormÂ
The specific Income tax return filing form you need to use depends on your income sources and status. In general, interest income, dividend income, and royalties are typically reported in ITR-1 (Sahaj) or ITR-2.
Gather Your DocumentsÂ
Collect all the necessary documents, such as bank statements, dividend certificates, and royalty agreements, to calculate and report your income accurately.
Particulars of IncomeÂ
In the Income tax return filing form, look for the section related to ‘Income Details’ or ‘Income from Other Sources.’ You will typically find a separate column or section for each type of income, including ‘Income from Interest,’ ‘Income from Dividends,’ and ‘Income from Royalties.’
Income from InterestÂ
Enter the total amount of interest received throughout the course of the fiscal year. This covers interest from fixed deposits, recurring deposits, savings accounts, and any other investments or accounts that pay interest. Give the account number, name, and amount of the payer.
Income from DividendsÂ
Enter the total dividend income received. You may need to provide details of the company or mutual fund, the dividend amount, and any applicable tax deducted at source (TDS).
Income from RoyaltiesÂ
If you have received income from royalties, provide details of the payer, the nature of the royalties (e.g., book, music, patent), the amount, and any TDS details.
TDS DetailsÂ
Make sure you accurately state the Tax Deducted at Source (TDS) details in the relevant area if TDS has been applied to any of these incomes. This contains the name of the deductor, the amount of TDS deducted, and the TDS certificate number.
Claim DeductionsÂ
You may be eligible for deductions or exemptions related to this income. Ensure that you review the Income tax return filing form for any relevant deductions and claim them if applicable.
Calculate and VerifyÂ
Double-check the figures and calculations to ensure accuracy.
Income tax return filingÂ
Once all the required information has been entered, check and submit your online Income tax return filing. Proceed with the e-filing procedure, which could entail e-verification, digital signature on the return, or, if necessary, mailing a hard copy of the ITR-V to the Centralized Processing Center.
Conclusion
It is imperative to ensure compliance with the specific tax laws and regulations of your country, as the process and requirements may vary. Income tax return filing can help individuals and businesses keep their tax reporting organized, accurate, and timely, which will eventually result in a more effective and transparent tax system.