Step-By-Step Guide For Filing Income Tax Returns For Past Year

An Income Tax Return (ITR) is a form individuals and businesses used to report their income and taxes owed to the government. 

It helps the government track your income and tax payments and ensures that you comply with the tax laws.

The Income Tax Department issues different ITR forms depending on the source of income, the amount of income, and other factors. 

Filing your ITR on time is crucial to avoid any penalties or legal consequences. If you have missed filing your past year's ITR, don't worry; it is still possible to file it. 

This blog will give a thorough step-by-step process for filing the past year's ITR. If you want to stop worrying about late ITR and other tax return filings, look no further than Especia. 

Especia employee professional C.A. and tax experts for a hassle-free and easy tax filing experience. 

It is important to know what makes you eligible to file an ITR, so you can do it on time. 

Anyone whose total income exceeds the threshold limit in India must file their Income Tax Return. 

The threshold limit varies based on the age and income of the individual. Here are the categories of people who need to file for ITR in India: 

• Individuals below 60 years of age - If your total income for the financial year 2021-22 exceeds Rs. 2.5 lakh, you need to file your ITR. 
• Senior citizens between 60 and 80 years of age - If your total income for the financial year 2021-22 exceeds Rs. 3 lakhs, you need to file your ITR. 
• Super senior citizens above 80 years of age - If your total income for the financial year 2021-22 exceeds Rs. 5 lakhs, you need to file your ITR. 
• Companies - All companies incorporated in India need to file their ITRs regardless of their income or profit. 
• Partnership firms - All partnership firms need to file their ITR regardless of their income or profit.
• LLPs - All Limited Liability Partnerships (LLPs) need to file their ITR regardless of their income or profit. 
• Trusts - All trusts need to file their ITR regardless of their income or profit. 
• Associations of persons (AOPs) and bodies of individuals (BOIs) - AOPs and BOIs need to file their ITR if their total income exceeds the limit. 
• Foreign nationals and non-resident Indians (NRIs) - If their total income in India exceeds the threshold limit, they need to file their ITR. 

Now that we have clarified who is eligible to file an ITR let's discuss filing a late ITR. 

The Income tax department of India has made a lot of provisions for filing a late ITR, and it is an easy process. 

With the new government portal, filing late ITR and paying any penalties is possible online, sitting at home.

Here is a step-by-step guide

Step 1: Collect all the necessary documents

The first step in filing your past year's ITR is to gather all the relevant documents. 

These documents will help you fill in the details and ensure that you claim all the deductions and exemptions you are entitled to.

Here is a list of documents that you need to collect: 

• PAN card - Your Permanent Account Number (PAN) is a unique identification number issued by the Income Tax Department. You need to have a valid PAN card to file your ITR. 
• Form 16/16A - If you are a salaried employee, your employer will issue you a Form 16 that contains details of your salary, tax deducted, and other allowances. If you have received any other income, such as interest, rental, or freelance income, you must collect Form 16A. 
• Bank statements - You need to collect your bank statements for the financial year for which you want to file your ITR. Bank statements will help you to calculate your interest income and claim deductions. 
• Investment proofs - If you have made any investments such as LIC premiums, PPF contributions, or ELSS investments, you need to collect the investment proofs. 
• Any other income-related documents - If you have received income from sources other than salary and interest, you must collect the relevant documents, such as rental agreements, invoices, or contracts. 

Step 2: Download the relevant ITR forms.

The next step is to download the relevant ITR form for the financial year in which you want to file your ITR. 

The Income Tax Department issues different ITR forms depending on the source of income, the amount of income, and other factors. 

Here is a list of ITR forms that you need to download: 

• ITR-1 - This form applies to individuals with an income up to Rs. 50 lakhs and who have salary income, one house property, and other sources of income such as interest and dividends. 
• ITR-2 - This form applies to individuals and Hindu Undivided Families (HUFs) with income from salary, pension, capital gains, and rental income. 
• ITR-3 - This form is applicable for individuals and HUFs having income from business or profession. 
• ITR-4 - This form applies to individuals, HUFs, and firms with income from a presumptive business. 
• ITR-5 - This form applies to firms, LLPs, AOPs, BOIs, and other entities. 
• ITR-6 - This form is applicable for companies other than companies claiming exemption under section 11 of the Income Tax Act. 
• ITR-7 - This form is applicable for persons, including companies required to furnish returns under sections 139(4A) or 139(4B) or 139(4C) or 139(4D) or 139(4E) or 139(4F) of the Income Tax Act. 

Step 3: Calculate Your Taxable Income and Deductions

In this step, you will need to calculate your taxable income for the relevant financial year. 

Taxable income is the amount of income that is subject to taxation after considering deductions and exemptions. 

To calculate an annual salary, multiply the gross pay (before tax deductions) by the number of pay periods per year. 

For example, if an employee earns 1,500 per week, the individual's annual income would be 1,500 x 52 = 78,000. 

To calculate your taxable income, you will need to subtract the applicable deductions and exemptions from your total income.   

Once you have calculated your taxable income, you will also need to calculate the tax liability on your income. 

The tax liability is calculated as per the income tax slabs applicable to your income. 

After calculating your tax liability, you will also need to calculate the amount of tax that you have already paid in the form of TDS (Tax Deducted at Source) or advance tax. 

If the amount of tax paid is higher than the tax liability, you will be eligible for a tax refund. 

The online portal has the option to auto-calculate the Taxable income and tax liability.

By using the quick e-fill option, the form will be filled up automatically, while the calculate tax option will calculate your tax liability. 

While it is convenient to use this method, it is advisable to use professional services when it comes to businesses. 

If complex transactions are present, services like that of Especia will ensure that the client gets the maximum deductions.  

Step 4: Filing Your ITR

Once you have calculated your taxable income and deductions, the next step is to file your ITR. 

You can file your ITR either online or offline, depending on your preference. If you choose to file your ITR online, you can do so through the Income Tax Department's official website or through various online platforms that provide ITR filing services.

Tax service providers can be especially helpful in this step. Especia would automate the entire process, giving the client a seamless and worry-free experience. 

Eliminating the headache of filing an ITR would allow business owners and individuals to focus on other aspects of their work. 

On the other hand, if you choose to file your ITR offline, you can do so by submitting a physical copy of your ITR form to the Income Tax Department's office. 

Step 5: Verification of Your ITR

After filing your ITR, you will receive an acknowledgement receipt either online or through the post, depending on the mode of filing. 

You will then have to verify your ITR within 120 days (about 4 months) of filing. Verification can be done through Aadhaar-based OTP, net banking, or physical verification by sending a signed ITR-V to the Income Tax Department's office. 

You can download the IT Return Verification after completing this process (ITR-V). Then you must print the ITR-V form, sign it with blue ink, and mail it to the Income Tax Department within 4 months. 

Conclusion

In conclusion, filing your ITR late can be tedious, but following these steps can do it smoothly. Remember, filing your ITR on time is best to avoid any penalties and interest charges. 

Employing the help of professional services is something that is often done by businesses and individuals.

Especia provides quality and cost-efficient services that include but are not limited to taxation services, accounting outsourcing, and startup solutions. 

FAQ’s Related to Filing Income Tax Returns for Past Year

1. How long after the financial year can I fill an ITR? 

You can file returns for the previous years. This can be done, at best, for the two years preceding the current financial year. If you want to file your ITR for FY 2017-18, you must do so by the end of FY 2019-2020. 

2. What penalties can I face if I file a late ITR?

If you fail to file your ITR by the due date, you may be liable to pay a penalty of up to Rs. 10,000. The penalty amount will depend on how late your filing is and your total income for the year.

3. What are the Benefits of filing an ITR on time? 

Filing your Income Tax Return (ITR) on time can have several benefits. Some are avoiding a penalty, quick processing, proof of income, and avoiding future complications. 

4. How can professional tax service providers like Especia help me? 

Professional tax service providers can help you save time, comply with tax laws and regulations, cut tax liability, and take advantage of potential deductions and credits. They have expertise in tax laws and can assist you in timely filing tax returns, reducing the risk of penalties or fines. By hiring a tax service provider, you can focus on other areas of your business or personal life while leaving the tax-related tasks to the experts.

Contact Us for CA Services Online, GST Services,  Bookkeeping Services, Expats Tax Services, Virtual Accounting Services,Income tax return Services, ESOP Services  in Delhi, Noida, Gurgaon, and all across India: write to us at accounts@especia.co.in. Or Call On :(+91)-9711021268 +91-9310165114