Also, the growth of the Indian startup ecosystem has brought about a big change in terms of technology in the world of finance, taxation and compliance. Due to this, things are getting done quickly now. The time taken in the process has reduced considerably.

Use of Digital Form 16

This change also includes digital tax filing instead of manual. Digital Form 16 has a big role in this. It is important for every employed taxpayer to understand the importance of Digital Form 16. This will facilitate them in filing Income Tax Return (ITR). The chances of making mistakes in this will be reduced significantly.

Benefits of Digital Form 16

Digital Form 16 is not just a digital copy of the tax certificate. It is a solution that makes income tax compliance very easy for you. Since it is generated by your employer directly from the TRACES portal, the data related to your salary, deductions and TDS is not only correct but also very reliable. It is very helpful in filing income tax returns as there is no fear of data mismatch or incorrect data.

No need to calculate tax

With the main data being digitised, filing taxes becomes much easier. All you have to do is upload the Digital Form 16 on the tax filing platform. The system then instantly pulls the data it needs from it. This includes your salary amount, TDS and deductions under sections 80C and 80D. This means you don’t have to carry a notebook and pen to calculate your taxes.

Helpful in filing ITR yourself

If any data is incorrect, the system immediately informs about it. This gives you a chance to correct the data before submitting the ITR. This is especially beneficial for those who are not experts in tax matters but want to file their income tax returns themselves. The Income Tax Department is constantly trying to simplify the return filing process so that taxpayers can file returns themselves.

Quick processing of returns and refunds

Another big advantage of digital Form 16 is that it makes the processing of returns much faster. Since the information given in it is easily matched with the information of the Income Tax Department, the tax filing platform processes the return quickly. This leads to quick ITR approval and the refund process is also completed quickly. This is beneficial for both taxpayers and the Income Tax Department.

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According to the Income Tax Department, the last date for filing ITR for FY 2022-23 and Assessment Year 2023-24 is 31 July 2023. The department has issued an online form for filing ITR. In such a situation, do not delay ITR filing thinking that there is time till 31st July.

It is important to do this…

Even if you do not come under the tax net, you should still file ITR. Meanwhile, Form-16 is being made available to the salaried class for ITR filing by the institute. In such a situation, before filing ITR, match the data given in Form-16 and Annual Information Statement (AIS). So that it can be ascertained that the data being given to the Income Tax Department is absolutely accurate.

It is important to do this…

Even if you do not come under the tax net, you should still file ITR. Meanwhile, Form-16 is being made available to the salaried class for ITR filing by the institute. In such a situation, before filing ITR, match the data given in Form-16 and Annual Information Statement (AIS). So that it can be ascertained that the data being given to the Income Tax Department is absolutely accurate.

vaaLet us tell you, Finance Minister Nirmala Sitharaman, while presenting the budget for the year 2023, gave relief to the tax payers under the new tax regime. However, no change was made in the old tax regime by the government.

Now let us tell you how you can file ITR sitting at home:

• Go to the e-filing portal (https://eportal.incometax.gov.in/) of the Income Tax Department.
• After this, log-in with the help of your user ID and password on the homepage.
• On the dashboard, click on e-File > Income Tax Return > ‘File Income Tax Return’.
• Then select the assessment year, such as 2023-24, and click on ‘Continue’.
• Now choose the method of ITR filing and select the online option.
• Now choose your ITR form according to your tax income and TDS calculation.
• After selecting the applicable ITR for you, keeping all the necessary documents close, click on the start option.
• Now some questions will appear on the screen, whatever is applicable to you, mark its check box and click on continue.
• As per the documents, enter the details of your income and deductions in different sections.
• If there is a case of tax liability, a brief description of the tax-calculation based on the details provided by you will appear.
• Taxability is created according to the calculation, then you can choose the option of ‘pay now’ and ‘pay later’.
• If no tax liability is created, then after paying the tax, one has to click on ‘Preview Return’.
• Then click on ‘Preview and submit return’ declaration checkbox and select ‘Proceed for validation’ option.
• View the preview and on the ‘Submit Return’ page, proceed to verify. It is mandatory to verify and e-verify the return.
• On the e-verify page, select the option using which you want to do e-verification and click on ‘Continue’.
• Once you have e-verified the return, a successful submission of the form is displayed on the screen.
• Transaction ID and Acknowledgment Number are available on the screen, so that you can check the status of your ITR form in future.
• Your mobile number and email ID which is registered on the e-filing portal, you will get the message of successfully filling the form.

Choose yourself new or old tax regime

While filing ITR (ITR), keep in mind that this time the new tax regime has been kept in default. If you want to file ITR under the old tax regime, then you will have to convert it yourself. There are very limited options to avail tax exemption in the new tax regime. However, income up to Rs 7 lakh has been effectively made tax free. At the same time, the tax exemption limit has not been increased in the old tax regime. But there you can claim tax exemption by investing in various government schemes and in other ways.

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