There are a few days left to file your income tax return (ITR) for the fiscal year 2021-22 (the appraisal year 2022-23).
You have the option of filing yourself or using the services of several experts to calculate your income and tax obligations, prepare the return, and file it. These experts include government-licensed service providers, private brokers, and accountants. In either case, be sure to file before the due date.
do it yourself
Over the years, the IT Department has made all of its services available online, and with a few exceptions, tax returns are now primarily filed online.
If you are an employed person with no source of income other than salary, you can easily file your tax return through the I-T Department e-filing portal (www.incometax.gov.in).
However, a very elderly person (who was 80 years of age or older at any time during the previous year) who is required to file an ITR-1 or ITR-4 may also use a paper form to file.
To deposit ITR online, you must first create an account by registering and creating a username and password using your PAN information. Once you have created and connected your account on the IT department website, you have two options for submitting the ITR: partially or fully online.
If the procedure is partially online, you will need to download the appropriate ITR form from the website and save it to your desktop. Complete the return offline and generate an XML file and save it to your desktop, then upload and submit the XML file to the e-filing website.
The second option requires you to select the ITR form that applies to you, complete the required information online, and submit the form.
With both methods, a confirmation is generated if the transmission was successful. Make sure you select the correct ITR forms, fill in the details correctly, and review the return to complete the process.
tax return preparer
To help taxpayers prepare and file their tax returns, the government enacted the Tax Preparers Scheme of 2006. Under this program, the government offers training for individuals to act as licensed income tax return preparers. (TRP).
A TRP can charge a maximum fee of Rs 250 per return. However, the TRP is also entitled to receive incentives (a fixed percentage of the taxes it collects) from the IT department.
You can find an authorized TRP in and around your area on the Income Tax website, or visit the website and click More Information in the Tax Information and Services columns, then click Locate a TRP. You can search for a TRP near you by GPS location, address, or PIN.
Intermediaries of Electronic Funds
In order to improve the interface with taxpayers, the IT department implemented a program called “Electronic Deployment of the Tax Declaration System, 2007”. This device allows authorized intermediaries to file the ITR electronically on behalf of taxpayers. This system is accessible to any passive subject or taxpayer. Although TRPs are not as popular, eFiling brokers have become the preferred option for many applicants who need a better interface and support to file their tax returns.
E-filing brokers typically charge fees that differ based on a number of factors, including revenue streams, income levels, and complexity. For example, Clear, an electronic deposit broker, charges Rs 999 to help you file your tax return if you are a person who only has salary income and income from time deposits or interest in a savings account.
For those with overseas income or capital gains, the tax return filing assistance fee is Rs 5,999 and Rs 3,999, respectively. Similarly, TaxManager, another e-filing broker, charges Rs 1,250 to help an employee file their tax return.
For those with capital gains, self-employed or freelancers, the fees are Rs 3,000 and Rs 3,500, respectively. For Non-Resident Indians (NRIs) seeking assistance in filing an ITR, fees start at Rs 4,500.
However, before you decide to use the services of an electronic filing broker, make sure they have been approved by your IT department. Finally, you must share all the important information with them, including personal information, income, banking information, etc.
To find out if you are an authorized broker or not, check your name on the IT department website. Click on the list of registered electronic return brokers and find out. However, the current list is not up to date. You can ask an eFiling intermediary to provide a user ID and organization name and verify validity.
In case you have multiple sources of income or can’t handle the complexity, it’s better to go to a certified account (CA) instead of making mistakes when filing returns. In fact, in some cases where tax audits, balance sheets, etc. are required, you have no choice but to consult a certification body.
Normally CA companies charge up to Rs 5,000 for simple returns. However, depending on the level of activity and the complexity of the income calculation, fees can be significantly higher.
Use any of the above means to file your tax return before the ITR due date, which is July 31, 2022.