There are many misconceptions on what to do after e-Filing your Income Tax Returns among 1st time ITR e-Filers in India. It is important to note that e-Filing your IT Return is just not enough.
Do you know?
A Tax Payer must eVerify the return to make it processed further. No refund is possible without it.
At a high level, there are 6 steps you should do post e-Filing your Return to have full compliance, and to have your Taxes optimized for Savings.
- Verify your ITR
- Trace the ITR-V Status
- Check for Intimations / Notices
- Secure the IT Documents for future use
- Avoid the Penalty by paying Advance Tax
- Optimize your Taxes for better Savings
Now, let’s take deep dive in to the above steps after e-Filing.
1. Verify your ITR
The primary thing that should done just after e-Filing is that either should e-Verify ITR or dispatch signed copy of ITR-V to CPC Bangalore.
Please follow the link to do the e-Verification https://eztax.in/verifying-return
If you have not verified your ITR electronically then you are supposed to send a signed copy of ITR-V to CPC Bangalore (see below address)
Income Tax Department-CPC, Post Box No-1, Electronic City Post Office, Bangalore - 560200, Karnataka
- e-Verification (see above link) or ITR-V post should be done within 120 days from the date of eFiling.
- If you forget to e-verify your ITR or fail to dispatch ITR-V to CPC Bangalore then ITD will consider your return as invalid, and as if you have not filed your Income Tax Return.
2. Trace the ITR-V Status
CPC Bangalore sends the acknowledgment to e-Mail and mobile number, when they receives the ITR-V. But, if you have opted to verify your ITR by sending a signed copy of ITR-V then you must continuously track the receipt status of ITR-V.
You can check whether the CPC Bangalore Office received your ITR-V form or not by entering your PAN and e-Filing acknowledgment number on the ITR-V status tab at the URL <Click Here>
You can also check by calling CPC Bangalore Office at 1800-4250-0025
3. Check for Intimations / Notices
For some Tax Payers, ITD may send an eMail with a subject Intimation under section u/s 143(1) with the details about your Total TDS deducted, Total tax paid, and the Deductions, if any.
This intimation generally mention two components,
- Income tax as provided by taxpayer in return of income
- Income tax payable as computed by income tax office u/s 143(1)
Analyzing intimation u/s 143 (1) will tell you whether the ITD has accepted the details furnished by you in your income tax return as is or whether it differ in the tax calculations of the income reported by you. In case it differs, you may have to take the corrective action with in the specified time limit mentioned in the Intimation e-Mail.
Consequently you will also get to know whether you are entitled for any income tax refund or if you are liable to pay further taxes or any queries raised ITD to submit the response accordingly.
For many this will leads to a revised ITR Filing, Check with EZTax.in Experts to process further if it seems complicated.
After receiving the intimation if you have any refund, refund will directly deposit to your bank account or you will receive a Cheque.
Do you know?
Your Tax Return often depends not only for the year of Filing but also earlier Tax Returns and it’s Status. Only ITD can decide your Return as they see it from different lens than a Tax Consultant.
4. Secure the IT Documents for future use
Though your Income Tax Filing is completed, it’s important to keep your income tax related records securely for future use. Per the income tax department rules, the department may raise any query on your past 8 years data and you should be able to address them with the records in hand.
Typical documents that need to be secured for future use are
- Form 16, Form 12B
- Copy of the Tax Paid Challan
- Tax Deducted at Source (TDS), Form 16A
- Non Taxable (Tax exemption) documents
- Bank Account Statements
- Gifts deeds
Refer other article on How Long to Keep your Tax Documents for an extensive information.
5. Avoid the Penalty by paying Advance Tax
If you have net income more than 3 Lakhs after all the tax saving investments, if the tax is not deducted on that amount, you may need to pay the advance tax every quarter to avoid the interest calculated per sections 234 A, B, C
In case you have any capital gain arise from selling any capital asset, reinvest such gain amount according to the income tax rules or deposit in the capital gain account scheme to defer / avoid the income tax payment or you can do the advance tax according to the gain value.
At times this is not a cake walk, refer EZTax.in Experts for help you need and plan accordingly or to get the advanced tax calculation.
6. Optimize your Taxes for better Savings
Do you know ?
For many, Taxes contribute 20-30% of single chunk of money from their earnings.
It’s vital not to ignore Taxes in your Savings Plan, as is contributing towards 20-30% of your Earnings. Speak to a Tax Expert to schedule an appointment to see where you can save on your Taxes. Many times, you need to have a multi-year comprehensive plan to reduce your tax burden. Call EZTax.in to schedule one Today.
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