ITR Filing Essentials: How SkizzleHR Can Streamline Your Process?

Every taxpayer has a moral and crucial responsibility to file Income tax Returns on or before 31st July. It is a legal obligation and significant for managing your finances and investing smartly. Your ITR filing allows the government to assess and collect the appropriate amount of taxes by declaring your annual income. 

What is ITR Filing and Who Should File it?

Income Tax Return (ITR) filing is the process by which individuals and entities can report their income, expenses, deductions, and tax payments to the tax authorities. In India, this process is conducted by the Income Tax Department and the process involves submitting a detailed statement of income earned during a financial year and the tax paid on that income.

Key Aspects of ITR Filing

1. Declaration of Income

The primary aim of filing an ITR is to declare your annual income. This includes all sources of income, such as salary, business profits, rental income, capital gains, and other sources including interest from saving accounts and investments.

2. Computation of Tax Liability 

Based on the declared income, the tax liability is computed according to the prevailing income tax rates and slabs. This includes calculating the total taxable income after considering eligible deductions and exemptions. 

3. Tax Payment Details

The ITR form also includes taxes paid through Tax Deducted at Source (TDS), advance tax payments and self-assessment tax. If the total tax paid is more than the tax liability, the taxpayer can claim a refund. 

4. Claim Deductions and Exemptions 

Taxpayers can claim deductions under various sections of the Income Tax Act, such as Section 80C for investments in specified financial instruments and exemptions, like HRA to reduce their taxable income. 

5. Verification and Submission

Once the ITR is filled with all the necessary details, it must be verified and submitted to the Income Tax Department. This can be done electronically or physically depending on the method preferred by the taxpayers. 

Significance of ITR Filing 

1. Legal Obligation

Filing an ITR is a legal requirement for individuals and entities whose income exceeds the basic exemption limit. Any non-compliance found can lead to penalties and legal action. 

2. Claiming Tax Refunds

If you have paid more taxes than your actual liability, you can claim a refund by filing an ITR. It is common among salaried individuals who have excess TDS deducted by their employers. 

 3. Proof of Income

An ITR serves as a valid proof of income, which is often required for various financial transactions, such as applying for loans, credit cards, or visas.

4. Avoiding Penalties

Timely and accurate filing of ITR leads to no penalties, interest charges, and others thus, enforcing people to comply with tax laws.   

5. Financial Planning 

Regularly filing ITRs helps in better financial planning and management as it offers a clear picture of your income, expenses, savings, and tax liabilities.  

Additionally, filing ITRS timely and accurately offers various advantages. It helps claim refunds for taxes paid in excess, simplifies loan applications, and acts as a valid proof of income for various financial transactions. Besides, it also safeguards you from legal penalties. 

Streamlining ITR Filing with SkizzleHR

Understandably, in today’s fast-paced world managing finances efficiently is crucial. This is where SkizzleHR steps in and makes ITR filing an effortless experience for your employees. Our HRMS software ensures that you and your employees have access to all documents required to file an ITR. All the documents are located at a single location and created by adhering to all the laws and regulations of the Indian financial system. 

From computing your taxes to downloading your Form-16 and other relevant documents, everything is just a click away with SkizzleHR. 

Let’s understand how SkizzleHR can help you simplify the ITR filing process and first who should file it. 

Who Needs to File an Income Tax Return (ITR)?

Income Tax Return (ITR) filing is a mandatory obligation for various categories of individuals. Below are the detailed conditions to explain who must file an ITR:

1. Yearly Income Earning Below INR 50 Lakhs

If your annual income is less than INR 50 lakhs, you’re required to file an ITR. This is to ensure that the income generated is officially documented. 

2. Income from Salary Pension

Individuals who earn income through salaries and pensions are also required to file an ITR. It includes salaried employees working with a company or self-employed individuals who receive income in the form of a pension.

3. Income from a Single House Property

If people garner rental income from a single-house property, they must file an ITR. It is essential to file an ITR even if the rental income doesn’t exceed the taxable slab, given there are no losses carried forward from previous years. 

4. Income from Other Sources

Individuals earning income from other sources, such as interest from bank deposits, saving accounts, or investments in PPF, must also file an ITR.

How SkizzleHR Facilitates Smooth ITR Filing?

TR filing with SkizzleHR comes with an array of benefits that streamline and simplify the entire process. 

Below we have written reasons to choose SkizzleHR:

1. Centralized Access to Documents

Our HR software acts as a single platform to access all the necessary documents required to file an ITR. From Form-16 to investment proofs, challans, ESIs, everything is accessible. 

2. Compliance with Indian Financial Regulations 

Our HR software complies with the latest Indian financial regulations, thus, allowing your HRs to relax and be rest assured that tax filings are accurate and lawful. 

3. Automated Calculations 

Our HRMS software works on sophisticated algorithms accurately to compute your employees’ liabilities based on the information they share. Therefore, the chances of committing mistakes or errors are minimal.

4. Download Relevant Forms 

Our easy-to-use interface enables you to seamlessly download all relevant docs, such as Form-16 A and B, Challans, and more.

5. User-Friendly Interface 

The platform is designed to be intuitive and user-friendly, making it easy for Human Resource personnel and employees to upload their documents swiftly without much tech-savviness.

6. 24/7 Support

Our round-the-clock support is there to help you, whether you have a question about the tax filing process or need assistance with a specific issue.

Conclusion

Filling your ITR doesn’t have to be an overwhelming task. With SkizzleHR, you can master the process effortlessly, ensuring compliance and maximizing your benefits. As the deadline for filing ITR approaches on July 31st, make sure to leverage our HR software for a smooth and efficient filing experience. Remember, timely and accurate filing is not just a legal obligation but a step towards better financial management.

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