How to Make a Tax Declaration Online
If you’re looking to file taxes, it’s important to have all relevant documents organized and ready. Documents like your salary slip, investments, expenses, and expense receipts will help you complete the necessary paperwork for filing your taxes accurately and on time.
In the Union Budget of 2020, the government introduced a new income tax regime which allows employees to choose which deductions and exemptions work best for them. However, employees need to make proper tax declarations and calculate their tax liability before selecting a regime. Similarly, employers need to know about all the expenses and investments made by an employee to ensure that they deduct the correct amount of tax from their paychecks.
Every year, salaried employees need to submit their investment declaration via Form 12BB to their employers. This declaration is a roadmap of the investments an employee intends to make in that financial year, and includes details of all the tax-saving investments (e.g. premiums paid towards mediclaim policies that qualify for tax benefits under Section 80D, interest paid on home loans, and HRA).
To avoid confusion and mistakes in submitting these declarations, you can use e-reporting systems. These are online portals that allow taxpayers to upload all the required information and documents in one place. This eliminates the need for manual collation and reduces the likelihood of math errors. Additionally, many of these systems also provide helpful tips on fields where common mistakes are made, so that users can easily identify and rectify them before submitting their declarations. Steuererklärung