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efiling Income Tax

The Income Tax Act states that any individual whose salary comes in the taxable income must file the income tax returns for every financial year. The procedure of filing income tax online is known as e filing. Efiling income tax is convenient for people and it saves a lot of time for everyone. An individual must register in the online portal of the Income Tax Department to avail the benefits of e filing.

Benefits of ITR filing

  • Efiling portal can be accessed by any individual 24x7. This is one of the major reasons why filing your income tax returns through the online portal is more convenient than visiting the Income Tax office to file your income tax.

  • The time taken for processing of the payment is very less

  • Manual filing poses the risk of identity and data theft which can be avoided easily by using the online portal to file income tax

  • No possibility of human errors

  • The taxpayer receives an acknowledgement slip after making the payment through online portal. This slip can be used as a proof that the tax has been paid

  • The details of e filing is registered in the profile of an individual with the income tax department. Anyone can get access to the records of ITR which they have filed in the past by using their username and password.

  • The detailed instructions and guidelines related to efiling income tax is available in the e filing website.

  • E-Banking is one of the essential features of the e-filing website. Electronic banking allows the users to make payments towards the Income Tax Department through the netbanking websites of their respective banks.

 

Is it compulsory to file Income Tax through the e-filing website?

E-filing of Income Tax Returns is compulsory for everyone except for taxpayers over eighty years old and the members of HUF whose salary is less than five lakhs and who do not claim any refund in the tax that they pay.

Since it is mandatory for all the assessees to file their Income Tax Returns through the e-filing online portal, it is essential to know that the forms are available in the e-filing portal and the assessee needs to make sure that they fill up the correct form according to the Income Tax Slab that they come under.

ITR forms: Which one to file?

ITR form or income tax return form is used by an individual to file income tax with the income tax department. There are upto nine types of ITR forms which can be used by an assessee to file for income tax return. The ITR form is filed with the internal revenue service or the state tax board, reporting your income, profits and losses.

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Types of ITR forms

  1. ITR-1
  2. ITR-2
  3. ITR-2A
  4. ITR-3
  5. ITR-4
  6. ITR-4S
  7. ITR-5
  8. ITR-6
  9. ITR-7

As per Central Board of Direct Taxes, the only types of ITR forms that are concerned with the filing of taxes by individuals are ITR-1, ITR-2, ITR-2A, ITR-3, ITR-4 and ITR 4S

The types of ITR forms that are concerned with companies and businesses are ITR-5, ITR-6 and ITR-7.

e filing income tax slab

How to file Income Tax Returns?

The taxpayer must complete the registration process in order to access the e-filing website-

  1. Visit the e filing website of Income Tax Department

  2. Click on ‘Register Yourself’

  3. Select the User Type

  4. Click on ‘continue’ button

  5. Enter the basic details like name, PAN details, date of birth/date of incorporation, email ID and mobile number.

  6. Your details will be verified electronically and the registration form will open

  7. Provide all the personal details such as correspondence address, residential address etc

  8. Enter the Captcha

  9. Click on the ‘Submit’ button.

  10. After the registration is complete, you will get a Registration Successful notification on the website

  11. An OTP will be sent to your mobile number and an activation link is sent to your email

  12. Click on the activation link or use the OTP sent to your registered mobile number,  to complete your e-filing registration process.

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Now you’re ready to access your e-filing website.

For e-filing income tax online, here are a few steps that you must follow-

  1. Login to e-filing website using your user ID, password, date of birth/date of incorporation and captcha
  2. Go to e-file and click on ‘Prepare and submit ITR online’
  3. Select the ITR 1/ITR 4S form and the assessment year. Note that only ITR 1 and ITR 4S can be e-filed online
  4. Fill in the details and click on ‘Submit’ button
  5. Upload Digital Signature certificate, if applicable.Please ensure that your DSC is linked with your e-filing.
  6. Click on ‘Submit’ button
  7. On successful submission, if the ITR is submitted along with the DSC, ITR-V will be displayed. Click on the link to download ITR-V. The ITR V form is also sent to your registered e-mail ID.

OR,

If the ITR isn’t submitted along with DSC, then it should be printed, signed and sent to CPC within 120 days from the date of e-filing. The return will be processed only upon the receipt of signed ITR-V.

You can follow these steps to e-file income tax offline-

  1. Download  the relevant form from the ITR Preparation Utilities section of the e filing website

  2. Prepare your tax return using the downloaded software

  3. Login to the e-filing portal by user ID and password

  4. Enter the Captcha

  5. Your profile will open on the screen.

  6. Go to e-file and click on ‘Upload Return ITR-V’

  7. Select the appropriate ITR, assessment year and the XML file which was saved previously in step 2

  8. Upload the Digital Signature certificate, if applicable. If you’re uploading DSC, then you should ensure that your DSC is registered with e-filing website)

  9. You can generate your DSC on the same page under the DSC Utility Section

If the ITR is uploaded along with the digital security certificate (DSC) by a company then the ITR-V form will be displayed on the webpage. Follow the link to download the ITR-V form. The ITR-V form is also sent to your registered e-mail ID. If you haven’t uploaded your digital signature certificate along with your ITR V form, then you need to download the form, take a printout and submit it to the CPC within 120 days.

If you haven’t uploaded your digital signature certificate along with your ITR V form, then you need to download the form, take a printout and submit it to the CPC within 120 days.

Documents required for e-filing of income tax

The documents required depend on the type of Income that they are reporting to the income tax department

For salaried employees, the documents required are-

  1. Form 16
  2. Copy of Pan Card
  3. Bank Statement
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For reporting capital gains, required documents are-

  1. Stock trading statement along with purchase details if there are capital gains after selling the shares
  2. When a house/property is sold, then the details like sale price, purchase price, details of registration and capital gains details are required
  3. Details of mutual funds statement, sale and purchase of equity funds, debt funds, Equity linked saving scheme and SIPs.

For reporting house property income, the documents required are-

  1. Address of the property
  2. Details of the co-owners
  3. If the property has been rented to someone, then you must provide the details of tenant and the rental income accrued from the property
  4. Certificate stating that home loan has been taken by the property owner

Under section 80C, the maximum amount that can be claimed from your income tax return is 1.5 lacs. Many tax exemptions and deductions can be directly claimed while filing your Income tax returns, such as-

  1. Your contribution to the Provident Fund
  2. Your children’s school tuition fees
  3. Life insurance premium payment
  4. Principal amount paid on home loan
  5. Stamp duty and registration charges
  6. Equity linked savings schemes (ELSS) / mutual fund investments
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You need to keep the documents and bills linked with the payments made in order to claim the exemption under section 80C

What is the use of correspondence of Form 16 and Form 26AS

Form 16 is filled by the employer or the person who collected the taxes in the form of TDS. Form 26AS contains the details of the taxes that have been deducted from the assessee's income.

During the filing of ITR, the assessee must check the details provided by them in the form 26AS. And, it is also essential that the details provided by the assessee in form 16 and form 26AS match completely. If there is any form of discrepancy in the information provided, then the assessee must inform the Income Tax Department by writing a letter addressed to the head, along with the documents that would act as a proof to the claimed discrepancy.

What can be done if an Individual forgets their login ID/password to their e-filing profile?

If an individual forgets their login ID or password, then it is essential to know that the password is not retrievable. If an individual forgets the password to their e-filing profile, they may not be able to retrieve it.

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