efiling Income Tax
According to the income tax act,1961, in the financial year, any person who has an income greater than the minimum taxable income, has to file his income tax returns for the financial year.
The process of filing income tax returns online is known as e-filing.
The online filing of Income Tax is convenient and hassle-free for the taxpayers since the online portal has a proper division of ITR forms depending on the taxpayer. To avail the facilities of e-filing, the individual has to register into the online portal of Income Tax Department.
Benefits of ITR filing
- The e-filing portal introduced by Income Tax Department can be accessed 24x7. Such flexibility is the reason why most of the taxpayers now prefer filing the Income Tax through the e-filing website instead of visiting the Income Tax office.
- Filing Income Tax through the e-filing website takes significantly less time and after the filing of Income Tax, it takes very less time for processing of the tax paid.
- Manual filing poses the risk of data and identity theft but filing taxes through the e-filing website provides a higher level of security since the e-filing process uses digitization, data encryption and strict security provisions to safeguard the process.
- No human errors can creep into the e-filing system hence the e-filing has more accuracy than the manual filing of taxes.
- After filing the returns online, the taxpayer receives proof of the filing of Income Tax. The acknowledgment receipt is sent out to your registered email ID after the taxpayer has registered online.
- When you file your Income tax online, the details of e-filing is registered in your e-filing profile. Once you log in to your profile using your email ID and password, you can easily have access to the records of all the Income Tax Returns that you have filed in the past.
- The comprehensive and uncomplicated portal makes it easy for the users to log in to their profiles and get all the information that they wish to acquire. The e-filing portal provides detailed instructions and guidelines on how the IT returns can be filed.
- 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.
Types of ITR forms
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.
How to file Income Tax Returns?
The taxpayer must complete the registration process in order to access the e-filing website-
- Go to the e-filing website of the income tax department (https://incometaxindiaefiling.gov.in)
- Click on the register yourself button on homepage.
- The registration page is open.
- Select the “user type” (individual/firm) and click on ‘continue’ button
- Enter the basic details like name, date of birth/date of incorporation, PAN details, email ID and mobile number.
- When the details provided by you are verified, then the registration form will open. The mandatory details that need to be filled on the registration form are password, personal details/principal contact details, contact details, current address, subscribe to emails, alerts, reminders and notifications and finally fill up the captcha.
- Click on the ‘submit’ button.
- On successful completion of the registration process, the user will get a notification of ‘registration successful’ on the screen.
- An activation link will be sent to your email ID and OTP will be sent to your registered mobile number.
- Click on the activation link or use the OTP sent to your registered mobile number, to successfully complete your e-filing registration process.
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-
- Login to e-filing website using your user ID, password, date of birth/date of incorporation and captcha
- Go to e-file and click on ‘Prepare and submit ITR online’
- Select the ITR 1/ITR 4S form and the assessment year. Note that only ITR 1 and ITR 4S can be e-filed online
- Fill in the details and click on ‘Submit’ button
- Upload Digital Signature certificate, if applicable.Please ensure that your DSC is linked with your e-filing.
- Click on ‘Submit’ button
- 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.
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-
- Download the ITR preparation software for the relevant assessment year
- Prepare your tax return using the downloaded software
- Login to the r-filing website using your user ID, password, date of birth/date the corporation was conceived and enter the captcha
- Go to e-file and click on ‘upload return ITR-V’
- Select the appropriate ITR, assessment year and the XML file which was saved previously in step 2
- Upload the Digital Signature certificate, if applicable. (please ensure that your DSC is registered with e-filing website)
- If the ITR is uploaded along with the digital security certificate (DSC) then the ITR-V form is 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.
Documents required for e-filing of income tax
The documents required for e-filing varies depending on the type of income that the taxpayer is trying to report
For salaried employees, the documents required are-
- Form 16 issued by your employer
- PAN card details
- Bank account details
For reporting capital gains, required documents are-
- Stock trading statement along with purchase details if there are capital gains after selling the shares
- When a house/property is sold, then the details like sale price, purchase price, details of registration and capital gains details are required
- 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-
- Address of the property
- Details of the co-owners of the property along with their PAN details
- Name of tenant and rental income, if any
- Certificate of home loan of the property
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-
- Your contribution to the Provident Fund
- Your children’s school tuition fees
- Life insurance premium payment
- Principal amount paid on home loan
- Stamp duty and registration charges
- Equity linked savings schemes (ELSS) / mutual fund investments
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.