According to section 139(1) defined under the Income Tax Act, 1961 in the state, individuals whose income from all the sources during the preceding year goes more than the maximum sum on which taxes cannot be applied, need to file income tax returns (ITR). In order to save time, we now have the process of income tax efiling. This is an electronic, hassle-free way of filing returns for income tax.
If you are new at tax filing and need help, then there are IT professionals who can help you with it. The best part of this process income tax e filing is that you can do it from wherever you are comfortable, be it your office or home. All you need to do is register on the official website of the income tax department or any other websites. July 31st is the due date for efiling income tax, which is usually extended by 7 to 14 days on the last date.
Why is e-filing income Tax Return Advantageous?
Filing tax returns online is one of the easiest ways and its usage has grown so much that most of the taxpayers choose it over the regular tax return filing process.
However, in order to leverage the advantages of the efiling income tax, you need to fulfil the following conditions:
- If your total income is Rs. 5 Lakhs or more
- A taxpayer needs to provide an audit report mentioned beneath sections 10(23C) (IV), 10(23C) (v), 10(23C) (VI), 10(23C) (via), 10A, 12A (1) (b), 44AB, 80IA, 80IB, 80IC, 80ID, 80JJAA, 80LA, 92E or 115JB of the Income Tax Act.
- A taxpayer needs to provide a notice as per Section 11(2) (a) to the officer who is assessing.
- An organisation (not under the offerings of section 44AB), BOI, AOP, Cooperative Society, Local Authority (ITR 5) and Artificial Juridical Person
- Individual/HUF residents those who possess properties/assets outside the country can e file taxes.
- A taxpayer needs to provide returns U/S 139 (4B) (ITR 7).
- An inhabitant who has the authority to sign in to any account situated outside India.
- Assesses who claim relief as per sections 90 or 90A or deductions as per section 91.
Getting Familiar with e-Filing:
Digital Signature Certificate (DSC) is one of the most prevalent methods for efiling income tax. If you wish to lodge IT forms by Digital Signature Certificate (DSC) then you need to do it through a chartered accountant.
- If someone e file taxes without a DSC, then an ITR V form gets generated. Then you need to print this form, sign it and submit it to CPC, Bangalore via ordinary or speed post within a time limit of 120 days from the date you filed the return online.
- You have the facility to file efile tax returns through an E-return Intermediary (ERI). You can do this with a DSC and even without it.
Things you need to have for e-Filing IT Returns:
In order for IT e filing your tax returns effectively and without any hassle, you need to have the following prerequisites. Some of the Major points are mentioned below.
How to pick the correct form online in order to e file taxes?
Income Tax efiling can be confusing as you need to first figure out the right form.
Income Tax Return (ITR) forms are of different categories depending on the nature of work people do.
Income Tax Form
Who can use the Form
ITR 1 (SAHAJ)
The source of income could be
A person and Hindu Undivided Families (HUF) with the sources of income other than
If not carrying out a business under any proprietorship, for online tax filing, this form is to be used by
- An individual
The source of income being a proprietary business or profession, this form is to be used by
- An individual
ITR 4S (SUGAM)
Presumptive business being the source of income, this form is to be used by
- An individual
- LLP, and
This form for income tax e filing is to be used by companies that do not claim exemption through section 11
Persons inclusive of companies who need to provide return under any of these
- Section139 (4A)
- Section 139(4B)
- Section 139(4C)
- Section 139(4D).
Get to know your tax credit - Form 26AS vs. Form 16:
Before income tax filing, make sure you check Form 26AS. This helps you figure out the tax deducted from your income and your employer deposited it with IT department. You need to cross check that the tax levied on your salary according to your Form 16 matches with that in Form 26AS. In case you are unable to efile tax returns without any errors, the IT department will send a notice.
Claim 80G, savings certificates and other deductions:
You are allowed to claim extra deductions subject to income tax filing, in case you forgot to do so in the first place. Likewise, if you have made donations to charitable institutions, then you can also claim deductions under the IT section 80G when efiling income tax.
Interest statement - Interest on savings accounts and fixed deposits:
A deduction of Rs.10, 000 is permissible on interest received on savings accounts. On the other hand, interest received on bank deposits is a part of your taxable income. The applicable slab rates decide the tax levied on them. Along with the documents mentioned above, make sure to keep the documents listed below for efiling income tax:
- Preceding year’s tax returns
- Bank statements
- Tax Deducted at Source (TDS) certificates
- Profit and Loss (P&L) Account Statement, Audit Reports and Balance Sheet, if required
General Details required for income tax efiling:
- Bank account credentials
- PAN (Permanent Account Number) Number
Salary Income at the Time of Reporting:
- Rent receipts for claiming HRA
- Pay slips
- Form 16
Reporting House Property Income while income tax filing:
- Address of your property
- Particulars of your co-owners plus their Part of share in the property along with their PAN details
- Documentation for interest of your home loan
- If the property purchased was under construction then you need to give the completion date of the construction.
- If the property is rented then you need to submit the name of the tenant and the income from the tenant.
Reporting Capital Gains:
- To proceed to income tax efile, along with the purchase details, you need to have a Stock trading statement which is necessary if the seller gains some capital after selling the shares.
- If a property or house is sold, you need to look after purchase price, sale price, capital profit details and details of registration.
- Particulars of sale purchase and mutual fund statement of debt funds, equity funds, SIPs and ELSS
How to Reporting Income from Other Sources?
- The money from the interest needs to be reported. If the interest rates have been accumulated from your savings account, then you need to submit statements of your bank account statements.
- Income through interest from corporate bonds and tax saving bonds are to be reported.
- You also need to report details of the income earned from your deposit of your post office.
How to eFile Tax Returns online or e-Returns?
- One of the ways is to fill in the tax returns form and on getting the internet connectivity, you can upload the XML on the: IncomeTaxIndiaeFiling.gov.in
- Prepare your ITR 1 form online and submit it.
Steps to File Income Tax Returns Online:
The first step in e filing income tax is to log on to IncomeTaxIndiaeFiling.gov[dot]in. Then you need to register on this website.
- You need to fill in your Permanent Account Number (PAN) as your user ID.
- Look at your Form 26AS or tax credit statement. The TDS according to your Form 16 must match with the ones in Form 26AS.
- The next step is to click on your e filing income tax return form and then select the financial year.
- The next step is to download an ITR form from the official IT e filing website, which is appropriate as per your earnings. In case the exempt income of an individual exceeds Rs. 5,000, ITR-2 will be the suitable form. (If the related form is ITR-1 or ITR 4S, then the process can be completed on the web portal, by making use of the 'Quick e-file ITR' link.
- Open excel utility (software for return preparation) and fill the form by referring Form 16 to enter all the details.
- Click on the 'calculate tax' tab so as to check the tax payable sum.
- Pay tax (if valid) and fill in the details of the challan.
- Click on the 'validate' tab in order to confirm the authenticity of the data filled in the worksheet.
- Make an XML file and then save it on your computer.
- Look for 'upload return' on the online tax filing panel of the portal and upload the XML file that you saved.
- You will get a pop-up on your screen. This will ask you to sign in the file digitally. Select ‘Yes’ if you have got a digital signature and if not, then select 'No'.
- After this, it will generate an acknowledgement form, ITR Verification (ITR-V). These forms can be downloaded.
- You need to get a paper print of the form ITR-V and use blue ink to sign it.
- You need to post this form using either an ordinary post or a speed post to Income-Tax Department-CPC, Post Bag No. 1, Electronic City Post Office, Bangalore, 560 100, Karnataka. This form must reach within 120 days of income tax efiling.
Step by Step Guide to e-filing ITR 1:
Prepare ITR1/ITR 4S Online and then submit it.
You also have a choice to submit the ITR 1/ITR 4S forms submitting it online or by uploading XML.
- The first step is to login into IT e Filing application
- You need to visit 'e-File' 'Prepare and Submit ITR Online'
- Pick up the Income Tax Return Form ITR 1/ITR 4S along with the year of assessment.
- It will ask you to fill the requisite details. After doing so you need to click on the button that says submit.
- After submitting the details you will get to receive the details of acknowledgement.
- Use the link in order to look or get a paper printout of acknowledgement/ITR V form.
Things to be taken care of while IT e filing:
- You cannot begin with Income Tax e filing if you have used the same email address or mobile number for more than four taxpayers. After making required changes you can proceed with income tax efile For example, in a few cases, you can file five returns, yours, mother, wife, mother-in-law and the HUF (Hindu Undivided Family) of which you are the breadwinner, the doer of the will.
- You must keep a sharp vigil on your details that you are filling in while online tax filing. If the details mentioned in your official statements and bank documents do not match, even with a slight difference, you will not qualify for tax filing. For example, if your name mentioned in your official statements and bank document does not match with the name in the PAN card, even with a minor difference, the portal will think that you are a different individual.
- If an NRI, i.e. Non-resident Indian goes for income tax efile, they will be required to present both a foreign number and India number.
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