How to file Income Tax Return Online in India?

Income Tax Return Filing

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Income Tax Return


Income Tax Act formulated by Indian Government states that those whose total income of the preceding year surpasses the threshold amount which is not chargeable to tax, have to file income tax return online or offline. Income tax returns filing is not an easy task. Thus, to make life smooth for people in this hectic schedule, the government has launched e-filing. This helps people in income tax filing in a hassle-free way. 

This is a simple process which can be carried easily by those who can work on computer. If not, then there are numerous professionals out there those who can help you in filing income tax return online. The best thing about online Income Tax filing is that you can do this according to your wish and comfort. You do not have to take any leave from office just file your income tax returns. All you need to do is to register on the official website of the income tax department. Plus, there are other websites as well, which help you file your returns. You need to note that the due date for income tax return filing is July 31st.

Who can File Income Tax Returns Online? 

The online income tax return filing turns out to be very easy and smooth and is now adopted by most of the assesses.

  • Those who earn Rs. 5 Lakhs and above.
  • Individual/HUF dweller with possessions those are positioned outside the country.
  • In order to submit the proof you need to prepare a comprehensive report of audit which is under the following sections 10(23C) (via), 10(23C) (VI), 10(23C) (v), 10(23C) (IV), 10A, 12A (1) (b), 44AB, 80IA, 80IB, 80IC, 80ID, 80JJAA, 80LA, 92E or 115JB of the Act.

According to Section 11(2) (a), the return filer needs to give a notice to the assessing officer.

  • A firm (falling under guidelines of section 44AB), Cooperative Society, BOI, AOP, Artificial Juridical Person, and Local Authority (ITR 5).
  • An assesse is responsible for producing returns U/S 139 (4B) (ITR 7).
  • If you are a resident of India with signing authority of any account that you are holding outside India.
  • If you claim relief under sections 90 or 90A or the deductions were claimed as per section 91.
  • All companies.

Ways of Filing Income Tax Returns Online

  • Digital Signature Certificate (DSC) for income tax filing online. A chartered accountant is necessarily required, in case you wish to file IT forms with the help of Signature Certificate (DSC).
  • In case you wish to go by online tax filing without using DSC, an ITR V form is formed. This form needs to be printed and signed. Then after completing the formalities you need to submit it to CPC, Bangalore. You can do this through speed post or even speed post but make sure it reaches within 120 days from filling your form.
  • While income tax return filing online there is no compulsion to file it using an E-return Intermediary (ERI) or you can do so without digital signature certificate DSC.

Things to Know before Filing ITR Online

In order to file online income tax return smoothly, you need to keep certain things handy.

Things to Know in Order to Choose the Right Form to Fill

Choosing the right form to file income tax return online is bits confusing as you need to pick out the right form while file ITR online. You need to select your Tax Return forms according to the categories you fall in. These categories are listed in the tabular for below:

  • Look at tax credit - Form 26AS vs. Form 16

Before initiating the online income tax return filing make sure to kook at Form 26AS. This form depicts the total tax that gets deducted from your income and this is deposited by your employer to the IT department.

Make sure that the tax deducted depends on Form 16. This also has to match with the facts in Form 26AS. In case you fail to file your income tax returns online without any errors, IT department sends you a notice.

  • Claim 80G, certificates for savings and several other deductions

Extra deductions can be claimed in case if you have not claimed them. Deductions can also be claimed under section 80G if you have made donations to charitable institutions.

  • Interest statement – Interest paid on savings accounts as well as fixed deposits

A deduction for about Rs.10,000 is permissible with the best of the interest earned on your savings accounts. On the other hand, the interest which is levied on bank deposits is a division of the taxable income and thus is taxes are applicable as per the defined rates.

Including the taxes mentioned above, make sure that you have the following things:

Income tax returns submitted in the previous year

  • Bank Account statements
  • Certificates for Tax Deducted at Source (TDS)
  • Profit and Loss Account Statement, Audit Reports, Balance Sheet 

In order to file income tax returns online your system needs to have the following

  • Java Runtime Environment Version 7, therefore you need to Update if the version of your Java is 6 or above

Documents Needed for Income Tax Returns Filing Online

When it comes to serious things such as income tax filing you need to always stay prepared. Mentioned below is the list of documents that you need so as to online income tax returns filing:

General Details

  • Details of your Bank account
  • PAN Number 

Reporting Salary Income

  • Rent receipts so as to claim HRA
  • Pay slips
  • Form 16

Reporting House Property Income

  • Residential Address of your property
  • Credentials of the co-owners along with their PAN credentials and share they hold in the mentioned property.
  • Interest levied on home loan
  • In case if you have an under construction property you need to submit the date of completion while income tax filing.
  • Name of your tenant and the income from the rent, in case if you have rented a home 

Reporting Capital Gains

  • You need to submit the purchase details plus the statement of stock trading in case if selling the shares while income tax return filing online.
  • If you sell any house or a property, you need to give the details of the selling price, purchase price, registration details and the monetary profit gained while filing online income tax return.
  • Submit all the details such as your mutual fund statement, debt funds, ELSS, sale and purchase of equity funds, and SIPs.

Reporting Other Income

  • If you have some deposit in the savings account then the interest accumulated from the money from the savings account needs to be reported.
  • If you have a source of income from interest on corporate bonds and tax savings bond while filing online income tax return then you need to report them.
  • If you have deposits in the post office then at the time of income tax return filing you need to report the income earned from that deposit. 

Recommended

  • Form 16 in India
  • Income Tax Slabs and Rates for Assessment Year 2017-18

Process to File e-Returns

  • If you do not have internet connectivity then you can fill up the returns form offline and then upon getting the connectivity you can easily upload the XML on IncomeTaxIndiaeFiling[dot]gov.in that happens to be the official website of the government.
  • Then you need to prepare your ITR 1 online and after that submit it.

Steps to File Income Tax Returns Online

You can fill the XML offline and then upload on the official website.

You can even prepare and submit your ITR 1 online. 

What all steps you need in order to file Income Tax Returns Online: 

Income tax returns Filing online is to remove the complexities of the income tax filing process. Therefore, you need to follow these steps mentioned below:

 The first step is to visit IncomeTaxIndiaeFiling.gov.in login to the website. 

  • Your Permanent Account Number (PAN) is supposed to be your user ID.
  • Look at your tax credit statement or even Form 26AS.
  • The TDS according to Form 16 must match with the details of Form 26AS.
  • You need to click on the income tax return and pick out the financial year.
  • The next step is to download the ITR form that suits you. For instance, if your exempt income is more than Rs.5,000, then you need to select ITR-2 .
  • Make us the software for return preparation such as Open excel utility and make use of Form 16 to fill out the details of your form.
  • Click on the tab that says 'calculate tax’ in order to know the taxable amount.
  • Pay tax (if any) and enter your challan details.
  • Click on the 'validate' tab to confirm all the details mentioned above.
  • Pick up an XML file and save it on your computer.
  • On the portal’s panel you need to find out 'upload return' and there you can upload the XML file you saved.
  • You will get a pop-up asking you to sign the file digitally. If you have a digital signature, then select ‘Yes’. In case you do not have a digital signature, select 'No'.
  • This will generate ITR-V Form that needs to be downloaded.
  • Take out a printed copy of form ITR-V and do signatures on it using the blue ink.
  • You need to send it the Income-Tax Department-CPC, Post Bag No. 1, Electronic City Post Office, Bangalore, 560 100, Karnataka. You are allowed to use speed post or ordinary post but it must reach just in 120 days of income tax return filing.

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