Filing income tax return seems to be a herculean task for most individuals. However, filing ITR is mandatory for individuals whose income exceeds over Rs. 2.5 Lakh, most individuals lose valuable time getting their documents in order and miss the date.
For filing ITR the revised deadline for the financial year 2016-2017 was August 5th under the section of 139(1). In case you have missed the deadline, then you do not need to worry much as you can still file your belated ITR under the section of 139(4). Although, prior to filing your ITR there are few points that should be kept in mind, these are:-
The process of filing belated income tax return is simple and it can be done in two ways- either by completely following the online method to file income tax or by downloading the java or excel utility, filling all the required details and uploading it on the website.
Step1- Primarily, you will need to login to the official website of income tax e-filing i.e. www.incometaxindiaefiling[dot]gov[dot]in.
Step 2- Once you open the website you will be redirected to the login page where you will need to fill the necessary details like your user ID i.e. PAN no. along with a password, date of birth and captcha code. www.incometaxindiaefiling[dot]gov[dot]in/e-Filing/UserLogin/LoginHome.html
After entering all the details on the website click on ‘submit’ which will redirect you to your account.
Step 3- As you are e-filing your tax return post the deadline, it is very important to be careful while choosing the option under relevant form and assessment year.
Step 4- Once you complete filling the obligatory details mentioned under step 3, you will be forwarded to the ITR form page.
Step5- While you file the income tax return form, keep in mind to choose the correct option for ‘Return filed under section…’ otherwise, the tax return won’t be accepted. Choose the option ‘After Due Date 139(4)’.
Step6- It is advisable to cross check all the information filled by you on the form. You can check it by selecting the option of ‘Preview and Submit’.
Step7- Once you finally submit the form do not forget to verify your ITR. The income tax return filing will not be validated until you verify it.
Step8- The taxpayer can verify the ITR in 6 ways. He/she can either verify the ITR using net-banking, adhaar or OTP method or the taxpayer can send the copy of acknowledgment known as ITR-V, to CPC Bengaluru.
Once the department of income tax receives the acknowledgment of your verified ITR, they will initiate the processing and will notify you about the same through SMS or e-mails.
Whether your income is taxable or not, filing ITR is beneficial for all salaried individuals. Some of the benefits of filing income tax returns are:-
Loans- In case, an individual applies for any loan like the car loan, house loan or two- wheeler loan, a copy of tax return is asked from all the major banks. Having your ITR filed helps you to complete the process of loan without any hustle.
To carry forward losses- In case, you do not file your ITR; you will not be able to carry forward the short and long-term capital losses, if any, in the financial years so that it can get adjusted with the capital gain made in the succeeding year.
Visa Processing- If you plan to travel abroad, the foreign embassies ask to furnish the ITR receipt of last few years at the time of visa interview. Some may even ask the income tax receipt of preceding 3 years for verifications.
Buying a High life Cover- In today’s times buying high life cover of Rs. 50 lakh or Rs. 1 crore has become very common. However, the high life coverage is only provided by the insurer if you submit the ITR receipt.
Government Tender- A tax return receipt of preceding 5 years is required to be submitted if you plan to start your own business. Moreover, the person will also be required to fill a government tender for the same.
Self-employed- For self-employed individuals like consultants, businessman and partners of the firm, the ITR receipt documents become more vital as they do not get form 16. The ITR receipt is very much required if the yearly income of the individual exceeds the basic exemption limit of Rs2. 50Lakh. For the self-employed individual, ITR receipt is the only proof of tax payment and income for all types of financial transaction.
Wrapping it Up!
Gone are the times when any tax issue required you to spend hours in a queue outside a govt office. Even those who had the patience weren’t aware of the importance of filing their tax returns. So, now that you know the benefits of filing income tax return and in case you have missed filing ITR by August 5th, you can do it by following these simple steps to file belated ITR.
Helpful Resources: How To Calculate Income Tax