Filing ITR is important for every citizen of India irrespective of whether the salary of an individual comes within the tax bracket or not. Furthermore, the government of India has made it compulsory to file ITR from the assessment year 2013-2014 to file income tax for the individuals whose salary exceeds Rs. 5 lakhs.
Keeping the convenience of the citizens in mind, the income tax department of India has provided a user-friendly platform to pay taxes. TDS Reconciliation, Analysis and Correction Enabling System (TRACES) works as an income tax guide, enabling the citizens to cross check their TDS, file ITR, claim refunds, download forms, check the dues status, challans, refunds, etc. As we have already mentioned that filing ITR is significant for every individual, it is important to know the eligibility criteria required for filing income tax return.
- Salaried individuals whose total income is of Rs 5 lakhs and above.
- Hindu Undivided Family residents and individuals with assets located outside India.
- The tax payers are required to submit the audit report specified under section 10(23C) (IV), 10(23C) (V), 10(23C)(Via), 10 A, 12 a(1) (b),80IA, 44AB, 80IB, 80IC, 80JJAA, 80ID, 80LA, 92E or 115JB of the Income Tax Act.
- The taxpayers are also needed to provide a notice under section 11(2)(a) to the tax officer.
- Any company or firm that does not come under the provision of section 44AB, AOP, BOI, cooperative society, artificial person and local authority (ITR 5) must compulsorily file income tax returns.
- The taxpayers are required to submit returns under section 139(4B)(ITR7) of the Income Tax act.
- Any resident, who has signing authority in any account located outside India.
- An individual who claims deduction or relief under section 90 or 90A and under section 91 of Income Tax Act 1961.
This article takes you through the income tax guide in order to help you learn how to file ITR, with the respective links for: viewing the form 26AS, registering for e-filing, e-payment of taxes, income tax calculator, e-filing the income tax return, keeping a proper track of dues, downloading the relevant form and ITR form, modification of return, checking the status of refund, online verification of return.
Step-by-Step Income Tax Guide
Filing ITR Online may sound like a big deal for the first-timers. However, this income tax guide will definitely make the process much smoother and easier for you:
Salaried taxpayers usually need ITR1 to file their income tax return. Until last year, it used to be a single page form. For FY 2018-19, a detailed break-up of the earnings, including property and salary is required. As per ITR filing online form, you need to provide the details of non-exempt allowances, borrowed capital, interests etc. (if any).
To ensure that you do not end up beating around the bush next time you file your ITR, here’s a step-by-step Income Tax Guide to help you file your ITR online.
ITR Filing Online Checklist
For salaried employees, it is a straightforward and simple process. All you need to do is register yourself on the official site of Income Tax Department using your email id and contact number.
For salaried taxpayers, attaching form 16 issued by the employer is mandatory. You need to provide your PAN number, bank statements and Form 26 AS to validate tax deductions. For business organizations, audit reports are also required.
Calculating Tax Exemptions
The next step is to calculate your income tax exemptions. For health insurance policies, life insurance policies, ULIPs, PPF account, ELSS, NSC and mutual funds, you get tax exemption under section 80C of the Income Tax Act. The tax exemption limit under Sec 80C is of Rs. 1.5 lacs.
Note- Home loan installments paid after possession of the house and repayment of the education loan are also tax exempted. You need to furnish proof of all the investments and declarations.
Calculate annual salary and deduct the exemptions and then file your ITR. Read all the instructions carefully before filing ITR online.
Documents Required to File Income Tax Return Online
This income tax guide talks about different forms available for filing ITR online. However, here are a few forms that are essential for e-filing of Income tax return.
- Form 16 issued by the employer
- Your bank statements
- A copy of the ITR filed in the last fiscal year
Benefits of ITR Filing Online
You can file your ITR online yourself with the help of income tax guide or you can also take help of a Chartered Accountant (CA) to do so. Filing of ITR Online is not as complicated as you might think. If done ahead of time, it can save you from the last-minute troubles.
- Convenience-The last day of filing ITR online or offline is 31 July every year. Don’t linger on to the last moment; you never know when the site slows down due to the heavy traffic. It is advisable to file it at least a month in advance. You can easily file your ITR online as per your convenience following the steps mentioned in this income tax guide.
- Keeping Penalties at Bay- Missing the deadline will attract penalties. When you don’t wait for the last minute and file your ITR online following this income tax guide, you keep penalties at bay.
- Maintaining Credible Record- The surefire way of maintaining a credible record is by paying all the taxes on time. Filing your ITR online is the easiest way to ensure that.
- Evidence of Financial Records- You can furnish ITR-V form as a proof for financial records. This proves to be useful while applying for home loans, visa, passport etc.
Steps for filing ITR Online
Once all the documents are ready, the steps to file income tax return are as follows:
- Online Registration- The first step is the online registration. You can log on to https://www.incometaxindiaefiling dot gov dot in/home to do the same. Please note that the user ID is the PAN card number.
- Form 26AS for Tax Credit Statement- It is essential to determine the total tax paid in the last financial year.
Note- Form 26AS should match with the TDS in Form 16.
- Download ITR Form- Go to the ‘Download’ menu and download the income tax return form for the current fiscal year. You can also opt for Quick e-file ITR link to complete the process on the portal.
- Return Preparation Software- You can download the Return Preparation Software, which is a spreadsheet that you need to fill in using the Form 16 details. You can upload the Form 16 directly as well.
Steps Involved in Filing Income Tax Return:
- Firstly, the taxpayers need to collect the certificate of TDS, which should be, mandatorily, in the format required by TRACES.
- If the taxpayer has a digitally signed certificate, it is important to ensure a check mark on the digitally signed copy, confirming that it has been verified.
- There will be a question mark for the non-verified certificate.
- This income tax guide makes it mandatory to verify the TDS amount on the certificate with the deducted amount shown in your income.
- Salaried individuals should choose form 16 TDS certificate and others (non-salaried individuals) should choose form 16A.
- Download the statement form 26AS of tax credit from TRACES and verify the amount of tax exemption against the exemption mentioned in the TDS certificates.
- In order to download the form 26AS, the taxpayer is required to log in to their e-filing account on the income tax e-filing website.
- Link to Access Form 26AS- https://incometaxindiaefiling[dot]gov[dot]in/e-filing/UserLogin/LoginHome[dot]html?nextPage=taxCred http://contents.tdscpc[dot]gov[dot]in/en/netbanking[dot]html/
- If there is any inconsistency in the TDS amount shown in form 26AS consult with the respected tax consultant and request for a modification.
- Once you are done with this, calculate your total income for the financial year and add incomes under all the 5 heads by claiming all the relevant rebates, deductions and setting-off the existing years. Keep in mind not to miss any income while calculating the total income which is taxable.
- By applying the current tax rates for the financial years, calculate your tax liability using the procedure mentioned in this income tax guide.
- Link to e-pay Taxes- https://onlineservices dot tin dot egov-nsdl.com/etaxnew/tdsnontds dot jsp
- Link to See the Dues- https://incometaxindiaefiling dot gov dot in/e-Filing/UserLogin/LoginHome dot html?nextPage=taxDemand
- Once you are done with paying taxes, file the return. July 31st is the deadline to file ITR.
- Link to file ITR- http://incometaxindiaefiling dot gov dot in/
- To file the income tax return login to the e-filing website of the income tax department.
- Enter your user ID and password, which will be your date of birth, and captcha code given on the login page. After you log in, different tabs will open like “my account”, “dashboard”, etc. http://incometaxindiaefiling dot gov dot in/ (Login)
- If you are a new user, you will need to register yourself first on the income tax site. You will need to choose a status like chartered accountant, individual, etc. Once you choose your status, go on and fill all the basic details like date of birth, address and PAN number to get registered. After you are done filling all the information, you can login to the e-filing website http://incometaxindiaefiling dot gov dot in/
- Once you login to the website, choose the form applicable for the purpose of filing return.
- In case of other forms such as ITR-2, ITR-2A, ITR-3 and ITR4 the taxpayers will be required to download the relevant form from the website.
- Link for Downloading the Form- http://www.incometaxindia dot gov dot in/Pages/downloads/income-tax-return dot aspx
- After the relevant ITR forms are downloaded, the individual will be required to fill the personal details, income details and other required details in the form. Once you have filled in these details, upload the form on the website and file the return.
- As per the income tax guide, it is significant to verify the form, as without verification, the filed ITR is not valid.
So, with the help of these links and by following the steps mentioned in this income tax guide, an individual can e-file the Income Tax Return. Hopefully, this article has made the process of filing ITR less daunting for you. If you have any tips or experiences you’d like to share, we’d love to read about it in the comments section.