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.
As the income tax return due date is round the corner, you must have noticed every eligible candidate running from pillar to post to fulfil the tax-related formalities. As tax is the most important yet one of the complicated things to comprehend, here is a quick guide to making you familiar with the term and the return process:
Tax is the main element for the government to generate revenue. Income tax is one of the multitude taxes available in the system, which usually deals with the taxation of the earnings of every Indian citizen, organisation, firm in a fiscal year. The earnings that are eligible for tax could be from daily wages, dividends, interest, capital gains or other profits. In this regard, an income tax return is the only legitimate way to justify one’s income.
Income tax return is the proof that you have paid your tax on time. The tax return proof contains the details of your annual earnings and the amount you’ve paid as tax. This makes it easier for every taxpayer to calculate the tax liability, schedule tax payments, a request of refund for over payment of tax etc. To complete the income tax return process effortlessly, you should know about the various ITR (Income Tax Return) forms related to the entire process. These forms are notified every year by the Central Board of Direct Taxes (CBDT).
In order to file an income tax return, the required forms are as follows:
Form |
Applicable to |
ITR-1 |
For the salaried persons, house property owners, those who earn interests and with the total income up to INR. 50 lakh |
ITR-2 |
HUFs and individuals not having an income out of proprietorship |
ITR-3 |
HUFs and individuals having income from a business or profession under a proprietorship |
ITR-4 |
For HUF, individual or Firm opting for tentative taxation scheme |
ITR-5 |
For LLP or Limited Liability Partnership, firms, AOP (Association of Persons), Artificial juridical person, BOI(Body of Individuals), Registered societies, Private Discretionary Trust, Local authority, Cooperative society. However, an individual who is eligible under ITR-7 will not utilise this form to file income tax return |
ITR-6 |
For companies who are not claiming tax exemption under section 11 |
ITR-7 |
Individuals and companies who are required to produce income tax return under section 139(4E), section 139(4F), 139(4D), 139(4C), 139(4B) and 139(4A) of Income Tax Act 1961. |
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insure. Tax benefit is subject to changes in tax laws. *Standard T&C Apply
Income Tax Department has extended the deadline for filing income tax return up to August 31st, 2018. Those whose accounts need to be audited must file their income tax return by EOD September 30th, 2018. Those who need to furnish a report under Section 92E must file the return by November 30th, 2018.
Most youngsters may think that they don’t need to file an income tax return if they don’t fall under the tax slab. But it is not true. Income tax filing is a legitimate way to prove one’s income. It is an important document and more elaborate than Form 16. While Form 16 is the proof of one’s salary and tax deduction by the current employer, ITR indicates the income from other sources as well. The best part is that one can file ITR online also. This saves both time and effort. To file ITR online, the taxpayer has to visit the official website of the income tax department, navigate through the ITR filing option and pay the eligible taxes.
The benefits of Income tax filing are manifold:
Having filed ITR on time will help the person applying for a home loan or vehicle loan. Most of the Indian banks can ask for income tax filing copy as one of the important documents to sanction a loan. For instance, SBI asks the applicants applying for vehicle loan for the latest salary-slip stating all deductions, TDS certificate/ copy of ITR/ Form 16 from at least two previous financial years. Moreover, it also comes in handy when a loan application is being rejected. So, File ITR online and the required amount of loan in need.
Income tax filing is necessary to claim a refund from the Income Tax Department of India. With an ITR, tax refund is impossible. When the taxpayers may mainly be investing in FDs, the tax is deducted for such investments at source at 10%. If the total taxable amount is less than Rs. 2,50,000, an individual can file tax returns and claim a full refund.
To carry forward capital losses, income tax filling is important. This way one can adjust the capital gains made in the following year. The loss incurred in a long-term capital gain can be carried forward for eight following years instantly. This type of capital loss can be adjusted only against a long-term capital gain only. However, in case of short-term capital loss, which can be adjusted even against long-term capital gains as well.
ITR receipt is an important document, which can be used for many purposes. It is the detailed proof that entails one's income and taxation amount along with the income from other sources as well.
When you file ITR online or offline, the ITR receipt is sent to the registered address, which can be further served as proof of address.
ITR receipt is also useful in visa processing. If you are travelling abroad, the foreign consulates may ask for a copy of Income tax filing of previous years, especially at the time of visa interview. When ITR receipts of the last three years are required in applying for a visa in some embassies, some other embassies may ask for the most recent ones. ITR copy is essential if someone is travelling to US, UK Canada or any other European country, but not so stringent for the Middle East or South East Asia. Hence, the experts suggest, whenever travelling to foreign countries, be it business trip or leisure trip, always carry income tax filling copy along with salary slip, Form 16 etc..
With accidental death increasing at a rapid pace, buying life coverage for higher sum assured has become commonplace. People prefer going for life coverage with Rs.50 lakh-1 crore so that maximum financial assistance could be offered to the family in case of a sudden demise of the insured. These covers can be availed against the copy of ITR. Various life insurance companies in India, especially LIC asks for ITR copy at the time of documentation. Even the coverage offered under a life or term insurance plan depends on certain factors and one of them is the income of the policyholder. If he/she doesn’t possess a higher salary, he/she would not entitle a higher life cover.
When Form 16 is not meant for businessmen, partners or consultants, ITR is the only document that proves their source of income. The only condition is that the annual income should exceed the basic exemption limit of Rs. 2.5 lakh. With ITR proof, the businessmen can perform all sort of financial transactions with ease. It is a legitimate document of tax payment for the self-employed.
When someone intends to start his/her own business and needs to file a government tender, it is essential to show ITR receipt of the previous years. This is a proof of the financial status of the applicant, which indicates whether he/she is competent to bear the payment compulsion or not.
However, it is not a mandatory option. It may differ depending on the rules and regulations of State or Central government. Even the requires ITR numbers can vary.
Just for Your Knowledge-
Read More: Income Tax Refund Status |
Individual and HUF below 60 years
Income Level (Rs.) |
Payable Tax (%) |
Up to 2.5 lakh |
Nil |
2.5-5 lakh |
5 |
5lakh-10 lakh |
20 |
More than 10 lakh |
30 |
For Senior Citizens
Level of Income (Rs.) |
Payable Tax % (60-80 yrs.) |
Payable Tax % (above 80 yrs.) |
Up to 2.5 lakh |
Nil |
Nil |
2.5-5 lakh |
5 |
Nil |
5lakh-10 lakh |
20 |
20 |
More than 10 lakh |
30 |
30 |
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insure. Tax benefit is subject to changes in tax laws. *Standard T&C Apply
The online income tax return filing turns out to be very easy and smooth and is now adopted by most of the assesses.
According to Section 11(2) (a), the return filer needs to give a notice to the assessing officer.
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:
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.
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.
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
In order to file income tax returns online your system needs to have the following
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
Reporting Salary Income
Reporting House Property Income
Reporting Capital Gains
Reporting Other Income
Recommended
Process to File e-Returns
Read More: Income Tax E Filing |
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.