Income Tax e-Filing
Any persons who have total income during the previous year more than the specified limit of tax exemption have to file ITR or income tax returns as per Section 139 (1) of India. E-filing is a procedure through which an individual submits his or her income tax return through the Internet.
For those willing to seek professional help or prefer doing it themselves taxpayers can register on the income tax departments or any other related websites. Whereas the e-filing of income tax returns is on July 31 of every year, the government may allow for an extension of 15- 30 days to file the forms either online or through physical submission.
Benefits of e-Filing of Income Tax
The new Government of India has made it compulsory for the assesses to file their income tax returns electronically. The method is far more efficient as compared to the earlier method of filing papers.
The following are the advantages that are associated with, ITR filing or income taxes electronically-
- It is important to note that the e-filing of income tax returns is usually done and has to be done before July 31st of every year. If the user uploads it one or two months before the deadline, it will be easier for them to complete the assignment since there will not be a lot of traffic on the servers, especially during the next one or two months before the deadline.
- This record may be useful, for instance, if the taxpayer wants to do business with any other organization that maintains similar records.
- If for any reason a taxpayer failed to file income tax returns for the preceding year then he has to pay penal interest per day until the amount is paid. Therefore, preparing and submitting your income tax return at a very early time helps you avoid the extra charges.
- Another advantage of the online filing of tax returns is that the taxpayer is in a much better position to keep proper records of all his or her dealings with the Income Tax Department.
Required Documents for Income Tax Filing
One should always be ready before doing his/her income taxes, whether online or physically. Below is a checklist that should help you in case you intend to e-file the income tax returns as discussed below.
- General Details - Bank details, PAN
- Salary Reporting - Rent receipts to claim HRA, pay receipts, and form 16
- House Property Income - Address Proof, details of co-owners with a share in the mentioned property, PAN, Date of construction, if not constructed yet, it needs to be of the day of purchase, and certificate for home loan interest.
- Capital Gains - Stock trading statement, capital gains of shares sold, sale price, registration details, mutual fund statements, purchase details of equity funds, and more.
- Reporting Income - The income from interest reported, interest proof from tax-saving bonds, and corporate bonds need to be reported.
Rules for e-filing in Income Tax
Filing Only with Aadhaar: That will enable you to file your income tax return in cases where you do not hold a Permanent Account Number. Moreover, while applying for a new PAN card you need an Aadhaar Card with you all the time.
New IT rules state that taxpayers, who furnish their returns through an Aadhaar card, shall be issued a PAN after demographic details are obtained from UIDAI.
This new rule was introduced by the Government of India in an attempt to enhance tax compliance while at the same time enabling easy tax payment. For instance, the use of PAN is mandatory for any taxpayer when filing his or her taxes. However, the PAN and Aadhaar must be connected to complete your filings when you are filing your taxes.
How to Check the e-Return e-Fill Status
Follow the procedures below to check the Status of the income tax e-filing using the acknowledgment number:
- Step 1: Go to the ITD's official website at https://www.incometax.gov.in/iec/foportal
- Step 2: Choose the first option which is the ‘Income Tax Return (ITR) Status’.
- Step 3: Fill in the required details such as PAN no., acknowledgment no., and captcha code and then click on the ‘Submit’ button.
Penalty for Late Filing
In case, you don’t file your ITR before the due date, there is a penalty which is levied by the Central Board of Direct Taxes (CBDT). The e-filing up to the date of appearance before the appellate authority can be done and for the delay in e-filing the maximum fine is Rs 10000/- can be imposed and is to be levied as per Section 234F.
How to File ITR Online
The following is the step-by-step process for filing ITR online:
Step 1: Calculate Income Tax
This is the first step while undertaking e-filing of the income tax where an individual computes the income and the amount of tax in relation to the tax laws.
Calculation of income tax should be carried out by taking into consideration income from all sources hence should be calculated after the rightful deductions have been allowed.
Step 2: TDS Certificates and Form 26AS
The next vital process involved in this context is to summarize the TDS amount from the TDS certificates said above. It is important to understand that within Form 26AS there is a provision to make a computation of the summary of TDS and tax paid within a specific financial year.
Step 3: Select the Suitable Income Tax Form
In the third step, which a shareholder has to complete before filing the returns, he or she has to choose the appropriate ITR Form. A taxpayer, therefore, has the option of submitting the income tax returns online or offline. For online ITR filing, only two forms will be to ITR 1 and ITR 4, forms are available.
All the other income tax forms will have to be filed offline by downloading XML and uploading on the portal.
Step 4: Download the ITR utility from the Income Tax Portal
Go to the official Income Tax website by typing www. incometax.gov.in and click on the ‘Downloads’ section. Hence, choose the assessment year for downloading the offline utility software.
Step 5: Fill out the downloaded file
Once you have downloaded the offline utility, there is always a need to fill in some information that is necessitated such as your income, the tax payable, and the refund amount, among others.
Step 6: Validate the Information Entered
Upon completing the form, there is an option labeled ‘Validate’ lastly, which will check all the details that the client has inputted.
Step 7: Convert the file to XML Format
After validation, select the Generate XML option of the file to convert it into an XML file format.
Step 8: Upload the XML File on the official Income Tax Filing Portal
This e-filing of income tax returns is through the official income tax e-filing portal. After the above steps, click the e-file option and then click on Income Tax Return.Here, it is necessary to fill in basic details such as PAN Card details, ITR Form number, assessment year, and submission mode.
Then, the respective XML file from your computer needs to be attached and then click Submit.Last choose one for the verification mode - Electronic verification code (EVC), Aadhaar OTP, or sending the manually signed copy of ITR-V to CPC.
Conclusion
Filing of income tax returns electronically is a method that has been adopted by many taxpayers to enable them to submit their tax data to the government. It includes computation of income tax, collection of supporting documents including TDS certificates and form 26AS, choosing the right ITR form, downloading the ITR utility, completion of the ITR form, verification of entered information, conversion of XML, and uploading to the official income tax e-filing website.
Frequently Asked Questions (FAQs)
What is e-filing of income tax?
e-filing is a procedure of filing income tax returns on Internet. Every person who earns the total income beyond the tax exemption limit has to file the Income Tax Returns in terms of Section 139 (1) of the income tax laws of India.
Who needs to file ITR?
All individuals who earn a total income of fifty thousand rupees and over in the previous year or those other individuals who are required under the Income-tax Acts to file the return for that year are to file ITR.
What is the deadline for e-filing income tax returns?
The deadline for e-filing Income tax returns is the 31st of July of the particular year. Depending on the circumstances it is possible for the government to extend this period between 15 to 30 days.
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