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Home » Get your taxes done easily and quickly, by an ITR filing online. From Benefits to Filing Process, Know Everything.

Get your taxes done easily and quickly, by an ITR filing online. From Benefits to Filing Process, Know Everything.

ITR filing online

Income tax filing is an annual activity that’s the basis for the government to determine the amount and means of expenditure of the citizens and provides a platform for the assessee to claim refunds, among other forms of relief from time to time. This is not a very healthy perspective on tax filing. Filing taxes is an annual activity seen as a moral and social duty of every responsible citizen of this country. It also provides multiple opportunities for discounts, deductions, rebates, and exemptions which can help lower your tax liability. However, many times people avoid filing tax returns for various reasons. Some people think that the process is complicated and time-consuming, but with proper assistance, it can be done in less than 24 hours. Others are concerned about the confidentiality of their personal financial information, so they prefer not to file their tax returns. The income tax department only requires information regarding your bank accounts, investments, and any other income through which taxes may be due. But this is not the case. To, know what actually an income tax filing is and how one can do it, let’s read further.

What is Income Tax Filing

When you start earning an income, it is mandatory to submit an Income Tax Return (ITR) every year. ITR, in general, is the form to be filled by an individual or a company to disclose their total income, which they have earned during that financial year. In simple words, we can say Income tax return filing is a process in which a taxpayer submits a form to the Income Tax Department that includes information about his/her income and taxes payable.

What are the benefits of Filing Income Tax Returns?

Hassle-free Loan Process- If you plan to apply for a loan in India, filing your income tax returns is essential. Banks and other financial institutions take the ITRs as official proof of income and demand these receipts at the time of loan approval.

Claim a Tax Refund: Many people are unaware that they can claim a tax refund from the IT department by filing income tax returns. This is highly beneficial to salary and self-employed individuals who earn a large income.

Works as a Solid Legal Document: The Income Tax Return documents your earnings and how you earned from them. It is documented proof of the income sources you earned from and the taxes you paid on it. It can prove that you were employed for a certain time. It shows your qualifying expenses, deductions, etc. Although it is not considered a legal document, in most countries, it documents the legality of your claims and earnings from the specific financial year.

Easy VISA Application: When applying for a VISA, immigration authorities at the destination country may ask you to provide proof of tax compliance in the form of copies of tax returns filed. If you have not filed tax returns earlier, you will therefore be required to file the same for this purpose.

Claiming Your Losses: Filing income tax returns is mandatory to claim specified losses for an individual taxpayer, such as losses from capital gains, business, or profession. This can be availed only if the taxpayer has filed his return within the due date. If you don’t file your income tax returns within the time frame and pay the balance tax amount on time, then you are subject to a penalty.

Who Should File an ITR

  • The income tax department requires the filing of an income tax return if your gross taxable income (before certain exemptions and deductions) during a financial year exceeds Rs 1 lakh.
  • For a normal taxpayer, the exemption limit is ₹2.5 lakhs (₹3 lakhs for senior citizens, ₹5 lakhs for super senior citizens). If your income exceeds this amount you must pay taxes on it.
  • If you are someone who acquires a property outside India (abroad) and acquires any income from the same you are bound to file an income tax return on that income.
  • If you are someone who pays more than Rs. 1 Lakh for their electricity bill within a fiscal year you must file an ITR.
  • If someone is assessing deposits of more than Rs. 1 crore in an account or more than a single account within a fiscal year must file an ITR
  • You must file an income tax return if you spend more than ₹2 lakhs on overseas travel during the financial year.

How to File an Income Tax Return Online?

Here comes the most asked question when it comes to filing income tax returns. Most people don’t even know the process of filing Income Tax Returns and this is one of the major reasons they hesitate to even think about getting themselves involved in it. But worry not as we are going to make it easy for you. By, following these below-mentioned steps, your Income Tax Returns will be filed in no time.

Wouldn’t it be great if you could file your taxes from your home laptop or desktop computer? Well, the good news is that you can. It is called e-filing of income tax returns (ITR) and has made the process completely paperless. With an option to pay income tax installments online also, it has become easier to file ITR from home.

A step-by-step guide to logging in or registering to the e-filing portal

  • To start with, visit the official website of e-filing – https://www.incometax.gov.in/iec/foportal
  • If you registered earlier, click on the ‘Login’ here’ button. If this is your first time on the website, click on the ‘Register’ yourself’ button.
  • Select the “ Taxpayer” option, fill in your PAN details, and “Validate”. Follow with a click on “Continue”
  • Now submit all your details such as name, address, gender, Date of Birth, etc.
  • Now fill in your Email ID and registered number
  • After filling out the form and checking everything, press the “continue” option
  • Once you confirm your details, you will receive a 6-digit OTP on your registered mobile number and Email address.
  • To register, enter your OTP and follow the given steps.
  • Now set up a password and secure login message
  • Once you click on ‘Register,’ you will receive an acknowledgment message stating that the registration process is complete.

Once you are done with the registration and login process you can move ahead with the e-filing.

Step by Step Guide to E-File Income Tax Return at Portal

Calculate your income tax liability using Form 26AS to summarise your TDS payment for all 4 quarters of the previous year. On the basis of the definition provided by the Income Tax Department (ITD), choose an ITR form accordingly.

Now follow the below-mentioned steps one by one:

  • Visit the official website for E-filing and “Login”
  • Enter your username and password and press “continue”
  • Now click on the tab ‘e-file’ followed by a click on ‘File Income Tax Return’
  • Select the tax year for which you want to file your income tax returns and click on Continue.
  • When you reach this point, you’ll be asked whether you want to file your taxes online or on paper. In most cases, we recommend that you file online.
  • You can file your income tax returns as an individual, Hindu Undivided Family (HUF), or others. Choose the ‘individual’ option.
  • Now you can choose the tax return form that you wish to file.
  • The next step will ask you to explain why you are filing your taxes above the basic exempted amount or because of the seventh provision under Section 139(1).
  • Now fill in the details of your bank account.
  • Now you will be redirected to a new page, confirm and validate the filled-in details and proceed further
  • The last step is verifying your return and sending a copy to the Income Tax Department. The verification process is required as per law.

FAQs

A taxpayer can file ITR offline with the help of the upload XML method.

The Income Tax Department has specified that belated returns must be filed by 31 December of the year following assessment (unless extended by the government). For this year, you may file your belated return latest by 31-Dec-2022.

The various types of forms that one could find on the official website for e-filing as per the Income Tax Law are ITR1, ITR2, ITR3, ITR4, ITR5, ITR6, ITR7, and ITR-V.

You do not need to submit any documents when you file the Income Tax Returns. However, you should keep copies of the relevant documents and be prepared to provide them to tax authorities if requested.

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