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“A Step-by-Step Guide to E-Filing Your Income Tax Return”

How to E-Filing Your ITR

Taxation is a technique via which the government collects money from its citizens and business organizations to fund public offerings and packages which includes education, healthcare, infrastructure improvement, and country’s national defenses. Taxes can take extraordinary forms, such as income tax, sales tax, property tax, and corporate tax, among others. The taxes are often driven with the aid of the want for revenue technology to satisfy the government's expenditure responsibilities. Taxes can also be used to influence the conduct of people and business organizations, which includes encouraging investment or discouraging dangerous activities like smoking, drinking, etc. Tax rules are typically set up by the government through regulation and are enforced by way of tax government. Understanding the tax system is a critical thing of financial management for individuals and business organizations. So, in this blog everything about e-filing will be easier for understanding.

 

“E-filing has become more convenient with simplified procedures.”

 

WHAT'S AN ITR?

ITR stands for Income Tax Return, is a document filed by an individual or a business with the tax authorities to serves as proof of income earned and tax liability or paid for a financial year. A form 16 you have to fill and submit to the IT department which carries all your information which includes details of all sources of income, deductions claimed, and taxes paid. The filing of ITR is mandatory for individuals and businesses that meet certain income thresholds, and non-compliance can result in penalties and legal consequences. The government uses ITR to assess tax liabilities and ensure compliance with tax laws.

 

WHY IS IT IMPORTANT TO FILE AN ITR?

Filing an ITR is important for several reasons. It serves as proof of income and taxes paid, helps in claiming tax refunds, and avoids penalties for non-compliance. It also helps individuals and businesses establish their creditworthiness and financial stability, which is useful to claim many advantages. Additionally, filing an ITR is a legal requirement and mandatory as per the Income-tax Act, 1961 for those who meet certain income thresholds, and failure to do so can lead to legal and financial consequences. Some of the possibility where an ITR becomes mandatory are:

a.       Loan Applications

b.      Tax Deductions

c.       Own any Foreign Assets

d.      Adjust any capital gains or losses

e.      Helps in avoiding a penalty

f.        Visa Applications

g.       Overseas Education

And Many More.

 

WHO ALL NEED TO FILE ITR?

Individuals and businesses who meet certain income thresholds are required to file an ITR. In India, individuals with an annual income of more than Rs 2.5 lakh, and businesses with a turnover of over Rs 20 lakh, are required to file an ITR. However, certain exemptions and deductions may apply, and it is important to consult a tax professional to determine the specific requirements.

 

It is also mandatory if:

1.    Individuals who are residents and ordinarily residents in India are required to file an ITR.

(a) Holds any asset (including any financial interest in any entity) located outside India.

(b) Has signing authority in any account outside India.

(c) Is a beneficiary of any asset (including any financial interest in any entity) outside India.

2.    An individual is obligated to file an ITR if the total deposits made in their current bank accounts exceed Rs. 1 crore.

3.    If an individual has incurred expenses exceeding Rs. 2 lakhs for foreign travel, they are required to file an ITR.

4.    If an individual has incurred expenses exceeding Rs. 1 lakh towards electricity consumption, they are required to file an ITR.

5.    If the total sales, turnover, or gross receipts of a business exceed Rs. 60 lakhs, the business is required to file an ITR.

6.    If the total gross receipts of a profession exceed Rs. 10 lakhs, the individual is required to file an ITR.

7.    If the total tax deducted and collected at source is Rs. 25,000 or more (Rs. 50,000 in the case of resident senior citizens), the individual is required to file an ITR.

8.    If an individual's aggregate deposit in one or more savings bank accounts is Rs. 50 lakh or more, they are required to file an ITR.

 

“Be prepared to file and stay ahead of the tax game!”

 

It is important to file your taxes accurately and efficiently, it is essential to have all your documents in order and in handy. Here's a comprehensive list we've created to assist you with getting organized.

1.       To file your taxes, you'll need a salary certificate or Form 16 from your employer.

2.       Health and life insurance premium receipts are important documents to have on hand for tax filing.

3.       Bank account statement are important documents to have on hand for tax filing.

4.       For accurate tax filing, interest certificates are important documents needed for tax filing, especially if you have deposits, education loans, or housing loans.

5.       To ensure accuracy when filing taxes, it's crucial to have Form 26AS, which indicates any taxes already deducted or paid in the previous year.

6.       Providing the bank account number and IFSC code is crucial when nominating a bank account for tax refund, especially if the account is not pre-validated.

7.       Make sure to have quarter-wise information on dividends received during the previous year to file taxes accurately.

8.       An Annual Information Statement (AIS) is a necessary document that provides a summary of all financial transactions made in the previous year.

 

FORM 16:

Form 16 is a certificate issued by an employer to its employees, containing details of the salary earned and deposited on your behalf during the year and the amount of tax deducted at source (TDS) by the employer. It serves as proof of income and TDS for the employee and helps in filing income tax returns. Form 16 is mandatory for salaried individuals.

·      Form 16 is issued by your employer and can be obtained from them.

 

Annual Information Statement (AIS):

The Annual Information Statement (AIS) is a consolidated statement that provides a comprehensive view of all the financial transactions made by an individual or entity during the financial year. It includes details of investments, purchases, and sales of assets, among other things. AIS is a helpful tool for assessing tax liability and preparing tax returns.

 

How to view Annual Information Statement (AIS) Form:

1.    Login to income tax portal

2.    Click on Services tab

3.    Click on Annual Information Statement (AIS)

4.    Download Annual Information Statement (AIS) as a pdf or as a JavaScript Object Notation (JSON).

 

26AS:

Form 26AS is an annual tax credit score announcement that consists of information about the amount of tax that has been deducted at source (TDS) and deposited by using diverse entities on behalf of the taxpayer. It is usually detailed information of tax refunds, excessive and high value transactions, tax credit received during the financial year. Form 26AS facilitates taxpayers to reconcile their tax legal responsibility and facilitates the submitting of income tax returns.

 

How to download Form 26 AS?

1.    Login to https://www.incometax.gov.in

2.    Go to e-file menu, select Income Tax Return

3.    Click View Form 26AS

 

“Simplify your tax filing process with e-filing portal.”

Once you have gathered all the necessary documents, you can easily begin the e-filing process by following a few simple steps. Firstly, you need to visit the official e-filing portal at www.incometax.gov.in and log in using your credentials to get started with your tax filing.

 

Then START

 

1.    Register on the e-Filing portal (If you are first time filer & not already registered)

2.    Login to e-Filing Portal with e-Filing ID and Password

3.    Register your Digital Signature (if applicable)

4.    Update your personal mobile number and email ID as primary contact details.

File your taxes with confidence using our simple e-Filing process!

Here's what you need to do to start filing your Income Tax Return now that everything's in place.

 

1.       Validate:

It refers to verifying the information provided in the tax return and making sure it is correct. Validation can be done through various methods, including digital signatures and one-time passwords.

 

a.    Personal Information: Verify the auto-filled data from your e-Filing profile

b.    Total deductions: Verify any deductions you wish to claim under Chapter VI-A of the Income-tax Act, 1961.

c.     Gross Total Income: Examine at the pre-crammed facts and double-check the details of your income sources, along with your profits/salary/pension, income from rent, and other assets (including interest income, capital profits, and many others, etc.). Take a look at for any exempt earnings you may have for the duration of the previous year. Discuss with the (AIS) earlier than finalize total profits.

d.    Tax Paid: It is important to cross-check the tax paid data that is pre-filled in the Income Tax Return (ITR) form with the entries mentioned in Form 26AS to ensure accuracy. This helps to avoid any discrepancies or errors in the tax calculation and filing process.

 

2.       Confirm your return arbitrary:

On the Preview and Submit Your Return page. enter Place, select the declaration checkbox and click Proceed to Validation.

 

3.       Verify and Submit:

Once validated, click Proceed to Verification.

 

Then SUBMIT

 

Last Closing Step:

Your work is not complete until you have finished this final step.

E-verification.

Your income tax return (ITR) will remain incomplete until you complete this final step of verification. There are several ways to E-verify your return, which are mentioned below. It's important to note that your return won't be processed until it has been verified.

 

1.    Aadhaar OTP.

2.    Electronic Verification Code (EVC) through Bank Account.

3.    Electronic Verification Code (EVC) through Demat Account.

4.    Sending duly signed ITR-V through Post to Central Processing Centre (CPC) Bengaluru.

 

In conclusion, as we continue making e-Filing easier, faster and taxpayer friendly for you e-filing income tax return (ITR) is a convenient and efficient manner to file tax returns online. It now not handiest saves time but also exclude the need for physical visits to tax offices. To e-file your ITR, you need to keep all necessary documents equipped and ready, validate personal information, cross-check tax details, and verify the return summary. Once all steps are complete, you can submit your ITR online, and then verify it through EVC or other modes mentioned. The Central Processing Center (CPC) processes ITRs submitted online, and you can keep track of your ITR status online as well. E-filing ITR has made the tax-filing process simpler and faster, helping taxpayers to comply with tax laws and regulations in India.