Income tax e filing

Income Tax efiling

Income Tax E Filing

Income Tax & Income Tax Return

  • Income tax is a direct tax imposed by the Government on income generated by Individuals and Entities within their territory.
  • Tax paid by individuals is known as personal income tax. In contrast, the Business income tax applies to corporations, partnerships, self-employed people.
  • Income Tax Return (ITR) is the form in which the taxpayer discloses information about his income, claims deductions, and then pays Tax.
  • Income Tax Act 1961 and Income Tax Rules 1962 oblige everyone who earns Income in India for Income Tax E Filing every year before specified due dates.

Benefits of Income Tax E Filing

  • AVOID PENALTIES UNDER SECTION 234F: Under section 234F, there is a penalty of Rs.10,000/- on Individuals who fail to file an income tax return when his/her gross total income is more than maximum amount chargeable to Tax.
  • A USEFUL DOCUMENT FOR PROCESSING BANK LOANS: Most Banks asks for ITR receipts for the last three years when you apply for home loans or vehicle loans. ITR receipt is the final document of an Individual income.
  • VISA PROCESSING: Foreign embassies like of USA, UK, Canada, Australia, etc. ask ITR receipts of past years to process your visa application. They need it to assesses your income.
  • CARRY FORWARD OF LOSSES TO NEXT FINANCIAL YEAR: If you don't file your ITR, you will not be allowed to carry forward your losses to next year and set off against future income.
  • AVOID INCOME TAX DEPARTMENT NOTICES: Income tax department can serves notices to those who missed return submission.
  • CLAIM TAX REFUND: If your Tax is deducted excess, you can get a refund of excess Tax deducted by filing ITR.

Types of Income Tax E Filing Return Form

ITR 1 or SAHAJ

For Resident individuals, HUF having income < Rs. 50 lakhs from:

·         Salary/family pension

·         Income from other sources (excluding winning from lotteries and income from racehorse)

·         Income from one house property

·         Agricultural income up to Rs. 5,000/-

ITR 2

For HUF or Individual having income

·      From every income of ITR 1 > Rs. 50 lakhs

·      Income from Capital gains

·      From more than one house property

·      Having Foreign Assets/income

·      Agricultural income more than Rs 5,000/-

·      Director of a company

·      Have investments in unlisted equity shares at any time during the financial year

·      A Non- Resident or Not ordinarily Resident

·      Having income from winning from the Lottery or Racehorse.

CANNOT BE USED BY INDIVIDUAL WHO HAVE INCOME FROM PGBP  

ITR 3

For HUF or Individual, a partner in partnership firm having income

·    From every income of ITR 2 and

·    From Business or Profession

ITR 4 or

SUGAM

For HUF, Individual, Partnership firms having income

·    From every income of ITR 1 > Rs. 50 lakhs and.

·   Who have presumptive business income as per Section 44AD, Section 44ADA, Section 44AE of the   Income Tax Act. But if the turnover exceeds more than Rs 2 crore, then ITR 3 is to be filed.

·    If you are assessable in respect of income of another person for which Tax is deducted in the hands of another person.

ITR 5

Is for

·   Firms

·   LLPs (Limited Liability Partnership)

·   AOPs (Association of Person)

·   BOIs (Body of  individuals)

·   AJP (Artificial Juridical person)

ITR 6

Companies other than those claiming exemption under section 11.

THIS RETURN CAN BE FILED ELECTRONICALLY ONLY

ITR 7

For person including companies who have to furnish return under section

·   139 (4A)

·   139(4B)

·   139 (4C)

·   139 (4D)

·   139 (4E)

·   139(4F)

Methods of Income Tax E Filing

There are two methods/ways for Income Tax E Filing:

  1. OFFLINE: User must download the ITR applicable to him, fill it offline, generate XML and upload it on Income tax site.

    For XML method there are two types of ITR utility :

  1. Excel Utility
  2. Java Utility

 

Below are the steps to Download utility, fill, then generate and Upload XML.

 Step 1. Go to Income Tax  E-filing portal      https://www.incometaxindiaefiling.gov.in/home

 Step 2. Download the  applicable ITR utility under Downloads > IT Return Preparation Software

Step 3.  Extract the ZIP file of downloaded utility and open it.

Step 4.  Fill the ITR form.

             Validate the tabs of ITR forms and calculate Tax

Step 5.  Generate XML and Save the same.

Step 6.  Again go to I.Tax e-filing portal, now log in with user credentials like 

                 User ID:-PAN no.

                  Password

Step 7.  Click on “E file,” then click “Income Tax Return.”

Step 8.   Now Select ‘Assessment year,’ ‘ITR form no.’

              Select the Filing type as “Original/Revised Return.”

              Select Submission mode as “Upload XML”.

Step 9.   Then it is asked to choose any one of the option to verify Income Tax   Return namely:-

  • Digital Signature Certificate(DSC)
  • Aadhaar OTP
  • EVC using Prevalidated Bank account details
  • EVC using Prevalidated Demat account details
  • I would like to e-verify later.
  • I don’t want to e-verify ITR and send signed ITR-V through normal or speed post to Centralized Processing Centre, Income Tax Department, Bengaluru -560500

Step 10.  Click continue and attach the ITR XML saved file.

Step 11.  E –verify your return as per the option chosen by you in Step 9

Step 12.  Submit the ITR.

  1. ONLINE: Users must fill the data online at the e-filing portal and submit it.

ONLY ITR – 1 & ITR- 4CAN BE FILED ONLINE.

                     Step 1.   Go to the Income Tax e-filing portal.

                                   https://www.incometaxindiaefiling.gov.in/home

                        Step 2.    Login with user credentials like

                                              User ID:-PAN no.

                                               Password

                     Step 3.    Click on “E file,” then click “Income Tax Return.”

                     Step 4.    Now Select ‘Assessment year,’ ‘ITR form no.’ 

                                    Select the Filing type as “Original/Revised Return.”

                                    Select Submission mode as ” Prepare and submit online. ”  

                                    Click on continue.

                     Step 5.    Fill the online ITR form.

                     Step 6.     Then choose a verification option in “Taxes paid and Verification tab”   from   the following:        

  • I would like to e-verify
  • I would like to e-verify later within 120 days from the date of filing.
  • I don’t want to e-verify ITR and send signed ITR-V through normal or speed post to Centralized Processing Centre, Income Tax Department, Bengaluru -560500.

Step 7.     Click on the “Preview and submit button.” Preview all entered data and submit ITR

Step 8.      Verify your return as per option chosen in Step 6.

Frequently Asked Question (FAQ's)

  • What is the E filing of income tax return?
  • E filing of ITR is the procedure of submitting your ITR.
    There are two ways to file your return.
    a. Offline: Download ITR utility from the I.Tax portal. Fill data and generate XML and then upload XML on the portal.
    b. Online: Only ITR 1 & ITR 4 can be submitted online. Directly fill data on the I.Tax portal and file return.
  • Is E filing of Income Tax Return mandatory?
  • From Assessment year 2012-13, E filing is mandatory for those with an annual income of more than Rs. 10 lakhs. But digital signature to authenticate tax return is not necessary in this case. E filing with a digital signature is mandatory for those who have a business income of Rs. 1 crore or more and professionals with income of Rs.25 lakhs or more. E filing for companies is mandatory. E filing for Individuals and HUF is mandatory whose accounts are audited under section 44AB of Income Tax Act.
  • What are the benefits of E filing?
  • List of benefits are :
    • Convenient
    • Accurate
    • Faster
    • Electronic record
  • What is Income Tax Return?
  • It is a form where a taxpayer declares about his income, deductions, and pay Tax thereon to Income Tax Department.
  • What are the details you need when you are filing your Income Tax Returns?
  • The details required are:
    PAN, Aadhaar Card, Bank Details
    Income proofs
    Investment proofs
    Information about TDS and Advance Tax.
  • How can I download my Income Tax Return?
  • Step 1. Go to Income Tax Portal https://www.incometaxindiaefiling.gov.in/home
    Step 2. Login your User Id by login Credentials.
    Step 3. Click “View Returns/ forms” option.
    Step 4. Click on the acknowledgment number of that year, which you want to download.
    Select ITR –V /Acknowledgment to download.
  • Is it mandatory to file ITR?
  • Suppose the total gross income of an assesses the maximum amount chargeable to Tax. In that case, it is mandatory to file ITR.
  • What is the last date for filing income tax return 2020?
  • As per the government's announcement on 13th May 2020, the deadline for filing ITR for F.Y 2019-20 has been extended to 30th November 2020 from 31st July 2020.
  • What happens if I don’t file ITR?
  • As per section 234F penalty of Rs.10,000/- will be levied. Besides this, you have to pay interest also.
  • Do I need to file ITR if income is not taxable?
  • If a person whose income is more than Rs.2.5lakhs but less than Rs.5 lakhs is required to file ITR, otherwise there is a late fee of Rs.1,000/-
  • Is it compulsory to file Income tax Returns if we have a PAN card?
  • It is not mandatory unless your income is more than the basic exemption limit.
    However, for filing ITR PAN card is a must.
  • Which income tax slab is better Old or New?
  • The Difference of slab rate between old or new is as follows:

Income Slabs(Rs.)

Tax Rate (Old Regime)

Tax Rate (New Regime){No deductions & exemptions}

7.5 -10 lakh

20%

15%

10 – 12.5 lakh

30%

20%

12.5 – 15 lakh

30%

25%

Above 15 lakh

30%

30%