In today’s digital age, e-filing has completely transformed the way individuals and businesses file their tax returns. It offers a simple and hassle-free alternative to traditional paper filing methods. By embracing e-filing, you can save valuable time and effort, ensure compliance with tax regulations, and reduce the risk of errors.
In this blog post, we will provide you with an easy-to-understand overview of the income tax e-filing process.
How to File Income Tax e-filing?
Follow the given steps carefully to do Income tax e-filing easily:
- Visit the official Income Tax e-filing website and click on the ‘Login’ button
- Enter your username and click continue, then enter your password
- After logging into the portal, click on the ‘e-file’ tab and select ‘File Income Tax Return’
- Choose the Assessment year for which you want to file your income tax returns and click ‘Continue’.
- Select the online mode for filing your returns
- Choose the category of taxpayer, such as an individual, Hindu Undivided Family (HUF), or others, and select ‘individual’
- Select the appropriate income tax return (ITR) form based on your income and nature of business. For example, ITR 2 is for individuals and HUFs without business income, while ITR1 or ITR4 is for individuals. Click ‘Proceed with ITR1’
- Indicate the reason for filing returns above the exempted limit or under Section 139(1) provision. Ensure you select the correct option based on your situation
- Provide your bank account details or pre-validate the account if already provided.
- Review the pre-filled information on the next page, including your personal and income details. Confirm the accuracy of the information and validate the summary of your returns
- The final step is to verify your returns and send a hard copy to the Income Tax Department. Verification is mandatory and can be done electronically or by sending a physical copy.
Also Read: Types of ITR Forms
What Are the Documents Required for IT Return Filing?
Here is a list of all the necessary documents for IT returns based on your income type. Determine your income category and keep all the necessary documents ready:
| Employment type | Documents required |
| Income from other sources | Bank account/passbook statement for savings interest, Rent agreement or TDS certificate (if necessary),Interest or TDS certificate for bank FD interest, Dividend warrant (in case the income is generated from dividend),Additional documentary proof (as required) |
| Salary income | Form 16 |
| Capital gains income | Immovable property purchase and sale agreement,All applicable capital asset purchase and sale proofs/receipts Demat account statement, Contract note |
| Income from profession or business | TDS certificates, Audited financial records, balance sheets (as needed),Income tax payment (self-assessment tax/advance tax) Challan copy |
| Tax savings investment | Receipt of health insurance, Payment of the life insurance premium, Certificate of loan repayment, Passbook for the Public Provident Fund (PPF), Receipt of a fixed deposit, Certificate of donation, Certificate of payment for tuition, Mutual fund consolidated account statement (CAS) |
| Deduction of tax on medical expenditure | Bill of medical expenses |
| Leave travel allowance | Tickets and receipts for purchased tickets |
| HRA exemption | Receipts for paid rent |
Also Read: What is Section 80D? Eligibility, Deduction & Calculation
Benefits of Filing Income Tax Returns
Following are the benefits of filing income tax returns:
- Easy loan approval: Filing your income tax returns makes it simpler to get approved for loans like vehicle or business loans. Banks often ask for IT returns to verify documents.
- Proof of income and address: Filing an IT return can be used as proof of your income and address in certain situations.
- Faster visa processing: When applying for a visa, some consulates require ITR receipts from the past few years. Filing your IT returns helps speed up the visa process.
- Avoid penalties: Failing to file your IT return on time can lead to hefty penalties. Filing your returns within the deadline helps you avoid these penalties and save money.
- Deductions on investments: When you make significant investments like buying property, filing your IT returns allows you to claim deductions on the transaction and payment, reducing your overall tax burden.
- Claim tax refunds: If you’ve paid more taxes than you owe, filing your IT returns allows you to claim a refund for the excess amount.
- Carry forward losses: Filing an IT return is necessary if you want to carry forward losses from one year to the next. It ensures you can utilize the losses in future years.
Also Read: Section 10 of Income Tax Act
FAQs
What are the consequences of not filing income tax?
Failure to file an income tax return can lead to severe consequences. According to tax laws, it can result in imprisonment for three to seven years, a minimum fine of 50% of the tax amount, and interest on the tax debt from the moment the IT Department notifies you until the return is filed.
Who can file the return offline (on paper)?
Only Super Senior Citizens, individuals aged 80 or above during the fiscal year, with an annual income below Rs 5 lakh, and no refund claim, are eligible to file their income tax return offline on paper.
Is there a time limit for e-verifying returns?
Yes, there is a time limit for e-verifying returns. It should be done within 120 days from the date of filing.
Can I e-file my ITR without Form 16?
Yes, you can e-file your Income Tax Return even if you don’t have Form 16. You need to manually enter the required information into the software and then submit your ITR.
How can I calculate my tax liability?
To calculate your tax liability, you can use tools like the Paytm Income Tax Calculator. Simply provide the necessary details in an organized manner, and the calculator will provide you with the amount of tax you need to pay.
What are the penalties for late filing of income taxes?
Late filing of income taxes attracts penalties as per Section 234F of the Income Tax Act. If you file your IT return after the deadline but before the end of the fiscal year, you will be charged a late filing fee of Rs. 5,000. If you file after December 31st of that year, the penalty will be Rs. 10,000. However, if your income is less than 5 lakhs, the late fee will not exceed Rs. 1,000.
How can I correct an error in my filed ITR?
To correct an error in your filed ITR, you can file a revised return under Section 139(5) of the Income Tax Act. This allows taxpayers to rectify any mistakes made while filing their original ITR. The revised return can be filed up to three months before the end of the fiscal year for which it was filed.
Is it necessary to e-verify returns?
Yes, e-verification of returns is necessary for the successful processing of refunds by the IT Department. It ensures the authenticity and validity of the filed returns.
