Under Income Tax Act, 1961, it is mandatory for taxpayers to file income tax returns for reporting their income and assets for a financial year. Now, with the implementation of the new Income Tax portal on 20th May 2021, the process has become much more convenient. According to reports, above 3 crore taxpayers have filed their ITR using this brand-new e-filing portal as of 3rd December 2021.
If you are still having difficulty figuring out how to e-file income tax returns online, this guide is for you! From the e-filing process to document requirements, everything has been covered here. Scroll down to know!
E-filing refers to the process of electronically filing income tax returns for a specific financial year. This process exempts you from the tedious procedure of visiting the Income Tax Department’s office to file your income tax return. Instead, you can simply use the online portal of the Income Tax Department and file ITR within a few minutes.
To file your income tax returns, you need to follow these steps:
Although income tax laws of India make it mandatory for only a specific group of individuals to file ITR, it should be done regardless of the category one falls under. From getting easy loan approval to quick visa processing, filing ITR has several advantages. These documents are often used for verification purposes, which is why it is essential to e-file income tax returns within the due date and keep the documents.
The new e-filing portal comes with numerous exciting features that enhance user experience and bring a modern touch. A few of these incredible features and benefits are as follows:
Owing to improvements in technology, income tax returns get processed faster, and taxpayers are able to file ITR immediately. Thus, it reduces the time in which a taxpayer gets his/her tax refunds.
The Income Tax Department will subsequently launch a mobile application. On this app, you can get access to all vital functions that are available on the website. Thus, you can now conduct any tax-related task via your mobile phone at any point in time.
The new filing portal comes along with multiple payment options. Due to this, taxpayers can choose from a wide array of options and select one that is the most feasible. The new payment methods include RTGS/NEFT, UPI, credit card, and net banking.
Taxpayers can now make use of an ITR preparation software that is available free of cost for the offline and offline modes. It provides interactive instructions to individuals with no knowledge regarding tax.
Furthermore, you can also pre-fill some details regarding your profession, salary, property, TDS, etc. Thus, you will not have to face the trouble of filling out the ITR form again and again. However, carefully check these pre-filled details and make changes when necessary.
Currently, this feature is only available online and offline for ITR-1 and ITR-4. Meanwhile, ITR-2 is available online only. The Income Tax Department will soon launch the software for ITR-3, ITR-5, ITR-6, and ITR-7.
On a single dashboard, you will be able to see all the pending requests, interactions, uploads, and actions required. Moreover, you can also check the status of the grievances filed, tax deposits and yearly tax returns.
On this portal, all these services were available but under different tabs. This feature brings it all together and makes navigating through the website easier.
To respond to your queries and guide you through the services offered, the new portal introduces a “call centre” service. Furthermore, to enhance the “Help” section, there is a chatbox, FAQ column and video tutorials.
Having access to an uninterrupted internet connection and a mobile phone is not always possible. In these circumstances, getting an OTP (One Time Password) or EVC (Electronic Verification Code) can be difficult. The new portal launched a static password to resolve this problem.
You can generate a static password by going to the “Profile” page on the new e-filing portal. You will get 10 static passwords. These are valid for 30 days and can be used while logging in.
Also Read: How To Save Income Tax On Salary?
So far, it is clear that e-Filing 2.0 introduced various new features. However, it also held on to some features from the previous e-filing portal. Some of these are as follows:
Individuals need to file income tax returns via the online or offline mode under such circumstances:
Additionally, organisations or firms should file ITR irrespective of earnings. Note that if the total income of individuals aged below 60 years does not exceed Rs. 2.5 lakh, it will not be subject to tax.
That said, if you need to file income tax returns, go through the process stated in the following section.
Here are all the documents you need to submit for income tax return filing online:
For those who want to file ITR based on their salary, it is mandatory to provide the following documents:
For claiming deductions, one has to provide the documents mentioned below:
It takes only a few minutes to complete the ITR return e-filing process when you have all these documents handy. If you are new to this, note that not filing ITR on time also has certain negative repercussions.
The Central Board of Direct Taxes (CBDT) levies penalty charges under Section 234F on individuals who miss the allotted deadline for filing their ITR. The maximum penalty imposed in case of late e-filing is Rs.10,000.
Once you are done filing your ITR online, follow the steps mentioned below:
Complete your ITR verification within 120 days of filing and trace the ITR-V status.
Look out for intimations or further notices.
Make sure to secure all the income tax documents for future use.
Verify the bank details and communication address as well so that you do not face any delay in receiving a tax refund.
Here are a few things that taxpayers need to do before they start enjoying the new features on the e-Filing 2.0 portal
Technological advancements have made it much easier to file income tax returns for individuals. Note that for salaried individuals, the process to e-file income tax slightly differs. So, if you fall under that group, you will have to choose the form that is suitable for you.
For a seamless ITR filing process, use the online method and pay within the due date to avoid a penalty!
Ans: Self-assessment tax is a balance tax paid by an assessee on their income after considering TDS and advanced tax. It needs to be paid before you file your ITR to ensure that e-filing takes place successfully.
Ans: No, the Income Tax Department generally does not ask for documents during ITR filing. However, in some cases, the authorities might ask you to furnish certain documents to verify your identity or tax deduction details.
Ans: Yes, you can file ITR offline by downloading the ITR form and carefully filling it out. After this, you need to visit a nearby Income Tax Office and submit the form. However, this facility is only available to taxpayers above the age of 80.
Ans: ITR-1 is meant for all taxpaying individuals who receive their gross income from salary or pension, one house property and other sources, like lottery or interest. Meanwhile, if you are a company’s director or have a total income of more than Rs. 50 lakh, you cannot use ITR-1.
Ans: Yes, it is mandatory to link your PAN with Aadhaar. The Central Board of Direct Taxes mentioned that if an individual fails to do so, their PAN card will become inoperative. Thus, you will not be able to conduct most financial transactions if you don’t link your PAN with Aadhaar.
Ans: It may happen that an individual forgets to disclose a part of his/her income unintentionally. This is very much possible in the case of salaried individuals relying on Form 16; the form does consist of details regarding capital gains, and interest earned from fixed/savings account deposits. If the Income Tax Department is able to spot the missing earnings, the individual could get a notice.
Ans: Yes, in that case, the IT Department will evaluate your net tax liability after adjusting the TDS paid. In case you are not liable to pay any tax, you can claim it by filing an income tax return.
Ans: Form 16 is the TDS certificate that an employer issues in order to show details of the deductions they have claimed. This document is extremely important for most salaried individuals as they need it while filing their annual ITR.
Ans: A major portion of the necessary details is submitted to the Income Tax Department via post, email or online portal. It is essential to submit accurate contact details; otherwise, you will miss out on important notifications.
Ans: No, it is extremely important to assess which taxpayer category you fall under before choosing any one of the seven ITR forms available. If you choose the wrong form while filing your ITR, it might lead to your returns being held invalid.
Before you go…