Know All About Income Tax E-Filing in India

Whether you are a salaried individual or a self-employed one, filing income tax returns or ITR is a must if you come under the tax bracket. If you earn more than the tax exemption limit, then you are required to file your tax returns as per the latest norms. Every year, millions of people get busy around mid-year, i.e., July, to submit their income tax returns. Not only because it is mandatory by law, but it is also required for buying life insurance online, getting a loan, carrying forward losses, claiming tax refunds, and much more.

Unlike in the past, you no longer have to go through long queues and other hassles to get your tax returns filed with the Income Tax office. Today, online or e-filing makes the filing of tax returns effortless. Whether you are doing it to show your income or claim tax benefits under term insurance plans, you can file returns from the comfort of your home or office. The process itself is quite simple and hassle-free. However, it is important to carry out all the steps correctly.

The Step-by-Step Process of E-Filing Income Tax Returns

When you file your income tax returns through the online portal, the process is termed e-filing. You can either take the help of a professional or do it yourself.

Step 1: Visit the Online Income Tax Department
Go to the official website of the income tax department, which is www.incometaxindiaefiling.gov.in/home or the new portal that the income tax department recently introduced, www.incometax.gov.in.

Step 2: Register Yourself
Click on the ‘Register’ tab to sign up. To do so, select your ‘user type’ from options, which include Individual, Hindu Undivided Family (HUF), External Agency, Chartered Accountant, etc. Fill in your details, PAN number, email id, and phone number to register yourself.

Step 3: Decipher Your Tax Liability
Calculate your total income tax liability as per provisions of the Income Tax Act. Also, make sure there’s no discrepancy in the TDS figures in Form 16 and your tax credit statement or Form 26AS.

Step 4: Select the Tax Assessment Year
Once you sign up, you will be directed to a page with links to different assessment years. An assessment year is a period in which the income you earned during the financial year is assessed. For instance, for FY 2020-21, the assessment year is 2021-22. Select the year that is relevant to you.

Step 5: Choose the Category for Filing Your Tax Returns
There are a range of categories from salaried individual to individual with income from proprietary business or profession. Each of them has different income tax return forms. Pick the right category for yourself and download the form.

Step 6: Complete the Excel Sheet
You will need to download an excel sheet by clicking the ‘IT Return Preparation Software’. Fill in the relevant details, including your taxable income and funds receivable. Keep your term insurance plans, investment details, and any other relevant documents handy. Then, save and upload the file.

Step 7: Submit Your Income Tax Returns
Proceed with submission by clicking the ‘Submit’ button.

Step 8: Verify the Acknowledgement
When you submit your tax returns, an acknowledgement receipt or ITR-V will pop up, which needs to be printed, verified, signed and posted to the Income Tax office in your jurisdiction. This should be done within 15 days of e-filing your income tax returns. You also have the option to sign the form digitally.

Documents Required When E-Filing Income Tax Returns
The tax laws require you to maintain and show proofs as required of everything that you mention while filing your income tax returns. To make it simple for you, here’s a checklist of documents that you will require during the e-filing procedure:

• The income tax return or ITR form applicable to you
• PAN card
• Aadhaar card
• Form 16 given to you by your employer
• Salary slips if you are a salaried individual
• Form 26AS
• Form 16A gives details of TDS
• Proof of deductions and exemptions claimed under Section 80, including premiums paid for life insurance online, savings from ULIP, term insurance plans, PPF, ELSS, etc.
• Capital gains statement

Whether you donated, earned some interest on investment, or made expenses toward insurance, preserve the documents and receipts of the same to showcase as required while filing your income tax returns online or offline.

Newly Launched Income Tax Return Filing Portal: What You Need to Know
Recently, the Income Tax department launched a new portal (www.incometax.gov.in) for filing income tax returns online. The new website comes with an array of features that makes it convenient for you to file your tax returns from anywhere. This includes:

• The new website displays all interactions, pending actions and uploads in a single place to make it easier for you to follow up or take the next step
• It also provides a free income tax return preparation software that comes with questions for assistance
• You can update your income details on your profile to help with pre-filling of your income tax returns
• Features that enable you to submit responses to any notices or appeals received from the income tax department
• A dedicated call centre to resolve any queries
• Dedicated chatbot or live agent to solve issues on the spot
• Knowledge material ranging from in-depth FAQs, videos, and manuals

The e-filing system for income tax returns, especially with newly added features, is a boon in times when you are either forced to stay indoors due to the pandemic or don’t have the time to spare for physical filing. With the convenience of such systems, file your tax returns in time to avoid any penalties.

The income tax is levied on all earning individuals who fall under a taxable income bracket. The income tax is paid to the Government of India and is charged annually. However, there are several tax deductions and exemptions that you can claim to lower your tax liability. The Income Tax Calculator helps you ascertain your tax output for a financial year based on your taxable income. This can help you plan well and save tax using the tax-saving deductions and exemptions, if possible.