What is the method required to e-File Income Tax Return?
The Government of India has set some rules and regulations for Indian citizens in the income tax payment. Whether you are a firm, local authority, association or an individual, your income is taxed for each financial year. It is essential that you should file your Income Tax Return (ITR) on an annual basis.
You should file an Income Tax Return that allows you to provide income information and payment of tax made on it during a year. In addition, the filing of an Income Tax return gives you benefits in the long and short term.
You can file your Income Tax Return via an offline or online process. Now, let’s read all about the e-filing of ITR.
What is E-filing?
E-filing is defined as the electronic paper for filing income taxes for a certain year. This system has provided ease to those citizens who used to stand for long hours in the queue. The method is safe, and convenient and one can file the ITR from home or office comfort. It means you will not need to physically visit the nearest ITR office for filing the return.
How can you file an Income Tax Return in an electronic way?
You can e-file your ITR by using a Digital Signature Certificate. It is a useful way to electronically sign the documents. This procedure is equivalent to physical or paper certificates.
If the DSC is not available then you can file your ITR digitally. For this, you have to generate a one-page document. It is called a verification form for Income Tax Return. This document is needed when you don’t submit your Aadhaar details on the portal. You can fill out this form and submit it to the Central Processing Centre (Bangalore) through the post. It should be done within 120 days after e-filing the ITR.
If you don’t have DSC, then also you can file your ITR digitally. You will need to verify your ITR through a bank or with your Aadhaar Number. In such a situation you are not required to submit the ITR V to the CPC.
NOTE: CPC stands for Central Processing Center. They sent an acknowledgement on the email of the taxpayer. This acknowledgement is regarding the ITR-V form.
Why is it necessary for you to file an ITR?
There are many benefits of e-filing the ITR, but the utmost benefit is it saves extra expenses. It is necessary to file an ITR on time as it helps you to avoid penalties. These penalties are imposed when you apply for ITR after the due date. Thus, you can avoid paying heavy penalties of a maximum of Rs.10,000/- and save your pocket.
What are the various benefits you can receive after filing ITR?
The e-filing of an ITR helps you in many activities. You can easily apply for overseas traveling, loans or other activities. It provides many benefits. They are as follows:
Visa: You will require a visa for traveling in other countries or for overseas trips. When you apply for the visa, you will need to submit the tax returns of the past years. Later, these returns will be verified by the embassy officials of the destination country.
Credit Card: The ITR is a kind of document that helps you to show your income. It enables the credit card issuer to know whether you can pay back the credit or not. You might not have a higher credit limit if you don’t have an ITR.
Loan: If you apply for any type of loan, then the authority will ask you to show your past years’ ITR. It helps them to comprehend your financial conditions. Your application may get declined if you don’t have ITR.
Loan Adjustments: There is a current law for income tax in India. The law states that “ a person can file a case through ITR and adjust/carry forward their losses.” It will be against their future income tax.
Refund: In the income of the taxpayer, an amount is deducted. That amount is called Tax Deduction at Source(TDS). For instance, you have made an investment for which the amount is deducted from taxable income. As a result, there will be fewer actual tax dues than which are already paid. You can refund or claim your excessively paid taxes. But for this, you will need to file your taxes.
What are the steps concerned to file an ITR?
- Registration on the ITR portal
- Select the form appropriate for ITR
- Fill up the form
- Receive acknowledgement and verification
- Get a refund on Tax
What are the documents you will require for filing an ITR?
You will require the following documents while filling out the ITR form:
FOR GENERAL DETAILS
- Aadhaar Card Number. It should be merged with the PAN.
- Details of bank account
FOR CALCULATING EARNINGS FROM SALARY
- Receipt of rent that will claim House Rent Allowance.
- Salary slips
- Form no. 16. This form is related to the salary income.
CLAIM FOR THE DEDUCTIONS
- Certificate of interest from deposits and savings accounts.
- Details of home loan and Insurance.
- Investment details are liable for the deductions.
- Any other income proof. For example house property income, income from capital gain, etc.
Q1. If I want to file my ITR by myself, can I do it?
Yes, you can easily file your ITR on the e-filing website. You will be required to finish some easy steps with appropriate documents. The steps are mentioned above.
Q2. What is the process to e-verify ITR?
The procedure for e-verification of ITR has some steps. These steps are mentioned below:
- Visit the website of Income Tax.
- On the portal, click on “My account” & select the “e-verify” option.
- You will get all the options to e-verify.
- Choose the option required for e-verify.
- One Time Password will be delivered on the digits of your portable device recorded with us.
- Put the OTP in the box & your ITR is successfully verified.
Q3. Can I revise the return multiple times?
Yes, you can revise the return multiple times. You can do it till the expiration date of a one-year time limit.