According to Section 139 (1) of the Indian Income Tax Act, individuals whose total income exceeds the exempted income limit must file their Income Tax Returns (ITR). E-filing refers to the process of filing these returns online. As a taxpayer, you can either seek professional help or file your taxes independently by registering on the income tax department’s portal or other relevant websites. While the usual deadline for e-filing ITR is July 31 each year, the government may grant an extension of 15-30 days for online or in-person submissions.
Taxpayers can choose to file their taxes independently or seek expert assistance through various online platforms. Though the e-filing deadline is generally July 31, the government may provide a grace period of 15 to 30 days.
Steps to File ITR Online - A Complete Guide
Here is a step-by-step procedure to e-file your ITR:
Step 1: Calculate Your Income and Tax
The first step in the e-filing process is to calculate your total income and the applicable tax as per the provisions of the income tax law.
Ensure that you account for income from all sources and calculate your tax after claiming eligible deductions.
Step 2: Collect TDS Certificates and Form 26AS
Next, gather the TDS amounts from your TDS certificates. Form 26AS is an important document that summarizes the TDS deducted and the tax paid during a financial year.
Step 3: Choose the Correct ITR Form
In this step, you need to select the appropriate ITR form before filing the returns. Note that for online ITR filing, only two forms, ITR 1 and ITR 4, are available.
All other forms must be filed offline by generating an XML file and uploading it on the portal.
Step 4: Download the ITR Utility from the Income Tax Portal
Visit the official Income Tax Portal at www.incometax.gov.in and navigate to the ‘Downloads’ section. Select the assessment year to download the offline utility software.
Step 5: Complete the Downloaded Form
After downloading the offline utility, fill in all required details, including your income, tax payable, refunds due, etc.
Step 6: Validate the Details
Once the form is completed, click the 'Validate' button to confirm that all information entered is correct.
Step 7: Convert the File to XML Format
After validation, click on ‘Generate XML’ to convert the file into XML format.
Step 8: Upload the XML File on the Income Tax Portal
Log in to the official income tax e-filing portal. Click ‘e-File’ and select ‘Income Tax Return’.
Enter the necessary details, including your PAN, ITR form number, assessment year, and submission mode.
Then, attach the XML file from your system and click ‘Submit’.
Finally, choose a verification method—either Electronic Verification Code (EVC), Aadhaar OTP, or sending a manually signed ITR-V to the Central Processing Center (CPC).
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Income Tax E-filing Deadline The e-filing deadline for individuals is typically July 31st of the relevant assessment year. However, for those whose accounts are subject to audit, the deadline is extended to October 31st. Learn more about the Income Tax Return Filing Due Dates. |
Documents Required for Income Tax Filing
It is advisable to be well-prepared before filing your taxes, whether online or offline. Below is a checklist of the essential documents for e-filing your income tax returns.
- General Information - Bank details, PAN number.
- Salary Reporting - Rent receipts to claim HRA, pay receipts, and form 16.
- House property income - Address proof, details of the co-owners with the share in the mentioned property and PAN, Date of construction, in case not yet constructed, it needs to be the day of purchase and certificate for home loan interest.
- Capital Gains - Stock trading statements, details of mutual fund investments, sale price, and equity fund purchase details.
- Interest Income - Details of interest earned, interest certificates from tax-saving and corporate bonds.
Rules for E-Filing Income Tax Returns
Filing with Aadhaar Only: You can file your income tax return using Aadhaar if you do not have a PAN. Furthermore, when applying for a new PAN, your Aadhaar Card will be required.
Taxpayers who use Aadhaar for filing will be assigned a PAN after their demographic details are verified by the Unique Identification Authority of India (UIDAI).
The government introduced this rule to improve tax compliance and simplify the tax filing process. Although PAN has traditionally been required, now linking Aadhaar and PAN is essential for tax filings.
How to Check e-Filing Status
Follow these steps to check the status of your income tax e-filing using the acknowledgment number:
Step 1: Visit the official ITD website at https://www.incometax.gov.in/iec/foportal.
Step 2: Select the 'Income Tax Return (ITR) Status' option.
Step 3: Enter your PAN, acknowledgment number, and captcha code, then click 'Submit'.
Your status will be displayed on the screen.
Late Filing Penalty
Failure to file your ITR by the due date results in a penalty imposed by the Central Board of Direct Taxes (CBDT). The maximum penalty for late e-filing can be up to Rs.10,000 under Section 234F.
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Learn more about the Penalties for Late Filing Income Tax Returns |
Advantages of E-Filing Income Tax Returns
The Government of India has made e-filing of income tax returns mandatory. The method is much simpler than the previous paper filing process.
Here are the advantages of e-filing your income tax returns:
- E-filing is faster and more convenient.
- You can file your returns from anywhere.
- It is more accurate, reducing errors.
- A faster refund process.
- No physical paperwork required.