ITR, or Income Tax Return, is a form that taxpayers must use to declare their income, expenses, investments, tax deductions, tax liabilities, etc. According to the Income Tax Act of 1961, taxpayers must file their ITR for income tax advance tax under various scenarios. You may have unique reasons to file an ITR even if your income is non-taxable, such as to carry forward losses, claim tax refunds or deductions, etc.
E-filing is the process of filing ITR online using the e-filing portal income tax. By utilising the new portal, you can take advantage of various features, simplifying the ITR filing process. Below we will discuss the steps involved in the e-filing process of ITR.
Is ITR Filing Compulsory for All?
According to the Income Tax rules, every Indian citizen earning more than the exemption limit must file their tax return each year according to the applicable tax slabs. The Income Tax Department sets a last date to file the ITR, crossing which attracts penalties, reduces credit rating, and leads to legal consequences.
Filing Income Tax Returns for advance tax payment is compulsory for everyone, except for a few exemptions. Individuals with a gross total income below Rs. 2.5 lakhs do not need to file an ITR. For senior citizens, this limit is Rs. 3 lakh, and it is Rs. 5 lakh for super senior citizens above 80. Senior citizens with only pension and interest income do not require filing an ITR.
Steps to File ITR Online
Filing Income Tax Returns using the e-filing portal income tax is extremely easy and convenient. These are the steps to follow:
- Login to the e-filing portal income tax using login and PAN details. Open the ‘e-File’ menu and click ‘Income Tax Return’ to file the return.
- On the Income Tax Return Page, select the Assessment Year, the financial year following the year of earning the income. Next, choose the ITR Form Number and filling type from ‘Original/Revised Return’. Finally, select ‘Prepare and Submit Online’.
- Once the filing process is complete, e-verify the ITR using OTP, EVC, Pre-validated Bank Account, or Pre-validated Demat Account.
- After submitting the ITR, you can view the form on My Account > e-Verify Return option or send a signed ITR-V to CPC.
Documents Required for Filling ITR
Keeping all the documents ready is beneficial for the income tax advance tax filing process. Some key documents required for the purpose include the following:
- Aadhaar card
- PAN card
- Salary slips
- Passbook of your savings account in a bank or post office
- Passbook of the PPF account
- Interest certificate from the bank or post office
- Form 16 or TDS certificate issued by your employer
- Form-16A, 16B or 16C as required
- Form 26AS with a consolidated income tax statement
- Tax-saving investment proofs
- Proofs for tax deductions under sections 80D to 80U
- Home loan statement
Steps to Download an Income Tax Return
Filing the ITR on time and downloading the filed return is essential to avoid any last-minute hassle and unnecessary penalty. Once you file your ITR, the Income Tax Department generates a verification form ITR-V that you must download to verify the validity of your ITR filing. These are the steps involved:
- Login to the e-filing portal income tax.
- Select ‘View Returns/ Forms’ to view the filed return.
- Select the appropriate year and the acknowledgement number to download the return.
- Select ITR-V Acknowledgment to start the download.
Since the file is password-protected, you must use your PAN number and date of birth as password to open the document.
Benefits of Filing Income Tax Advance Tax Return on Time
Here are the benefits of filing ITR on time:
- In the case of excess tax payment, you can claim a refund only after filing the ITR.
- The ITR serves as an infinite proof for businesspeople and self-employed.
- When you apply for a loan, the lending institution demands a copy of the latest ITR to judge your income and financial health.
- ITR helps claim losses from business, profession, and capital gains.
- When planning to travel abroad, the immigration authorities will demand your latest ITR before processing your VISA.
Now that you understand the benefits of filing ITR on time, use the e-filing portal income tax to do that from the comfort of your home and fulfil your responsibility as an Indian citizen. Apart from increasing your contribution to the nation’s development, timely return filing also increases your tax savings by avoiding penalties.