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Step-by-Step Guide to E-filing Your Income Tax Return Online

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Synopsis:

Where on the one hand filing an ITR used to include a lot of paperwork, now the process of e-filing has simplified everything. Here’s a step-by-step guide to help you e-file your ITR this time around.

The process of filing of Income Tax Return helps a government understand the earnings of an individual, a company or a HUF. With this in mind, the Government of India will charge income tax from taxpayers who are earning a total income that is above a certain amount. This is to be done every year and is a mandatory practice for all citizens who are earning above a specific amount, as mandated under The Income Tax Act 1961.

With the help of the ITR document, a government can validate transparent taxation. It also helps individuals and corporations find a clear path towards claiming refunds or even correcting any inconsistencies that might exist in the collection of the taxes due.

Income Tax Returns can now easily be filed online in a matter of minutes. The digital age has come as a saviour for anyone looking to file their tax returns online. 

What is Income Tax E-Filing?

The basic motive of filing an Income Tax Return is for Individuals, agencies, and HUFs to reveal their income, deductions, and tax liabilities, if any, to the government. Think of the ITR as a detailed document that holds all the financial operations of an applicant including their earnings, investments, exemptions, etc. 

E-filing is the process using which an individual can easily file their income tax returns online. This usually has to be done on or before a specified due date as well. 

Income Tax E-filing enables an applicant to easily file their Income Tax Returns online on the official portal of the Income Tax Department without needing the help of a CA to do so. Of course, the process might still be a little confusing, but the step-by-step guide detailed below might just help you out. Read on to find out how you can E-File your Income Tax Return easily, this time around. 

How to E-File Income Tax Return: Step-by-Step Guide

This is a step-by-step guide for filing Income Tax Returns online:

Step 1: Calculate Income and Tax

  • Applicants first need to calculate the income and applicable tax keeping in mind the tax provisions.

  • When calculating the income, every income source should be considered. 

Step 2: Login

  • Visit the official Income Tax e-filing website.

  • Click on 'Login'.

  • Enter your PAN in the User ID section and click on ‘Continue’.

  • Check the security message tickbox and enter your password.

  • Click ‘Continue’.

Step 3: Go To ‘File Income Tax Return’

  • Click on the 'e-File' tab.

  • Select 'Income Tax Returns' and then ‘File Income Tax Return’.

Step 4: Select The Right ‘Assessment Year’

  • Choose ‘Assessment Year’ as ‘AY 2024-25’ if filing for FY 2023-24, or ‘AY 2023-24’ for FY 2022-23.

  • Select the mode of filing as ‘Online’ and the type as original return or revised return.

Step 5: Select The Status

  • Choose your filing status: Individual, HUF, or Others.

  • For individuals, select 'Individual' and click 'Continue'.

Step 6: Select ITR Type

  • Determine which ITR form you need. There are 7 forms, with ITR 1 to 4 applicable for Individuals and HUFs. For example, use ITR 2 for those with capital gains but no business income.

Step 7: Choose the Reason For Filing ITR

  • Specify the reason for filing:

    • Taxable income exceeds the exemption limit

    • Mandatory criteria met

    • Other reasons

Step 8: Validate Pre-filled Information

  • Validate pre-filled details like PAN, Aadhaar, Name, Date of Birth, contact info, and bank details.

  • Review and confirm all pre-filled information, ensuring accuracy.

  • Disclose all relevant income, exemptions, and deductions.

  • Confirm the summary and make any necessary tax payments.

Step 9: E-verify ITR

  • Verify your return within 30 days to complete the filing.

  • Methods include Aadhaar OTP, EVC, Net Banking, or sending a physical ITR-V to CPC, Bengaluru.

Required Documents for Income Tax E-Filing

Certain documents are required for the E-filing of taxes. These include:

  • Documents that have the applicant's general details like 

  1. bank documents, 

  2. PAN, etc. 

  • Documents that help with salary reporting like 

  1. rent receipts to help claim house rent allowance or HRA, 

  2. pay receipts and 

  3. Form 16

  • Documents demonstrative of the house property income like 

  1. address proof, 

  2. co-owner details and PAN of the co-owner, if any, 

  3. date of construction of the property or date of purchase if not yet constructed and 

  4. the certificate for home loan interest if any

  • Documents listing the capital gains, if any like

  1. Stock trading statement, 

  2. capital gains of shares sold, its sale price and its registration details, 

  3. mutual fund statements, 

  4. purchase details of equity funds, etc.

  • Documents that prove the income reported like 

  1. interest proof from tax-saving bonds, corporate bonds etc.

Rules for e-Filing in Income Tax

When it comes to e-filing of taxes, certain rules need to be followed. These include:

  1. Filing Only with Aadhaar:

  • This is in case an applicant does not have a Permanent Account Number or PAN. 

  • Applicants can use Aadhaar to file their income tax return

  1. After filing ITR with Aadhaar:

  • After filing an ITR with Aadhaar, applicants will be assigned a PAN.

  • This will be done after their demographic data is obtained from the Unique Identification Authority of India or UIDAI.

  • This is done according to the new income tax guidelines 

  1. The New Rule:

  • Implemented by the Government of India to improve tax compliance 

  • The rule also makes the tax payment procedure easier for taxpayers

  • Though taxpayers need to provide their PAN while filing their taxes, it is also important that they link it with their Aadhaar before doing so

Steps to Check the ITR Return Online e-Filing Status

Once an applicant has filed their ITR, they can also check its status online. This can be done by following the steps listed below:

  1. Applicants need to have the income tax e-filing acknowledgement number handy to begin with

  2. Next, applicants need to visit the Income Tax Department’s official portal 

  3. From here, they need to select the 'Income Tax Return (ITR) Status' option

  4. Next, applicants can proceed by entering their PAN number, the acknowledgement number, and the captcha code

  5. Click the 'Submit' button

  6. The status of the ITR return will be displayed on the screen

Penalty for Late e-Filing of Income Tax

If an applicant misses out on the filing date for their Income Tax Returns, it can lead to penalties. Though rare, it can also lead to receiving notices from the IT department.

Applicants are liable to pay a late fee of up to ₹5,000 if their annual income is more than ₹5 lakh if the ITR is filed post the last date. This penalty amount sometimes can also go up to ₹10,000. 

Benefits of e-Filing of Income Tax

E-filing of Income Tax Returns with the Government of India is now a mandatory way to file taxes. To help encourage this move, the method itself offers many benefits to applicants. 

  • Simpler: When compared to the previous way of filing ITR, which included a lot of paperwork, e-filing is a much simpler process.

  • Convenient: Every year, by default, the last date to file ITR is always July 31st. Knowing this, applicants can upload their ITR filings online one or two months before the deadline. This will help them avoid any congestion that might exist on the website during the last couple of days. This will help applicants steer clear of any further delays and possible fine accumulation.

  • For Potential Future Business Establishment: If an applicant wants to explore the possibility of conducting any business in the future with other organisations, the ITR record would come in handy.

  • Better Record Keeping: When Income Tax Returns are filed online, taxpayers can maintain a better record of all their financial interactions with the Income Tax Department.

Conclusion

The Income Tax Return (ITR) filing process is a mandatory obligation that must be adhered to by all citizens annually. The process itself requires a lot of attention to detail and following the rules. The e-filing of ITR has made the process simpler and more accessible to most citizens. 

Apart from the mandatory nature of the ITR filing, the procedure itself helps simplify an applicant’s financial situation. These measures enable individuals to meet their tax duties more efficiently, reducing mistakes. This is why it is crucial to be aware of all the nitty-gritty of the e-filing process of ITR and to do it before the last date to avoid any unnecessary penalties or fees.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing. This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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Frequently Asked Questions

How do I register on the income tax departments e-filing portal?

Answer Field

Applicants can easily register themselves on the official portal of the Income Tax Department of India with zero hassles. 

Can I e-file my income tax return for free?

Answer Field

There are no charges associated with e-filing your Income Tax Return. 

What is the deadline for e-filing income tax returns?

Answer Field

The deadline for e-filing income tax return is 31st July every year

How do I calculate my income tax liability before filing online?

Answer Field

There are income tax liability calculators that applicants can use to calculate their income tax on the official website of the Income Tax Department Itself.

What are some common mistakes to avoid when e-filing income tax returns online?

Answer Field

Some of the main mistakes to avoid when e-filing ITR include:

Not meeting the deadline

Entering inaccurate information

Choosing the wrong ITR form

Not uploading form 26AS

Neglecting ITR verification

Skipping any other income sources

Is it safe to e-file my income tax return online?

Answer Field

When done through the official portal of the income tax department, e-filing your ITR online is very safe.

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