What is ITR?
ITR or Income Tax Return is a form that all taxpayers in India have to fill and submit to the Income Tax (IT) Department to report their income and tax deductions. Read further and get to know about e filing of income tax return.
Is it necessary to file ITR?
Filing of ITR is necessary if any of the following conditions apply to you:
1. If your total income is more than the basic deduction limit
Taxpayer’s Basic Exemption Limit
| For individual taxpayers up to 60 years of age | Rs.2.50 lakhs |
| For individual taxpayers above 60 years of age | Rs 3 lakhs |
| For individual taxpayers above 80 years of age | Rs 5 lakhs |
2. If you want refund from IT department.
3. If you want to apply for any loan or visa.
4. If the loss is to be carried forward under the head of income.
5. If you have invested in foreign assets.
6. If you are a business in the form of a corporation or company, regardless of your profit or loss.
E-filing of Income Tax
You have the facility of e-filing income tax, which is necessary in the following cases:
- 400;”>If your total income is more than Rs. 5 lakh.
- For refund of income tax.
- To file income tax return using ITR 3, 4, 5, 6, 7.
Which ITR form should I file?
ITR Form Types
There are seven types of ITR forms. Taxpayers should use one of these forms to file their IT return depending on their category (individual, Hindu undivided family, company etc.), amount and their source of income.
| ITR 1 | Also known as SAHAJ, it is for individuals with an annual income of up to Rs 50 lakh earned from salary/pension, a house property and other sources. |
| ITR 2 | For individuals with annual income above Rs.50 lakh from salary/pension, other sources, foreign income, more than one house property, capital gains. |
| ITR 3 | Persons who are shareholders in a company and earn income from such company like interest, salary, bonus, commission, remuneration. |
| ITR 4 | 400;”>Also known as SUGAM, this form is for individuals whose income does not exceed Rs. 50 lakhs during the FY, income from business and profession, u/s 44AD, 44ADA or 44AE, income from salary/pension, a house property, agricultural income ( up to Rs. 5,000), and other sources. |
| ITR 5 | For companies, LLPs, AOPs and BOIs. |
| ITR 6 | For companies not claiming exemption under section 11. |
| ITR 7 | Persons and entities under sections 139 (4A), 139 (4B), 139 (4C), 139 (4D). |
Documents/details required to fill ITR form
- PAN
- Form 26AS
- Form 16A, 16B, 16C
- Pay slips
- Bank statements
- Interest certificates
- TDS Certificate
- Proof of tax saving investments
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Prerequisites for e-filing of Income Tax
- The user must be registered with the e-filing portal and have a valid user ID and password.
- Active PAN.
- PAN is linked with Aadhaar.
- A pre-verified bank account.
- Valid mobile number for e-verification linked with Aadhaar/e-filing portal/your bank/CDSL/NSTL
Income Tax E-Filing: How to File ID Return Online?
Step 1: After confirming which category of income tax payer you belong to and which ITR form you will be filling, visit the official Income Tax e-filing portal. Log in using your username and password. Only registered users can file their IT returns online on the IT department website, new users need to click on the ‘Register’ option at the top right side of the page.
Online registration process for filing ITR
Select the user type as ‘Individual’ and click on ‘Continue’. Now, provide the following details: PAN, Surname, First Name and Middle Name, Date of Birth, Residential Status and click on ‘Continue’ to fill the following mandatory details:
- password
- contact
- Current address
After registration click on ‘Submit’. For residents, six digit OTP1 and OTP2 will be shared on your mobile and email ID mentioned during registration. Enter the OTP to complete the registration process. You can now go back and follow the first step for e-filing income tax.
Step 2: On the home page, click on the ‘File Income Tax Return’ option under the ‘E-File’ tab.
Step 3: Choose Income Tax Payer Type – Individual or Hindu Undivided Family, etc.
Step 4: Select your applicable ITR form and enter your bank account details.
Step 5: You will be redirected to a new page where pre-filled details of your ITR will appear. This includes your personal information, total gross income, total deductions, tax paid and total tax liability. Check these details and if you are sure that all the details provided in the form are correct then verify it.
Step 6: Return to your dashboard. From the e-File option select ‘Income Tax Returns’ and then ‘File Income Tax Return’ option.
Step 7:
Select the assessment year and click Continue.
Step 8:
Select online filing mode and proceed.
Step 9: Click on ‘Resume Filing’ if you have already filled ITR and pending submission. . If you want to start fresh and reject the saved return, click on ‘Start New Filing’.
Step 10:
Select the filing mode and ITR form and click on ‘Let’s Start’.
Step 11: liability, based on the details you have provided, a summary of your income tax calculation will be displayed with ‘Pay Now’ and ‘Pay Later’ options at the bottom of the page. It is recommended to select ‘Pay Now’. Mention the Challan serial number and BSR code and enter it in the payment details.
Step 12:
After paying the tax, click on ‘Preview Return’. If you have no tax liability, or if any refund is due based on your tax calculation, you will be taken to the ‘Preview and submit your return’ page. tax statement” width = “621” height = “527” and Submit Your Return’ page, enter the location, select the Notification checkbox and click ‘Go to Verification’.
Step 13:
Once verified, click on ‘Go to Verification’. If a list of errors is displayed on your return, go to the form to correct the errors. If there are no errors, click on ‘Proceed to Verify’ to e-verify your ITR.
Step 14:
On the ‘Complete Your Verification’ page, select your preferred option and click
page, select the option you want to e-verify the return and click on ‘. Carry on’. Once your return is e-verified, a message will be displayed with the acknowledgment number and transaction ID. You will also receive a confirmation message on your registered mobile number and email id.
ITR filed late
Taxpayers who fail to file their ITRs by the last date have been given three months’ time to file late returns. However, late ITRs attract late filing charges under Section 234F of the IT Act. Your total taxable income for the financial year is Rs. 5 lakhs, the penalty is Rs. 1,000. If the income is more than Rs.5 lakh, the penalty will increase to Rs.5,000. Additionally, under Section 234A, 1% monthly interest is levied on unpaid tax amount. Interest shall commence from the date immediately following the due date.
Things to keep in mind while filing ID return
*Taxpayer should identify the correct ITR form applicable in his case. * Make sure you file ITR on or before the due date. The consequences of delay in timely filing of IT returns are as follows:
- Losses cannot be carried forward.
- Levy of interest under section 234A.
- Late filing fee under section 234F applies to returns filed after the due date.
- Exemptions under Section 10A and Section 10B are not available.
- Sections 80-IA, 80-IAB, 80-IB, 80-IC, 80-ID and 80-IE exemptions are not available.
- Sections 80IAC, 80IBA, 80JJA, 80JJAA, 80LA, 80P, 80PA, 80QQB and 80RRB exemptions will no longer be available (from AY 2018-19).