Online Income Tax Filing

Streamline your online income tax return filing for FY 2022-23 (AY2023-24) with RegisterKaro. Easily upload your Form-16 and conveniently file your ITR online.

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Income Tax Filing Online – Process, Documents, Benefits

Income tax filing involves the online submission of your Income Tax Return (ITR) to governmental tax authorities in a specified digital format. This method offers a more secure, straightforward, and expeditious alternative compared to the traditional approach of physically visiting the Income Tax Office for filing returns. In accordance with the prevailing income tax regulations in India, e-filing has become obligatory for the majority of taxpayers, marking a shift from the previous paper-based ITR filing system. Not only is e-filing a mandated practice, but it also enhances safety, simplifies the process, and expedites the overall filing experience.

Different Types of ITR Forms in India

Benefits of filing ITR Online in India

Eligibility criteria for Income Tax Filing Online

Documents required for ITR filing online

Procedure for filing Income Tax Online

Penalty for late income tax filing

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Income Tax - IT Returns, e-Filing

Income Tax Filing Online – Process, Documents, Benefits

Different Types of ITR Forms in India

In India, various types of Income Tax Return (ITR) forms are available to cater to the diverse financial situations of taxpayers. Each form is designed to capture specific income sources and financial activities. Here are some commonly used ITR forms along with brief explanations:

1. ITR-1 (Sahaj): Applicable for individuals with income from salary, one house property, other sources (interest, etc.), and having total income up to Rs. 50 lakh. Not for individuals with income from business or profession.

2. ITR-2: For individuals and Hindu Undivided Families (HUFs) having income from sources other than business or profession. Suitable for those with income from capital gains, multiple house properties, and foreign income.

3. ITR-3: Applicable for individuals and HUFs having income from business or profession. It includes provisions for reporting partnership firm income.

4. ITR-4 (Sugam): Suited for individuals, HUFs, and firms (other than LLP) having income from business or profession computed under the presumptive income scheme. Presumptive income is calculated as a percentage of turnover.

5. ITR-5: Applicable for LLPs (Limited Liability Partnerships), Association of Persons (AOPs), Body of Individuals (BOIs), and partnership firms.

6. ITR-6: For companies other than those claiming exemption under section 11 (income from property held for charitable or religious purposes).

7. ITR-7: Applicable for persons, including companies, who are required to furnish return under sections 139(4A) or 139(4B) or 139(4C) or 139(4D).

8. ITR-8: ITR-8 is used by companies that are required to furnish return under Section 139(1) and have income under the head “Profits and gains from business or profession” chargeable to tax at corporate tax rates.

Benefits of filing ITR Online in India

The following are the benefits of Income Tax Filing Online:

Facilitating Loan Approval: Streamlining the loan approval process, filing your Income Tax Return (ITR) becomes a pivotal step when applying for loans like vehicles or homes. Major banks commonly demand a copy of your tax returns to substantiate your income statement, making it an essential document for securing loan approval.

Reclaiming Tax Refunds: In cases where Tax Deducted at Source (TDS) has been deducted from your income, even if your total taxable income falls below the basic exemption limit or incurs no tax liability, filing an Income Tax Return becomes crucial. It serves as the avenue to claim a refund of the deducted TDS.

Documentation for Income and Address Verification: Your Income Tax Return stands as a multifaceted document, not only indicating your financial standing but also serving as proof of both income and address. This dual functionality enhances its utility as a comprehensive verification document.

Expedited Visa Processing: When embarking on the visa application journey, embassies and consultants often mandate the submission of your tax returns from preceding years. Timely filing of your ITR becomes advisable as these documents are integral prerequisites for swift and smooth visa processing.

Capitalizing on Loss Carryforward: Submitting your return within the stipulated due date opens the door to carrying forward losses to subsequent years. This strategic financial move allows you to offset these losses against future income, effectively minimizing your tax liability. Without filing an income tax return, this advantageous provision would remain inaccessible.

Eligibility criteria for Income Tax Filing Online

Fulfilling income tax filing requirements is now obligatory under the prevailing Income Tax regulations. Nevertheless, there are specific exemptions to this mandate, as outlined below:

Exception 1: Annual Income Up to Rs. 5 Lakh for HUF/Individuals : Tax assesses falling under the category of Hindu Undivided Family (HUF) or individuals are exempt from mandatory e-filing if their annual income, encompassing both exempt and non-exempt sources, does not exceed Rs. 5 lakh.

Exception 2: Super Senior Citizens (80 Years and Above) : Another exception applies to super senior citizens, i.e., individuals aged 80 years or above, during the relevant financial year. Such individuals are not compelled to undergo mandatory e-filing.

In both scenarios mentioned above, taxpayers have the flexibility to choose between two modes of filing their income tax returns:

E-Filing Option: Taxpayers falling within the stipulated exemptions can opt to electronically file their income tax returns.

Paper ITR Form Option: Alternatively, they have the choice to utilize the appropriate paper-based ITR form for filing their returns.

Eligibility criteria for Income Tax Filing Online

It’s imperative for taxpayers to be aware of these exceptions, ensuring that they comply with the appropriate filing method as per their eligibility. This flexibility allows eligible individuals, including those with lower incomes or advanced age, to select the filing approach that aligns with their preferences and ease of compliance.

Documents required for ITR filing online

The following is the list of some vital documents required for income tax filing online:

1: Form 16 (for salaried/pensioners);

2: Form 26AS;

3: Profit and Loss Statement (for businesses/self-employed);

4: All investment documents (u/s 80C, 80D, 80E, 80G, etc.);

5: Home loan interest certificate, etc.

Procedure for filing Income Tax Online

The following is the step-by-step procedure for Income Tax Filing Online:

Step 1: Gather Necessary Documents

Collect all relevant documents such as PAN card, Aadhaar card, Form 16, bank statements, investment details, and other income-related documents.

Step 2: Choose the Right ITR Form

Select the appropriate Income Tax Return (ITR) form based on your income sources and financial activities. Commonly used forms include ITR-1, ITR-2, ITR-3, and so on.

Step 3: Access the Official Income Tax e-Filing Portal

Visit the official Income Tax e-Filing portal.

Step 4: Register or Login

If you are a new user, register on the portal by providing necessary details. If you are a returning user, log in with your credentials.

Step 5: Download the Relevant ITR Form

Download the selected ITR form from the portal’s “Downloads” section. Ensure that you choose the form for the assessment year you are filing for.

Step 6: Fill in the Form Offline

Use the downloaded form to fill in your details offline. Enter accurate information regarding your income, deductions, and tax liabilities.

Step 7: Validate the Form

Click on the ‘Validate’ button to confirm and validate the entered details. The system will check for any errors or inconsistencies in the form.

Step 8: Generate XML File

After validation, click on the ‘Generate XML’ button to convert the form into an Extensible Markup Language (XML) file.

Step 9: Login to the e-Filing Portal Again

Step 10: Click on ‘e-File’ and ‘Income Tax Return’

Navigate to the ‘e-File’ section and select ‘Income Tax Return.’

Step 11: Choose ‘Upload XML’

Choose the assessment year, ITR form number, and the filing type. Select ‘Upload XML’ and upload the XML file generated in the previous step.

Step 12: Verify Your Identity

After uploading, you will be prompted to verify your identity using Electronic Verification Code (EVC), Aadhaar OTP, or manual submission of ITR-V.

Step 13: Confirmation

Upon successful submission, you will receive an acknowledgment with a unique acknowledgment number. This serves as confirmation of your online income tax filing.

Penalty for late income tax filing

Failing to file income tax returns within the stipulated timeframe attracts penalties and incurs interest on delayed tax payments. Recent revisions have heightened the penalties for late filing, with the updated structure as follows:

Late Filing from August 1st to December 31st: A penalty of Rs. 5000 is imposed for late filing during this period.

Late Filing After December 31st: If the filing is delayed beyond December 31st, the penalty increases to Rs. 10,000.

Penalty for Taxable Income Below Rs. 5 Lakhs: Taxpayers with a taxable income less than Rs. 5 lakhs face a reduced penalty of Rs. 1000 for late filing.