Income Tax E-Filing
With the introduction of the e-filing facility, assessees can now file income tax returns conveniently. Filing for ITR online is simple, streamlined and can be completed from anywhere. The facility also helps individuals do away with the need to avail assistance for filing IT returns, and allows substantial saving.
What is E-Filing?
E-filing income tax return involves utilising the online portal of the Income Tax Department to report one’s income, expenditure and tax liability to the respective authorities. Digital filing of ITR is mandatory for all assesses, with a few exemptions.
What are the Benefits of Filing ITR Digitally?
The ITR e-filing process brings the following benefits to assessees.
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Instant processing
Individuals enjoy the advantage of prompt processing of their request. The online mode also makes processing refunds and tax liability estimation hassle-free and streamlined. -
Accurate
ITR e-filing allows assessees to do away with the need to hire tax experts. Individuals can calculate their tax liabilities accurately, with deductions and exemptions via self-assessment. -
Convenience
Interactive tax filing with automated and auto-filling options makes e-filing returns more convenient than filling out forms offline. -
Verification of ITR status
With the online filing of income tax returns, individuals can check and verify their ITR status. Also, it allows safe storage of the receipt generated on online filing ITR. Assessees can access such receipts conveniently in the future for purposes like home loan applications. -
Easy record maintenance
E-filing of income tax returns also makes maintaining past records significantly easier. The online portal of the Income Tax Department stores and maintains all the past records like refunds claimed, returns submitted, etc. to facilitate ease of access for individuals.
Eligibility Criteria to File ITR Online
The Income Tax Department has mandated it for all assesses to file their income tax returns online. Entities that are exempt from this rule include –
- Income tax assessees above 80 years of age and are taxed as per the super senior citizen income tax slab.
- Individuals or members of HUF whose annual income does not exceed Rs.5 lakh. This income threshold also includes stipulated exemptions.
Exempt assessees can choose to file their ITR online or offline.
Documents Required to File ITR Online
Individuals need not attach any documents with their respective ITR Form unless the Income Tax Department specifically instructs. Nonetheless, individuals can keep a few documents handy while filing the ITR online for convenience. They include -
- Form 16 for salaried individuals or pensioners
- Profit and loss statement for self-employed individuals or business owners.
- Form 26AS
- All investment-related documents for the particular FY (Including investment documents under Sections 80C, 80D, 80E, etc.)
- Certificates generated from loan applications, etc.
Keeping these documents handy helps individuals access them without hassle if needed during ITR e-filing.
Steps for Online ITR Filing
Assessees filing their ITR online for the first time need to first register themselves on the Income Tax Department’s online portal and complete e-filing income tax login with the user ID and password.
Next, follow the steps given below to file ITR –
- Step 1: Post login, click on the option marked ‘Income Tax Return’ under ‘e-file’.
- Step 2: Choose correct details from the available options, i.e., ITR Form type, assessment year, mode of payment, and click to continue.
- Step 3: For verification of ITR, select authentication type from EVC using bank details, Aadhaar OTP and click on ‘Continue’. Individuals who have sent ITR-V through the post for verification can skip this step.
- Step 4: Start the e-filing process by filling in general information including, name, Aadhaar number, PAN, address, etc. under Part A of the process.
- Step 5: Next, proceed to provide income details for gross total income computation.
- Step 6: Enter tax exemptions to compute the total taxable income.
- Step 7: Verify all details, including taxes paid, refund amount, the total amount payable, etc.
- Step 8: Click on ‘Preview and Submit’ to verify if all the details entered are correct.
- Step 9: Next, select ‘Submit’ to successfully complete the process of e-filing income tax.
E-Filing Income Tax Due Dates
The due date for filing income tax returns online slated for income generated in FY 2019-20 was put forth as 31st July 2020. It was applicable for all categories of assessees, except businesses requiring audit and those requiring TP report, for which the designated dates were 30th September 2020 and 30th November 2020 respectively.
Owing to current circumstances, assessees under all categories need to file ITR online by 30th November 2020.
Important Dates for Income Tax Return Filing
Following are the important dates concerning income tax return filing that assessees must remember –
- Proof of investment submission – Before 31st January
- Last date to make any investment under Section 80C of ITA, 1961 – Before 31st March
- Due date for e-filing ITR – 31st July
- Verification of tax returns – Between October and November every year
Penalty for Late Filing of ITR Online
Individuals must file their income tax returns annually before the last date. Failure to do so results in penalty levy under Section 234F of the ITA, 1961, and includes –
- A fine of Rs.5,000 if assesses file the return within 31st December of the AY
- Rs.10,000 in other cases.
How to Register for E-Filing Income Tax?
The registration process for e-filing income tax includes the following steps -
- Visit the Income Tax e-filing portal.
- Select the ‘User Type’ from these options - Individual, Hindu Undivided Family, Others, etc.
- Enter designated details like name, PAN, residential status, and date of birth.
- Fill up the registration form with personal details like address, contact number, password, etc. and submit
- Verify your submission with OTP confirmation to complete registration on the portal.
Herein, PAN becomes the registration ID for each assessee, which they can utilise to log in to this portal.
Why Should You Complete ITR Filing for AY 2020-21?
E-filing of ITR brings the following benefits for assesses –
- It helps track refund claims for any excess tax paid online.
- Timely ITR filing helps avoid the penalties levied on late filing.
What are the Different Income Tax Returns Forms?
Different assessee categories can complete e-filing income tax returns via designated forms listed below.
- ITR 1 (SAHAJ) – For individuals with income of up to Rs.50 lakh generated from salaries/pension, one house property, and other sources.
- ITR 2 – For individuals and members of HUF with no income from business or profession.
- ITR 3 – For individuals and members of HUF generating income from business or profession.
- ITR 4 (SUGAM) – For individuals/ members of HUF/firms except for LLPs, who generate income from business or profession on a presumptive basis.
- ITR 5 – For entities other than individuals, members of HUF, companies, and persons filing ITR under ITR 7.
- ITR 6 – Companies apart from those filing ITR under Form ITR 7.
- ITR 7 – For entities other than companies who need to file returns under Sections 139 (4A), 139 (4B), 139 (4C), and 139 (4D).
- ITR V – Acceptance Form for filing ITR.
Make sure to choose the right form for ITR e-filing and undertake the process well before the due date to eliminate the risk of missing the deadline.
FAQs on Income Tax E-Filing
What is ‘Transparent Taxation - Honouring the Honest’ new tax programme?
The ‘Transparent Taxation - Honouring the Honest’ programme was launched on 13th August 2020 by the Prime Minister of India to encourage sincere taxpayers through reforms in the taxation system. These reforms include Faceless Appeal, Faceless Assessment and Taxpayer Charter through which taxpayers can enjoy benefits like ease of compliance, refund expedition, etc.
What is ITR e-filing last date for AY2020-21?
The last date for filing ITR online has been pushed to 30th November 2020 for all assessees, for AY2020-21.
How to e-verify ITR?
Assessees can e-verify their ITR through bank ATM, net-banking, bank account number, Demat account number, and Aadhaar OTP. Proceed with the following steps to do so –
- Complete filing ITR online.
- Verify returns within 120 days of filing through the methods mentioned above.
What is an e-file?
E-file, or electronic file, refers to the system of submitting income tax returns to the respective authorities online without any physical documents.
What are the fees for e-filing income tax returns?
There are no charges levied for filing income tax returns online.
