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Efiling Income Tax: All About Tax Filing in India

  • Highlights

  • File ITR online by visiting the official portal

  • You must register yourself to be able to file ITR online

  • Pick from 3 different ways to file income tax returns

  • On filing ITR you can verify it through EVC or Aadhaar

Thanks to constant technological advancements, income tax filing is not only easy, but also convenient. Today, online filing of income tax returns or e-filing is a feature you can use to stay on top of your tax payments and save yourself any last-minute stress. This method involves registering yourself for the service and filling a few online forms with all the relevant information.

Besides the fact that it is a mandatory requirement, if you earn over a certain amount, tax filing is beneficial even if your current income is not taxable. Therefore, it’s important that you know all about e-filing income tax in India, from its benefits, to the documents required and the steps to follow.

A Complete Guide for Efiling Income Tax in India

What are the Benefits of Filing Income Tax Returns?

Besides avoiding any penalties that you may incur owing to late income tax filing, here are a few benefits that filing your income tax return offers.

  • The ITR receipt is a valuable document that holds greater weightage in comparison to Form 16. This means that it comes in handy when applying for loans and other forms of credit.

  • When you file returns on time, you can carry forward any losses to the next financial year. This reduces your overall tax liability, thereby benefiting you in the following year.

  • Your income tax returns also allow for hassle-free visa application as foreign embassies are particular about tax compliance. They verify your income tax status before processing your documentation and approving a visa.

  • Income tax returns serve as proof of income if you’re self-employed. This is important as you don’t receive Form 16 from an employer.

  • Income tax returns allow you to get insurance policies with the maximum coverage possible, which can’t be said for those who fail to produce ITR receipts.

What are the Different Ways by which You can File Taxes Online?

As per a recent change, you can only file your ITR online, via the official portal. Moreover, you can also check your income tax refund status online. Therefore, to understand how to file income tax returns online, take a detailed look at the 3 options that are available to you.

  • By using a digital signature certificate (DSC):
    A digital signature certificate is an online, secure tool that helps you electronically sign documents. Thanks to this certificate, you can digitally sign your document and it will serve as the equivalent of a paper certificate.

  • By verifying your Aadhaar number:
    Via this method you can e-file your income tax returns and verify it using your Aadhaar card.

  • By mailing ITR-V form to the Centralised Processing Centre in Bangalore:
    Alternatively, you can use this method if you do not wish to file using a digital signature certificate. The ‘Income Tax Return-Verification’ form must first be generated on the official IT department portal. Then, you can print this form, sign it and submit it to the CPC in Bangalore via post, within 120 days from the date of e-filing.

Tax Benefits on a Home Loan | Bajaj Finserv | HD

What are the Documents Required to E-filing Taxes?

Before you learn how to file income tax returns, it is important to have the necessary documents handy. Here is a checklist that outlines the ones that you must have within easy reach when you e-file taxes.

  • PAN card

  • Salary slips

  • Proof of tax-saving investments, if any

  • Bank statements

  • Form 16A/16B/16C

  • Form 26AS

  • TDS certificate

  • Interest certificates from savings and deposit accounts

  • Insurance and loan particulars

  • Any other proof of income

What are the Terms and Conditions when It comes to E-filing Income Tax Returns?

Based on your income you will fall under an income tax slab, and each slab has its own income tax rate. As per the Income Tax Act, 1961, any individual earning over Rs.2.5 lakh in a financial year must file ITR. Take a look at the following table to determine the income tax rate that is applicable on your taxable income.

For regular citizens
Up to Rs.2,50,000 Nil
Rs.2,50,001 to Rs.5,00,000 5%
Rs.5,00,001 to Rs.10,00,000 20%
Rs.10,00,001 and above 30%
For senior citizens
Up to Rs.3,00,000 Nil
Rs.3,00,001 to Rs.5,00,000 5%
Rs.5,00,001 to Rs.10,00,000 20%
Rs.10,00,001 and above 30%
For super senior citizens
Up to Rs.5,00,000 Nil
Rs.5,00,001 to Rs.10,00,000 20%
Rs.10,00,001 and above 30%

As per the latest income tax rules, regular citizens with a net taxable income of up to Rs.5 lakh can get a full rebate of up to Rs.12,500 under Section 87A, thus bringing down their tax liability to nil.

Know How to File Income Tax Returns Online

As per a recent change, you are now required to file your ITR through online process by logging on to the Indian Income Tax Department’s official website. However, in order to access the necessary forms you must first register yourself. Here is a simple guide you can follow to do so.

  • Log on to http://www.incometaxindiaefiling.gov.in/

  • Locate the ‘Register Yourself’ button and click on it

  • Once you are redirected, select ‘User Type’ and proceed by clicking on ‘Continue’.

  • Enter the necessary basic details and verify them

  • Once you do so, you will be redirected to a registration form

  • Ensure that you verify all the information that you have entered in this form and also make a note of the password

  • Click on ‘Submit’ and await an e-mail with the activation link, as well as an OTP on your registered mobile number

  • Activate your account by following the link and entering the OTP

After registering for the service, proceed to the e-filing login page and follow these steps.

  • To file your income tax online, login by entering your user ID and CAPTCHA code

  • Select the appropriate assessment year and ITR form that matches your financial profile

  • Fill the form, taking care to read the instructions carefully so as to avoid any mistakes

  • Once you have completed this step, click the ‘Preview and Submit’ button to proceed

  • After submitting the form, verify the return either by entering your Aadhaar number or an Electronic Verification Code (EVC)

  • Upon successful verification and due processing, you will receive an e-mail on your registered email address and an SMS on your registered mobile number confirming the same

What is the Last Income Tax Filing Date?

As per a recent update, the income tax filing last date for 2019 has been extended to 31 August from 31 July 2019.

Filing your tax returns yearly is the mark of a responsible, law-abiding citizen. Thanks to the online tax filing system, the process is now easy and straightforward too. Moreover, timely income tax returns filing also prevents you from incurring penalties that arise from non-payment or late payment. Typically these fines range from Rs.1,000 and Rs.10,000, depending on when you file your taxes and your total income for the financial year. So be sure to file your income tax returns well before the deadline and make tax-planning a part of your financial strategy to keep your tax liability to the minimum.

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