Individuals whose total income in the previous year exceeds the tax exemption bracket are mandated to file their ITR (income tax returns) as per Section 139 (1). The process of filing your returns online is e-filing ITR. Like individuals, businesses and other entities must also report their income and pay taxes.
The deadline to file ITR online or offline is 31st July of every year. In this article, learn steps for e-filing income tax, its importance, how to check ITR status and more.
Steps To e-Filing Income Tax Online For AY 2023 – 2024
Here is a step-by-step guide for income tax e-filing for Assessment Year (AY) 2023 – 2024 (FY 2022 – 2023).
- Calculate your income and tax
- TDS certificates and Form 26AS
- Choose the right income tax form
- Visit the official website of ITR
- Select your category and IT form
- Enter your bank account details
- Go through the pre-filled data
- Submit the details
Get started with calculating your income from every source, like salary, interest income, etc. Also, note if there are any tax-saving investments that come under Section 80C to claim deductions.
Now summarise the TDS amount from the TDS certificates. To compute and summarise the TDS and tax paid during the financial year, you can use Form 26AS.
Once you have your income and TDS sorted, learn about the different ITR forms and understand the one that suits you. If you are filing your ITR online, only ITR 1 and ITR 4 are available. All the other forms can be uploaded offline by generating XML and uploading it on the portal.
Visit the official Income Tax portal. New users can register using a PAN card. Existing users can log in using their User ID.
Select the taxpayer category that applies to you – individual, Hindu Undivided Family (HUF), etc. Accordingly, select the right ITR form you need to file.
Input your bank account details, and if you have already entered them, pre-validate if the right details are given.
Now you will be redirected to a new page when your income and tax are pre-filled. You can go through each and every step to verify the details. If any changes are required, click edit to update the correct information.
Once you’ve verified your income and tax information, you can confirm the same and proceed. That’s it, your ITR will be filed, and a confirmation will be sent to your registered email id and phone number.
Know more about Suggestions for Filling up Your IT Returns
Documents For e-Filing Income Tax
- Aadhaar card, bank account details, PAN card (if available)
- Form 16 for salaried individuals
- Rent receipts to claim HRA
- If there’s an income from any house, details of the property like address proof, co-owners details along with their PAN, date of construction or purchase, home loan interest certificate
- If you hold any stock, mutual funds or any investments, the details of investments should be kept handy
- If you have other income from interest from tax-saving bonds, or corporate bonds, the details of the interest are needed
Know in detail about Documents Required for ITR Filing
Verification of ITR
After filing your ITR, you are required to do it; otherwise, it will be considered invalid. You can verify it online or offline by sending a signed ITR-V to the Centralized Processing Center (CPC) in Bangalore.
The steps for the verification of ITR are below:
- Login to the income tax official portal
- Go to the e-file section on the menu bar
- Click on ‘Income Tax Returns’ and find e-verify
- You’ll find the details of your ITR filed
- You can verify it using an Aadhaar card OTP, net banking, Demat account, digital signature certificate or the bank account
How To Check ITR Status?
You can check the status of your ITR application online easily by following the steps below:
- Login to the income tax official portal
- You can find the status of your filed returns on the dashboard itself
- For detailed information on the ITR status, go to the e-file section on the menu bar
- Click on ‘Income Tax Returns’
- Click on ‘View Filed Returns’
You’ll get the status of your income tax returns.
What Happens After You File ITR?
Once your income e-filing is done, the IT department authorities will verify the details and process it successfully (assuming the details are correct). Once the ITR is processed and there are any returns to be refunded, the amount will be credited to your provided bank account in 20 – 45 days once the ITR is processed.
Who Should File ITR in India?
Individuals or companies that fall under any one of the following categories must file ITR:
- Any company or firm must file ITR irrespective of the profit or loss of the business.
- Individuals who want to claim a refund from the IT department.
- Individuals who wish to apply for a visa or loan.
- Individuals interested in investing in foreign assets or the ones generating income from house property, etc.
- Individuals whose annual income is more than the taxable income that is given by the IT department.
New Rules For Filing ITR – 2023
As per the new rule for filing ITR, if an individual does not have a PAN card, they can file for income tax using an Aadhaar card. And individuals who file for ITR using the Aadhaar card will be allotted a PAN card according to their demographics taken from the Unique Identification Authority of India (UIDAI). But it is mandatory to hold an Aadhaar card while filing ITR.
Benefits of e-Filing ITR
Some benefits of filing ITR online are:
- You can file your income tax returns from anywhere and anytime.
- With electronic validation, there are fewer chances for manual errors
- It simplifies the process with pre-filled forms and user-friendly software.
- Save time and money on paper forms and post charges.
- Maintain and access digital records easily and check the status of the application quickly.
- Get instant acknowledgement after filing.
Now that you know how to file for income tax returns online, ensure to file it rightly before the deadline to avoid penalties. If you have any doubts while filing your returns, you can talk to your trusted financial advisor.
How will the excess tax get refunded, if there is any?
If there are any tax refunds, the amount will be credited to your bank account, or a cheque will be provided. The status of your tax refund can be found on the official income tax website.
Are there any charges levied on filing income tax online?
No. You can file your income tax returns online for free. However, ensure to file the returns before the deadline to avoid penalties.
What to do if there are any changes or rectifications in the income tax return?
You can contact the centralised processing centre with your queries with respect to income tax returns.
What happens if I don’t file my tax returns?
If a taxpayer fails to file the ITR before the deadline, a penalty of ₹10,000 will be imposed. Furthermore, the taxpayer will not be eligible to get a bank loan as banks check the last 3 years’ ITR while processing a loan application.