When you file your Income Tax Returns (ITR) online, the process is called e-Filing and due to its convenience, it is gaining popularity these days. ITR Filing is mandatory for all Indian citizens with annual earnings of a certain amount and unlike earlier, you need not visit the Income Tax Department to file your returns. Instead, you can do an efiling of your returns from the comfort of your home or office.
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Steps to Follow for e Filing ITR Online
- Visit the portal of the income tax department (http://www.incometaxindiaefiling.gov.in) and login using your User ID, password, and enter the captcha displayed.
- If you are a new user, you can register using the ‘Register Yourself’ button.
- Once you login, you will find the ‘e-file’ section under which you will need to select ‘Income Tax Return.’ Please note that you can fill only ITRs 1 and ITRs 4S online.
- Choose the assessment year, Income Tax Return Form ITR 4S/ITR 1 and ‘Prepare and Submit ITR Online’.
- Check the bank details and Hit the "Continue" button.
- If you have a Digital Signature Certificate (DSC), upload it. Make sure that your DSC is registered with e Filing.
- Click on the ‘Submit’ tab.
- If you have not used a DSC, your ITR-V will be displayed to you on successful submission. You can then download the ITR-V from the link displayed, sign it, and submit it to the CPC before 120 days from the eFiling date.
- If you have uploaded your DSC, then your ITL filing process is complete.
Eligibility for Income Tax e-Filing
Under the conditions given below, it is mandatory for individuals to file ITR:
- Any firm or company must file ITR even if they make a profit or undergo a loss.
- In case individuals wish to apply for a loan or a visa.
- In case individuals invest in foreign assets or earn from foreign assets.
- In case individuals wish to claim a refund from the Income Tax Department.
- In case individuals earn an income from house property, etc.
- If the gross annual income of the individual exceeds the details mentioned in the table below:
|Age of the individuals||Gross annual income (Rs.)|
|Individuals who are below 60 years old||2.5 lakh|
|Individuals above the age of 60 years but below the age of 80 years||3.0 lakh|
|Individuals who are above the age of 80 years||5.0 lakh|
Note: You need not to file income tax returs if your annual income is not taxable.
Documents required for Income Tax e-Filing
In case individuals wish to file ITR online, the below-mentioned documents will be required:
- The Permanent Account Number (PAN) of the individual.
- The Aadhaar number of the individual. The Aadhaar number must be linked with the PAN.
- The bank account details (bank account number, IFSC code, and bank branch) of the individual.
In case individuals file their ITR based on their salary, the below-mentioned documents are needed:
- Form 16
- In case House Rent Allowance (HRA) is being claimed, the rent slips must be given.
- Salary Slips
In case individuals wish to claim deductions, the below-mentioned documents are required:
- Proof of income such as capital gains income and house property income.
- Any details about investments that are liable for deductions.
- Details of home loans and insurance
- Deposit account and savings account interest certificates.
Income Tax e-Filing Due Date
Income Tax Returns (ITR) are required to be filed before the deadline that is marked by the Income Tax Department (ITD). The due dates for filing of ITR for different categories of taxpayers for the financial year 2019-20 are listed in the table below.
For the AY 2020-21, the due date for Income Tax e Filing of all taxpayers extended to 31 December 2020. .
|Category of Taxpayer||Deadline for filing tax returns|
|Individual||December 31, 2020|
|Body of Individuals (BOI)||December 31, 2020|
|Hindu Undivided Family (HUF)||December 31, 2020|
|Association of Persons (AOP)||December 31, 2020|
|Businesses (Requiring Audit)||December 31, 2020|
|Businesses (Requiring TP Report)||December 31, 2020|
New Rules for Income Tax e-filing
A new income tax structure has been imposed under Union Budget 2020. Under the new structure, various tax exemptions will be removed. However, taxpayers have the option to select the new tax regime or the existing tax regime. Under the new tax regime, the tax rates have been lowered.
Consequences of Filing ITR with Only Aadhaar
In case you do not have a Permanent Account Number, you can file your income tax return using Aadhaar. Furthermore, your Aadhaar Card is mandatory when applying for a new PAN. Under the new income tax rules, taxpayers who file their returns using their Aadhaar card will be allotted PAN after their demographic data has been obtained from the Unique Identification Authority of India (UIDAI).
What happens if your Aadhaar and PAN are not linked?
The Central Board of Direct Taxes issued a notification, in which taxpayers were urged to link their Aadhaar with their PAN before March 31, 2021. Failure to link your PAN with Aadhaar will prevent you from filing your income tax returns after the specified deadline.
The Government of India has introduced the new rule in order to enhance tax compliance while easing the tax payment process for taxpayers. As of now, it is compulsory for taxpayers to quote their PAN when filing their returns. Going forward, however, it will be compulsory to link your Aadhaar and PAN to file your returns.
How to Check Income Tax e-Filing status?
In order to check income tax e Filing status, you can visit the e-Filing home page of the Income Tax department. There are two ways through which the status can be checked. They are mentioned below:
- Using the acknowledgment number
- Using login credentials
To check the income tax eFiling status using the acknowledgement number, you need to follow the steps mentioned below:
- Step 1: Visit www.incometaxindiaefiling.gov.in/home
- Step 2: Click on ‘ITR Status’
- Step 3: Next, enter the PAN, acknowledgement number, and captcha code and click on ‘Submit’
On doing that, the status will be displayed on the screen.
In case, you want to check the status using the login credentials, you will need to login to the e Filing website. After logging in, on the dashboard you will see the option ‘View Returns/Forms’. There, you need to select income tax returns and assessment year from the dropdown menu and click on ‘Submit’. Following that, the status will be displayed.
Benefits of Income Tax Returns e-Filing
The main benefits of efiling Income Tax Returns are mentioned below:
- Tracking the status: Individuals who efile the ITR can easily check the status online. Earlier, it was time-consuming to check the status and the status would only be sent by post. However, efiling ITR enables the individual to check the progress of the application with ease.
- Processing of refund: In case individuals efile their ITR, the process to receive the refund is easy and is much quicker. Earlier, the refund process was not very convenient and was very time-consuming. However, individuals can update the bank details online and receive the refund much quicker.
- Reduction of errors: Due to the number of calculations that must be made when computing ITR, it is common that errors are made. However, when efiling ITR, there is a mechanism where the computation of ITR is done by the system, therefore reducing the number of errors.
- E-Verification: The verification of ITR can be done online if individuals efile their ITR. Earlier, the ITR would have to be sent to the CPC in Bengaluru.
- Convenient: The process of efiling ITR is very convenient, easy, and the process takes very less time. Earlier, the process to file ITR was very tedious as individuals had to visit the Income Tax Department. However, the process to efile ITR can be done from the comforts of an individual’s home.
- Access to documents: In case individuals efile the ITR, they will have to upload the necessary documents online. Therefore, individuals will be able to view the documents at any given time. The manual process of efiling ITR does not provide such benefits.
- Compilation of records: Earlier, individuals were required to fill many forms in case they wanted to file the ITR. The process to fill the forms was very complex as well. However, efiling ITR removes the complexity of the process as all the data is auto-populated during the initial process and the ensuing steps become very simple.
- Cost-efficient: In case individuals wish to file their returns manually, they might have to hire a professional to compute their returns. This could cost money in case they wish to hire a professional. However, individuals could do away with these expenses in case they efile their ITR as the computation can be done online.
- Receipt of proof: Individuals who efile their ITR will receive a receipt at the time of filing returns and once returns have been filed as well. The receipt will be sent via email.
- Electronic banking: The process to make payments and refunds is simple. It can be done via direct debit for the payment of tax and direct deposit for the receiving of refund. There are options available where investors can file their returns now and make the payment at a later date as well. Taxpayers can choose the day when they would like the payment to be made.
Penalty for late Income tax e-Filing
In case, you miss ITR filing within the specified deadline, the Central Board of Direct Taxes (CBDT) imposes a penalty. The maximum penalty levied for late eFiling is Rs.10,000. The penalty is levied under section 234F.
FAQ's on Income Tax e-Filing
- How can I file my ITR electronically?
- How will the excess tax paid by me refunded?
- Whom can I contact for rectification and other income tax processing related queries?
- What is Form 16?
- In case, I have a query about Form 16 or something related to TDS statement, which helpdesk should I contact?
You can log on to www.incometaxindiaefiling.gov.in if you want to file ITR electronically. It is an independent portal launched by the income tax department.
It will be refunded to the bank account or a cheque will be sent once the refund gets processed.
In such a case, you can contact the centralised processing centre between 8 am and 8 pm on a weekday.
It is a form issued by the employer under section 203 of the Income Tax Act for tax deducted at source (TDS) from income under salary.
The TDS reconciliation Analysis and Correction Enabling System also known as TRACES can be contacted in such a case.