e-Filing is the short form of electronic filing. The e-fling method helps individuals electronically file their Income Tax Returns(ITR) online on a yearly basis. e-Filing Income Tax Returns has become very popular because it is convenient, user-friendly, and accurate.
About efiling Income Tax Returns
The Government of India has made it mandatory for individuals, who are earning above a certain amount of money in a year, to file ITR. It is mandatory to file ITR and heavy penalties are levied in case individuals do not file their returns on time. Various benefits are provided to individuals who file their ITR in a timely manner on a yearly basis.
Unlike earlier, it has become very simple for individuals and businesses to file ITR. The Indian Government has introduced several new measures to ensure that it is very easy for individuals to file their returns. efiling helps individuals file their ITR from the comfort of their office or home and can be completed in a few clicks. The introduction of the efiling system has also minimized the amount of time that individuals earlier spent to file their ITR. Individuals need not visit the Income Tax Department in order to file their returns and can instead use the internet.
What is the procedure for efiling Income Tax Returns Online?
The procedure of ITR efiling is very simple. It is vital that individuals file their ITR on time so that no penalties are levied on them. The procedure to e-file ITR is mentioned below:
- Register on the ITR portal: The first step would be for the individual to register on the ITR portal. Individuals will need to provide their PAN, name, and date of birth in order to register. The PAN will become the User ID and the password can be chosen by the individual.
- Selection of ITR form: The next step would be for the individual to choose the relevant ITR form. Depending on the type of ITR that is being filed, the ITR form may vary.
- Filling of the form: The ITR form can be filled both offline and online. In case individuals wish to fill the form manually, they can download the form on the ITR portal and upload it on the efiling website once it is filled.
- Acknowledgement and verification: An acknowledgement will be received once the form has been uploaded on the ITR website. The form is known as the ITR-V. In case individuals do not update the Aadhaar card details, the ITR-V has to be physically signed and sent to the Income Tax Department. The form must be sent within 120 days from the date the ITR was filed.
- Refund of tax: In case individuals pay an extra tax amount than what is computed by the Income Tax Department, they are eligible to receive a refund. It is important that individuals update the correct bank details to prevent any delays in receiving the refund.
Who is required to file for Income Tax Returns?
Under the conditions given below, it is mandatory for individuals to file their 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|
What are the documents required for efiling Income Tax Returns?
In case individuals wish to file their 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.
New Aadhaar and PAN Rules for Income Tax Return Filing
The new income tax rules implemented by Nirmala Sitharaman in the 2019 Union Budget require taxpayers to link their Aadhaar to their PAN. In the announcement, the Finance Minister said that income tax returns can be filed using your Aadhaar Card or PAN Card. However, you can only do so until the 30th of September 2019 as it is the deadline to link your Aadhaar to your PAN.
Consequences of Filing Income Tax Returns 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 on 31 March 2019 according to which taxpayers were urged to link their Aadhaar with their PAN before 30 September 2019. 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.
Deadline for efiling tax returns
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 2018-19 are listed in the table below. The following dates will be applicable for the income earned by a taxpayer between 1 April 2018 and 31 March 2019.
|Category of Taxpayer||Deadline for filing tax returns|
|Individual||31st July, 2019|
|Body of Individuals (BOI)||31st July, 2019|
|Hindu Undivided Family (HUF)||31st July, 2019|
|Association of Persons (AOP)||31st July 2019|
|Businesses (Requiring Audit)||30th September 2019|
|Businesses (Requiring TP Report)||30th November 2019|
What are the benefits of efiling Income Tax Returns?
The main benefits of efiling Income Tax Returns are mentioned below:
- Tracking the status: Individuals who e-file 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 e-file 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 e-file 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 e-file ITR can be done from the comforts of an individual’s home.
- Access to documents: In case individuals e-file 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 e-file their ITR as the computation can be done online.
- Receipt of proof: Individuals who e-file 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.
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