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  • IT Returns - Guide for e-Filing of Income Tax Return (ITR) Online

    As per section 139(1) of the Income Tax Act, 1961 in the country, individuals whose total income during the previous year exceeds the maximum amount not chargeable to tax, should file their income tax returns (ITR).

    The process of electronically filing income tax returns is known as e-filing. You can either seek professional help or file your returns yourself from the comfort of your home by registering on the income tax department website or other websites. The due date for filing tax returns (physical or online), is July 31st.

    Who should e-file income tax returns?

    Online filing of tax returns is easy and can be done by most assessees.

    • Assessee with a total income of Rs. 5 Lakhs and above.
    • Individual/HUF resident with assets located outside India.
    • An assessee required to furnish a report of audit specified under sections 10(23C) (IV), 10(23C) (v), 10(23C) (VI), 10(23C) (via), 10A, 12A (1) (b), 44AB, 80IA, 80IB, 80IC, 80ID, 80JJAA, 80LA, 92E or 115JB of the Act.
    • Assessee required to give a notice under Section 11(2) (a) to the assessing officer.
    • A firm (which does not come under the provisions of section 44AB), AOP, BOI, Artificial Juridical Person, Cooperative Society and Local Authority (ITR 5).
    • An assessee required to furnish returns U/S 139 (4B) (ITR 7).
    • A resident who has signing authority in any account located outside India.
    • A person who claims relief under sections 90 or 90A or deductions under section 91.
    • All companies.

    Types of e-Filing:

    • Use Digital Signature Certificate (DSC) to e-file. It is mandatory to file IT forms using Digital Signature Certificate (DSC) by a chartered accountant.
    • If you e-file without DSC, ITR V form is generated, which should then be printed, signed and submitted to CPC, Bangalore by ordinary post or speed post within 120 days from the date of e-filing.
    • You can file e-file IT returns through an E-return Intermediary (ERI) with or without DSC.
    e-filing ITR

    Checklist for e-Filing IT Returns

    There are a few prerequisites to filing your tax returns smoothly and effectively. Major points have been highlighted below.

    • How to choose the right form to file your taxes electronically
    • It can be confusing deciding which form to submit when filing your tax returns online. The different categories of Income Tax Return (ITR) forms and who they are meant for are tabulated below.
      ITR 1 (SAHAJ) Individuals with income from salary and interest
      ITR 2 Individuals and Hindu Undivided Families (HUF) not having income from business or profession
      ITR 3 Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship
      ITR 4 Individuals and HUFs having income from a proprietary business or profession
      ITR 4S (SUGAM) Individuals/HUF having income from presumptive business
      ITR 5 Firms, AOPs,BOIs and LLP
      ITR 6 Companies other than companies claiming exemption under section 11
      ITR 7 Persons including companies required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D)
    • E-file IT Returns Online
    • Check your tax credit - Form 26AS vs. Form 16

      You should check Form 26AS before filing your returns. It shows the amount of tax deducted from your salary and deposited with the IT department by your employer. You should ensure that the tax deducted from your income as per your Form 16 matches with the figures in Form 26AS. If you file your returns without clarity on errors, you will get a notice from the IT department.

    • Claim 80G, savings certificates and other deductions

      You can claim extra deductions if you forgot to claim them. Similarly, you can also claim deductions under section 80G on donations made to charitable institutions.

    • Interest statement - Interest on savings accounts and fixed deposits

      A deduction for up to Rs.10,000 is allowed on interest earned on savings accounts. However, interest earned on bank deposits, if any, forms a part of your taxable income and is taxable at applicable slab rates.

    • In addition to the above, have the following at hand.

      • Last year's tax returns
      • Bank statements
      • TDS (Tax Deducted at Source) certificates
      • Profit and Loss (P&L) Account Statement, Balance Sheet and Audit Reports, if applicable
    • Ensure your system is equipped with the below.

      Java Runtime Environment Version 7 Update 6 or above

    List of Required Documents for e-filing of tax returns

    It is always good to stay a step ahead, especially when it comes to tax filing. The checklist provided below will help you to get started with the e-filing of tax returns.

    General details:

    • Bank account details
    • PAN Number

    Reporting salary income:

    • Rent receipts for claiming HRA
    • Form 16
    • Pay slips

    Reporting House Property income:

    • Address of the house property
    • Details of the co-owners including their share in the mentioned property and PAN details
    • Certificate for home loan interest
    • Date when the construction was completed, in case under construction property was purchased
    • Name of the tenant and the rental income, in case the property is rented

    Reporting capital gains:

    • Stock trading statement is required along with purchase details if there are capital gains from selling the shares
    • In case a house or property is sold, you must sought sale price, purchase price, details of registration and capital gain details
    • Details of mutual fund statement, sale and purchase of equity funds, debt funds, ELSS and SIPs

    Reporting other income:

    • The income from interest is reported. In case of interest accumulated in savings account, bank account statements are required
    • Interest income from tax saving bonds and corporate bonds must be reported
    • The income details earned from post office deposit must be reported

    Income Tax Slab Rates

    Income Tax Slab rates For Financial Year 2017 – 2018 And Assessment Year 2018-2019

    (As Declared in the New Budget) :

    For Individuals and HUF (Age – Less than 60 years):

    Income Tax Slab Tax rate
    Up to Rs.2,50,000 NIL
    Above Rs.2,50,000 and up to Rs.5,00,000 5%
    Above Rs.5,00,000 and up to Rs.10,00,000 20%
    Above Rs.10,00,000 30%

    *10% of tax will be imposed as surcharge in case the total income is between Rs.50 Lakhs and Rs.1 crore.

    *15% of tax will be imposed as surcharge in case the total income is above Rs.1 crore.

    For Individuals and HUF (Age – 60 years and more, but less than 80 years):

    Income Tax Slab Tax rate
    Up to Rs.3,00,000 NIL
    Above Rs.3,00,000 and up to Rs.5,00,000 5%
    Above Rs.5,00,000 and up to Rs.10,00,000 20%
    Above Rs.10,00,000 30%

    *10% of tax will be imposed as surcharge in case the total income is between Rs.50 Lakhs and Rs.1 crore.

    *15% of tax will be imposed as surcharge in case the total income is above Rs.1 crore.

    For Super Senior Citizens (age - 80 years and more):

    Income Tax Slab Tax rate
    Up to Rs.5,00,000 NIL
    Above Rs.5,00,000 and up to Rs.10,00,000 20%
    Above Rs.10,00,000 30%

    *10% of tax will be imposed as surcharge in case the total income is between Rs.50 Lakhs and Rs.1 crore.

    *15% of tax will be imposed as surcharge in case the total income is above Rs.1 crore.

    Income Tax Slab Rates for Year 2016 – 2017 :

    For Individuals and HUF (Age – Less than 60 years):

    Income Tax Slab Tax Rate
    Up to Rs.2,50,000 NIL
    Above Rs.2,50,000 and up to Rs.5,00,000 10%
    Above Rs.5,00,000 and up to Rs.10,00,000 20%
    Above Rs.10,00,000 30%

    *12% surcharge is imposed in case the total income is above Rs.1 crore.

    For Senior Citizens (Age – 60 years and more, but less than 80 years):

    Income Tax Slab Tax Rate
    Up to Rs.3,00,000 NIL
    Above Rs.3,00,000 and up to Rs.5,00,000 10%
    Above Rs.5,00,000 and up to Rs.10,00,000 20%
    Above Rs.10,00,000 30%

    *12% surcharge is imposed in case the total income is above Rs.1 crore.

    For Super Senior Citizens (Age - 80 years and more):

    Income Tax Slab Tax Rate
    Up to Rs.5,00,000 NIL
    Above Rs.5,00,000 and up to Rs.10,00,000 20%
    Above Rs.10,00,000 30%

    *12% surcharge is imposed in case the total income is above Rs.1 crore.

    Income Tax Return Due Date:

    Generally, the due date for filing Income Tax Return (ITR) for Hindu Undivided Family (HUF)/ Individuals/ AOP (Association of Persons)/ BOI (Body of Individuals) is 31st July of the next Financial Year. For example – The ITR due date for Financial Year 2016-17 would be 31st July, 2017.

    Recommended:

    Income Tax Income Tax Return Income Tax Refund Income Tax Refund Status Form 16

    How do I file e-Returns?

    Steps to follow to file Income Tax Returns:

    Filing your income tax returns online doesn't have to be a complicated process. Simply follow the below steps.

    First, log on to IncomeTaxIndiaeFiling.gov.in And register on the website.

    • Your Permanent Account Number (PAN) is your user ID.
    • View your tax credit statement or Form 26AS. The TDS as per your Form 16 must tally with the figures in Form 26AS.
    • Click on the income tax return forms and choose the financial year.
    • Download the ITR form applicable to you. If you're exempt income exceeds Rs.5,000, the appropriate form will be ITR-2 (If the applicable form is ITR-1 or ITR 4S, you can complete the process on the portal itself, by using the 'Quick e-file ITR' link - this has been explained below).
    • Open excel utility (the downloaded return preparation software) and fill out the form by entering all details using your Form 16.
    • Check the tax payable amount by clicking the 'calculate tax' tab.
    • Pay tax (if applicable) and fill in the challan details.
    • Confirm all the data provided in the worksheet by clicking the 'validate' tab.
    • Generate an XML file and save it on your desktop.
    • Go to 'upload return' on the portal's panel and upload the saved XML file.
    • A pop-up will be displayed asking you to digitally sign the file. In case you have obtained a digital signature, select'˜Yes'. If you have not got digital signature, choose 'No'.
    • The acknowledgment form, ITR Verification (ITR-V) will be generated which can be downloaded by you.
    • Take a printout of the form ITR-V and sign it in blue ink
    • Send the form by ordinary or speed post to the Income-Tax Department-CPC , Post Bag No. 1 , Electronic City Post Office, Bangalore, 560 100, Karnataka within 120 days of filing your returns online.

    Steps to file ITR 1 & ITR 4S Online:

    Prepare and Submit ITR1 / ITR 4S (Sugam) Online

    You have the option to submit ITR 1/ITR 4S forms by uploading XML or by online submission

    • Login to e- Filing application
    • Go to 'e File' 'Prepare and Submit ITR Online'
    • Select the Income Tax Return Form ITR 1/ITR 4S and the assessment year.
    • Fill in the details and then click the submit button and choose DSC (Digital Signature Certificate)’ (if available) Click on ‘Submit’.
    • After submission, acknowledgement detail is displayed.
    • Click on the link to view or generate a printout of acknowledgement/ITR V form.

    To use DSC, you have to register it in the e-filing application. You can do so by logging in on the e-filing website of the IT Department and updating the Profile Settings section. Under Profile Settings, you have to select Register Digital Signature Certificate and download the ITD e-Filing DSC Management Utility. You can use this utility to generate the DSC file.

    Private portals:

    You could also make use of several websites to file your income tax returns online. The portals typically charge fees (Rs. 250 to 300) depending on the kinds of service they offer.

    Things to watch out for while e-filing:

    • If the same mobile number or email address is used for more than four taxpayers, you cannot file returns on the website, unless the required change is done. For instance, in some cases, more than five returns may be filed— yours, wife, mother, mother-in-law and the Hindu undivided family (HUF) of which you are the karta, the executor of a will.
    • If your name mentioned in your bank documents or official statements is even slightly different from the one given in the PAN card, the portal will consider you a different individual. In certain instances, some individuals give their father's name as their 'middle' name in their PAN card, but do not use it for their bank accounts.
    • If a non-resident Indian has to file income tax returns, he will need both an India number and a foreign number.

    Frequently Asked Questions: e-filing Income Tax Returns

    1. I file ITR online without an account on the Income Tax e-filing portal?

      No, You have to create an account on the portal to file your ITR online. It is an easy process'“ you have to register yourself by providing details such as user type (individual, HUF, companies, chartered accountants, agencies or tax deductors), your PAN, first and middle names and surname, date of birth, and fill in the registration form. If you already have an account but have forgotten password, you can generate it through the'˜Forgot Password' option.

    2. How many days do I have to verify the Income Tax Return I filed online?

      You have to either send the ITR-V to CPC, Bangalore, or verify it online through electronic verification code or Aadhaar-linked one-time password, within 120 days of e-filing the return.

    3. Can I e-verify my ITR instead of sending a hardcopy to CPC, Bengaluru?

      Yes. The Income Tax Department now allows you to e-verify ITR through an electronic verification code (EVC) or through a one-time password by linking your PAN and Aadhaar.

    4. Can I e-file my return before all my tax payments are done?

      You can only file your Income Tax Return'“ online or through an agency'“ after all your tax payments for the year are done. The deadline for filing ITR is July 31 of the year after the end of a given assessment year'“ that is, you get 4 months to file ITR. This helps you put your accounts in order and make sure all tax-related payments are sorted.

    5. Is it mandatory for me to do the e-filing or can I depute it to someone?

      You can seek the help of chartered accountants and agencies dedicated to ITR filing. It is wiser not to allow anyone to have your PAN and password in order to prevent any kind of fraud.

    6. How to check the status of Income Tax Refund?

      You can check the status of Income Tax Refund online on the website of the Income Tax Department of India. You can track the refund status after 10 days (from the date the refund was sent to you). To check the status, you have to enter your Permanent Account Number (PAN) and choose the correct Assessment Year.

    7. What is HRA ?

      HRA stands for House Rent Allowance. It refers to the amount of rent you pay for your place of residence. While filing Income Tax, you can claim HRA. You can enjoy tax exemption on HRA up to a certain limit. If you are unable to submit rent receipts to claim HRA exemption, then you can claim it while filing your ITR. If you have paid more than Rs.1,00,000 on rent in a financial year, then you will have to provide the PAN of your house owner/landlord. HRA exemption will be the minimum of the following:

      • Actual HRA received.
      • Actual Rent Paid.
      • Rent Paid – 10% of Basic Salary.
      • 50% (metro)/ 40% (non-metro) of Basic Salary.

      To claim HRA exemption in ITR1 (If your employer has not calculated HRA), you have to deduct the HRA exemption amount from your Gross Salary and enter the result in the section ‘Income from Salary/Pension’.

    8. What is ITR–V ?

      If you e-File ITR without using DSC or you e-File through e-Return Intermediary, then ITR-V form will be generated for you. You have to print this form, sign it and submit it to CPC, Bangalore using Speed Post or Ordinary Post only within 120 days, starting from the e-Filing date.

    News About E-Filing Tax Return

    • Last date for e-filing returns of audit reports moved to 7 November 2017

      The government has moved the deadline for e-filing of income tax returns for assessees who submit audit reports. The new deadline for the same is November 7, and this was communicated through a CBDT statement.

      The decision was taken by the Central Board of Direct Taxes (CBDT) based on requests from stakeholders. This is the second time the government is extending the deadline.

      Tax practitioner bodies had requested the government for the extension by citing several roadblocks that they had encountered. One of the reasons highlighted was the non-availability of clerical staff at the offices of chartered accountants, predominantly due to the roll-out of GST. Professionals were cited to be busy, as they were working on GST compliance matters. Another reason for the delay was the technical glitches seen in the system.

      07th November 2017

    • Petroleum Products Asked to be Moved under GST

      Sushil Kumar Modi, the Deputy Chief Minister of Bihar, who lead the Group of Ministers who were looking into the technical problems of the GST Network recently said that petroleum products must be brought under GST. Modi, who is also a member of the GST Council, said that several states across the country are of the opinion that diesel and petrol should be brought under the new regime. Speaking to reporters, he said: "I think in the coming days... issues will also be resolved and I think very soon petroleum products would also become part of the GST."

      24th October 2017

    • India’s Growth Forecast for 2017 Lowered by IMF

      The International Monetary Fund reduced the growth projection of India to 6.7% in 2017 which was 0.5% points lower than its past two forecasts. The projection is also lower than China’s 6.8%, and the reason for this has been cited as the implementation of GST as well as demonetisation. The present year growth forecast for China was increased to 6.8% by the IMF, which is 0.1% more than the previous two projections made in April and July. India’s growth forecast, on the other hand, was reduced to 7.4% for 2018, which is 0.3% points lower than its previous two projections in July and April.

      23rd October 2017

    • Amount of Tax that must be Paid on Game Show or Lottery Prize Money

      The money won through lotteries, crossword puzzles, game shows, races, etc. are regarded as ‘income from other sources’. Section 115BB of the Income Tax Act, 1961, however, states that the whole income earned through the aforementioned sources will be subject to 30% tax. In addition, surcharge and cess will also be charged as applicable, which basically means that the overall tax on such winnings could rise to as high as 35.53% based on the income tax slab under which you fall. The tax rate can differ due to the fact that while a 3% cess of the tax will be charged for all groups of income, the 10% surcharge and 15% of tax is applicable in case the net taxable income of an individual is more than Rs.50 lakh and Rs.1 crore respectively.

      17th October 2017

    • Goa Tax Collection Declines by 22% Post GST Implementation

      In comparison with the same period last year, i.e. July to September 2016, the collection of taxes in Goa has fallen by 22%, and the main reason for the decline has been cited as the implementation of the Goods and Services Tax. The State Commercial Taxes Department which holds tax collection records says that the decline is not forecast to continue in the coming months. GST is expected to stabilise from next year, or so the state government expects. A senior official from the department said, “Since implementation of the Goods and Services Tax from July 1 this year, almost 30% of the registered tax-payers and traders in Goa have not paid their taxes.” He revealed that of the 21,000 taxpayers-cum-traders in total, only 70% have been paying taxes, and that the overall shortfall is Rs.136.48 crore.

      16th October 2017

    • There May be Fewer GST Slabs in the Future According to Arun Jaitley

      Arun Jaitley, the Union Finance Minister, revealed that GST slabs could be lowered in the future ater there is “revenue buoyancy”.

      “We have space for improvement…once we become revenue neutral, [we can] think in terms of bigger reforms such as fewer slabs. We are in the first two-three months [of GST implementation]. We have space for improvement and need for improvement to reduce compliance burden as far as small taxpayers are concerned,” Jaitley said at an event conducted by the National Academy of Customs, Indirect Taxes and Narcotics.

      12th October 2017

    • Narendra Modi Suggests Urges Traders to Hold Hands to Resolve GST Issues

      Narendra Modi, the Prime Minister of India, in his monthly PRAGATI meeting, urged traders to hold hands to resolve the issues they have over GST. The Prime Minister’s Office released a statement which said, "On GST, Prime Minister said that while traders across the country are positive and are accepting this new taxation arrangement, they need handholding so that their problems can be resolved. He urged the Chief Secretaries to use the district administration in this regard, so that small traders are facilitated to access and adopt the new system."

      5th October 2017

    • Consistent Growth Recorded Post GST Implementation

      The consumer electronic industry in India has been recording consistent growth and there have been speculations regarding a decline in the growth of the market post the implementation of GST, according to Yuichi Hasegawa, the marketing head of Sony. According to Hasegawa, "We had expected a dip in sales after implementation of Goods and Services Tax (GST) regime. But it was not seen. In fact, the market has been growing steadily. There is no depression in the Indian market and it has been growing." The demand for high-end products that fall in the premium category is high, and the television market consists of the major chunk, according to Mr. Hasegawa.

      4th October 2017

    • IT Department Finds Rs.650 Crore at Café Coffee Day

      A raid on retail chain Café Coffee Day saw the Income Tax Department find Rs.650 crore in concealed income from the documents that were seized. A senior tax official revealed, "Documents seized from the search operations at 25 places of Cafe Coffee Day and its group companies in Karnataka, Mumbai and Chennai have revealed concealed income of over Rs 650 crore.” The raids commenced on the 21st of September and concluded in three days. The offices of the franchise that were searched and seized were IT, tourism and coffee among other areas.

      29th September 2017

    • Penalty and Interest on Late Filing of GSTR-3B to be Waived Off by the Government

      The penalty and interest on late filing of GSTR-3B will be waived off by the government for August due to load on GSTN. The CBEC, following the implementation of GST from the 1st of July, for July and August, had introduced GSTR-3B, which is a simple return form. Hasmukh Adhia, the previous Revenue Secretary, had ruled out any more timeline extension after December for the filing of GSTR-3B tax returns by businesses. Businesses were earlier allowed by the GST Council to file GSTR-3B till December.

      28th September 2017

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