E-Filing of Income Tax Return – Concept, Eligibility, Types, Steps, Deadline & more

Know everything about E-Filing of Income Tax Return here.

Are you worried about how to file your income tax? Or are you thinking about the charges of the CA who will file your income tax?

Whatever the case may be, E-Filing of income tax return can soothe your worry. So, in recent times e-filing has got immense popularity when it comes to tax return submission.

It is because income tax e-filing is easy, free of cost, and hassle-free. We will discuss the steps of filing your returns online in this article.

We will also include the other requirements for filing a tax return online like documents, fees, and other factors.

So, stay tuned and know about the e-filing of tax so that next time you can file your ITR yourself without any hassle.

About E-Filing Income Tax Return or ITR

E-filing stands for filing income tax returns electronically. In simple words, it means that you file your income tax return using an online platform electronically over the internet.

This online platform is designed by the government itself. Though one can file a return physically with the tax department of the country, online filing is easier and free of cost.

There are many other benefits of availing this facility as well. In the past decade, online filing has become a real thing.

It is much popular nowadays especially with young adults who are filing taxes for not so long. E-filing has made tax return filing easy and hassle-free.

Since there were so many steps involved in filing tax returns, it was a hectic process. However, with e-filing, you can do the whole process online without spending much time and effort.

There are system-generated forms and documents which you just need to fill before-hand and then you are good to go.

We will be discussing the complete process in the next part of this article.

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Who is required to file Income Tax Returns?

As per the Income Tax Act of India, anyone who is earning more than the given figure below is liable to pay  –

• Within the age bracket of 60 years and earns above 2.5 lakhs a year
• Similarly, people within 60 years to 80 years earning more than 3 lakhs a year
• Finally, those who are above the age of 80 years and earn an annual income of 5 lakhs and above.

Apart from the ones mentioned above, anyone can apply and file an IT return for their benefits, if they –

• Want to claim income tax return
• Earn from rent from house property, foreign assets
• Want to apply for a loan or visa.

Are there different types of E-Filing of ITR?

There are three ways you can file your tax return using the e-filing facility.

Firstly, you can use the Digital Signature Certificate (DSC). It is now mandatory by the CA for filing IT returns.

If you want to file it without a DSC, then you will need ITR V. This form will be generated and with all your details.

Then you have to sign it and submit it to CPC, Bangalore. This needs to be done within 120 days from the date of e-filing your tax.

Last but not the least, there is another way as well to file your taxes, and that involved ERI. ERI stands for E-return intermediary.

You can use the same for filing your tax return. DSC is not mandatory in this process.

What are the steps involved in Filing ITR Online?

The process of E-Filing of ITR is easy if you follow these steps –

Registration

The first step is to register yourself on the official website of the tax department of the government. Use your PAN number to register on the portal.

You will get a user ID which is your PAN number and you have to create a password. You can now login to the website using this user id and password.

Gathering Documents

After you register, you have to arrange the documents which you need to submit for ITR filing. The list of the document is here –

Documents required

• Bank Account statement and details
• PAN card Details
• If you are into a salaried profession, then you have to submit form 16, Payslips. If you want to claim HRA then rent receipts.
• For filing tax on income from house property, you have to submit address proof of the property. Then details of the tenant and rental agreement for the details. If you have taken a loan, home loan interest certificate you need to submit. If there are co-owners then their details as well.
• For reporting capital gains you need to submit a statement of your stock trading with all trading details. If you have sold your house then the sale price, the cost price of the house. You would also need the registration details of the house.
• Income from any other sources such as interest on FD or tax saving bonds also needs to be reported.
• Any documents supporting your income need to be submitted for the calculation of income.
• If you have any investment, for which you can claim the deduction, you have to submit documents supporting that as well.

Download Form 26 AS

Once all the documents are at hand, now you have to visit a website called ‘TRACES’. Here you will find Form 26 AS, generate the same, and download the excel file of the same.

It has all the details of your TDS. It will help you claim an input tax credit.

Total income and tax liability calculation

Now you know your TDS and all the documents are ready, you can calculate your total income and taxable income.

For calculating total income, you need to add all the income from all the five sources which are –

• Income from salary
• Income from house property
• Then, Income from capital gains
• Income from business
• Income from other sources

Once you calculate the gross total income, deduct the amount which is liable for deduction such as LIC premium, the amount invested in a mutual fund, etc.

You have to keep in mind the limitation of the 80 C and 80 D and other deductions available. After calculating the taxable income, you have calculated the tax as per the tax slabs.

The slabs as of now are as follows

• For income up to 2.5 lakhs for age group up to 60 years – 0%
• For income up to 2.5 lakhs to 5 lakhs – 5%
• Then, for an income of 60 years above person above 3 lakhs – 5%
• For income of 80 years and the above person above 5 lakhs – 5%
• For income up to 5 lakhs to 10 lakhs – 20%
• Then, for income above 10 lakhs – 30%

Once this is done, finally you have to deduct any TDS or TCS or advance tax to find out the actual tax payable.

E-filing of Income Tax

Form 26 AS reflects the due amount of tax. You need to pay the same for filing your tax online. Every year the tax department releases ITR forms.

You need to submit the ITR form which is meant for your income along with the dues.

Verification

You need to check your tax returns within 120 days of filing the tax. You have to verify your returns within this period otherwise your tax filing will not be taken into account.

Once the verification is done, your tax will be processed against the tax return filed.

Deadline for E-Filing of Tax

In every assessment year, you can e-file your income tax anytime before the end of the assessment year. However, it is better to file it as early as possible to avoid the rush at the last moment.

For the financial year 2019-2020, the last date for e-filing tax was 30^th November 2020. For the upcoming year 2020-21, as of now the date for e-filing your tax return is 31^st July 2021.

Benefits of E-Filing of Income Tax Return

There are different benefits of e-filing taxes –

• You do not need to upload any documents. Everything is online so it is very quick as well
• The website is fully secured and there is no hassle of losing any documents or information leakage
• You can save a lot of time
• You can save on the fees otherwise required to be paid to the CA

Things to keep in mind while Filing Tax Online

Certain things need to be kept in mind while Filing ITR Online –

• The name of the assessee needs to be the same on the bank account statement and the PAN card. Any mistake in the same can cancel your e-filing of tax.
• If you are filing tax for your family members as well, you cannot use the same email address and mobile number more than 4 times.
• You would require an Indian number as well as a foreign number to file tax in India being an NRI.

Conclusion – E-Filing of Income Tax Return or ITR

To summarize it all, it is evident that e-filing has made life easier for the taxpayers. They can pay the taxes online without any hassle.

There is no requirement to hire any CA and pay hefty fees. It also saves a lot of time and energy. The process of e-filing is quite simple provided you have all the documents ready.

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E-Filing of Income Tax Return – FAQs

Ques – Can I e-verify my ITR with CPC, Bangalore?

Answer – Yes, you can e-verify your ITR with CPC using an Electronic Verification code or EVC. It acts like a one-time password that links your PAN and AADHAAR.

Ques – What is the penalty for not filing tax within the due date?

Answer – There is Rs. 5000 penalty for not filing the tax within the due date.

However, if the assesses does not file the same within the extended period given by the tax department, then the penalty can go up to Rs.10000 as well.

However, if the annual income of the assesses is less than 5 lakhs, then the total penalty cannot be above Rs.1000.

Ques – Do I need to mention the dividend income from shares or mutual funds?

Answer – Though dividend income from shares and mutual funds are exempted from the tax you need to mention them as well.

In Part D of ITR 1, there is a column where you can mention the incomes which are exempted.

Ques – Can anyone file tax offline as well?

Answer – Yes, if the assessor’s –

• Age is above 80 years or he/she turned 80 in the financial year for which the tax needs to be filed
• Income is less than 5 lakh a year and no need to claim a refund on tax

Ques – Can I e-file the tax by myself or do I need to depute some professional?

Answer – If you can compute your taxable income, deductions, exemptions, tax payable, generate Form 26AS and gather all documents by yourself, there is no need to appoint anyone.

Otherwise, you can appoint a Chartered Accountant to take care of your tax filing.

Ques – What is the difference Between AY and FY?

Answer – The term FY stands for the year when an individual earns a respective income. While the term AY is that financial year when the individual has to estimate the preceding year’s income and pay the total tax on that.

Ques – When does the e filing tax peter starts?

Answer – One can file the e-file any time before the end of the assessment year. It is advised to file the e-filling as early as possible, given it saves the individual from in the least last minute rush or queries, whatsoever.

Ques – How to Recover Your Income Tax E filing Password?

Answer – One can easily Rest their Income Tax e-filling password by either the ‘answer secret question’ or ones’ ‘digital signature’ or through the ‘OTP’. The easiest step is to click on the ‘forgot password link’ that appear on the screen and choose the method which is best convenient to the individual.

Ques – Do I need to report exempt LTCG in ITR-1?

Answer – Yes, it is a mandatory condition to report exempt LTCG in the Income Tax Return- 1. It is in addition also mandatory for the individuals to file an e-file tax return condition; the LTCG exceeds the value of Rs.2.5 lakhs.

Ques – Which ITR form to file in case of presumptive income?

Answer – One needs to file the Income Tax Return 4 (Sugam) when their total income includes Presumptive Income or if the profits or gains from the business or profession come under the section 44AD, Section 44 ADA or section 44 AE.

Ques – How to mention Aadhaar enrolment number in ITR forms?

Answer – Given the budget plan from 2019, it has now become mandatory to quote one’s aadhar number while filing an Income Tax Return.  To quote the Aadhaar card enrolment number in the ITR form additional space has been provided where the individual is excepted to fill their 28 digit enrolment number.

Ques – Who can file the return in paper form (offline)?

Answer – It should be noted that not every citizen can file the ITR paper offline. There are several exceptions made only for a few group of people to fill their ITR offline, that are – elder citizens who are either 80 years old or above, or individuals whose income does not exceed Rs 5 lakhs.

Ques – How can I Check the Status of my ITR-V?

Answer – In order to check one’s current ITR- V status, individuals are required to go to the official website given for Income Tax, under which they should click on the link that says ‘ITR status’ subsequent to which the individuals would be asked for their PAN number after which they will receive their ITR-V status.

Ques – What is E-filing or electronic filing of Tax return?

Answer – The IRS or the tax authorities have now adapted new measures to ensure safe and quick e-filling. The current day e-filling is nothing but a process of submitting an individual’s Tax returns using the tax preparation softwares.

Ques – Will my data be safe if I file tax return?

Answer – Safeguarding individual’s privacy has been one of the greatest concerns of the government. However, it is advised that the e-filing has been the most safest way to file ITR.

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