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Income Tax e-filing

With the growing technology and India is going digital, now tax filing is also an electronic process. Now, there is no need of handling the number of papers and long queues for filing the income tax. The income tax e-filing has made income tax filing a very easy and simplified task that can be done easily with a few clicks from your home or workspace. Now, no more complicated matters and no more income tax filing tension. All you need to do is register on the Income tax e-filing website.

Income Tax e-filing

What is e-filing?

e-filing stands for electronic filing where you can electronically file your income tax by simply log in to the internet. Now, there is no need to visit the income tax department for filing your ITR (Income Tax Returns) for the year. 

How to do e-filing ITR?

e-filing can be done in three simple ways-

  1. DSC
  2. ITR-V form
  3. Aadhaar number

DSC – DSC is the Digital structure certificate used for e-filing. It is a handy way of electronically signing documents as it is a digital version of a physical or paper certificate.

ITR-V Form: It is possible to file the ITR through e-filing without DSC. The Income Tax Return – verification (ITR-V) form is generated and it needs to be printed, signed, and submitted to the central processing center (CPC) via post. This is done in case the Aadhaar details are not updated on the Income-tax website. The form should be posted to the CPC within 120 days from e-filing. 

Aadhaar Number: In this option, you don’t need DSC and ITR-V. You just need to verify it with an Aadhaar number or through a bank. 

Stepwise Process of e-filing ITR in India 2021

Follow the steps mentioned below to e-file your ITR on the latest updated portal:

Step 1 – Register on the ITR portal: For this, you must provide PAN (Permanent Account Number), Name, and Date of Birth. Choose the suitable password and your PAN will be your user ID. 

Step 2 – Choose the relevant ITR form: You can download the ITR form applicable to you. You can use the references below:

  • ITR 1 – For salaried persons, one house property or other sources of income. The total income is up to Rs.50 lacs. 
  • ITR 2- For those individuals or HUF who are not carrying out any business or proprietorship.
  • ITR 3- For presumptive income from business or profession. 
  • Step 3- Form filling

The form can be filled online or offline. Visit “Downloads section – ITR forms AY – 2021-22”. Download income tax returns utility and saves them on your system. Once you have filled the information in utility, upload it on the website. 

Step 4- Acknowledgement and Verification: Once you have uploaded the return on-site, you will receive the acknowledgment in form of ITR-V. If the Aadhaar details are not updated, you need to submit a signed copy of ITR-V to the income tax department via ordinary post or speed post within 120 days of e-filling.

Step 5- Refund: It is a refund on taxes when the tax liability is lesser than the tax paid. You can get the tax refund if the income tax they owe is less than the total amount of withholding taxes estimated paid taxes. 

Documents required for Income Tax e-filing

The main required documents for income tax e-filing are:

  • PAN Card
  • Aadhaar card
  • Bank details
  • Salary slip
  • HRA slip
  • Form 16
  • Interest certificates from saving and deposit accounts
  • Insurance and home loan details
  • Investment liable for deduction details
  • Income proof (house, capital gains, etc.)

Why should you file an ITR?

ITR filing is a pocket-friendly option where you can avoid penalties applied due to delays of ITR filing. The minimum penalty is Rs. 10,000.

Benefits of Income Tax Returns e-filing

Filing Income Tax Returns on time and regularly can make many of your financial activities easier like:

1. Refund

A part of tax payer’s income is deducted as TDS but if you have carried out the investments that are deductible from taxable income, then your actual tax dues according to your income may be lesser than the already paid amount. The excess tax amount paid can be claimed. 

2. Visa

The Visa process requires your ITR record of the past few years. The returns need to be produced before the destination country’s embassy. So, ITR filing helps you here also. 

3. Loans

If you apply for any kind of loan, the bank asks you for the tax returns for the past few years to understand your financial status. Without ITR filing, your loan will be rejected. 

4. Credit Cards

The credit card limit depends on your Income and the ITR is the proof of your income status. Without ITR you might not get a higher credit limit.

5. Loss Adjustment

As per new laws of income tax, you can carry forward losses to offset against future taxable income and can be done for 8 consecutive years. If you have ITR, you can build a case and adjust your losses.

Income Tax e-filing FAQs

Q1. It is possible to file ITR without any need for an accountant or other person?
Ans. Yes, e-filing has simplified filing ITR. You can do it yourself following the mentioned above. 

Q2. Is e-filing mandatory?
Ans. Yes, it is mandatory.

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