Income Tax Returns is a form that is used to declare the net tax liability, claim tax deductions, and report the amount of gross taxable income an individual possesses. It is compulsory to File ITR if an individual earns a certain amount of money. Hindu Undivided Families (HUFs), firms, companies, or organizations, and self-employed or salaried individuals must file an Income Tax Return to the Department of Income Tax Department, Government of India. That said, we are here to help you understand what ITR all is about, why, and how should you file an ITR, and make e filing of income tax return a cakewalk. So, let’s get started.
- Income Tax Returns declare the gross taxable income an individual possesses.
- If your income falls under the taxation bracket, if you are an NRI or need to apply for a visa or a loan, you will be required to file an ITR.
- To make it easy, following a few simple steps to download the ITR form will help you file an ITR.
- Dont forget to keep a host of documents handy before you begin filing an Income Tax Return.
- Filing ITR within the stipulated period enables you to avoid penalties.
Know Why Should You E File Income Tax Return
As an individual, firm, or a company, you must file ITR in India if you satisfy any of the below-mentioned conditions –
- If you are an individual falling under certain respective tax slabs, you must file an ITR.
- In the case of a firm or a company, regardless of the profit or loss made in a given financial year, an ITR must be filed.
- To claim a tax refund.
- If you are a resident of India with signing authority in a foreign account, you are liable to file an ITR.
- If you are a resident of India with an asset or financial interest in any entity located outside the boundary of India.
- If you are applying for a visa or a loan, you must file your income tax.
- If you are an NRI who derives any or all your income through sources in India, it is taxable, and filing an income tax return is compulsory.
- Suppose you generate an income derived from a property/ real estate held under a trust for a religious or charitable purpose, or a research association, news agency, political party, educational or medical institution, a not-for-profit university, trade union, or educational institution. In that case, infrastructure debt fund, a hospital, any authority, body, or trust, you are liable to file an ITR.
How to Download Income Tax E Return Form
In a nutshell, you must follow the simple steps to download the ITR forms from the website of the Income Tax Department, Government of India –
Step 1: To file an ITR, you must visit the official website of the Income Tax (IT) department at https://www.incometaxindia.gov.in
Step 2: On the home page menu bar, you must click on the ‘Forms/Downloads’ option to navigate the ‘Income Tax Returns’ menu.
Step 3: Upon clicking the Income Tax Returns menu, you will be redirected to a new web page to find the entire list of ITR forms. You must then click on the ‘PDF’ option next to the respective forms to download them.
Depending on the income type generated by the taxpayers, the form will be different, and all of them can be downloaded from the IT department’s official website – https://www.incometaxindia.gov.in/pages/downloads/income-tax-return.aspx
For Filing ITR Online, you must keep certain documents handy, such as –
- Pan card
- Form 26AS
- Form 16A, 16B, 16C
- Salary Payslips
- Bank statements
- Interest certificates
- TDS certificate
- Proof of tax-saving investments
E Filing Income Tax Return for AY 2020-21
If you are seeking to know the basics of e filing income tax return for ay 2020-21, you must begin by visiting the official website of the IT Department, Government of India. However, you must mandatorily complete the registration process before e filing of income tax return. The IT Department has also recently updated the online portal for the e filing of income tax return, making the e file income tax return process much easier. You can begin with the process of e filing income tax return for ay 2020-21 by following the steps mentioned below –
Step 1: Based on the requisites prescribed by the Income Tax rules, you can first figure out your IT liability.
Step 2: By referring to Form 26AS, you will understand the gist of your TDS deductions for the different quarters of the 2020-2021 assessment year.
Step 3: Based on the eligibility criteria provided by the IT Department, you will have to determine the category you fall under.
Step 4: Check out the official e-filing portal of the IT Department at https://eportal.incometax.gov.in/iec/foservices/#/login
Step 5: As a new user, you must hit the ‘Register’ button to register your credentials on the portal.
Step 6: If you have registered yourself already, click the ‘Login’ button.
Step 7: Further, you must click on the ‘File Income Tax Return’ option under the tab ‘e-file’.
Step 8: Choose the category you fall under from the list provided on the website. You will have to classify yourself as – a Hindu Undivided Family (HUF), individual, etc.
Step 9: Accordingly, you must choose the suitable ITR form that is applicable to you.
Step 10: After that, you will be required to enter your bank account details. If you have already provided the details, you will be required to validate your details.
Step 11: Once you provide the details, you will be redirected to a new web page where you can cross-verify your pre-filled details. Once you verify the same, you can confirm the same.
Step 12: Once the details are validated and the process is complete, you can send a hard copy to the IT Department.
Did You Know
Senior citizens 80 years of age and above can file ITR offline during any given financial year. They can also file an ITR offline if their income is less than Rs.5 lakh and are not entitled to a refund.
Benefits of E Filing of Income Tax Return
Filing tax returns online or e filing of income tax return has many benefits for taxpayers. Some of these benefits include:
Better Accuracy: e file income tax return software with in-built validations and electronic connectivity minimizes errors considerably.
Convenience: e file income tax return facility is available 24/7. You can file anytime and anywhere.
Prompt Processing: The ITR acknowledgement is usually quick. Refunds are processed faster than offline returns.
Confidentiality: Since your data is not accessible to anyone, there is better security in e filing of income tax return than in paper filings.
Accessibility to Previous Data: e filing of income tax return grants you easy access to your previous data while e filing of income tax return. Your e file income tax return applications securely store data and make that data accessible for filing subsequent returns.
Ease of Use: e filing of income tax return is a cakewalk. The detailed instructions make it easy for those who are not very conversant with the online mode.
Proof of Receipt: On filing your ITR, you get a prompt confirmation of filing on your registered email id.
Electronic Banking: You can file your ITR now and pay later. You can decide when to make a tax payment.
When e file tax return, a couple of facts need to be considered. Here’s a comprehensive checklist:
- Suppose your name mentioned in your bank documents or official statements is different from the one given on the PAN card. In such a case, the portal will consider you a different individual.
- If more than four taxpayers enter the same email address or mobile number online, you cannot file an ITR unless you change it.
- If you are an NRI and wish to file ITR, you will require both an Indian number and a foreign number.
Word to Remember
Not filing Income Tax Return within the stipulated time can lead to certain consequenes, inconveniences and ultimately, a penalty.
Whether you are a novice or a veteran, following the steps and procedures will help you file an ITR online. In case, you are stuck somewhere in the process, you can always come back to these instructions for a seamless ITR filing experience. So, without much ado, file your Income Tax today.
Salaried individuals who fall under the tax bracket must file an ITR.
No. It is compulsory for you to file an ITR as the government has access to a complete record of your income.
Yes. You can file your ITR anytime. Although it is not encouraged, you can file your ITR even after the due date. However, in such cases, a penalty is levied.
Yes, it is useful to file your ITR, especially if you wish to apply for a visa or a loan. In such cases, your ITR is considered a mandatory document.
The ITR status can be checked on the official website of the IT Department, Government of India. It can be checked and ascertained with the help of your PAN and password.
Also Read: What is Indirect Tax