These days you can file an online income tax return from anywhere in India with e-filing services provided by the government. The process of filing an income tax return can be confusing. However, it’s crucial to understand every step if you want to have your taxes done correctly and on time. This guide will go over everything you need to know about filing an online income tax return in India.
What is ITR Filing?
An income tax return (ITR) is a form that reports your earnings and taxes to the Income Tax Department. A taxpayer’s tax liability determines by his or her income. If the return shows that excess tax was paid during the year, the person is eligible for an income tax refund from the Income Tax Department.
Individuals and businesses that earn any income during a fiscal year must file an income tax return each year. The income could come from business profits, salary, income from real estate, capital gains, dividends, interest, or other available sources.
Why Should You File ITR?
- Makes loan processing very easy
- Assists in claiming carried forward losses
- You can easily reclaim TDS refunds
- Helps with credit card and visa applications
- Plays an integral role in nation-building
Benefits of filing an ITR online
In India, filing your income tax return is easy to ensure you pay your fair share. Filing your tax return online can also help streamline and simplify that process and provide you with fast and convenient access to updated information about how much you’ve paid in taxes throughout the year.
Filing your tax return online has multiple benefits over paper filings, including saving time and money.
- When you file an income tax return online, you get electronic acknowledgement of your e-filed ITR immediately after submitting Form 16 or 26AS. Your refund is directly credited to your bank account within seven days from that date.
- You don’t have to visit any office, stand in long queues, waste time running around for missing documents etc.
- Filing your tax return online means there’s no need to gather receipts, log into software programs or spend hours entering data into digital forms—the information is already there for you.
- You can get your refund within a week. You can also track the status of your tax return anytime.
- The e-filing process is simple and easy to understand. All you need is an internet connection, a computer and basic knowledge of English.
You can also avoid mistakes while filling up your ITR. You will get immediate acknowledgement of your submission, and if there are any errors in the processing, you can rectify them immediately.
Things to Do Before Filing a Tax Return
Take note of Form 16/16A
If applicable, your employer will give you Form 16 (and Form 16A). These contain the salary, allowances and TDS deducted during the financial year.
Update bank account details
Before filing your tax return online, ensure that all bank account details are in sync with your employer’s records and PAN card.
Keep track of medical insurance premium payments
Many taxpayers miss out on claiming deductions under section 80D by not keeping track of their medical insurance premium payments. Ensure you keep all documents related to payments made towards health insurance premiums in case you need them while filing taxes next year.
For filing taxes online, note that a salaried individual can claim exemption on HRA, medical insurance premium paid by the employer, the house property tax paid and interest on home loan as a deduction.
How to Download ITR Form?
Once your documents are ready, it’s time to file your income tax return online. Again, you need to know the requirements before filing an ITR, or you can get into trouble with tax authorities later. To file Income Tax Return, first, you must download the ITR form.
Step 1- Go to the official website of the Income Tax
Step 2- Login in to your existing account or create one
Step 3- Go to Your Account, and now select the download pre-filled XML
Step 4- Select the assessment year for return requirement and now select the income tax return form number
Step 5- Select the relevant ITR form based on the income return mentioned in the box.
Step 6- Ensure to download it in the excel format
Step 7- Now save the XML file on your system
Step 8- Now import the file to the XML and import all the data from that XML file into your excel utility
Which ITR Form to File?
Here is a glimpse into 7 types of ITR forms. Understand and requirements and file your ITR form accordingly:
(For individuals with a salary, one home, other sources of income, and so on.)
You can use this form if you earn money in ANY of the ways listed below:
– Profit or loss from a single residential property
– Other sources of income (not from winning, lottery, etc.)
If you earn money through ANY of the following methods, use form ITR 2:
– Salary and pension income
– House property income. There may be more than one house property.
– Profit share or partner in a partnership firm
– Gains or losses on the sale of any investment or property
– Other sources of income Income from the lottery, winnings, and race horses can all be included.
– Income from EPF, PPF, insurance, and agriculture is exempt. You can report agricultural income of more than $5,000 on this form.
– Inclusive of income from family members. The family member’s income should fall into one of the above-mentioned categories.
– Any foreign asset or income
For HUF and individuals having income from a proprietary profession and business
– If you earn money from Number 1 and any of the following sources, use ITR 3.
– Profits from a personal business or profession (mandatory)
– Pension / Salary
– Profit and loss from one or more residential properties
– A capital gain or loss on the sale of any investments or real estate
– Other sources of income (including lottery, winning & race horse )
– Any tax-free income
– Any foreign earnings or assets
– Profit share or partnership firm partner
This presumptive corporate income tax return
– If you earn money from any of the following sources, use ITR 4.
– Earnings from a speculative business
– Profit and loss from a single-house property
Only the following entities may use the ITR-5 form to file income tax returns.
– Partnerships with Limited Liability (LLPs)
– Individuals as a group (BOIs)
– People’s Organization (AOPs)
– Societies of Cooperation
– Artificial Judicial Figures
The ITR-6 form should only be used by businesses unless they qualify for tax exemption under Section 11.
Individuals or businesses must file the ITR-7 income tax form.
Section 139(4A) Returns are for individuals who receive income from religion or charity through a legal obligation or trust.
Political parties must file Section 139(4B) returns.
Section 139(4C) (4C)
- Section 10 mentions any institution or association (23A)
- Any institution listed in Section 10(23B) Any news organisation
- Any fund, medical establishment, or educational institution
- Section 139(4D) returns must be completed by universities, colleges, or other similar institutions.
Documents Required to File ITR
Taxpayers must ensure that they have prepared certain documents and updated certain details about their income before filing for any online ITR. If you fail to submit these documents, then there are chances that your tax return may be rejected. Therefore, preparing these documents well in advance is necessary to avoid unnecessary delays in filing for your ITR.
To file an income tax return, you will need different documents. For salary earners, it is easy. But if you have capital gains or other sources of income, then it becomes a little tricky to figure out how to file an online Income Tax Return for these incomes and claim all deductions under sections 80C and 80D. To save taxes, you must have all your income details documented properly.
The Income Tax Department may ask you to submit Form 16 from your employer/PAN holder/banks when you file your income tax return, a certificate that states that you have paid sufficient taxes on your earnings during that financial year. While filing ITR, one needs to get different documents for different purposes. For example, if you own any property, shares or mutual funds, you must keep its valuation report ready before filing your income tax return. In the case of capital gains, it is mandatory to report these gains before submitting your return. To report correct incomes under each head, it is important to keep all relevant documents handy.
How to File ITR for AY 2022-23
For salaried employees and HUFs whose, accounts do not need to be audited, the due date for filing Income Tax Returns for Assessment Year 2022-23 was July 31, 2022. Once you have filed the return, taxpayers must verify it so that the tax department can process the ITR and, if applicable, issue a refund.
Here are the steps to file ITR for the fiscal year 2022-23
Step 1- Visit the official website of the Income Tax department
Step 2- Now login with your credentials on the e-filing portal
Step 3- Click on the e-file menu and then on the income tax return option
Step 4- Now, you will be redirected to the income tax return page
Step 5- Your pan will be auto-filled as it will be linked to the income tax return database
Step 6- Choose the assessment year as 2022-23
Step 7- Select the ITR filing mode as online
Step 8- Select your status- HUF, Individual or others
Step 9- Select your ITR form from the given options- ITR 1 or ITR 4
Step 10- So suppose you select the ITR 1; now you have to select your form filing reason
Step 11- Validate your filed information and upload all the relevant documents
Step 12- Confirm all the information, verify it and submit the form
Step 13- Select the verification option from the taxes paid and verification option and e-verify as the earliest
Is It Possible to File Returns Without Form 16?
A tax return is a form filed with a tax authority that reports income, expenses, and other relevant tax information. Tax returns enable taxpayers to calculate their tax liability, plan their tax payments, and request refunds for overpayments. In several countries, an individual or business with reportable income, such as capital gains, wages, dividends, interest, or other profits, must file an annual tax return. Now, coming back to the question, yes, you can file returns without Form 16. Let’s get into it.
Steps to File ITR Without Form 16
Here’s how can file your ITR without submitting Form 16:
– Calculate income from pay slips and adjust allowances such as LTA, HRA, and so on.
– Check the TDS information on Form 26AS.
– Determine the income from your home property.
– Calculate your income from capital gains. Capital gains up to Rs. 1 lakh are tax-free.
– Determine your income from other sources, such as interest on savings accounts, fixed deposits, and so on.
– Claim all possible deductions under Sections 80C, 80D, and so on.
– After adjusting for deductions, compute total taxable income and tax liability.
– If your liability exceeds the tax paid on Form 26AS, you must pay the difference.
– Now, you can file your annual ITR without Form 16.
Penalty for Late Filing of ITR
Taxpayers who fail to file their income tax returns on time may be penalised and charged interest on the unpaid income tax. In addition to the late payment penalty and interest, the taxpayer might have to face the following consequences:
- The taxpayer won’t be unable to claim interest on the refund delay for the period of delay in filing income tax returns.
- Taxpayers who file their income tax returns after the due date cannot correct any errors on their returns.
- Some income tax deductions are not allowed under Chapter VI-A of the Act if the taxpayer files a late return.
- The taxpayer cannot deduct losses incurred (apart from house property loss).
You can now file your tax return online and save yourself a lot of time, money and paperwork. After filing, you will receive a confirmation page containing your acknowledgement number or a reference number. You must keep these details as they will be used when checking your return status online or getting a copy of your filed income tax return.
This guide will take you through each step with clear instructions on how to complete your income tax return online. Follow these steps, and you’ll be done in no time!
FAQs on Income Tax Returns
A tax return is an annual statement submitted to the government by taxpayers or representatives (for example, accountants). It reports all their income earned during a given year and calculates any taxes due.
The deadline for filing your tax return is 31 July every year.
A nil income tax return is filed by a person whose taxable income is less than the income tax slab. Therefore, they are exempted from paying taxes.
To file an ITR online, the taxpayer must visit the official website of the income tax department, navigate to the ITR filing option, and pay the applicable taxes.
Filing a correct income tax return before the due date is the simplest way to claim your income tax refund. You can check the total advance tax payments on Form 26AS while filing your return.
The assessment officer must be satisfied with the form’s income tax calculation after filing your income tax return. If your advance tax payment balance under Form 26AS exceeds your tax liability under the filed ITR, there is a chance the officer might approve your tax refund.
Alternatively, you can also file Form 30 to ask for a review of your income tax payments in relation to your liability. Keep in mind that if you provide your bank account information for direct transfer, you will receive your income tax refunds faster.
If the person is an employee, the maximum income tax rebate they can receive is 10% of their total income.
Taxpayers can receive a tax refund on their income tax if the amount owed is less than the total amount of withholding taxes and estimated taxes paid, plus any refundable tax credits claimed. Tax refunds are typically issued following the end of the fiscal year.
Form 16/ 16A is the certificate of tax deduction at source issued by the employer on behalf of the employees. These certificates offer TDS/TCS details for multiple transactions between the deductor and the deductee. Remember that these certificates must be issued to Taxpayers.
You are excluded from filing an ITR if you are a resident of India and were 75 or older the previous year (FY 2021-2022).