Guide on how to file ITR in India

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Guide on how to file ITR in India

As mandated by the Constitution of India, filing of Income Tax Return is the most important requirement for all registered taxpayers in India, ITR filing can now be done both online and offline.

Taxpayers use income tax return filing to report their income, expenses, tax deductions, investments, and other financial obligations. You can file your income tax through the Income Tax Portal set up by the Government of India. In this blog, the entire process of ITR is decoded in simple steps.

What is Income Tax Return (ITR)?

Income Tax Return is a form that is used to file the annual income of the taxpayer with the IT office. There are many reasons for ITR Filing even if you do not have any taxable income. Taxpayers also use income tax returns to declare their taxes. After the Income Tax Act of 1961, a taxpayer is required to file an income tax return under various circumstances.

To record his income for a fiscal year, carry forward losses, claim an income tax refund, claim a tax deduction, and for other purposes, a taxpayer must file his income tax return with the Internal Revenue Service.

Who should file Income Tax Return?

Who should file Income Tax Return?

Income tax is required to be paid only by individuals or corporations that fall in a particular income band. Entities or businesses that are obliged to file their IT returns in India are listed below:

  • Individuals below the age of 59 years whose total income for the financial year is more than ₹ 2.5 lakh. Increases to a maximum of ₹ 3 lakh for senior individuals (aged 60-79) and ₹ 5 lakh for very senior citizens (aged 80 years and above).
  • It is important to note that the income amount has to be calculated taking into account the deduction allowed under sections 80C to 80U as well as any other exemption allowed under section 10.
  • All registered businesses that generate income, whether they have made a profit or not during the financial year
  • For those who wish to deduct the additional tax/get a refund for income tax paid
  • Persons having assets or financial interests in entities located outside India
  • NRIs who earn or earn more than ₹ 2.5 lakh in a financial year in India.

How to file an income tax return online?

This is the most relevant and important word in the context of the title of this post.

Don't forget to keep these documents handy

PAN Number, Aadhar Number, Bank Details, Form 16, Salary Slip, Address, E-mail ID, Phone/ Mobile Number, Investment Details, TDS Certificate, Rent Receipts, etc.

And now, to understand the whole process, from the point of view of a new user, let us go step by step:

Procedure to file ITR (Income Tax Return)

A taxpayer can file ITR (Income Tax Return) in two ways:

filing of ITR

  1. Offline filing of ITR
  2. Online filing of ITR

Procedure to File ITR Offline

  • Visit the Income Tax e-Filing Portal.
  • Download the appropriate ITR form IT Return Preparation Software.
  • Once the ITR is downloaded, download the utility extracts the file, and opens the zip file.
  • Fill in all the required information and mandatory fields.
  • After that calculate the tax and verify the ITR form.
  • Save and generate XML.
  • Login to the portal.
  • Attach XML file.
  • Once the file is attached, other requirements like DSC, and Aadhaar OTP verification will be followed.
  • ITR will be submitted under the other two verification options, but the process of filing ITR will not be completed until it is verified.
  • The signed ITR should be delivered to CPC, Bengaluru, or the submitted ITR should be subsequently e-verified using the option 'My Account > e-Verify Return'.
  • The user has to submit the ITR and view the uploaded ITR.

Procedure for Filing ITR Online

  • Log on to the Income Tax e-filing portal.
  • Click on the Income Tax Return link from the e-File menu.
  • Select Assessment Year, ITR Form Number, and Submission Mode.
  • After selecting the submission mode online, click on continue.
  • Read the instructions carefully and complete all the fields of the online ITR form which are proper and mandatory.
  • On the 'Payment and Verification of Tax' page, select the appropriate verification option.
  • Select any of the e-Verify options from the portal.
  • Once this process is completed, click on Preview and submit the ITR form.
  • Later, the ITR filed has to be confirmed, by using the option 'My Account > e-Verify Return' or by providing a signed ITR-V to the CPC.
  • Now users can view uploaded ITRs.

Conclusion

The entire process of income tax collection and return filing has been automated by the Income Tax Department of India in recent years. Individuals and businesses have found it quite convenient to pay their taxes online, file returns, and track their payment history using various portals of the Income Tax Department. For more information visit myfinancialadvisory.com

Location: India

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