As it stands today, Income Tax Returns can be filed either online or offline. Individuals or entities have to mandatorily file their IT returns when their annual income is Rs.2.5 lakhs or more, failing which may impose penalties on the errant party. Needless to say, efiling income tax is a much convenient option.
What is the process of ITR e filing?
The entire process of eFiling ITR is 3-tiered, comprising of – Registration, Login and Filing. The procedure has been elaborated below.
Step 1: Visit the eFiling portal of Income Tax.
Step 2: The ‘Register Yourself’ option is located on the right side of the page. Click on it to initiate the process.
Step 3: Select from the ‘User Type’ and then hit ‘Continue’.
Step 4: In the following page, personal details such as name, date of birth, status of residence, permanent account number etc. have to be entered. Once all the requisite information has been filled in, click on the ‘Continue’ button. Further information such as contact number has to be entered. After that, click on ‘Submit.’
Step 5: Once all the necessary details are filled in, a One-Time-Password (OTP) of 6 digits will be sent to the registered email ID and mobile number. Put in the OTP and click on ‘Validate.’
Please note that once the registration is complete, the user ID for login will be the Permanent Account Number (PAN). Incidentally, PAN is also taken as identity proof among all the documents that you need for a home loan.
This stage comes after the registration process is complete. You can log in with your User ID (PAN), password and captcha to access the income tax filing portal.
Step 1: After logging in, select the ‘Income Tax Return’ located under ‘e-file.’
Step 2: In the following page, ‘Assessment year’, ‘ITR form type’ has to be selected, and then click ‘Continue.’
Step 3: The authentication type has to be selected and then continued to the next page
Step 4: Fill in the first section with personal information such as name, address, email ID, employment details, etc. The following section would include details on income as well as deductions. The next series of sections include tax details, tax amount already paid and deductions claimed on donations (if any). Once all these particulars are put in click on ‘Submit’. After the completion of verification, a confirmation will reach in the registered email ID.
Which entities are allowed eFiling of Income Tax?
Any entity that is required to pay Income Tax can do the filing online. To that effect, organisations and individuals mentioned below are allowed e-Filing –
Documents required for filing Income Tax Returns
Whether the filing is online or offline, taxpayers will have to submit certain documents to attest to their calculations. Some of those include –
For example, availing a home loan would require multiple documents like income proof. However, some financial institutions simplify the process through a pre-approved offer. You may check your pre-approved offer by only submitting your name and contact number.
Benefits of Income Tax eFiling
The major advantages of eFiling Income Tax are –
Given that Income tax Return filing amounts to disclosure of income, any discrepancy in the same can lead to serious consequences. If there is a delay in filing, i.e., filed after the due date or was not filed at all, a penalty will be imposed on the taxpayer under section 234F of the Income Tax, 1961.
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