- E-filing income tax returns helps you save time and minimise errors.
- Verification of returns is mandatory to complete the e-filing process.
- Having all of the relevant documents in hand before starting the income tax filing process can help you complete the process quicker and prevent you from making mistakes.
- Filing income tax returns on time enables you to carry forward business and capital losses into future years. It also serves as proof of income for insurance and loan applications.
With the financial year 2023-2024 behind us and the due date for filing income tax returns (ITRs) inching closer every day, it is advisable to start preparing yourself to file them with the authorities.
Contrary to popular opinion, filing income tax returns is easy and takes only a few minutes, provided you have all of the relevant information on hand. If you are a business owner or an individual taxpayer with taxable income, you can quickly e-file your income tax return in just a few simple steps.
In this article, we are going to explore the many ways to file your returns online, including the step-by-step process you need to follow. Now, before we get into the specifics, let us just quickly go through the various benefits you get by e-filing tax returns.
What are the Benefits of E-Filing Income Tax Returns?
E-filing of income tax returns has several advantages. Here is a quick overview of some of the key benefits.
- You save a lot of time and effort by choosing to file your returns online.
- E-filing income tax returns is convenient and can be done irrespective of your geographical location or time zone.
- Claiming tax refunds is easier and quicker when you file income tax returns online.
- You can minimise errors and omissions by filing your returns online. The income tax e-filing portal has a built-in feature that validates the information you enter. If there are any discrepancies, they are brought to your attention instantly, enabling you to rectify the errors and omissions before submitting the returns.
- When filing income tax returns online, you can quickly get access to past data pertaining to previous financial years.
Now that you are aware of the benefits of income tax e-filing, let us also explore the advantages of filing your returns.
- Filing your returns on time lets you carry forward business losses and other capital losses to the next financial year and set them off with the profits you generate in that year, reducing your tax liability.
- Income tax returns are valid proof of income and can come in handy when applying for insurance policies and credit facilities like business loans or working capital loans.
- Producing income tax returns is mandatory when applying for visas to foreign countries.
What are the Different Ways to Verify Your E-Filed Income Tax Return?
If you are planning to e-file income tax returns, you must know that verification of the filed returns is mandatory to complete the e-filing process. Failing to verify before the allotted time expires will lead to the invalidation of your returns. There are as many as four different ways to verify your income tax returns. Here is a quick overview of each of these methods.
1. Verification with Aadhaar-OTP
The fastest way to verify your filed income tax return is through the Aadhaar-OTP method. Here, a one-time password (OTP) is sent to your Aadhaar-registered mobile number. You need to enter the OTP in the Income Tax India e-filing portal to verify your return.
2. Verification with an Electronic Verification Code (EVC)
Alternatively, you can also verify your returns using an electronic verification code (EVC), which is a 10-digit alphanumeric code. You can generate an EVC through your pre-validated bank or demat account, or via an ATM. The generated EVC must then be entered into the portal to complete the verification process.
3. Verification with a Digital Signature Certificate (DSC)
If you possess a digital signature certificate (DSC), you can use it to verify your e-filed income tax return. The DSC is a USB key that is used to electronically sign documents.
4. Verification by Mail
Once you have filed your income tax returns online, you can also verify it manually. All you need to do is print the ITR-V acknowledgement, affix your signature, and mail it to the Centralised Processing Centre (CPC) in Bangalore.
What are the Documents Required for E-Filing Income Tax Returns?
Although attaching documents at the time of e-filing returns is not generally required, it is advisable to have them readily available. This can help you file your returns much more quickly and without any errors or omissions. Here is a list of documents that you must have handy when filing income tax returns online.
- PAN card
- Salary slips pertaining to the previous year for which ITR is being filed
- Financial statements of your business pertaining to the previous year
- Form 16, Form 16A, or Form 16B
- Form 26AS
- Bank statements pertaining to the previous year
- Details of home loan principal and interest payments pertaining to the previous year
- Rental agreement, if you are claiming a House Rent Allowance (HRA)
- Rent receipts, if you are receiving rent from a property
- Insurance premium payment receipts
- Details of tax-saving investments made during the previous year
What are the Terms and Conditions for Filing Income Tax Returns?
As per the directives of the Income Tax Department (ITD), filing an income tax return is mandatory in the following scenarios.
- Individuals with income exceeding the basic exemption limit applicable to them during a financial year.
- Individuals providing professional services whose receipts exceed Rs. 10 lakh during a financial year.
- Individuals with tax deducted at source (TDS) and tax collected at source (TCS) exceeding Rs. 25,000 during a financial year.
- Businesses with receipts above Rs. 60 lakh during a financial year.
- Entities, including individuals, with expenditures of more than Rs. 2 lakh on foreign travel during a financial year.
- Entities, including individuals, that consume electricity worth more than Rs. 1 lakh during a financial year.
- Entities, including individuals, deposit an aggregate amount of more than Rs. 1 crore in one or more of their bank accounts during a financial year.
Know How to File Income Tax Returns Online
The process you need to follow for income tax e-filing is simple and straightforward. Here is how you can do it.
- Visit the Income Tax India e-filing portal.
- Click on the ‘Login’ option on the top right corner of the homepage. If you do not already have an account, click on ‘Register’ and complete the registration process to open an account on the portal.
- Enter your user ID, which is your PAN, and your password. Also, confirm your secure access message before clicking ‘Continue’.
- Click on the ‘e-File’ option and then on the ‘File Income Tax Return’ under ‘Income Tax Returns’.
- Select the assessment year for which you wish to e-file the income tax return.
- Under the mode of filing, click ‘Online’ and continue.
- Click on the ‘Start New Filing’ option.
- Select your status from the given options – Individual, HUF or others, and continue.
- Select the ITR form you wish to file and proceed further.
- Select the reason for which you are filing the ITR.
- The income tax return will be divided into multiple sections. Click on each section and fill in all of the relevant details. Once you are done filling out a section, click on ‘Confirm’.
- Once all the sections are filled, click on ‘Proceed’ at the bottom of the webpage.
- Your tax summary details will be displayed. Go over the details once and click on ‘Preview Return’.
- The entire ITR, with all of the details you filled in, will be displayed. Click on ‘Proceed to Validation’ once you are done verifying them.
- Complete the verification process. You can choose to e-verify the return via Aadhaar-OTP, EVC or DSC. Alternatively, you can also choose to manually verify the return by mailing a signed copy to the Income Tax Department within 30 days from the date of filing the return.
Conclusion
With this, you must now be aware of how to e-file income tax returns. Now, keep in mind that the last date for filing returns for individuals is July 31 of every year. In the case of businesses that require audits, the due date is October 31 of every year. It is important to ensure that you file your returns well before the due date to avoid unexpected delays due to technical glitches.
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Frequently Asked Questions
To check if your Aadhaar and PAN are linked, all you need to do is follow the steps outlined below.
- Visit the Income Tax India e-filing website.
- Click on ‘Link Aadhaar Status’ available under ‘Quick Links’.
- Enter your Aadhaar number and PAN, and click on ‘View Link Aadhaar Status’.
- The website will instantly display whether your PAN and Aadhaar are linked or not.
Linking your PAN with your Aadhaar is simple and requires you to follow the steps outlined below.
- To link your PAN with your Aadhaar, visit the Income Tax India e-filing website.
- Click on ‘Link Aadhaar’ available under ‘Quick Links’.
- Enter your Aadhaar number and PAN, and click on ‘Validate’.
- Since the due date for linking PAN and Aadhaar has expired, you will be asked to make a payment of Rs. 1,000 online. After the payment is successful, your Aadhaar and PAN will be linked.
There are two different ways to download Form 26AS using your PAN.
Firstly, log into the Income Tax India e-filing website using your PAN and password, and then click on the ‘View Form 26AS’ option available under the ‘e-File’ menu. This will redirect you to the TDS TRACES website, where you can select the relevant assessment year and download the Form 26AS pertaining to it.
Alternatively, you can also download it by logging into the TDS TRACES website. However, keep in mind that you need to create a separate account on the website to gain access to Form 26AS.
Here is a brief overview of the step-by-step process you need to follow to view Form 26AS.
- Log into the Income Tax India e-filing website using your credentials.
- Click on the ‘e-File’ menu and hover over the ‘Income Tax Returns’ option.
- Now, click on ‘View Form 26AS’ and then on the ‘Confirm’ button.
- You will be redirected to the TDS TRACES website. Click on the ‘View Tax Credit (Form 26AS/Annual Tax Statement)’ link on the homepage.
- Select the relevant assessment year and click on the ‘View/Download’ button.
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