E-File Your ITR: Simplified Guide to Filing Income Tax Returns

• Written by Care Health Insurance

• 0Like

  Be the First to Like

  • Copy Link Copied! Share on Facebook Share on Linkedin Share on Twitter Share on WhatsApp

  Share

To avoid issues with the Income Tax Department, taxpayers must report their tax liability accurately and on time. Taxpayers must file an income tax return, which declares their income and taxes due for a specific financial year. There are seven types of ITR forms (ITR-1 to ITR-7), through which taxpayers declare all sources of income. Filing an income tax return is mandatory for individuals with a gross annual income of Rs. 2.5 lakh or more. This limit is Rs. 3 lakh for senior citizens. 

What is Income Tax Return Filing?

An income tax return is a form used to declare income, expenses, and other earnings to the Income Tax Department in a prescribed manner. It also serves as a request for a refund of any overpaid taxes. Filing an ITR simplifies the process of obtaining loans and credit cards, makes claiming a TDS refund easier, and can be a helpful document for scholarship or international visa applications.

Who Should File ITR?

If your total annual income is below the basic exemption limit, filing an ITR is not mandatory. The exemption limit varies depending on the chosen tax regime. According to the Income Tax Act, filing an ITR is mandatory for individuals whose:

1. Annual income is Rs 2.5 Lakh Rs 3 Lakh for senior citizens below 80 years 
2. Rs 5 Lakh for super senior citizens above 80 years. 
3. Companies and firms must file ITR if they incur income or loss in a financial year.

Even if you have no tax liability, which is called a Nil ITR, you should still file an ITR. 

Also Read: Detailed information on Types of ITR

How to File Income Tax Returns?

To fill an income tax return, the first step is to obtain income tax return forms or Form 16 from the employer. Have your investment proofs with you. Now, decide whether you want to fill it offline or online. Offline ITR Filing

Individuals (including HUF members) with an income below Rs. 5 lakh who are not eligible for a refund, and super senior citizens, have the option to file their ITR offline during a financial year.

1. Visit www.incometax.gov.in
2. Download ITR form based on your income source (ITR-1, ITR-2, etc.)
3. Take a printout of the form
4. Fill your personal details such as PAN, Adhaar, address, income details, tax computation, paid taxes.
5. Get Form 16 from your employer and Download Form 26AS from the TRACES portal. Fill both of them
6. Submit your ITR form and supporting documents in the nearest Income Tax Office.

E-Filing

The government has made a taxpayer’s life easy with the introduction of the e-filing system. The Income Tax (I-T) Department enables taxpayers to conveniently file ITR through an online portal. This minimises paperwork and makes the process error-free. Visit the official portal of Income Tax department for ITR filing online mode, and fill in the required details. To validate your filings, upload the essential personal and income-related documents.

To check ITR Status

• Go to the “Income Tax Return (ITR) Status” option.
• Provide acknowledgement number, mobile number and click on ‘continue’.
• A 6-digit OTP will be sent to your registered mobile number. Enter the OTP and submit.

Importance of E-filing of ITR 

E-filing income tax returns is important for taxpayers for the following reasons:

• Quick and simple processing
• Prompt confirmation with receipt 
• Seamless with high accuracy 
• Maintain confidentiality 
• Easy access to past data
• Apply easily for any type of loan
• Apply for credit cards and returns
• Pre-requisite for visa processing  
• Tax exemption on health insurance premium 
• User-friendly software
• Available 24x7

Steps for Income Tax E-filing

Let’s check out the simple steps you need to follow for e-filing your tax return:

• You need to register to start the process.
• Visit the Income Tax E-filing portal for registration.
• Select the ‘User type’ such as Individual, HUF, etc.
• Now enter the required details like PAN, Date of Birth and residential status, contact number, etc.
• Click on the ‘Submit’ button.
• Soon you will get a 6-digit One Time Password (OTP) on your registered mobile number and email ID and you need to enter that for e-filing login.
• Now after registration, enter your login details to the Income Tax E-filing portal.
• Click on the ‘Income Tax Return’ option given under ‘e-file.’
• Then select the assessment year and click on ‘Continue.’
• For ITR verification purposes, you need to select the authentication type that can be through Aadhaar OTP, or EVC using Pre-validated bank details or you can also send a signed ITR-V through normal or speed post and click on the ‘Continue’ button.
• Read the instructions carefully before e-filing the online process.

Under Part A, fill in basic personal information such as name, PAN number, Aadhaar number, address, and email ID.

• Fill in all income and deduction details for income tax computation.
• Details of taxes paid, tax payable, and ITR refund amounts are available in the "Taxes Paid and Verification" section.
• You can claim tax benefits under sections ‘80G’ and ‘80D’.
• After all steps, click on ‘Preview and Submit’ to cross-check the details.
• If you find all the details are filled correctly, then click on the ‘Submit’ button or e-verify the same.
• After successful e-verification, you will receive an acknowledgement receipt on your registered email ID.

In a Nutshell!

Filing income tax can be done easily by adhering to the income tax return deadline. Paying taxes is a primary responsibility of every citizen.

To reduce your tax liabilities, invest wisely and utilize the available tax benefits. For example, Section 80D of the Income Tax Act allows you to claim a tax reduction on health insurance premium. If you don't have health insurance, now is a good time to get it. Care Health Insurance offers comprehensive coverage through various plans tailored to individual needs and budgets. Exploring their options can help you find the best fit.

Disclaimer: The above information is for reference purposes only. The tax exemptions are subject to the rules and regulations of the Income Tax Act of India 1961.