Gain Knowledge about Income Tax through online

Filing the taxes with pen and paper is not the only option. The online process has become hassle-free. To make the process simpler and safer, income tax filing online has paved the way.

 

Even the Internal revenue system advises filing taxes electronically instead of manual work. In India, the process of income tax filing has many procedures and takes some preparation. To make this easier, the Government gives you a four months window period to organize all documents such as bank statements, salary/income details, previous tax statements, etc.

 

The procedure varies and it depends on the income earned per year and also income sources like salary, business or investment profit, and many more. The online filing also called e-filing is a convenient method to file returns from any place.

 

Procedure for filing income tax online

 

As said, filing income tax online is easier than manual work. Let us discuss the procedures involved in it:

 

Procedures for registering in the portal:

 

Step 1 – Visit the e-filing website 

 

Step 2 – Choose the Register or Login option to start the process.

 

Step 3 – Select the User Type and fill in all the required details

 

Step 4 – Verification of PAN 

 

Step 5 – Account activation

 

Procedures for e-filing Income Tax Returns:

 

Step 1: As per the provision of the income tax laws, calculate the income tax liability.

 

Step 2: Using Form 26 AS, fetch details about the TDS payment for all 4 quarters of the assessment year.

 

Step 3: Based on the definition by the Income Tax Department (ITD) for each ITR form, choose the category that he/she will fall under and choose an ITR form.

 

Step 4: Visit the official e-filing website.

 

Step 5: Under the ‘Download’ section, click on the ‘IT Return Preparation Software’ option. 

 

Step 6: After choosing the assessment year, you must download the offline utility either in the Java utility file or MS-Excel file.

 

Step 7: After downloading the form, you must fill in all the relevant details like income, tax payable, and receivable refunds.

 

Step 8: After filling up the form, you must click on the ‘Validate’ button on the form.

 

Step 9: Now, click on the ‘Generate XML’ button. This will help in converting the file into an XML file.

 

Step 10: Using your credentials, log in to your income tax e-filing portal once again.

 

Step 11: Under the ‘e-file’ option from the main menu, navigate to the ‘Income Tax Return’ option. 

 

Step 12: Fill up all the fields with the relevant information.

 

Step 13: To upload the XML file, click on the ‘Continue’ button.

 

Step 14: Click on the ‘Submit’ button and select a mode of verification among the given options like Electronic Verification Code (EVC), Aadhaar OTP, and many more.

 

Documents required for filing income tax online:

 

There are a bunch of documents needed for filing income tax online under the income tax Act, 1961 and Income Tax Rules, 1962. They are:

 

  • Bank statements

 

  • Interest income statements for fixed deposits.

 

  • A TDS certificate is given by banks.

 

  • Salary slips

 

  • Aadhaar Card

 

  • Tax saving investment proofs- They are the proofs that claim deductions under section 80D to 80U. They include health insurance premium for self and family and interest on education loans

 

  • Home loan statement from the bank

 

  • PAN card

 

  • Form-16: A certificate issued to the person by his/her employer which has all the details about the person’s salary paid and any TDS (Tax Deducted at Source) deducted if there is any.

 

  • Form-16 B: A form given by the buyer if the person has sold any property which points out the TDS deducted on the amount paid to the person

 

  • Form-16 C: A form given by a tenant providing details about TDS deducted on the rent received by the person

 

  • Form 26 AS: It is the consolidated annual tax statement. It encompasses all the details for the taxes deposited against the person’s PAN like,

 

  1. a) TDS deducted by your employer

 

  1. b) TDS deducted by banks

 

  1. c) TDS deducted by any organizations from payments made to the person

 

  1. d) Advance taxes deposited by you

 

  1. e) Self-assessment taxes paid by you

 

Advantages of filing income tax online

 

Filing income tax online has so many benefits. Some of them are listed below:

 

  • Cost-efficient

 

  • The process is easier

 

  • The online process is more convenient

 

  • More knowledgeable

 

  • Guarantees greater accuracy

 

  • Refunds are faster

 

  • Saves effort

 

  • Assessment is more secure as it involves two officials

 

  • Cloud storage and paperless work

 

How to check ITR status online

 

After filing the income tax returns and verifying, you can check the status of the tax return.

 

If it is verified, you will see the line ‘Verified’. If the process is completed, the status becomes ‘ITR Processed’.

 

There are two steps for checking the status of ITR online. They are:

 

  • Without login credentials
  • With login credentials

 

Frequently Asked Questions:

 

  • What is the difference between e-payment and e-filing?

 

E-filing is the process of electronically enhancing tax returns.

 

E-payment is the process of paying the tax by using debit/ credit cards or by net-banking.

 

  • Should any documents be attached while filing the Income Tax Returns?

 

No, there is no need to submit any documents while filing the Income Tax Returns. Yet, all the relevant documents asked must be filled.

 

  • List the types of forms that are available as per the Income Tax Law.

 

The different types of form that are available as per the Income Tax Law are:

Gain Knowledge about Income Tax through online

 

  • ITR-1

 

  • ITR-2

 

  • ITR-3

 

  • ITR-4

 

  • ITR-5

 

  • ITR-6

 

  • ITR-7

 

  • ITR-V
  • What are the types of income tax classes? 

 

There are two types of income tax classes. They are direct and indirect taxes. 

 

  • How to pay taxes if you file electronically?

 

The IRS not only offers you the option of filing your tax return online but also allows electronic payments for the taxes.

 

 

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