Income Tax Return Filing Online (ITR Filing Online)

Income Tax Return Filing Online refers to submitting your income tax to the Indian government electronically or through physical documentation, declaring your income, deductions, and tax liability for a specific financial year. It is mandatory for individuals and businesses to file their income tax returns every year to avoid penalties and legal consequences. The income tax return filing process determines the tax payable or refundable based on income and deductions for the year. The Income Tax Department provides various ITR-type forms for different types of income sources. Interest income earned on bank deposits or fixed deposits must be declared while filing ITR. Filing buddy provides expert assistance for accurate and hassle-free ITR filing.

The Income Tax Department requires the following entities to file their IT returns annually:

1. Salaried individuals with a gross income exceeding the exemption level before deductions under Sections 80C to 80U.
2. All firms, including private limited, LLPs, or partnerships, must file their IT returns regardless of profit or loss.
3. Individuals who hold the position of Director in a Private Limited Company or a Partner in a Limited Liability Partnership firm.
4. Individuals who receive dividends from mutual funds, bonds, equities, fixed deposits, interest, and other sources.
5. Individuals who receive income through charity or religious trusts, as well as income from voluntary contributions.
6. Anyone, including individuals and businesses, who are seeking tax refunds.
7. NRIs, tech professionals on onsite deputation, and individuals with foreign income or assets.

To file your income tax return in India, you must provide the following information:

1. PAN, Aadhar Card, and current address
2. Details of all bank accounts held during the financial year
3. Current income details, including income from investments such as fixed deposits and savings accounts
4. Deductions claimed under Section 80
5. Tax payment details, including TDS and advance tax payments.

1. Gather all tax-related documents, such as Form 16, TDS certificates, bank statements, and investment details.
2. Visit the Income Tax Department's website and register by providing your PAN, name, date of birth, and other necessary information.
3. Log in to your account using your PAN as your user ID and the password you set during registration.
4. Choose the appropriate ITR form based on your income sources and fill in the required details. You can either fill it out online or offline.
5. Verify the details you have entered and click on the 'Submit' button.
6. If you have filled out the form online, you will receive an acknowledgment on your registered email ID. If you have opted for the offline mode, download the XML file of the completed ITR form and upload it to the portal.
7. After submitting your ITR form, verify it using one of the available options, such as Aadhaar OTP, bank account-based OTP, or digital signature.
8. Once the verification process is complete, the Income Tax Department will process your ITR, and you will receive an intimation.

1. Visit the Income Tax e-filing website at https://www.incometaxindiaefiling.gov.in/
2. Click the "Login" button and enter your user ID (PAN) and password.
3. Enter the captcha code and click on the "Login" button.
4. Once logged in, click the "View Returns/Forms" option from the dashboard.
5. Select the relevant Assessment Year (AY) and the appropriate ITR form from the drop-down menu.
6. Click on the "Submit" button.
7. Check the status of your e-verification by clicking on the "View Returns/Forms" option and selecting the "e-Verification" option.
8. Your e-filing status will be displayed on the screen. If your return has been processed, you can see the status as "Successfully e-Verified" or "Successfully Verified".
9. If your return is still being processed, the status will be displayed as "Submitted and pending for e-Verification".

Check if you need to file a tax return:

For FY 2023-24, you need to file a tax return if your income is over Rs 2.5 lakh (Rs 3 lakh for those aged 60 years and above) or if excess TDS has been deducted and you are claiming a refund. If your income is over Rs 5 lakhs or you want a refund, you should file your income tax return online, except for taxpayers aged 80 years or above.

Collect your documents:

The documents you need to e-file your tax return will vary depending on your case. Typically, you will need your PAN, Aadhaar number, and bank account details, along with Form 16 and Form 26AS, which contains information about TDS and advance tax payments.

Upload your Form 16:

Upload your Form 16, which is issued by your employer, and contains details about TAN, TDS, taxable salary, and deductions. If you don't have Form 16, you can still file a tax return with just a payslip.

Claim deductions and check if you owe tax:

You can claim any deductions you missed, such as HRA, LIC premium, or Section 80C expenses. Note that medical reimbursements and LTA cannot be claimed. Also, check if you need to pay any additional tax.

Pay your tax online:

Pay any additional tax you owe on the income tax e-filing website before July 31st. If you miss this deadline, you will be charged 1% per month of simple interest on the outstanding tax amount.

Get your acknowledgement number:

After filing your tax return online, you will receive a 15-digit acknowledgement number on the screen and via email.

Verify your tax return:

You can either send ITR-V to the income tax department in Bangalore or e-verify your tax return online within 120 days from the date of e-filing.

Track your refund:

If you are entitled to a refund, you can track its status on the income tax e-filing website. Refunds usually take a few weeks to a few months to process.

1. Avoid Late Fees: Filing ITR on time helps avoid late fees which can be as high as ₹10,000.
2. Claim Refunds: Timely filing of ITR is necessary to claim refunds, which is possible if you've paid more tax than your actual liability.
3. Lower Risk of Scrutiny: Timely filing of ITR reduces the risk of scrutiny by the income tax department, saving taxpayers from unnecessary stress and anxiety.
4. Timely Loan Processing: ITR is required as proof of income by many banks and financial institutions for loan applications. Timely filing of ITR ensures that necessary documents are available for loan application.
5. Proof of Income: ITR is used as proof of income by various agencies such as banks, visa authorities, and government bodies.
6. Increase in Creditworthiness: Timely filing of ITR increases creditworthiness, which increases the chances of loan approval at lower interest rates.
7. Ease of Business Operations: Timely filing of ITR is necessary for smooth business operations, such as applying for tenders or participating in government contracts.
8. Encourages Financial Planning: Timely filing of ITR encourages financial planning, helps taxpayers understand their income and expenses, and enables them to make informed financial decisions.

Here are the different due dates for Income Tax Filing Return in India based on the type of taxpayer and their income sources:

1. Individuals, Hindu Undivided Families (HUFs), LLP, Partnership Firm and other taxpayers who don't need their accounts audited: The due date is July 31st of the assessment year (AY).
2. Taxpayers who require their accounts audited: The due date is September 30th of the AY.
3. Companies : The due date is October 31st of the AY.

Late Filing Fees: Filing your ITR after the due date may lead to late filing fees, which varies depending on the date of filing. For example, if you file your ITR between the due date and December 31st, you'll be charged a late fee of Rs. 5,000. However, if you file after December 31st, the late fee increases to Rs. 10,000.

Interest on Unpaid Taxes: If you don't file your ITR on time, you'll also need to pay interest on the unpaid tax amount. The interest rate is 1% per month or part thereof on the unpaid tax amount, starting from the due date of filing the return until the date of payment.

Prosecution and Imprisonment: If you fail to file your ITR even after receiving notice from the income tax department, you may be prosecuted under section 276CC of the Income Tax Act. If convicted, you could face imprisonment for a minimum of 3 months to a maximum of 7 years, along with a fine. However, prosecution is typically reserved for cases with willful tax evasion or repeated non-compliance.

Loss of Deductions: Timely ITR filing is essential to claim deductions and exemptions. If you file your ITR late, you may lose the right to claim deductions and exemptions, resulting in higher tax liability and lower tax savings.

Impact on Credit Score: Non-filing or late filing of ITR can also affect your credit score. Financial institutions consider your credit score while processing loan applications. Filing your ITR on time indicates responsible taxpaying and increases your creditworthiness. On the other hand, late or non-filing of ITR may lead to a lower credit score, making it difficult for you to get loans at lower interest rates.