How to File IT Returns?

How to File IT Returns?: Overview

In India, Tax Return is a process of reporting the income of a business or an individual by filing income tax with concerned tax authorities such as the income tax department. This tax return helps and allows the tax payers to calculate their tax liability and remit the payments or a refund can be requested as the case persist. The Income Tax Return is a mean of document that you can file with the Income tax department to report your profits and losses of the concerned business and other details stating about the tax refund or tax liability. Now according to financial year ending on 31st March 2015, an individual or a NRI whose income exceeds more than Rs. 2,50,000 and Rs. 2,00,000 respectively, he/she is required to file an income tax return in India. Income tax slab have further increased to Rs. 2,50,000 and Rs. 3,00,000 for financial year 2016-2017 respectively. Any individual with income above that will need to file income tax return.

According to Income Tax Act 1961 Section 139(1), any individual whose income exceeds the maximum amount allotted that is not chargeable to tax in the previous year should file an income tax return. Now days, electronic filing of return or e-filing is very common and preferred by all. This e-filing can be done by individual himself as per the comfort of his/her home by registering on the website of IT department. It can also be done by hiring a professional for the same. The last date by which an Income can be filed by and individual or professional through e-filing or physically is 31st July of the year.

Who can go for E-filing of Income Tax?

Online filing of income tax online is an easy process and can be done by any assesse who has computer knowledge and following cases:

  • The assesse whose total income is more than 5 lakh rupees.
  • HUF/Individual resident whose assets are located out of India.
  • The assessed is required to give all report of the audit that are specified under Section 10(23C) (VI), 10(23C), 10(23C) (IV), 10(23C) (V), (VII), 44AB, 80IA, 10A, 12A (1) (b), 80IB, 80JJAA, 80LA, 80IC, 80ID, 92E or 115JB of the IT act.
  • The assesse has to give a notice under section 11(2) (a) to the preceding IT officer.
  • All those firms that don’t come under the rules of Section 44AB, artificial judicial person, AOP, BOI, Local Authorities (ITR5) and Cooperative Societies
  • The assesse is required to give the returns under Section 90A or 90 or the deductions can be done under Section 91.
  • All other companies.

To do list of e-filing

There are certain aspects for smooth and correct filing of the tax return, as highlighted below:

Make sure that you use the right form to file the income tax online. Below is the list that can be kept in mind while doing so.

Forms Details
ITR1  (Sahaj) For individuals who have income from interest and pay
ITR2 For Hindu (HUF) and individuals not earning income from business and profession
ITR3 For HUF/ individuals being partners in firms and acting as sleeping partner, under any proprietorship
ITR4 For individuals /HUFs having their income from profession and sole proprietary business.
ITR4S (SUGAM) For HUFs/ individuals having business from rational business
ITR5 For APOs, Firms, LLP and BOIs
ITR6 For companies and apart from companies seeking exemptions under the 11th section
ITR7 For people and companies who have  to give return under Section 139(4A) or Section 139 (4C)  Section 139 (4B) or Section 139 (4D)

Tax Credit Checking -

Form 16 vs. Form 26AS - A salaried individual should check his/her Form 26AS prior to filing return as this form shows the tax deductions submitted by the employer and can be checked by the Income Tax department of the company. So, one should make sure that the tax that gets deducted in Form 16 should have the same details as that in Form 26AS.

Saving Certificate and all other deductions under Section 80G: If one forgets the deductions and interests, then it can be claimed as per Section 80G. Also, donations that are made to charitable trust can be clubbed under this.

Statement of Interest: Interest received on the saving account combined with fixed deposits that sums up to Rs. 10,000 is allowed to be exempted from taxation. But if the amount exceeds, then it is to be taxed under the given slab rate as it forms the part of taxable income.
With the above thing some additional requirements are:

  • Bank Statement
  • Last years’ income tax return
  • TDS certificate
  • Statement of profit or loss, audit reports and balance sheet as applicable

Even one should ensure that system from which the tax filing will be done is equipped and updated with Version 7 or Update 6 of the Java Environment Runtime.

Documents List: The list of documents required to file income tax online are mentioned below, it is mostly advisable to plan and stay ahead in case of e-filing:

General Detail requirements like -

  • Bank Details
  • Permanent Account Number

Income from Salary being reported-

  • Form 16
  • Salary slip
  • Rent receipts to be claimed for HRA

Income from house Property being reported-

  • Address proof of the property mentioned
  • All the details of co-owners and even their share to be mentioned in property deed and all details of PAN.
  • Housing loan interest certificate
  • Date at which the construction got completed or in case of ongoing construction property the purchase date.
  • The tenant’s name and the rent amount if the property that is let-out.

Capital Gain Reporting-

  • The statement of stock trading is required together with the purchasing details if the capital gain is there from selling of shares.
  • The detailed mutual fund statement, purchase and sale of equity funds, ELSS, debt funds and SIPs.
  • In case when the property or house is sold, one must sought purchase price, sale prices and the capital gains and registrations details if any.

Other income reporting-

  • The interest income is reported but still if the interest is accumulated in account then the bank statement is required.
  • Interest that is coming through tax saving bond and other corporate bonds need to be reported.
  • All details of income that is earned in post office deposits also to be reported.

Different types of e-filing-

-The use of Digital Signature Certificate (DSC) at time of e-filing. It is mandatory to fill all the IT forms by using DSC by a Chartered Accountant.
-If one e-files without a DSC then ITR V Form is generated which is supposed to be printed and signed and then submitted to the CPC, Bangalore by the ordinary post or the speed post within 120 days of e-filing date.
-One can also e-file IT return through E-return Intermediary (ERI), which can be done with or without DSC.

Slab Rates of Income Tax

IT slab rate for the year 2017-18 and the evaluation year 2018-19 are mentioned below:

For HUF and Individual having age below 60 years:

Tax Slab Rate
Income till Rs.250000 p.a. Nil
Income above Rs.250000 p.a. and till Rs.500000 p.a. 5%
Income above Rs.500000 p.a. and till Rs.100000 p.a. 20%
Income above Rs.1000000 p.a. 30%

*An additional surcharge of 10% to be imposed on total income falls between Rs. 50 lakh to 1 crore.
*An additional surcharge of 15% to be imposed if the total income goes above Rs. 1 crore.
 For HUF and Individual having age more than 60 years but 80 years and not higher:

Tax Slab Rate
Income till Rs. 250000 p.a. Nil
Income above Rs. 250000 p.a. and till Rs.500000 p.a. 5%
Income above Rs.500000 p.a. and till Rs.1000000 p.a. 20%
Income above Rs.1000000 p.a. 30%

*An additional surcharge of 10% to be imposed on total income falls between Rs. 50 lakh to 1 crore.
*An additional surcharge of 15% to be imposed if the total income goes above Rs. 1 crore.
For Super Senior Citizen having age above 80 years:

Tax Slab Rate
Income up till Rs.500000 p.a. Nil
Income above Rs.500000 p.a. and up till Rs.1000000 20%
Income above Rs.1000000 p.a. 30%

*An additional surcharge of 10% to be imposed on total income falls between Rs. 50 lakh to 1 crore.
*An additional surcharge of 15% to be imposed if the total income goes above Rs. 1 crore.

Filing E-return: In case of filing an e-return for an offline tax return, one needs to upload XML through the website Then, the ITR1 need to be filled and submitted.

Steps required for E-return: Filing the IT Return online should not be complicated if the below mentioned steps are to be followed:

Foremost is to logging to the official website then register on it.

  • The PAN is the user ID for all future references.
  • You need to have a look at the Form 26AS or Tax Statements. The tax deducted at source should match with the figures of Form 26AS.
  • The financial year needs to be chosen for the IT return.
  • The IT return form needs to be downloaded as per one’s application. If the exempted income exceeds Rs. 5000, Form ITR2 is to be filled. (Only if the application form is ITR1 or ITR4S. In this case, the process can be completed through the portal by using a quick ITR e-filing link mentioned on the site).
  • The downloaded software of return preparation that opens excel utility is to be filled using the details from Form 16.
  • Tax to be paid should be checked by clicking ‘calculate tax’ tab.
  • Fill the challan details and pay the taxes.
  • Then one needs to confirm all the data provided in the worksheet by pressing ‘validated’ tab.
  • Now, ‘upload return’ on the portal’s panel to upload the saved XML file.
  • Then a pop up will come asking for digitally signing of file. In this case, if you have DSC then press ‘yes’ or if not then press ‘no’.
  • Then the acknowledged form that is ITR-V (ITR verification) is downloaded.
  • Then one can take the printout of that verification and sign with blue ink.
  • Then the forms needs to be send by speed or ordinary post to Bangalore’s IT Department as mentioned on the website within 120 days from the date of filing return form online.

Online filing of ITR1 and ITR4S:

One has the option of submitting ITR1 and ITR4S form online too by uploading the XML. Here’s how it works:

  • Login to the online e-filing application. Then go to e-filing and select Submit online.
  • Select the form which needs to be filled (ITR1 or ITR4S) as per the evaluating year.
  • Fill in all the details and click on ‘submit’ button. Then, choose DSC (if available) and submit.
  • After successful submission, the acknowledgement details get displayed.
  • In order to get the printout or view your submitted form, you can click the link of ITR Verification form.

In order to use your DSC, you need to register on e-filing application. This can be done by logging into to e-filing website by the income tax department then updating it in ‘Profile’ setting section. Under this Profile setting, you need to select ‘Registered DSC’ and download IT department e-filing Digital Signature Certificate Management Utility. This can further be used to generate DSC file.

Thus above are the various steps, documents, slabs and types of e-filing of Income Tax Return which is very handy for an individual filing it online. In this way, the cell number or the email address cannot be used more than four times to file return on website. So all such precautions should be kept in mind while filing online in order to avoid notice from the IT department.

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