Income tax is levied on the income earned by an individual or a body corporate in a specific financial year. Income tax is levied by the Government of India as the revenue generated from the tax collected is the main source of funds for government to carry out any developmental activities throughout the country. So charging income tax and its collection is an important aspect of income tax department.
Payment of income tax is considered as complete when ITR is filed by the assessee. ITR stands for Income Tax Returns. Filing an Income Tax Return means an individual has paid the income tax that is computed on his earnings. It is a document that acts as a proof stating that the assessee has paid all the due income tax. Income Tax Return contains the details of assessee’s annual income, details of the computation of tax based on the annual income and the amount of tax that the assessee has paid. Every year individuals, Hindu Undivided Family, Companies, Firms, Sole Proprietors, or any other who earn taxable income are required to file Income Tax Return as a proof to state that they have paid all the due income tax.
There are various ways for filing of income tax return with the income tax department, stated as under:
- One can file Income tax Return online or
- One can file income tax return through offline channel.
Let us consider various online ways through which the Income Tax Return can be filled. Income tax e-filling can be done on the official website of the income tax department in 2 different manners without any charge, as mentioned below:
- Filing income details online and e-filing the returns.
Downloading the ITR utility tool specifically designed for hassle free filing of income tax return.
ITR Utility Tool
Let us know more about the ITR utility tool provided by the Income tax department. ITR Utility is software introduced by the income tax department, which helps a taxpayer to file the income tax returns easily. Every year, the income tax department releases updated versions of the ITR Utility Software for online filing of income tax return. This software is available for free download and all the services carried out with the help of the software are also free. Earlier, the ITR utility was an excel file. The assessee had to fill in all the details of the income and an xml file was generated. Then this file had to upload online for filing Income Tax returns.
Now the income tax department has released updated ITR utility software which is a java based file. This latest version of ITR utility software is easier than the previous excel based version, as it fetches a lot of details of the assessee automatically. This java based version of ITR utility software has made filing income tax return easier.
Following are the two main advantages of Java based ITR Utility software version:
The Java ITR utility software is easier as compared to excel based ITR utility software as the latest version allows user to upload the income tax return automatically while in excel based ITR utility software one was not able to do so. In Excel based ITR utility Software, the user had to generate an XML file after filing all the details of the income and then this XML file was uploaded onto the website.
- One of the most important advantage of using Java based ITR utility software version is that this version still supports the previous Excel based ITR Utility. If the assessee finds it difficult to use the updated version, then they can switch to excel based ITR utility to file their ITR manually.
Java based ITR Utility Software has been introduced with updated and improved features in its latest version of java based ITR utility software. The introduction of these new features has proved to be very helpful and has made e-filing of income tax return easy and hassle free. Following are some of the new features in the ITR Utility software.
- New: This option is used to open a new Income tax return form.
- Open: As the name suggests, this option allows the user to import the previously generated Xml file of a particular assessment year.
- Save: This option is used by the assessee to save the generated XML file on the computer.
- Save Draft: This option is different from the save option. Under save draft option, the assessee can save the generated XML file. But it should be noted that the XML files that are generated using this option can only be directly uploaded online but cannot be saved on the computer.
- Prefill: With the help of this feature, the assessee can fill the basic details automatically once the assessee login to the website. This option saves the effort to fill the details of the assessee every time they log on to the website.
- Re-Calculate: This option allows the assessee to calculate the tax payable. On filling all the income details, the assessee can hit this button to re-calculate the tax payable as per the existing income tax slabs.
- Submit: This button allows the assessee to directly upload the Income Tax return form on the website. The submission of the form is done directly from the ITR utility software. When the assessee hits the submit button, the process of uploading the ITR form starts and the assessee is asked the login credentials required on the income tax website. After filling the login credentials, the ITR form is uploaded successfully and ITR – V would be generated. This means the process of uploading ITR is complete.
- Help: Under this tab, all the essential guidelines are available. When an assessee needs help for filing the ITR online then they can refer to this section. This section provides for guideline for e-filing of ITR, shortcut keys, special instructions that every assessee should keep in mind while filing ITR and answers related to frequently asked questions related to the ITR Utility Software.
Previous / Next: This tab is used for navigating through various sections of the ITR form.
Steps for E Filing Of Income Tax Return Using Java ITR Utility / Excel ITR Utility Software
- For filing Income Tax Return form first and foremost the assessee has to log on to the website http://www.incometaxindiaefiling.gov.in.
- If the assessee is a new user then first he/she needs to register on the income tax website. The ‘Registration Yourself’ option allows the assessee to register on the website. In the registration procedure, the assessee has to mention all the basic details like name, date of birth, email ID, mobile number, etc.
- Once the registration procedure is complete, the assessee can file the returns by logging on to the website of income tax department.
- Enter details like login ID and password and you will be directed to a page which provides quick links required for filing of ITR.
Before starting the process of filing ITR, it is required that the assessee keeps following documents ready:
- Salary Or Income Certificate
- TDS Certificate
- Savings And Deductions Certificate
- Copy Of Previous Years ITR
Interest And Capital Gains Certificate
- While filing of income tax returns offline, one has to download the Java based/ Excel Based ITR utility software from the income tax e-filing website.
- After downloading of the utility, the assessee has to furnish all the correct details pertaining to the income earned by the assessee and also all such details must be rechecked and cross checked with the details reflecting in the Form 16 of the assessee.
- After filling all the details, the assessee can upload his or her ITR through java based ITR utility software itself. But if the assessee has used the Excel based ITR utility, then the assessee has to first generate the XML file of the income tax return and upload this file on the income tax department website.
- If uploading of the ITR is successful then an acknowledgement would be displayed on the website and an ITR – V form shall be generated and sent to the assessee registered email ID. The assessee has to take a printout of the form, sign it and send it to income tax department within 120 days.
- If the assessee is using digital signature for filing the ITR then the whole process of filing ITR is completed on generation of acknowledgement on the website.
This, above are the steps for e-filing of income tax returns using the utility tool, introduced by the income tax department. The introduction of ITR utility software has proved beneficial as it has eased the filing of income tax returns.