Income Tax Return Filing Online
Income Tax Return Filing Online is submitting your income tax to the government of India electronically or through physical documentation that declares your income, deductions, and tax liability for a particular financial year. Individuals and businesses must file their income tax returns each year, and failure to do so may result in penalties or legal consequences. The tax return helps the government to determine the tax payable or refundable by a taxpayer based on their income and deductions for that year. The income tax return filing process provides detailed information about your income sources, deductions, and tax-saving investments made during the financial year. This information is then used to calculate the tax liability or refund due to the taxpayer.
Overview of Income Tax Return Filing India
An income tax return filing in India is where taxpayers pronounce their available pay, allowances, and duty instalments. This methodology of recording income tax returns is called income tax return filing. While filing, the total annual tax you owe to the government is additionally determined. If you’ve paid more tax than required for the financial year, the IT Department will discount the additional cash to your account.
If you still need to pay the total taxes owed for the year, you should file your income tax returns and pay the remaining balance as soon as possible. The type of income tax return filing you need to depend on the nature and amount of your income, as well as other factors such as your residency status.
The Income Tax Department provides several ITR-type forms for individuals and businesses to file returns. These include ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6, and ITR 7. Each form is used for different types of income, and taxpayers with varying sources of income must file the appropriate form.
Some forms, such as ITR 4 and ITR 5, are shorter and more straightforward than others, while some forms, like ITR 6, may require additional disclosures such as balance sheets and profit and loss statement information. It is important to carefully review the requirements of each form before your income tax return filing to ensure that you provide all the necessary information and avoid any penalties or legal consequences.
One of the sources of income that needs to be declared while filing Income Tax Returns (ITR) is interest income. It is the income earned from bank deposits, fixed deposits or any other investments made on which the investor earns a fixed interest rate. To file ITR, one needs to provide their bank statement and TDS certificate issued by banks for all interest income earned during the financial year. It is vital to correctly declare all sources of income, including interest income, to avoid any penalties or legal issues while filing ITR.
Income tax return filing is mandatory for everyone who earns a taxable income. income tax return filing has become simpler and more convenient with e-filing. E-filing income tax returns offers several benefits, including easy loan access and hassle-free visa application processes. It also saves time and effort as it can be done from the comfort of your home or office. You can opt for expert assistance from Kanakkupillai to ensure your ITR filing is accurate and hassle-free.
Who Should File an Income Tax Return?
The Income Tax Department mandates that the following entities file their IT returns annually:
- Salaried individuals with a gross income exceeding the exemption level before deductions under Sections 80C to 80U.
- All firms, including private limited, LLPs, or partnerships, must file their IT returns regardless of profit or loss.
- Individuals who hold the position of Director in a Private Limited Company or a Partner in a Limited Liability Partnership firm.
- Individuals who receive dividends from mutual funds, bonds, equities, fixed deposits, interest, and other sources.
- Individuals who receive income through charity or religious trusts, as well as income from voluntary contributions.
- Anyone, including individuals and businesses, who are seeking tax refunds.
- NRIs, tech professionals on onsite deputation, and individuals with foreign income or assets.
Documents Required for Income Tax Return Filing Online
- Produce essential data, for example, PAN, Aadhar Card, and current location.
- Details about all the bank accounts you’ve held in the given financial year are compulsory.
- Income verifications include current compensation details, income from ventures (like FDs and savings bank accounts), etc.
- Information about all the deductions you have guaranteed under Section 80.
- Tax instalment data, for example, TDS and advance tax payments.
Steps for Checking the Status of e-Filing Income Tax of India
Here are the steps to check the status of e-filing income tax in India:
- Visit the Income Tax e-filing website – https://www.incometaxindiaefiling.gov.in/
- Click the “Login” button and enter your user ID (PAN) and password.
- Enter the captcha code and click on the “Login” button.
- Once logged in, click the “View Returns/Forms” option from the dashboard.
- Select the relevant Assessment Year (AY) and the appropriate ITR form from the drop-down menu.
- Click on the “Submit”
- Steps for checking the e-verification status button.
- 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”.
- If your return is still being processed, the status will be displayed as “Submitted and pending for e-Verification”.
- You can also check the status of your e-verification by clicking on the “View Returns/Forms” option and selecting the “e-Verification” option.
How Can Kanakkupillai Help You With Income Tax Return Filing Online in India?
Check if you need to document a tax return
For FY 2023-24, you should document an income tax return filing in India if your salary surpasses Rs 2.5 lakh (Rs 3 lakh for those matured 60 years and more). You should likewise record a tax return if excess TDS has been deducted and guarantee a refund. Paper return or e-filing of income tax? If you pay more than Rs 5 lakhs or want a refund, you should file your income tax return online. An exception is made when the taxpayer is 80 years or more seasoned.
Accumulate your Documents for Tax filing
The documents expected to e-file your tax return will differ from case to case. Usually, you would need only Form 16 and Form 26AS. You will require the following:
- Basic details include PAN, Aadhaar number, and bank account details.
- Documents identified with your salary, such as Form 16 or Form 16A
- Form 26AS, which contains data about TDS and advance tax instalments.
Note that the income tax return filing is an Annexureless structure. This implies no supporting records should be sent alongside your tax return. However, do store them cautiously. This will help if the income tax department has any inquiries regarding your tax return.
Upload your Form 16
- Each organisation in India issues Form 16 for every one of its employees, regularly in the most recent seven-day stretches of May and the initial fourteen days of June. You may get them in a PDF or as 2 separate PDFs.
- Part A of Form 16 contains all the company’s TAN and TDS details. Part B contains key data about recompenses such as HRA, LTA, your taxable salary, and deductions you have announced at the time of investment accommodation.
- You should upload them on kanakkupillai.com, and it will naturally peruse your income, deductions, and TDS and pre-fill your income tax submission! Upload Form 16. If you don’t have Form 16, you can, in any case, set up a tax return with only a payslip.
Claim missed out deductions and check if you need to make good on paying tax
You can claim HRA, LIC premium and some other Section 80C expense or deduction you’ve missed. Medical repayments and LTA cannot be claimed. Suppose you missed the investment submission proof deadline in the office while e-recording your return for kanakkupillai.com. In that case, you can claim HRA, LIC premium, and any other Section 80C expense or deduction you missed to tell your organisation. This will bring down your tax liability. Do take note that medical reimbursements and LTA cannot be claimed.
Pay tax on the e-filing website is essential
The tax is determined as you document your tax return. If you have to cover extra tax, you should pay the tax first and afterwards e-file your tax return. Both of these should be done before July 31st. If you don’t pay this tax before July 31st, you will be charged 1% per month (simple interest) on the outstanding tax amount. This interest will be determined from the due date pertinent to you for recording the arrival of the relevant year till the date that you document your income tax return in India.
A 15-digit acknowledgement number will be shown on the screen
After you document your tax return online at kanakkupillai.com, you’ll get an affirmation email from kanakkupillai.com and the income tax preparation department with the 15-digit acknowledgement number.
Send ITR-V or e-confirm your income tax return
When the tax return is e-filed, you can send a 1-page affirmation to the income tax department in Bangalore or e-verify ITR return online within 120 days from the date of e-filing. This should be possible for most Net Banking accounts. Ensure you check the tax returns since the tax department does not handle returns that have yet to be confirmed.
Track a refund in case you’re getting one
The e-filing income tax department gets quicker every year with preparing your tax refunds. Taxpayers can expect to get their refund anyplace between only a little while for a couple of months.
Benefits of Income Tax Return Filing India On Time
Income tax return filing is a crucial activity every taxpayer must do. ITR file online on time is essential for various reasons. Here are the benefits of Itr File Online on time.
Avoiding Late Fees
Filing ITR on time helps in avoiding late fees. You are liable to pay late fees if you miss the due date for filing ITR. The late fee for filing ITR after the due date is as follows:
- A fee of ₹5,000, if the return is filed on or before December 31st of the assessment year
- A fee of ₹10,000, if the return is filed between January 1st and March 31st of the assessment year
File ITR online before the due date is essential to avoid late filing fees.
Claiming Refunds
Timely income tax return filing is essential for claiming refunds. You are eligible for a refund if you have paid more tax than your actual liability. However, if you file ITR on time, you may retain your right to claim a refund. To claim a refund, you must file ITR on or before the due date.
Lowering the Risk of Scrutiny
Income tax return filing on time lowers the risk of scrutiny. Scrutiny is when the income tax department examines the ITR to ensure that the taxpayer has not underreported income or claimed excess deductions. If the department finds any discrepancies, the taxpayer may be scrutinised, which can be time-consuming and stressful. Timely income tax return filing reduces the chances of scrutiny, as the department has a limited time frame to scrutinise the ITR. This reduces the risk of scrutiny and saves the taxpayer from unnecessary stress and anxiety.
Timely Loan Processing
Income tax return filing on time is essential for the loan application process. Many banks and financial institutions require ITR as proof of income when processing loan applications. If you file your ITR online on time, you will have the necessary documents to apply for a loan. However, late income tax return filing may delay the loan application process, as you may need the necessary documents. This can lead to a delay in loan approval and cause inconvenience to the applicant.
Proof of Income
Income tax return filing is an essential document for proving income. It is used by various agencies, such as banks, visa authorities, and government bodies, as proof of income. Timely filing of income tax ensures that you have the necessary documents to prove your income when required. This can be particularly useful when applying for a loan or visa.
Increase in Creditworthiness
Timely filing of ITR increases your creditworthiness. Creditworthiness refers to the likelihood of a borrower repaying a loan. A good credit score is essential for getting loans at lower interest rates. Timely filing of ITR shows that you are a responsible taxpayer and increases your creditworthiness. This, in turn, increases the chances of loan approval and lowers the interest rates.
Ease of Business Operations
Income tax return filing on time is essential for smooth business operations. Many businesses require ITR as proof of income when applying for tenders or participating in government contracts. Timely filing of ITR ensures businesses have the necessary documents to participate in tenders and contracts without delay. This can help businesses avoid unnecessary delays and increase their chances of winning tenders and contracts.
Encourages Financial Planning
Income tax return filing on time encourages financial planning. Timely filing of ITR ensures that taxpayers have a clear understanding of their income and expenses. This can help them plan their finances better and make informed financial decisions. Timely filing of ITR also ensures that taxpayers do not miss out on claiming deductions and exemptions, which can save them money in taxes.
Due Date for Income Tax Return Filing
The due date for Income Tax Filing Return India varies based on the type of taxpayer and their income sources. Here are the due dates for different categories of taxpayers in India:
- Individuals, Hindu Undivided Families (HUFs), and other taxpayers whose accounts are not required to be audited: July 31st of the assessment year (AY).
- Taxpayers must get their accounts audited: on September 30th of the AY.
- Companies and firms (including LLP): September 30th of the AY.
Penalties for not filing an income tax return in India
Late Filing Fees: If you do not file your ITR on or before the due date, you will be liable to pay late filing fees. The amount of late filing fees varies depending on the date of filing. For instance, if you file your ITR after the due date but before December 31st of the relevant assessment year, you will be required to pay 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: In addition to late filing fees, if you do not file your ITR on time, you will be liable 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 do not file your ITR despite receiving notice from the income tax department, you may be prosecuted under section 276CC of the Income Tax Act. If convicted, you can be imprisoned for a minimum of 3 months to a maximum of 7 years and fined. However, prosecution is usually reserved for cases with willful tax evasion or repeated non-compliance.
Loss Of Deductions: Income tax return filing on time is essential to claim deductions and exemptions. If you file your ITR late, you may lose your right to claim deductions and exemptions. This can result in higher tax liability and lower tax savings.
Impact On Credit Score: Not filing ITR on time can also affect your credit score. Banks and financial institutions consider your credit score when processing loan applications. Timely filing of ITR indicates that you are a responsible taxpayer and increases your creditworthiness. Late or non-filing of ITR, on the other hand, can result in a lower credit score, making it difficult for you to get loans at lower interest rates.