Very often we find ourselves stumbling upon questions regarding procedural filing of Income Tax Returns. Here’s a simple guide to what one needs to know about it and how to go about the same.
By: Nasheet Hamdulay, 1st Year Student (3 Year L.L.B) from ILS Law College, Pune.
What is ITR?
Income Tax Return is the form in which the assessee files information about his Income and tax thereon to Income Tax Department. ITR Forms range from ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6 and ITR 7.
Forms & their applicability:
There are two ways you can file your Income Tax Return (ITR). One is to download the applicable IT form, fill, save and then upload it. Another is filing the form online. Only ITR 1 and ITR 4 forms, filed by the individual taxpayers, can be filled online without downloading any software.
Following is a list of documents to be kept handy while filing an ITR:
- Form-16, Form-16A, Form-16B, Form-16C
(Form-16 is a TDS certificate issued to you by your employer to provide details of the salary paid to you and TDS deducted on it, if any.
If TDS is deducted on the payments other than salaries such as interest received from fixed deposits, recurring deposits etc. over the specified limits as per the current tax laws, your bank (in this case) will issue you Form-16A providing you the details of the amount of TDS deducted.
On the other hand, if you have sold your property, then the buyer will issue you Form-16B showing the TDS deducted on the amount paid to you.
If you are a landlord earning rental income, then you should ask your tenant to provide you Form-16C for providing the details of TDS deducted on the rent received by you.)
- Salary slips
- Interest certificates from banks & post office
- Form 26AS
(Form 26AS is your consolidated annual tax statement. This is like your tax passbook which has information of all the taxes that has been deposited against your PAN.)
- Tax Saving Investment proofs
- Deductions under section 80D to 80U
- Home Loan Statement from Bank/NBFC
- Aadhar Card
Steps to file an ITR online:
- Collect the aforesaid mentioned documents.
- Create an account on the e-filing website www.incometaxindiaefiling.gov.in
- Download and check Form 26AS
You can download Form 26AS from the TRACES website. To download it, login to your account on the e-filing website, click on ‘My Account’ tab and select ‘View Form 26AS’. The website will redirect you to the TRACES website to view and download the same.
- Rectify the errors in Form 26AS, if any
If the amounts shown in the TDS certificates (Form-16, Form-16A etc.) and Form 26AS do not match, then you must take up the matter with your deductor to get the errors rectified.
- Compute total income for the financial year
Total income is computed by adding incomes from five different heads and claiming all the relevant deductions allowed under the Income-Tax Act and setting off losses, if any.
- Compute your tax liability
After computing your total income, you have to calculate your tax liability by applying the tax rates in force for as per your income slab.
- Calculate final tax payable, if any
Once you have computed your tax liability in the earlier step, deduct the taxes that have been already paid by you through TDS, TCS and Advance Tax during the year. Add interest, if any, payable under sections 234A, 234B and 234C.
- File income tax return after all taxes are paid
- Verification of ITR
The last step of ITR filing process is verification. There are 6 ways to verify your ITR. Out of this, 5 are electronic methods and one is physical verification.
- E-Verification Acknowledgment
If you verify your ITR using an electronic method, then you will immediately receive the confirmation from the tax department regarding verification of your ITR. If you have sent ITR-V via post to the I-T department, they will send you an email confirming that your ITR-V has been received by the I-T department, i.e., your return stands verified. The email will be sent to the email address you have registered in your e-filing account on the income tax department’s e-filing website.
- IT department will process return after verification.
Once the return is processed, the IT department communicates the same to you via email to your registered email ID.
Steps to file an ITR offline:
- Go to the income tax e-Filing portal www.incometaxindiaefiling.gov.in
- Download the appropriate ITR utility below ‘downloads > IT return preparation software’.
- Extract the downloaded utility ZIP file.
- Open the utility from the extracted folder.
- Enter the applicable and mandatory fields of the income tax returns form.
- Validate all the tabs of the ITR form and then, calculate the tax.
- ‘Generate’ and then ‘save’ the XML.
- Log in to the e-filing portal by entering user ID (PAN), password, captcha code.
- Now, press the ‘e-file’ menu and then click on the link ‘income tax return’.
- You have to do the mentioned on the income tax return page –
- PAN will be auto-populated
- Choose ‘assessment Year’
- Choose ‘ITR form number’
- Choose ‘filing type’ as ‘original/revised return’
- Choose ‘submission mode’ as ‘upload XML’
11. Select any one of the mentioned options to verify the ITR
- Digital signature certificate (DSC)
- Aadhaar OTP
- EVC using pre validated bank account details
- EVC using pre validated D-mat account details.
- Already generated EVC through my account. Generate an EVC option or bank ATM. The validity of such EVC is 72 hours from the time of generation
- I would like to e-verify later. Please remind me.
- I don’t want to e-verify this income tax return and would like to send signed ITR-V through normal or speed post to ‘centralized processing centre, income-tax department, Bengaluru 560500″
12. Press ‘continue’
13. You have to attach the ITR XML file.
14. On selecting
- DSC as verification option: Attach the signature file generated from DSC management utility.
- Aadhaar OTP as verification option: Enter the Aadhaar OTP received in the mobile number registered with UIDAI.
- EVC through a bank account, D-mat account or bank ATM as verification option: Enter the EVC received in the mobile number registered with the bank or D-mat account respectively.
- Other two verification options: The ITR will be submitted but the process of filing the ITRs is not complete until it is verified.
The submitted ITR has to be e-verified later by using ‘my account > e-verify return’ option or the signed ITR-V should be sent to CPC, Bengaluru.
15. Then, ‘submit’ the ITR.
16. To view the uploaded ITRs, visit www.incometaxindiaefiling.gov.in