The Income Tax is a tax that levied to the taxpayers on their personal income. It is imposed on every individuals or entity that varies with their respective income or profits. As per the section 139 (1) of the Income Tax Act 1961 in the country, if a person’s total income exceeds the maximum amount which is not chargeable to tax has to file an ITR (Income Tax Return).
The process of filing an Income Tax Return electronically is called as e-filing. For filing an ITR, you can either ask for professional help or file your returns just by registering yourself on the Income Tax Department websites or other websites. The last date for filing the tax returns was July 31st.
Contents
Who should e-File an Income- Tax Return
The e-filing is done completely online and is performed by most of the individuals.
- The Individuals who have a total income of Rs 5 Lakhs and above.
- The Individual/ HUF residents along with the family who is located outside India.
- An individual has to furnish a report of an audit specified under the sections 10 (23C) (IV), 10 (23C) (v), 10 (23C) (VI), 10 (23C) (via), 10A, 12A (1) (b), 44AB, 80IA, 80IB, 80IC, 80ID, 80JJAA, 80LA, 92E or 11JB of the Act.
- The individual also has to give a Notice under the Section 11 (2) (a) to the assessing officer.
- A firm (that does not come under the provisions of Section 44 AB), AOP, BOI, Artificial Juridical Person, Co-operative Society and Local Authority (ITR-5).
- An individual required to furnish returns U/S 139 (4B) (ITR-7).
- A resident who has the signing authority in any account located outside India.
- A person who claims relief under sections 90 and 90A or deductions under section 91.
- All companies.
Types of e-Filing
- Using a Digital Signature Certificate (DSC) to e-file. It is mandatory to file the IT Forms using the Digital Signature Certificate by a chartered accountant.
- If you are filing an ITR Form without DSC, then you have to generate an ITR-V Form. This form has to be printed, signed and submitted to the CPC, Bangalore through an ordinary post or speed post within 120 days from the date of e-filing.
- You can also file an e-file IT Returns through an E-Return Intermediary (ERI) with or without DSC.
Checklist for e-Filing IT Returns
There are a few prerequisites to file your taxes in smoother and easier way. Below are the major points that have been highlighted below:
- How to choose a right form to file your taxes electronically.
- It can be a bit confusion to choose which type of form one should use to file the taxes online. The different categories of Income Tax Return (ITR) forms are:
|
ITR 1 (SAHAJ) |
Individuals with income from salary and interest |
|
ITR 2 |
Individuals and Hindu Undivided Families not having income from business and profession. |
|
ITR 3 |
Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship. |
|
ITR 4 |
Individuals and HUFs having an income from proprietary business or profession. |
|
ITR 4S (SUGAM) |
Individuals/ HUF having income from presumptive business. |
|
ITR 5 |
Firms, AOPs, BOIs and LLP |
|
ITR 6 |
Companies other than the companies claiming exemption under Section 11. |
|
ITR 7 |
Persons including the companies required to furnish return under the section 139 (4A) or Section 139 (4B) or Section 139 (4C) or Section 139 (4D) |
- Check your Tax Credit- Form 26AS Vs Form 16
The Form 26 AS can be checked before filing the tax returns. Form 26 AS shows the amount of tax that is deducted from your salary and deposited by the IT Department by your employer. Make sure that the tax deducted from your income should match with the amount that you have entered in Form 26 AS. If your form does not consist of any errors then you will receive a notice from the IT Department.
- Claim 80 G, Savings Certificates and Other Deductions:
You can claim extra deductions in case if you have to claim them. Similarly, you can also claim deductions under 80 G on donations made to charitable institutions.
- Interest Statement- Interest on Savings Accounts and Fixed Deposits.
A Deduction up to Rs 10, 000 is allowed on the interest earned on the savings accounts. The interest that is earned on the bank deposits, form a part of your taxable income and is taxable to the applicable income tax slab rates.
- Including other documents: [Last Year’s Tax Returns, Bank Statements, Tax Deducted at Source (TDS) Certificates, Profit and Loss account Statements, Balance Sheet and Audit Reports, if applicable.
- Ensure that your system adapts the latest Version of Java Runtime Version 7 Update 6 or above.
List of the Documents that are required while e-Filing an ITR
The Document check-list for e-filing an ITR are as follows:
General Details
- Bank account details
- PAN Details
Reporting Salary Income
- Rent receipts for claiming HRA
- Form 16
- Pay Slips
Reporting House Property Income
- Address of the house property
- Details of the co-owners including their share in the mentioned property and PAN Details.
- Certificate for Home Loan Interest.
- Date when the construction was completed, in case under construction property was purchased.
- Name of the tenant and the rental income, in case he property is rented.
Reporting Capital Gains
- Stock trading statement is required along with purchase details if there are a capital gains from selling the shares.
- In case a house or a property is sold, you must sought sale price, purchase price, details of registration and capital gain details.
- Details of the mutual fund statement, sale and purchase of equity funds, debt funds, ELSS and SIPs.
Reporting Other Income
- The income from the interest is also reported. If the interest is accumulated in the savings account then you need to have your bank statements as well.
- The interest income from the tax saving bonds and corporate bonds must be reported.
- The income details are earned from the Post Office and must be reported.
Income Tax Slab Rates
The Income Tax Slab Rates for the Financial Year 2017-18 and for an Assessment Year 2018-19
(As Declared in the New Budget)
For the Individuals and the Hindu Undivided Family (whose age is less than 60 years):
|
Income Tax Slab |
Tax Rate |
|
Up to Rs 2, 50, 000 |
NIL |
|
Above Rs 2,50, 000 and up to Rs 5, 00, 000 |
5% |
|
Above Rs 5, 00, 000 and up to Rs 10, 00, 000 |
20% |
|
Above 10, 00, 000 |
30% |
Note:
- 10% of the tax will be imposed as the surcharge in case the total income lies between Rs 50 Lakh and Rs 1 Crore.
- 15% of the tax will be imposed as the surcharge in case the total income is above Rs 1 Crore.
For the Individuals and HUF (whose age is 60 years and more and less than 80 years:
|
Income Tax Slab |
Tax Rate |
|
Up to Rs 3, 00, 000 |
NIL |
|
Above Rs 3, 00, 000 and up to Rs 5, 00, 000 |
5% |
|
Above Rs 5, 00, 000 and up to Rs 10, 00, 000 |
20% |
|
Above 10, 00, 000 |
30% |
Note:
- 10% of the tax will be imposed as the surcharge in case the total income lies between Rs 50 Lakh and Rs 1 Crore.
- 15% of the tax will be imposed as the surcharge in case the total income is above Rs 1 Crore.
For Super Senior Citizens (Age- 80 years and more):
|
Income Tax Slab |
Tax Rate |
|
Up to Rs 5, 00, 000 |
NIL |
|
Above Rs 5, 00, 000 and up to Rs 10, 00, 000 |
20% |
|
Above Rs 10, 00, 000 |
30% |
Note:
- 10% of the tax will be imposed as the surcharge in case the total income lies between Rs 50 Lakh and Rs 1 Crore.
- 15% of the tax will be imposed as the surcharge in case the total income is above Rs 1 Crore.
Income Tax Slab rates for Year 2016-2017
For Individuals and HUF (Age- Less than 60 years):
|
Income Tax Slab |
Tax Rate |
|
Up to Rs 2, 50, 000 |
NIL |
|
Above Rs 2,50, 000 and up to Rs 5, 00, 000 |
10% |
|
Above Rs 5, 00, 000 and up to Rs 10, 00, 000 |
20% |
|
Above 10, 00, 000 |
30% |
Note:
12% Surcharge is imposed in case of the total income above Rs 1 Crore.
For the Senior Citizens (Age- 60 years and above, but less than 80 years):
|
Income Tax Slab |
Tax Rate |
|
Up to Rs 3, 00, 000 |
NIL |
|
Above Rs 3, 00, 000 and up to Rs 5, 00, 000 |
10% |
|
Above Rs 5, 00, 000 and up to Rs 10, 00, 000 |
20% |
|
Above 10, 00, 000 |
30% |
Note:
12% surcharge is imposed in case the total income is above Rs 1 Crore.
For Super Senior Citizens (80 years and above):
|
Income Tax Slab |
Tax Rate |
|
Up to Rs 5, 00, 000 |
NIL |
|
Above Rs 5, 00, 000 and up to Rs 10, 00, 000 |
20% |
|
Above Rs 10, 00, 000 |
30% |
12% of surcharge is imposed if in case the total income is above Rs 1 Crore.
Income Tax Return Due Date
The due date of the ITR Filing for the Hindu Undivided Family (HUF), Individuals, AOP (Association of Persons), BOI (Body of Individuals) is usually 31st July of the next Financial Year.
Like for an Example: The ITR Due Date for the Financial Year 2017-18 will be 31st July 2018.
How to File e-Returns
- Fill in the Income Tax Returns Offline and upload it in the XML Format on the Official website: IncomeTaxIndiaeFiling.gov.in
- Prepare and Submit the ITR Online.
Steps to Follow While Filing an Income Tax Return
Filing for an Income Tax Return online is not a tuff task. Just follow the below steps and file your ITR Online:
- Firstly log in to the IncomeTaxIndiaeFiling.gov.in and register yourself.
- Note: Your Permanent Account Number (PAN Number) is your User ID.
- You can view your tax credit statement on Form 26 AS. The TDS as mentioned in the Form 16 must be tallied with the figures in Form 26AS.
- Click on the Income Tax Returns Forms and select on the Financial Year.
- Download the ITR Form that is applicable to you. If the exempt income exceeds Rs 5000, then the required form id ITR-2. (If the applicable form is ITR-1 or ITR- 4S you can complete the process on the portal itself by using the “Quick e-file ITR” link.
- Open the Excel Utility- it is a downloaded return preparation software. Fill in the details using the Form 16.
- Check the tax payable amount by clicking the “Calculate Tax” tab.
- Pay the tax (if required/applicable) and fill in the Challan Details.
- Confirm all the data that is provided in the worksheet by clicking the “Validate Tab”.
- Generate the XML File and save it on your Desktop.
- Go to the “upload return” on the Portal’s panel and upload the saved XML File
- A pop-up is displayed asking you to “Digitally Sign the File”. if in case you already have a digital signature select the “Yes” option and if you do not have a digital signature then select the option “No”.
- An acknowledgement form, ITR Verification (ITR-V) is generated which you can easily download.
- Take a printout of the form ITR-V and sign it in Blue Ink.
- Send the form by ordinary or speed post to the Income-Tax Department-CPC, Post Bag, Bangalore 560 010, Karnataka within 120 days of filing your returns online.
Steps to File ITR-1 and ITR-4S Online
Steps to prepare and Submit ITR-1 and ITR-4S (Sugam) online:
You have the option to submit ITR-1/ITR 4S forms by uploading in XML Format or by online submission.
- Login the e-filing application.
- Go to the “e-File prepare” and submit ITR Online
- Select the Income Tax Return Form ITR-1/ITR-4S and the assessment year.
- Fill in the details and click on the submit button and choose DSC (Digital Signature Certificate) (if available). Then click on the submit option.
- After the submission, the acknowledgement details are displayed.
- Click on the below link to view and generate a printout of the acknowledgement/ ITR-V Form.
For using a DSC, you need to register in the e-filling application. You can do it by logging in on the e-filling website of the IT Department and update the profile section. Under the Profile settings, you have to select the register digital signature certificate ad download the ITD e-Filing DSC Management Utility. This utility can be used to generate the DSC File.
Use of the Private Portals
You can also make use of the other websites to file your Income Tax Returns Online. These portals charge fees around (Rs 250-300) depending upon the kind of the services they provide.
Things to Keep in Mind While e-Filing
- If the same mobile number is used by more than four tax payers, then you cannot file returns on the website unless the required change is done. Like for an example: in some instance, there are more than five returns that may be filed- yours, wife’s, mother-in law and the Hindu-Undivided Family (HUF) of which you are the Karta the executor of the will.
- If your name is mentioned in the bank documents or the Official statements is a slight different from the name entered in the PAN Card, then the Portal will consider as a different individual. In some cases, the individual gives his/her father’s name as their middle name in their PAN Card but is not used in the Bank Accounts.
- If you are a non-Indian Resident and need to file the Income Tax Returns, then you will require an India Number and a Foreign Number.