Income Tax Returns Online – Income Tax Act 1961. In this article, we are going to provide information about Income Tax Returns Online – Income tax Act 1961. Know about how to file Income tax Returns online & benefits of Filing Income Tax Return Online.Tax is a central element to the revenue generation system of the Indian government. Among the multiple taxes present in the system, income tax is the one that deals with the taxation of the earning of every individual, firm or organisation in a financial year. The earning or income could be in the form of regular wages, dividends, interest, capital gains or any other profits.
File Income Tax Returns Online – E-filing of Income Tax Returns
Further to the different forms available for filing tax returns, there are a few things that become a prerequisite to filing for an income tax return online. They are –
- Bank statements
- Form 16
- Copy of the previous year’s return
Having the documents ready, the following steps need to be observed to allow for a smooth filing of income tax return online. The URL that needs to be followed is e-Filling.
The steps further to Income tax Returns Online
- Registration – The Permanent Account Number (PAN) is the user ID
- Tax Credit Statement (Form 26AS) – This needs to be checked for the previous financial year. This will list all the taxes deducted that are actually deposited with the Income Tax Department.
- The Tax Deducted at Source (TDS) of the Form 16 should tally with the ones in Form 26AS
- Tax Return for the current year – Under the ‘Download’ menu, click on Income Tax Return Forms and choose the current financial year. The appropriate ITR form should be downloaded. There is an option to complete the process on the portal itself, through the ‘Quick e-file ITR’ link
- Return Preparation Software – It is a spreadsheet that can be used through Microsoft Office, Open Office or other online spreadsheet applications and it should be filled in using the details from Form 16
- Find out the tax payable by clicking the ‘Calculate Tax’ tab. If applicable, pay the tax and fill in the details of the challan in the tax return
- Confirm all the information through the ‘Validate’ tab
- Generate an ‘XML file’ and save it on your local disk on the computer
- Upload Return – After selecting the current financial year in the ‘Upload Return’ link on the portal’s left hand navigation area, select the XML file that had been saved earlier. There might be an option to digitally sign the file. In case you have a digital signature, choose ‘Yes’ else ‘No’
- ITR – V – If the process of filing has been completed successfully, the website will flash an appropriate message and you will be able to download the acknowledgement form, the ITR-V
- A printed copy of the ITR-V needs to be signed by you and sent to the Income Tax Department office nearest to you through normal or Speed Post within 120 days of filing the return
Apart from the official site operated by the Government of India, there are many private portals that allow filing of returns and charge a specific fee depending upon the service level they offer.
Benefits of Filing Income Tax Returns Online
Though it might be a tedious process to keep a track of every nifty detail needed in order to file the proper details for the Income Tax Return, it actually helps a lot when it is done in the earnest and ahead of time, preferably, online –
- Online filing of returns ends by July 31 or every financial year, and being a month or two in advance in filing the income tax returns actually ensures one encounters lesser traffic and the entire process goes much smoother.
- In case one has missed filing tax returns for the previous year, every additional day till July 31 increases the penal interest. Thus, filing a tax return in advance is very advisable.
- Creating a favourable financial history – Online filing of the income tax returns actually creates a history of your financial records with the tax department in a much faster and easier way. This history is favoured by a lot of organisations, be it financial or otherwise, whom you might have a business relationship with in the future.
- Proof of financial record – Having an ITR-V form is always handy, since one can readily furnish the same as a proof for any kind of financial liability or opening a line of credit.
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