Online Income Tax Return Filing in India

India is becoming a digitally advanced country in the current times. From shopping to income tax return filing, everything is done online today. Now, you do not have to go through the hassles of doing paperwork to file ITR. The process of Income Tax Return Filing in India is done on the official portal of new income tax.

It is a simple process to file ITR on the official portal of income tax. There are no fees for filing ITR on the official portal. If you have any doubt in the process of filing ITR online, take the help of a professional accountant. Professionals will look after the full process of ITR filing.

Benefits of Filing (Income Tax Filing) ITR in India

Many salaries people skip filing ITR to save money. Apart from that, some people are also exempted from filing ITR. However, there are many benefits of Online ITR Filing in India such as:

• Solid Address Proof

You can show your Income-tax return as address proof while filing other forms and applications. It also acts as a reliable proof of income earned by you in an office or business.

• No Hassles of Penalty

Every person earning an income above a certain limit must file an income tax return in India. If has or she does not file ITR on time, they must pay a penalty. Timely filing of income tax returns will save you from paying a penalty of INR 5000 or more.

• Builds a Good Image

A person or company who files ITR regularly gains a reputable image in the market. Even other companies will join hands with businesses that have a good image of filing ITR regularly.

• Simple Process of Loan Approvals

The loan is necessary for individuals, businesses, startups, and even large companies. Timely filing of ITR will help you to gain any type of loan quickly. Besides, your ITR will also act as income proof while applying for a business loan or vehicle loan, or home loan.

• Helps to Adjust Losses Against Income

There is one more advantage of ITR Filing in India for salaried employees or businessmen. It helps to carry forward all your losses to the coming years. You can then adjust these losses against your income in the coming years.

Documents Required For Filing ITR in India

These days, you can file ITR online on the income tax portal. While filing ITR, you have to submit the following documents:

1. Copy of Aadhar card
2. PAN card
3. Bank passbook and statement of bank account
4. Home Loan Statement
5. Foreign Income
6. Dividend Income
7. Tax Saving Instruments
8. Rental Income
9. Capital Gains Details

You will also need to file some other documents while filing ITR in India such as:

• Form 26AS

This is a necessary statement to submit while filing ITR. It contains details of taxpayers such as TDS and information on advance tax paid. This form also shows the large transactions carried out by a taxpayer during the year.

• Form 16

Form 16 is nothing but a TDS certificate. It is the first form to be submitted while filing ITR in India. This form is given by the employer after adding salary allowances and deductions together.

• Form 16A

Form 16A is another important document to be submitted during ITR Filing for businesses. It shows TDS on the income of FD and recent receipts. Apart from that, the form also shows TDS on insurance commission or any other such income.

Reasons why to File Income Tax Returns by Individual taxpayers?

There are various reasons for ITR Filing for individuals and ITR for business owners such as:

• ITR is a genuine proof of income and address.
• It helps to get approvals from major banks while applying for any kind of loan.
• ITR will help you to claim tax deductions.
• One can get a quick visa after application by filing ITR regularly.
• You will gain a better image in the market with the regular filing of ITR.

Process of Online ITR Filing in India

The process to File ITR in India is quick and easy. You can do it online from the official income tax site at home or office or any place. The process of filing ITR is as under:

1. The first step is to register on the official site of income tax by entering all the important details.
2. Now, you have to login to the official site of income tax e-filing and click on the option of “Login”.
3. Then you have to write your login ID and password.
4. Now, you have to click on the option of “e-file”. Then you have to click on the option “File Income Tax return”.
5. The next step is to choose the assessment year for which you have to file your ITR. Then click on the option of “Continue”.
6. Then you have to choose the options of filing your return online or offline.
7. There are various options such as Hindu Undivided Family, individual, and others. Choose an option from this list.
8. Now, you have to choose the ITR form from the list.
9. The next step is to choose the reason why you are filing ITR.
10. Now, you have to fill in all the details of your bank account and validate it.
11. You have to check all the details mentioned on the new page and validate them.
12. Finally, you have to verify income tax returns and forward a hard copy to income tax authorities.

Frequently Asked Questions (FAQs)

1. Should I preserve a copy of the ITR filed and for how much time?

Yes, it is necessary to preserve a copy of ITR for 4 to 6 years. However, you can also preserve it for more time.

2. What is the form number for the LIC agent to file ITR?

LIC agents must fill out the form number ITR-3 to file ITR in India.

3. Which incomes under “Capital Gains” are taxable?

Profit on the transfer of capital assets during the year is taxable.