E-filing Income Tax return stands for electronically filing your income. There is no legitimate way than filing atax return to justify your income. One can either seek professional help or file the tax return from the comfort of his/her home by registering online on the official website of the Income Tax department.
Online Tax Filingis the most convenient yet the safest way ever. However, one has to follow certain steps while filling tax online.
Here are few simple steps of E file taxes.
Step:1 Enrol Yourself
The first step toward efilling income tax is to register your name on the official website of the Income Tax department by simply visiting incometaxindiaefiling(dot)gov(dot)in . Once you enter the website, you’ll be required to provide your PAN number, name, date of birth. Your PAN will be your user id with a self-created password.
Step:2 Choose Your Preference to File the tax
Usually, two ways are followed to e file taxes. First, is to go to the download section once visiting the official website of income tax department, select the required form, save it on the device, fill the required details offline and lastly, upload the completed form on the website. Secondly, you can fill the online form by choosing ‘quick e-file’ option.
Step 3: Select the Exact Form
You have to select from below-categorised forms as per the requirement to file ITR.
- ITR-1: This form is designed for salaried individuals, those who are earning pensions or income from property or other sources except lottery.
- ITR-2: When earning comes from capital gain. Those who own more than one house but no capital gain, ITR 2A is the exact option.
- ITR 3, 4 and 4S: This is for business owners and professionals.
Step: 4: Keep the Documents Handy
At the time of filing ITR, you’ll need your PAN card, form 16, TDS certificate, investment details, insurance or home loans record, interest statements handy. Also, don’t forget to download 26AS,which further sums up tax paid against your PAN. After that, you can validate the return to check the tax liability.
From this year onwards, an additional column is required to be filled for those who are earning more than Rs. 50 lakh- called ‘AL’ or assets and liabilities, where one has to disclose the value of his/her assets and liabilities.
Step 5: Fill the form and Upload
If you decide to file the return offline, after downloading the form and filled with all necessary details, click on ‘Generate XML’ button. Next, go to the official website and click on the ‘upload XML’ button. Here will be required to log in again to upload the XML file saved on your desktop. Lastly, upload the file and click on submit.
Step 6: The Final Stage-Verification
Once you submit the file, an acknowledgement number will be generated. If you use a digital signature to submit the return, you just need to preserve the acknowledgement number. In case you’ve submitted it without a digital signature, an ITR V is generated which will be sent to your registered and authentic email ID.
The entire efiling tax process is incomplete or invalid until your ITR verification is done. One can electronically verify ITR V or can email the same to the Bangaluru based processing centre within 120 days of filling tax return.
On a Final Note!
Income tax is the cruel reality of income. If choices are given, none wants to pay taxes. But it is important to pay the taxes on time as it is one of the prominent sources of revenue for the government, which in return is being utilised in developmental work.
When we want public infrastructure and other facilities to be advanced, it is our duty to contribute towards it and paying tax and filing tax return is the way to doing so. However, at the time you can legally save on tax if your earning is less than 2.5 lakh in a year.
You can also plan your finance for tax-saving investments such as PPF, ELSS, NPS etc. Also, investing in an adequate insurance plan is another option and the premium paid for the same is exempted from the tax deduction. However, with the financial market is flooded with an insurance plan, it may create confusion at the time you looking for a plan. Here’s why you should always compare the plans on aggregator sites like policybazaar. These websites help you compare the plans in terms of benefits, features or coverage and you finally can take an informed decision. So, invest wisely and save on tax!