Our busy lives and highly demanding jobs can make day-to-day errands quite burdensome. Filing income tax returns, for example, requires an ample of our precious time and often interrupts business.
Thankfully, the internet has salvaged us all. With the help of technology, we can now file online income tax returns at the click of a button!
What Is An Income Tax Return?
A Tax Return is a form or a set of forms that help citizens log their incomes in and file income tax returns with the requisite authoritative body. For salaried individuals In India, form no. 16 is used to file income tax to the Income Tax Department, Government of India.
What Does Filing An IT Return Ensure To The Taxpayer?
By filing tax returns, taxpayers are allowed to calculate the liability for their taxes. Besides that, they can also cancel certain payments and even request for refunds.
Do You Have to File An Income Tax Return?
The Government of India has laid down rules for various categories of citizens as follows for filing income tax return:
Category Age - Group Gross - Total Income
General - Citizens below 60 Yrs - More than Rs. 2,50,000/-
Senior Citizens - Citizens above 60 yrs but below 80 yrs - More than Rs.3,00,000/-
Super Senior Citizens - Citizens above 80 Yrs - More than Rs. 5,00,000/-
Besides that, the following categories of organizations and individuals are also required to file income taxes:
• Any Company or Firm in India
• Individuals seeking income tax returns
• Resident and Signing Authority to a foreign account
• Recipient of income generated from properties under charity, religion, medicine, research, new agency, education, etc.
• A proof of ITR filing is also a pre-requisite for visa verification or for applying for loans
Here's Why You Should File Your Income Tax Return Online
Filing ITR online has made procedures simple and transparent. It comes as a welcome improvement in the Income Tax department. With the advent of online income tax, the number of ITRs filed have reportedly increased. The IT Department plans on making the online income tax fully-fledged for as more citizens join.
It is mandatory to file online tax returns if your cause is any of the following:
• Taxable income stands at more than Rs. 50,00,000/-
• Claiming an income tax return
• Some ITRs like 3,4,4S,5,6,7 are to be filled online compulsorily
Under special circumstances, individuals above the age of 80 can be allowed to file paper returns.
Online Income Tax Filing Is Efficient
Paperwork at the Income Tax Department can be cumbersome and complicated. Opting for the online income tax return filing ensures efficient and fast work at the comfort of your smartphone.
No More Complications
All forms with their instructions and general information are methodically arranged in the website's dashboards, which make it highly simple to access.
Avail Tax Deductions
The internet is an ocean of information. While E- filing your tax return, you can compare policies and rates online. This will help you claim deductions on your income tax.
How Should You E-file Your ITR?
Filing income tax online is fairly easy. The Official website of the IT Department provides access to users. Users can then register themselves and carry out proceedings:
• You must possess a valid email ID and mobile number for registration and further communication with the IT department
• You must then enter your identification details like PAN number, password, DOI, and the secret captcha
• Once logged in, a dashboard will be visible to you on which you select the "e-file" tab
• Click on the option: "Prepare and submit ITR online."
• Thereafter, you select the year of assessment and the ITR form for which you want to file the returns
• Prior to submitting, carefully read the "general information" and "instructions" on the form
• You must then fill the subsequent tabs for tax paid, tax details, 80G, and verification
• Preview and submit your form
• Verify your return via means such as digital signature, Aadhar OTP, Or electronic verification.
Penalty for Non-filing of Income Tax Return
A penalty worth Rs. 5,000 may be levied from anyone who has not filed his income tax return, as per section 271F.
A penalty of Rs. 10,000 can be levied for late tax return filing 2017-18(31st December 2018-31st March 2019)
Citizens with income up to Rs. 5,00,000 are limited to penalties worth Rs. 1000.
What Documents are required for claiming deductions while filing online income tax returns?
• Children's school tuition fee
• Provident fund contribution
• Premium payment of life insurance
• Charges on registration and stamp
• Mutual fund investments
• Principal repayment of home loan
Are Non-residential Indians obligated to file Income Tax Returns in India?
For NRIs, any income above Rs. 2,50,000/- earned or procured in India is taxable. They can file online income tax returns with prerequisite documents.
Want to make your startup journey smooth? YS Education brings a comprehensive Funding Course, where you also get a chance to pitch your business plan to top investors. Click here to know more.