Individuals whose total income during the previous year exceeds the maximum amount not chargeable to tax should file their ITR or income tax returns, according to Section 139 (1) of the Income Tax Act, 1961 of India. The process of these individuals filing their income tax forms online is known as e-filing. As a taxpayer, you have the option of seeking professional assistance or filing your returns yourself by registering on the IRS website or other relevant websites. While the deadline for filing tax returns is July 31st each year, the government may grant a grace period of 15-30 days to file them online or in person.
Also Read: Income Tax Return Filing
Various types of e-filing
Here are the several options for e-filing your income tax returns:
- To e-file your tax returns, you’ll need a Digital Signature Certificate, or DSC. A chartered accountant has made it essential to file IT forms using a Digital Signature Certificate (DSC).
- You can also e-file IT returns through an E-return Intermediary (ERI) with or without a DSC as a taxpayer.
Parties that file income tax returns
Most assessees can file tax returns online because it is an easy process.
- Assessee with a total income of more than Rs. 5 lakhs.
- Individuals/HUFs residing in India with assets located outside the country.
- An assessee is required to file returns under section 139 (4B) of the Internal Revenue Code (ITR 7).
- The assessee must give the assessing officer a notification under Section 11(2) (a).
- A person who is a resident of India who has signing power over any account outside of India.
Documents needed to file a tax return
It’s always a good idea to be prepared before filing your taxes, whether online or in person. The information included below can be used as a checklist to get you started with e-filing tax returns.
Details that would be required in general
- Details of your bank account
- PAN Number
Salary income must be reported.
- Receipts for rent that can be used to claim HRA
- Form 16
- Pay slips
Income from a house is required to be reported.
- The address of the residence
- Details of the co-owners, including their portion of the property and their PAN numbers
- Interest on a house loan certificate
- If you bought a property that was still under construction, this is the date it was finished.
- If the property is rented, the tenant’s name and rental income
Capital gains must be reported.
- If there are capital gains from selling the shares, a stock trading statement with purchase details is required.
- If you sell a house or property, you must obtain the sale price, purchase price, registration information, and capital gain information.
- Purchase and sale of equity and debt mutual funds, as well as SIPs and ELSS, are all detailed in mutual fund statements.
Other sources of income must be reported.
- The interest income is reported. Bank account statements are necessary if interest has accrued in a savings account.
- Interest earned on tax-exempt and corporate bonds must be declared.
- The details of post office deposit income must be provided.
Things to remember while e-filing
When submitting your income tax forms online, there are a few things to keep in mind. Here’s a complete list of everything:
- If the name on your bank documents or official statements differs even slightly from the one on your PAN card, the site will treat you as a whole different person. Some taxpayers use their father’s name on their PAN card as their middle’ name, but not on their bank accounts.
- If more than four taxpayers use the same mobile number or email address, you won’t be able to file returns on the internet unless the required modification is made. For example, you, your wife, your mother, your father-in-law, and the Hindu undivided family (HUF) of whom you are the Karta or executor of a will may have to file more than five returns.
- You’ll need both an India number and a foreign number if you’re a non-resident Indian who wants to file income tax returns.
Suggested Read: Income Tax Advisory Services