1. What is ITR (Income Tax Returns) ?
Income Tax Return is a form for file information about gross income of taxpayers from different sources to Income Tax Department, claiming tax deductions, return extra paid of tax, claiming donations etc. The Income Tax Department has provided 7 various forms i.e. ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 and ITR-7. A taxpayers should file his ITR on or before due date of every Assessment Year. Online e-filing facilities are available on the e-portal of the Income Tax Department ( https://www.incometaxindiaefiling.gov.in ).
2. Which ITR form to file ?
ITR-1: Individuals having income below 50 lakhs from:
⇒ Other sources
⇒ House Property
⇒ Agricultural income up to Rs. 5000
ITR-2: Income from :
⇒ Every income above 50 lakhs
⇒ Capital gain
⇒ Foreign Income/Foreign asset
⇒ More than one house property
ITR-3: Income From :
⇒ As a partner in a firm
⇒ Presumptive income > 50 lakhs
ITR-4: Every income from ITR-1 presumptive income under :
⇒ Other sources
⇒ One house property
Total income above 50 lakhs from above sources.
ITR-5: Applicable to :
⇒ Association of persons (AOPS)
⇒ Artificial Juridical person (AJP)
⇒ Body of Individuals (BOIS)
⇒ Limited Liability Partnership (LLPS)
⇒ Business Trusted
⇒ Investment Fund
ITR-6: Companies not claiming exemption under Sec. 11. This return has to be filed electronically only.
ITR-7: The persons including companies required to file return under section 139(4A)/ section 139(4B)/ section 139(4C)/ section 139(4D)/ section 139(4E)/ section 139(4F).
⇒ Under section 139(4A) is required to be filed by every person in receipt of income derived from property held under trust or other legal obligation wholly for religious purposes.
⇒ Under section 139(4B) is required to be filed by a political party if the total income without giving effect to the provisions of section 139(4A) exceeds the maximum amount, not chargeable to income-tax.
⇒ Under section 139(4C) is required to be filed by every –
- Scientific research association;
- News agency ;
- Association or institution referred to in section 10(23A);
- Institution referred to in section 10(23B);
- Fund or institution or any hospital/medical institution or university.
⇒Under section 139(4D) is required to be filed by every university, college or other institution, which is not required to furnish return of income or loss under any other provision of this section.
⇒ Under section 139(4E) must be filed by every business trust which is not required to furnish return of income or loss under any other provisions of this section.
⇒ Under section 139(4F) must be filed by any investment fund. It is not required to furnish return of income or loss under any other provisions of this section
3. Online ITR e-filing Procedure:-
The procedure of e-filing of Income Tax Return is very simple. Follow the below mentioned procedure to e-file :-
Step-1 ⇒ Register on ITR portal https://www.incometaxindiaefiling.gov.in
Click on “register yourself” button and follow the below steps:
- Select user type
- Provide details as per your PAN.
- Fill up the registration form.
- Complete the verification process through e-mail and mobile no.
- Registration successfully.
After registration, you can use your PAN as User Id and password which is create during registration process.
Step-2 ⇒ Login on ITR portal:
After registration, you should click on login button. The Income Tax Department has provided 02 (two) types of login button i.e. e-filing lite and Portal login. Always select Portal login (my recommended) and follow the below steps:-
- Login to e-filing website with User Id, Password, Date of Birth and captcha.
- Must check your 26 AS form (tax credit).
- Go to e-file menu and click on Income Tax Return.
- Then choose Assessment Year, ITR form and submission mode (Prepare and submit online).
- Click on continue button and read the General Instructions which is very important for file ITR.
- Then go to all pages i.e. (Part A Information, Computation of Income Tax, Tax Details, Taxes paid and verification & Donations ) and fill with carefully.
- You should select the verification option – “I would like to e-verify later within 120 days from the date of filing.
- Click on preview & submit button then check your details as you have filled already.
- Save XML/PDF file for future requirement and click on submit button. Submitted successfully.
On successful submission, e-verify option would be displayed. Then click on e-verify link and select e-verification option as your choice. You should complete the verification process.
On successful submission, You should go to My Account page and select e-verify Return. Then click on e-verify link which is highlighted at right side and should be completed the verification process. After that, you may print/download the acknowledgement.
On successful submission, ITR-V also will be sent to the registered email. The ITR-V form should be printed, signed and submitted to ” Centralised Processing Centre, Income Tax Department, Bengaluru-560500” through speed post/General post within 120 days from the date of e-filing.
The ITR e-filing procedure is completed. You may logout from e-filing website.
4. Refund of Tax:-
If you have paid an extra tax amount than what is computed by the Income tax Department, they are eligible to receive a refund an extra amount. It is important that, at the time of e-filing mentioned the correct bank details to prevent any delays for receive the refund. Within one month, you will get refund amount. Please check your bank account periodically for refund amount.