DEPARTMENT OF Commerce Best Practices

SMT. NPS GOVT. COLLEGE FOR WOMENCHITTOOR

DEPARTMENT OF COMMERCE

BEST PRACTICE

e Filing of Income Tax Returns

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Smt.N.P.S GDC for women, Department of commerce has choosen e filling of income tax returns as best practice every year. All the faculty members e filing of income tax returns will be done by the department of commerce faculty, as they are aware of the calculations and subject oriented. The commerce faculty explains how to e file and how to calculate the returns .this is done by Dr.K.Manohar, Lecturer in Commerce, Sri.A.M.Narendra kumar,Sri.B.Purushotham naidu,Lecturer in commerce.

They Are Two Types Of Filling Income Tax Online And Offline

How to Register on e-Filing Portal as Individual Taxpayer

In order to register as an individual tax payer on the e-filing website, you need to follow the steps mentioned below:

Step 1: Visit the official website for income tax e-filing 'https://www.incometax.gov.in/iec/foportal'

Step 2: Click on ‘Register’ button, which is placed at the Right Side of the Home Page.

Step 3: Select ‘Individual’ as the user type

Step 4: Provide all the required details such as PAN number, residential status, etc. Now Click on ‘Continue’

Step 5: Enter all the mandatory details like contact number, current address, etc. Then, Click ‘Submit’

Step 6: Enter the OTP received on registered mobile number

Procedure for E-Filing of Income Tax Return Online

There are a few things that you will have to take care of before you start filing your ITR. Follow the steps mentioned below to e-file your ITR on the updated portal:

Step 1: Calculate your income tax liability on the basis of the provisions prescribed by the Income Tax rules.

Step 2: Refer to your Form 26AS to get a summary of your TDS payment for the different quarters of the assessment year.

Step 3: Determine the category that you will fall under on the basis of the eligibility criteria provided by the Income Tax Department (ITD).

Step 4: Visit the e-filing portal of the income tax department at e-Filing Home Page, Income Tax Department, Government of India.

Step 5: If you are a new user, you can register using the 'Register' button else click on the 'Login' button.

Step 6: Choose the category that you fall under from - individual, Hindu Undivided Family (HUF), and so on.

Step 7: Choose the suitable ITR Form that is applicable to you.

Step 8: Enter the details of your bank account or pre-validate the same if you have already provided the same earlier.

Step 9: You will be redirected to a new web page wherein you will be able to check the pre-filled details of your ITR. Check the details and make changes if required.

Step 10: Once you are sure that all the details provided in the form are correct, confirm the same and validate it.

Step 11: Now, verify the returns and send a hard copy of the same to the ITD.

Eligibility for Income Tax e-Filing

Under the conditions given below, it is mandatory for individuals to file ITR:

Any firm or company must file ITR even if they make a profit or undergo a loss.
In case individuals wish to apply for a loan or a visa.
In case individuals invest in foreign assets or earn from foreign assets.
In case individuals wish to claim a refund from the Income Tax Department.
In case individuals earn an income from house property, etc.

Age of the individuals	Gross annual income (Rs.)
Individuals who are below 60 years old	2.5 lakh
Individuals above the age of 60 years but below the age of 80 years	3.0 lakh
Individuals who are above the age of 80 years	5.0 lakh

If the gross annual income of the individual exceeds the details mentioned in the table below:

Documents Required for Income Tax e-Filing

In case individuals wish to file ITR online, the below-mentioned documents will be required:

The Permanent Account Number (PAN) of the individual.
The Aadhaar number of the individual. The Aadhaar number must be linked with the PAN.
The bank account details (bank account number, IFSC code, and bank branch) of the individual.

In case individuals file their ITR based on their salary, the below-mentioned documents are needed:

Form 16
In case House Rent Allowance (HRA) is being claimed, the rent slips must be given.
Salary Slips

In case individuals wish to claim deductions, the below-mentioned documents are required:

Proof of income such as capital gains income and house property income.
Any details about investments that are liable for deductions.
Details of home loans and insurance
Deposit account and savings account interest certificates.

Income Tax e-Filing Due Dates

Income Tax Returns (ITR) are required to be filed before the deadline that is marked by the Income Tax Department (ITD). The due dates for filing of ITR for different categories of taxpayers for the financial year 2023-24 are

listed in the table below:

New Rules for Income Tax e-filing

A new income tax structure has been imposed under Union Budget 2023. Under the new structure, various tax exemptions will be removed. However, taxpayers have the option to select the new tax regime or the existing tax regime. Under the new tax regime, the tax rates have been lowered.

Consequences of Filing ITR with Only Aadhaar

In case you do not have a Permanent Account Number, you can file your income tax return using Aadhaar. Furthermore, your Aadhaar Card is mandatory when applying for a new PAN. Under the new income tax rules, taxpayers who file their returns using their Aadhaar card will be allotted PAN after their demographic data has been obtained from the Unique Identification Authority of India (UIDAI).

What happens if your Aadhaar and PAN are not linked?

Failure to link your PAN with Aadhaar within the specific date as mentioned by the Central Board of Direct Taxes will prevent you from filing your income tax returns after the specified deadline.

The Government of India has introduced the new rule in order to enhance tax compliance while easing the tax payment process for taxpayers. As of now, it is compulsory for taxpayers to quote their PAN when filing their returns. Going forward, however, it will be compulsory to link your Aadhaar and PAN to file your returns.

How to Check Income Tax e-Filing Status

In order to check income tax e Filing status, you can visit the e-Filing home page of the Income Tax department. There are two ways through which the status can be checked. They are mentioned below:

Using the acknowledgment number
Using login credentials

To check the income tax eFiling status using the acknowledgement number, you need to follow the steps mentioned below:

Step 1: Visit the official portal of the ITD at https://www.incometax.gov.in/iec/foportal

Step 2: Click on ‘Income Tax Return (ITR) Status’.

Step 3: Next, enter the PAN, acknowledgement number, and captcha code and click on 'Submit'

On doing that, the status will be displayed on the screen.

In case, you want to check the status using the login credentials, you will need to login to the e Filing website.
After logging in, on the dashboard you will see the option 'View Returns/Forms'.
There, you need to select income tax returns and assessment year from the dropdown menu and click on 'Submit'. Following that, the status will be displayed.

Benefits of Income Tax Returns e-Filing

The main benefits of e filing Income Tax Returns are mentioned below:

Tracking the status: Individuals who e-file the ITR can easily check the status online. Earlier, it was time-consuming to check the status and the status would only be sent by post. However, e-filing ITR enables the individual to check the progress of the application with ease.
Processing of refund: In case individuals e-file their ITR, the process to receive the refund is easy and is much quicker. Earlier, the refund process was not very convenient and was very time-consuming. However, individuals can update the bank details online and receive the refund much quicker.
Reduction of errors: Due to the number of calculations that must be made when computing ITR, it is common that errors are made. However, when e-filing ITR, there is a mechanism where the computation of ITR is done by the system, therefore reducing the number of errors.
E-Verification: The verification of ITR can be done online if individuals e-file their ITR. Earlier, the ITR would have to be sent to the CPC in Bengaluru.
Convenient: The process of e-filing ITR is very convenient, easy, and the process takes very less time. Earlier, the process to file ITR was very tedious as individuals had to visit the Income Tax Department. However, the process to e-file ITR can be done from the comforts of an individual’s home.
Access to documents: In case individuals e-file the ITR, they will have to upload the necessary documents online. Therefore, individuals will be able to view the documents at any given time. The manual process of e-filing ITR does not provide such benefits.
Compilation of records: Earlier, individuals were required to fill many forms in case they wanted to file the ITR. The process to fill the forms was very complex as well. However, e-filing ITR removes the complexity of the process as all the data is auto-populated during the initial process and the ensuing steps become very simple.
Cost-efficient: In case individuals wish to file their returns manually, they might have to hire a professional to compute their returns. This could cost money in case they wish to hire a professional. However, individuals could do away with these expenses in case they e-file their ITR as the computation can be done online.
Receipt of proof: Individuals who e-file their ITR will receive a receipt at the time of filing returns and once returns have been filed as well. The receipt will be sent via email.
Electronic banking: The process to make payments and refunds is simple. It can be done via direct debit for the payment of tax and direct deposit for the receiving of refund. There are options available where investors can file their returns now and make the payment at a later date as well. Taxpayers can choose the day when they would like the payment to be made.

Penalty for Late Income Tax e-Filing

In case, you miss ITR filing within the specified deadline, the Central Board of Direct Taxes (CBDT) imposes a penalty. The following are the consequences of filling ITR after the deadline:

Under Section 234A the taxpayer will have to pay interest at a rate of 1.00% per month or for a part of the month on the tax amount which is unpaid.
Late of Rs.5000 will be charged under Section 234F, and it will Rs.1000 for those with income less than Rs.5 lakh.
Belated returns can be filed after the due date of ITR filing for the losses incurred from the properties, or any of your businesses, stock market, mutual funds, etc.

E filing by Sri. Dr.K.Manohar, Lecturer in commerce for the financial year of the faculty member 2019-20.