Guidelines for Income Tax Efiling : As given u/s 139(1) of the Income Tax Act, 1961 all those individuals whose total income in the previous year exceeds the maximum amount of limit not chargeable to tax, then they should file their income tax return also known as ITR for that previous year in the current year.
All the individuals can file their income tax returns electronically this process is known as e-filing. Individuals can hire any professional to file such return or even they can do it by themselves from home over the income tax department site. The due date for individuals to file their income tax returns either through online mode or physically is 31st July of every year.
Who should all efile their income tax returns?
Most of assesses these days file their return online through e-filing as this method is very easy and convenient than the physical method. These include
- All those assessees whose total taxable income is equal or greater than 5 lakhs.
- For all the individuals/HUF residents having assets outside India
- For all those assesses who are required to submit an audit report mentioned u/s 10(23C) (IV), 10(23C) (v), 10(23C) (VI), 10(23C) (via), 10A, 12A (1) (b), 44AB, 80IA, 80IB, 80IC, 80ID, 80JJAA, 80LA, 92E or 115JB of the Act.
- For all the assessee who has to furnish a notice u/s 11(2) (a) to the assessing officer.
- For all the assessee who is required to furnish returns U/S 139 (4B) (ITR 7).
- All those individuals who claim relief u/s 90 or 90A or deductions under section 91.
- All those residents holding a signing authority in any account that is located outside India.
- A firm (which does not come under the provisions of section 44AB), AOP, BOI, Artificial Juridical Person, Cooperative Society and Local Authority (ITR 5).
- All companies.
There are various types of e-Filing it includes:
- An assessee can use a DSC – Digital Signature Certificate to e-file their returns. It is also compulsory to file IT forms using a Digital Signature Certificate (DSC) by a chartered accountant.
- In the case where an assessee files his return without using a DSC, then ITR V is generated, which is then signed and sent to CPC, Bangalore by post. This has to be sent within 120 days from the date of e-filing of return. Now you can also E-Verify your ITR V through various modes i.e. Aadhar, Net Banking or ATM. IF you e-verify your ITR V, then you don’t need to send it to CPC, Banglore.
- There is also an option whereby you can efile IT returns through an E-return Intermediary (ERI) with or without DSC.
Points to remember during eFiling IT Returns
There are few checklist points that a person has to remember during filing of tax return online in a smooth and effective manner. Some important points have been given below.
- First, you have to decide and choose the right form to file your taxes electronically
- It is highly confusing for some of the people while deciding which form to choose for efiling their tax returns. For these different types of ITR forms and who they are meant for are shown below.
| ITR 1 (SAHAJ) | Individuals with income from salary and interest |
| ITR 2 | Individuals and Hindu Undivided Families (HUF) not having income from business or profession |
| ITR 3 | Individuals/HUFs being partners in firms and not carrying out business or profession under any proprietorship |
| ITR 4 | Individuals and HUFs having income from a proprietary business or profession |
| ITR 4S (SUGAM) | Individuals/HUF having income from presumptive business |
| ITR 5 | Firms, AOPs, BOIs, and LLP |
| ITR 6 | Companies other than companies claiming exemption under section 11 |
| ITR 7 | Persons including companies required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D) |
- Before e-filing one should check their tax credit Form 26AS vs. Form 16
All individuals should prior to e-filing check form 23AS. Form 26AS is for checking the amount of tax that has been deducted from your salary and has been already been deposited to IT department by your employer. It is to be ensured that for all individuals the tax deducted from their income as per their Form 16 should match with the figures shown in Form 26AS. If there is any mistake in filing return, you can get a notice from the IT department.
- Individuals must Claim 80G, savings certificates, and other deductions
Before efiling all individuals can claim various deductions under different sections as applicable to them. Similarly, an individual can also claim deductions under section 80G on donations made to charitable institutions.
- Before e-filing Interest statement are to be checked Interest on savings accounts and fixed deposits
An individual must check their interest statement before e-filing of their tax returns as a deduction for up to 10,000 is allowed on interest earned by him on his savings account. However, it is to be kept in mind that interest earned by them on their bank deposits, if any, forms part of their taxable income and is chargeable to tax.
- In addition to the above guidelines, one must possess following at hand during e-filing.
- Must have Last year’s tax returns
- Bank statements is necessary
- TDS (Tax Deducted at Source) certificates
- Profit and Loss (P&L) Account Statement, Balance Sheet and Audit Reports, if applicable
- Before efiling, it is to be ensured that your system is equipped with the Java Runtime Environment Version 7 update or 6 or above.