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A Complete Guide to Income Tax Return Filing

A Complete Guide to Income Tax Return Filing
Savvy Midha
| Updated: Dec 18, 2019 | Category: Income Tax

How much the company or entity is compliant is reflected by its tax compliances such as timely filing of income tax returns. The taxpayer shall file a return for reporting his income for the financial year, for carrying forward losses, to claim refunds, etc. Through return filing, the taxpayer discloses his income, expenses, claim deductions and investment made. 

Under the Income Tax Act, it is mandatory to file Return for certain scenarios. This act facilitates the e-filing of ITR online through its official website. Income Tax Return should be filed on or before its deadline to avoid any penalty or damages. Assessee is allowed to claim certain benefits such as carry forward of loss, the claim of refund, etc only if he filed his return on time.

Step by step guide to register on ITR portal

Following are the simplified steps to register on ITR online for e-filing of return:

  • Visit the official website of Income Tax Return incometaxindia.gov.in
  • Click on the tab on the right side of the screen “Register yourself” and proceed further
  • The assessee shall choose its category under which it requires to get itself registered such as individual, HUF, external agency, CA, etc.
  • Enter the complete form by filling the details such as PAN, Name, DOB, Address, residential status, etc. All the details with asterisk sign shall be given compulsorily.
  • Further create login credential by entering the password which shall be used further to log in the portal to file ITR
  • Registration is verified through OTP sent on the mobile number and verification link received on mail. Enter both the OTP and verify the registration on the e-filling website
  • After successful registration, the taxpayer can access his portal using login credentials for e-filing his return.

Procedure to Income Tax Return Filing Online

Following is the brief step to filing ITR online:

  • Compute the total income and tax liability by verifying all the necessary deductions available and exemptions applicable
  • Compute the tax payable as per the slab and rates apply to the taxpayer.
  • File ITR through online Income Tax website by login the portal using PAN as user-id and Password
  • Download the necessary software utility in Excel or Java utility for filing ITR. Assessee eligible to file their return through form ITR-1 and ITR-4 can file online without downloading any utility
  • After the successful filing of ITR, it is verified either electronically or physically

Guidelines for better understanding of Income Tax Return Filing

Following are additional key-points for a thorough understanding of ITR

  • Start the process by collecting all the necessary documents for filing returns such as Form 16, salary slips, income certificates, interest vouchers, etc. These documents help the assessee to compute his gross taxable income and amount of TDS deducted from his salary.
  • Form 16 is provided by employer if they deduct tax at source from salary
  • Form 16A is provided by banks for deducting TDS on interest income
  • The taxpayer shall ensure that all the TDS certificate received from deductor are in TRACES format
  • The TDS certificate should be digitally signed and verified.
  • For the financial year 2018-19, the assessee shall pay long term capital gain tax on equity and mutual fund if the gain exceeds INR 1 Lakhs.
  • Form 26AS is considered as tax passbook that contains every detail of tax deducted from the income and deposited with the government. The taxpayer shall cross-check Form 26AS with TDS certificate to ensure tax deducted is deposited with the government
  • In case the amount deducted doesn’t match in Form 26AS and TDS certificate, the taxpayer must approach the deductor to get the error rectified. The taxpayer will not be allowed to claim the credit in case the error or discrepancy is not ratified.
  • Once all the documents are collected and rectified and the entire amount deducted from income is verified, the assessee shall compute the total income subject to tax liability.
  • Total income shall be computed by adding the income from all the 5 heads of income and thereafter deduct all the expenses or investment to claim a deduction
  • After computing the taxable income, the taxpayer shall calculate tax liability by applying rate as per income tax slab
  • After calculating the tax liability, one must deduct the TDS amount and advance tax paid from total tax liability.
  • Thereafter it will be assessed whether the taxpayer has the additional tax liability or is liable for tax refund due to additional tax paid.
  • After-tax payment, the assessee shall proceed to file an income tax return. To claim the refund of additional tax paid, one must file ITR on or before the due date.
  • The assessee must ensure that Income tax return shall be filed through the correct form as applicable otherwise it will be considered as a defective return and shall re-file the return
  • Once the ITR is filed, it shall be verified through two options such as electronic verification or manual verification.

Necessary Forms for filing ITR

Following are the different forms for filing ITR depending upon the status of assessee:

  • ITR-1 or SAHAJ: This form is filed by Indian resident having income exceeding INR 50 Lakhs from salary, one house property, other sources, and agriculture income
  • ITR-2: This form is filed by individuals and HUFs having income other than from profit and gain of business or profession
  • ITR-3: This form is filed by individuals and HUFs having income from profit and gain of business or profession
  • ITR-4 or Sugam: This form is filed by an individual, HUFs, Firms having income up to INR 50 Lakhs as well as gain from business or profession
  • ITR-5: This form is filed for a person other than individual, HUF, company, and an entity other than the one who filed ITR-7

Final Thought

Contact our team of professionals who have expertise in taxation such as ITR, GST, and other tax-related aspects to get assistance and complete guidance on return filing, tax liability or applicable tax rate as per the income tax slab.

Also, Read:Input Tax Credit under GST

Savvy Midha

Savvy Midha holds the degrees of B.Com(honors), LL.B and Company Secretary. She is an experienced Legal and Financial writer with expertise in research, drafting, and copy-writing.

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