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IT Returns - e-filing Income Tax


What is E-Filing? Every individual who earns an income above the minimum prescribed limit is liable to pay tax for the income earned over the previous year. The filing of returns electronically (online) is called e-filing of income tax returns. Firms and companies that require statutory audit under Section 44AB are mandated to file their returns electronically.


Benefits of E-Filing ● ●

Convenience – E-Filing can be done 24/7 Accuracy – In comparison with manual returns, e-filing has 13% less errors Security – Confidentiality is ensured as tax return details are encrypted and transmitted over secure lines Direct Deposit – Individuals can have the refund deposited directly into their bank accounts


Types of E-Filing ●

Type 1: No further action will be required in case digital signature is being used. Type 2: Form ITR-V will have to be filed with the Income Tax Department in case returns are filed without the use of a digital signature. Type 3: Returns can be filed via an e-return intermediary who can do the e-filing for an individual as well as assist taxpayers with the filing of Form ITR-V.


ITR Forms and Their Use ●

ITR-1: For income from salary / pension, and income from other sources (only family pension or interest income) ITR-2: For income from salary / pension, income from other sources (only family pension or interest income), income / loss from other sources, income / loss from house property, and capital gains / loss on sale of property / investments ITR-3: For income from salary / pension, income from other sources (only family pension or interest income), income / loss from other sources, income / loss from house property, capital gains / loss on sale of property / investments, and partner in a partnership firm ITR-4: For income from salary / pension, income from other sources (only family pension or interest income), income / loss from other sources, income / loss from house property, capital gains / loss on sale of property / investments, partner in a partnership firm, and income from profession / proprietary business ITR-4S: For income from salary / pension, income from other sources (only family pension or interest income), income / loss from other sources, income / loss from house property, income from presumptive business ITR-5 (for firms, BOI, AOP, local authorities): Income / loss from other sources, income / loss from house property, capital gains / loss on sale of property / investments, income / loss from business, and fringe benefit tax ITR-6: (for companies) Income / loss from other sources, income / loss from house property, capital gains / loss on sale of property / investments, income / loss from business, and fringe benefit tax ITR-7 (for trusts): Income / loss from other sources, income / loss from house property, capital gains / loss on sale of property / investments, income / loss from business, and fringe benefit tax


General Documents Required for E-Filing ●

PAN number

Bank account details

Form 16

Pay slips


How to do E-filing of Returns ●

Register on the IT Department’s website by providing your name, PAN and date of birth before choosing a password. E-file your returns using one of two options – either fill the form online by choosing the quick e-file option or download the requisite form, save it on your computer and fill in the requisite information offline before uploading it on the IT Department’s website. Choose the right form: ITR-1 can be used by individuals who earn pension, salary or income from property or other sources apart from lottery, ITR-2 can be used by those who accrue capital gains, ITR-2A can be used by those who own multiple houses but do not accrue capital gains, and ITR-3, 4 and 4S can be used by business owners and professionals. Your Form 16, PAN, TDS certificates, interest statements, investment declarations and other documents must be kept ready, after which you can download From 26AS as it gives a summary of the tax paid against a particular PAN. Fill up Form 26AS and click on ‘generate XML’ before going back to the website and choosing ‘upload XML’. Verify ITR-V: An acknowledgment number will be generated once your ITR-V has been submitted. Preserve the number if your have used digital signature to file your returns.


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IT Returns e-filing Income Tax  

Income tax efiling is basically filing income tax returns on an online portal that encompasses all documents, and is therefore relatively mo...

IT Returns e-filing Income Tax  

Income tax efiling is basically filing income tax returns on an online portal that encompasses all documents, and is therefore relatively mo...

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