Income Tax efiling Return

Income Tax efiling Return (ITR)

               As soon as the financial year ends, there is a rush for filing Income Tax Returns. Some may be aware of the procedure of filing the return while some may not be aware of the same. So here is an easy procedure for every type of assessee for filing your income tax return. You can file your return mainly in three ways:

1.       Online

2.       Offline and

3.       Filing Return through E-return Intermediary

Let us proceed towards the procedure for filing your Income Tax Return.

     1.     Online filing of Return:

New provisions related to mandatory e-filing of Income Tax Return are issued. The provisions are:

§  The assessee whose annual income is Rs.5 Lacs or more has to e- file the return.

§  It is mandatory to e-file the return along with digital signature for the assessees’ whose income from business is Rs. 1 Crore or more and income from profession is Rs. 25 Lacs or more.

§  E-filing is mandatory for individuals and HUF whose accounts are audited under section 44AB of the Income Tax Act.

§  It is mandatory for companies to e-file the return along with a digital signature.

§  It is voluntary for other assessee to e-file their Income Tax Return.

Let us see the procedure for e-filing of the return.

Register

At first you have to register with the Income Tax Department if you are not registered. For registering with the Income Tax Department open the site www.incometaxindiaefiling.gov.in. An option is given indicating “Register Yourself” Click on that option fill the details as per your PAN and you will be registered. Verify your registration by visiting the link sent on your E-mail ID.

Login

Log-in on the above site with the user ID, password and Date of Birth.

Download Form

On login you will find the option of download. Click on the same. Click on “Income Tax Return Forms”. Lot of forms such as ITR – 1, ITR -2, ITR – 3 etc will be seen on the screen. Download the excel utility of the form applicable to you.

Fill the Form

Fill all the details correctly. Follow the instructions given on opening the utility. Your total income will be auto calculated by the excel utility. Also fill all the details regarding TDS and all the deductions that can be claimed.

Calculate and Pay Tax

Click on the button “Calculate Tax”. The program will calculate your tax for you. Pay the tax payable and enter the details of tax paid in case it is payable.

Generating XML File

The site for online filing of Income Tax Return accepts the XML file format. So, select the option “Validate”. It is a confirmation for details filled. Now proceed to generate XML file clicking on the option “xml Generate”. Store the XML file

Upload the Return

After you log-in to the above given site, select the option “Submit Return”. Attach your xml file and enter assessment year and select the proper ITR form.

Signing the Return

Once you attach the XML file, you will be asked if you want to digitally sign the Return. The answer to this question will be in compliance of provisions for digital signature as stated above. So there can be two consequences. They are:

-          If you are suppose to sign the Return digitally as you are in that criteria your answer will be - > Yes

-          If you are not in a criteria of the asseessee who has to mandatorily sign the return digitally then - > No

Answer “Yes” or “No”. If yes, than digitally sign the return by entering your signature file.

Submit the Return:

After completing the above process submit the return. You will see a message dialogue box of successful uploading of your return.

Download ITR – V:

Log-in to your e-mail. Open the mail from CPC and download and print the PDF file for ITR-V. Duly sign in if you are not in the criteria of digitally signing the return.

Send ITR – V:

The assessee who did not digitally sign the return have to send the self signed copy of ITR-V to CPC Bangalore within 120 days of e-filing the return at the following address:

Post Bag No.1,

Electronic City,

Post Office,

Bengluru,

Karnataka – 560 100.

After processing and verifying the return, Income Tax Department will send you the acknowledgement of ITR-V on your e-mail provided during the registration process. Thus it is a very simple process of filing the return online.

     2.     Offline filing of Return:

                 The assessee who is not in the criteria of e-filing the income tax return can opt for filing the return offline. Here are some simple and easy steps for filing the Income Tax Return.

Downloading the Form:

The assessee can visit the site www.incometaxindiaefiling.gov.in. Download the applicable Income Tax Return Form in the PDF format available on the right hand side of the webpage.

Filling the Form:

Take print out of the PDF form. Fill the details asked in the form. Calculate total income and tax. Input tax paid, TDS and deduction details in the form.

Submit the Form:

Submit the Income Tax Form with the Local Income Tax Department. You have to submit it with the Assessing officer of your jurisdiction / ward belonging to your Income circle i.e. Salary circle, Professional Circle etc. The process is over you will receive the stamped acknowledgement in return.

     3.     Filing Return through E- Return Intermediary:

                 The assessee who does not want to file their return on their own can file it with the help of E- Return Intermediary. The eligible entities as per law for filing returns as an intermediary are:

-          An Indian Company

-          A Chartered Accountant

-          An Advocate

-          A Company Secretary

-          A firm of Chartered Accountants

-          A firm of Advocates

-          A firm of Company Secretaries

-          Tax Return preparers

-          Drawing / Disbursement Officer of a Government Department.

Pre –requisites for the above intermediaries are:

-          They must have PAN

-          They must have a Digital Signature of their own

-          The entity must be registered with the NSDL

Responsibilities of the above intermediaries are:

All the responsibilities of the E-return Intermediary are that of an Income Tax Department. The same are:

-          To check whether assess has provided all the correct details

-          To take care that the assessee pays the self-assessment tax or advance tax as may be applicable

-          Tax Credit is claimed

-          In case the paper return is to be filed, the intermediary has to take care that the same is submitted with the assessing officer

-          The calculations are accurate

The assessee only has to carry out the following procedure:

-          To provide all the financial and other details to the intermediary correctly

-          Accept the return uploaded by the intermediary

-          Pay the Fees of Intermediary for the services provided by them

                      Thus the benefit of filing return through e-intermediary cuts down the effort of a fee. The only effort to be put up by the assessee is to pay the fees of the e-intermediaries which can be comparatively high as they use their expert knowledge and skill in carrying out the process of filing your return either online or offline.