The tax filing season is about to begin and all tax payers are gearing up for it by organizing documents, reading about the important changes, deductions and getting hold of their Chartered accountants! It is always advisable to get your house in order much before the dreaded due date arrives. Anything could go wrong in the last moment, right from not finding an important document to patchy internet connection. With e-filing, it has become super easy and convenient to file returns from the comfort of home. Further platforms like Clear Tax have been monumental in infusing confidence amongst tax payers to file their return themselves. These platforms have also been educating tax payers about various nuances of income tax. Let us now take you to detailed step by step guide now.
Step 1: Organise and keep your documents ready
- PAN Card: PAN is an important and unique alpha numeric code which is mentioned in all tax, income and salary related documents. This number is also necessary and needs to be filled in the tax return.
- TDS Certificate: Every person who deducts TDS is mandatorily required to issue a TDS certificate in favour of the person from whose income such TDS has been deducted. There are two types of TDS certificates- form no. 16 and form no. 16A. Form number 16 is for TDS deducted from salary paid and 16A is for all other cases other than salary. In case an assessee does not receive TDS certificate, then he or she can refer to form no. 26AS (tax credit form) which is available online through Income Tax India’s website. Just like form no. 16 and 16A, 26AS contains name, TAN, amount etc pertaining to the transaction.
- Aadhaar Card: From this financial year, it is mandatory to mention aadhaar card number in your return.
- Bank Statements: Your bank statements give a clear view of interest credited. For freelance professionals too, bank statements can provide important information about income credited during the last financial year.
- Investments and Insurance: Since taxpayer needs to declare the income and claim deductions on account of certain investments it is advisable to keep these documents ready.
Step 2: Register and Login
If you do not have a login id for the Income Tax India’s website then create one. You need to give your PAN Card number, password, e-mail id, date of birth, contact number and define a security question. Once the registration is complete, you can log into the website for filing return.
Step 3: Select the Return
First of all, the tax payer should decide whether he or she wants to file the return online immediately or download the form to be filled later on. If former is the case then click on “quick e-file ITR” option from the menu that appears on the right side of the webpage. After this choose the form that is applicable in your case. There are seven types of Income Tax returns and they are as follows:
- ITR 1 (SAHAJ): To be used by individuals and Hindu Undivided Families (HUF) that do not have income from business or profession.
- ITR 2: Again applicable to individuals and HUFs but those who are partners in firms but not owners of proprietorship.
- ITR 3: This form is meant for tax payers that pay presumptive tax.
- ITR-4S (SUGAM): Those individuals and HUFs who have income from proprietary business or profession need to file their return using ITR-4S.
- ITR 4: This form is to be used by firms, Association of Persons and Body of Individuals for filing returns.
- ITR 5: This form is to be used by Companies other than companies claiming exemption under section 11.
- ITR 6: Persons including companies that are required to furnish return under section 139 (4A), 139 (4B), 139 (4C) and 139 (4D) use this form to file return.
- ITR 7: This form is the acknowledgement for e-return as well non e-return.
Step 4: Fill and Submit the form
Fill in all the details requested in the form. There are some blanks where nothing needs to be entered because the form auto calculates those numbers. If you earn more than Rs 50 lakh then you will have to fill an additional column "AL" meaning assets and liabilities where you will be required to disclose the value of your assets and liabilities. Once the form is complete, click on submit.
For those who have chosen to download XML document, upload the document on website and then click on submit.
Step 5: Verify the Return
Submitting the return does not complete the process of filing returns, it is the verification that completes it. For physical verification, just take the printout of the form, sign it with name and date and send it to Central Processing Center (CPC) in Bangalore. The address is given at the end of the form. There is another way of verifying the returns- e-verification. You can e-verify your return by following one of the following ways:
Option 1: Net Banking
T Login to your bank’s net banking system and click on e-file menu in the main menu. Then click on e-verify return against the return uploaded.
Option 2: Adhaar OTP
If your Aadhaar card is linked to your PAN Card number then you can use this option to verify your return. An OTP will be sent to your number registered in Aadhaar card with which you can verify the return.
Option 3: EVC Through Demat Account
A tax payer can generate EVC through Demat account by pre-validating the details of Demat account. Then click on generate EVC through Demat account which will be sent to the registered mobile number which you need to enter in EVC pop up box.
Option 4: Bank Account based Validation system
Pre-validate the Bank account details and generate EVC. The EVC will be sent to your registered mobile number which needs to be put in the e-verification page to complete the process.
Option 5: EVC through Bank ATM
Swipe your card and enter the ATM Pin to reach the main menu of your bank’s ATM. On the main menu, choose “PIN for Income Tax filing” option for receiving the PIN to your registered mobile number. Login to e-filing portal and click on e-file and choose “I already have an EVC to e-verify return” option. Enter the code received on mobile and complete the process.
Option 6: EVC through Registered E-mail Id and mobile number
This option is available for only those assesses whose total Income is less than or equal to 5 lakhs and refund or tax payable is less than or equal to Rs. 100. In this process too EVC will be sent to registered mobile number and e-mail id.
So this was the step by step guide to filing your Income Tax return. We must mention here that even for refund claim the return has to be filed as enumerated above, there is no separate form for it but on every form you can choose “Refund Return”. Following are the due dates tax payer should be mindful of:
- 31st July’2017: All those assessees who do not have to get their books of accounts audited under Income tax law or any other law in force are to file their return by 31st July’2017.
- 30th September’2017: A company, a person who is required to get the books of accounts audited under income tax Act or any other law in force or a working partner of a firm whose accounts are required to be audited under this or any other law in force.
Visit us on Letzbank and explore the tax return platform of clear tax. It is very convenient and easy to use. There is a team for your guidance and doubts and in case you need to, hire a Chartered Accountant right there!