Income Tax in India: Guide, IT Returns, E-filing Process

Income Tax in India: Guide, IT Returns, E-filing Process

Income Taxin India and Income Tax Returns

Income Tax is a percentage of income that is required to pay to the government by one assessee. It’s a sort of direct tax where the person earns the income, is eligible to pay tax directly to the government. On the other side, income tax return refers to a declaration of an income of a particular financial year filed by the assesse to the income tax department. One thing must be check that to mention the correct Pan details while filing the return. 

Generally there are various taxes allow in Indian laws but few are mention here,

Ø Direct taxes that includes the Income tax, Corporate tax,

Ø Indirect taxes refers to GST, Excise etc. and,

Ø Other taxes are also applied like Swachh Bharat Cess, Krishi Kalyan Cess, Property tax, Road and Toll tax, etc.

Timelines of return filing

Ø Any company other than a company who is required to furnish a report in Form 3CEB(Due date of filing isSeptember 30th of assessment year)

Ø Any person, who is required to audit the accounts and other than a company or partner of firm (Due date is September 30th of assessment year)

Ø Any other assessee (Due date of filing is July 31st of assessment year)

Five Heads of Income Tax

A person’s income would be taxable under the heads as defined in Income tax act 1961. There are five head which is given under the law,

Ø Salary Income-Income generates by way of salary.

Ø House PropertyIncome-Income earns by way of interest.

Ø Income from Capital Gains- Income which is received from sale of assets.

Ø Business Income-Income which is received from business and profession.

Ø Income from other sources- Other source of income like dividend, commission, lotteries, including horse races, gambling, bettingetc.

Meaning of E-filing or can say electronic filing of return

Process of filing income tax returns electronically with the help of internet is known as e-filing. E-filing is possible with or without DSC. In some cases, it is mandatory to affix DSC.

Here are certain footsteps that explain about the income tax e-filing process

Ø Before filing of return, it is necessary for assesse to sign in at income tax e-filing website.

How to register yourself on e-filing website?

·  Visit the income tax official website and register yourself.

·  Select user type (individual), then click on continues.

·  Enter your requisite details like name, address, email id etc.

·  Enter other details and choose 2 secret questions which can be used to reset password.

·  Afterwards, an OPT will be sent to your registered number and one link over the email id for verification.

·  This completes our registration process and you can login further at any time using Pan Number as user id and newly generated password.

Ø Officially visit the income tax portal.

Ø Make login with created user id and password. Afterwards choose income tax return option at the e-file tab which is shown on above row.

Ø Read the instruction carefully and fill the mandatory fields in the prescribed income tax form.

Ø Before submit we have to select one option for verification whether its e-verify via code or send hard copy of signed ITR-V to government via speed post inside the 120 days of filing.

Ø Click on “Preview and submit” option.

Ø If the person wants to verify instantly then can be done via EVC or OTP method.

Ø Now the return has been submitted, you can access the filed return from the portal by visiting the tab View return/forms.

Ø It can be download by clicking on acknowledgement number. The person who has not e-verify the return while filing then it’s required to send hard copy of return with receipt (self-certify) to the ITR department for verification.

Available income tax forms for the particular assessee

Forms	Particulars
ITR-1 (Sahaj)	Used by an Individual being a resident (other than NRI) whose income is not exceeding from the amount rupee fifty lakhs. Other person whose income generates from salaries, single house property or can say other source income like interest can be include here.
ITR-2	This form selected by the individual person or HUF having income from its business or profession.
ITR-3	Used by the individuals or HUF whose income source is business and profession.
ITR-4 (Sugam)	For Individuals, Hindu Undivided Family and Firms (other than Limited Liability Partnership) being a resident of India whose income is not exceeding from the amount rupee fifty lakhs and having income from business and profession. This form is not applied on individual whose has made an investment in the equity shares of unlisted, can say director here.
ITR-5	Used by a person other than Individuals, HUF, Companies and Person who are filing Form ITR-7.
ITR-6	Form for companies who is not claiming exemption (under section 11)
ITR-7	Any person includes the company here is required to file return under section 139 of act can use this form.

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