As per recent reports, as many as 3.75 crore individuals filed their taxes for the Assessment Year 2020-21. This indicates a heightened awareness among the masses concerning the importance of filing returns within the stipulated date. While income tax filing within the deadline is mandatory for eligible earning Indian, the ITR document generated also acts as an income proof and a legal document. Paying the dues within the given time also keeps individuals from the risk of penalties and helps avoid any legal troubles.
The implementation of efiling income tax services has expedited this process further and increased the convenience of a taxpayer. The process is straightforward, safe, and offers heightened security.
E-filing income tax – a detailed overview
To complete the income tax return filing online, individuals need to follow the below-mentioned steps –
- At first, one needs to visit the Income Tax Department’s online portal and login into it with a username and password.
- After that, they need to go to the ‘e-file’ menu and then click on the ‘income tax return’ link.
- Following this, taxpayers are required to select their assessment year, ITR Form number, tax filing type, and submission mode.
- After clicking on continue, and before e-filing the ITR form, one should go through the instructions carefully.
- Following that, individuals are needed to choose a suitable verification process. They can either e-verify it or sent it to the Bengaluru office of the IT department. In case of an e-verify option, they can do it via OTP or EVC.
- After this process, individuals can click on the ‘Preview and Submit’ option and verify the data.
Before initiating the income e-filing process, one needs to register his/her credentials through the official website of the IT department. It requires one to submit details like date of birth, name, and PAN details. The PAN card number will act as the username, and individuals need to create a password.
This process is also available offline to those who are not yet well versed with the e-filing income tax process. This process requires one to use an XML method. However, to initiate this method, one needs to visit the official website of the Income Tax Department.
- The first step to file income tax offline is to have access to Java or excel utility to generate the XML. Individuals can download these utilities via this website.
- After that, they need to extract these files.
- Following that, one needs to fill the form with required details, validate them and use an income tax calculator for the total tax.
- After completing this process, a taxpayer needs to generate an XML and then save it.
- They can then login to the portal and go to the ‘e-file’ menu and click on the ‘income tax return’ link.
- Afterwards, one needs to put the assessment year, income tax return form number, and type of filing. Then, one needs to put XML as their submission method.
- Following that, individuals need to select the verification process, and one can opt for Aadhar OTP, DSC method, or EVC process via a financial institution. They can also decide to send their details to the IT department office in Bengaluru.
- They can submit the ITR to culminate this process.
The benefits of being on time with return filing are essential to avoid any troubles such as paying additional charges or receiving any legal notices from the IT department. Also, if anyone is applying for a home loan, it will act as a valid income proof.
In this regard, merely gathering the documents to avail of the advance is not sufficient; individuals should calculate their home loan eligibility before making the application.
Contrarily, one can also skip this process by opting for lenders who provide pre-approved offers. It streamlines the loan application process and saves time. These offers are also applicable to other financial products like loan against property alongside home loans. Individuals can check their pre-approved offer by submitting basic contact details.
E-filing income tax has reduced the time required to file IT return via conventional and offline methods. Moreover, one can now do it from anywhere, per his/her convenience. The home loan tax exemptions and benefits have also stimulated Indians to pay taxes on time and optimise savings.