STEP TO E-FILING ITR IN 2022-2023?
introduction e-filing ITR
E-Filing of Income Tax Return (ITR) in India for the assessment year 2022-2023 is a modern and convenient way for taxpayers to report their income, claim deductions, and fulfill their tax obligations to the government. The e-filing process streamlines the submission of tax returns, reduces paperwork, and allows for quicker processing and acknowledgment by the Income Tax Department of India. This introduction will provide an overview of the e-filing process, its benefits, and the key aspects you need to know when filing your ITR for the financial year 2021-2022.Visitofficialwebsite
What is E-Filing of ITR?
E-Filing, short for Electronic Filing, refers to the process of submitting your Income Tax Return electronically through the official Income Tax Department’s e-filing portal. It is a paperless method of filing your tax return, where you fill out the relevant ITR form, upload it online, and complete the verification process electronically. E-filing has become the preferred method for filing ITR in India due to its efficiency, accuracy, and the convenience it offers to taxpayers.
Gather Your Documents to e-filing ITR.
Before you begin the e-filing process, it’s essential to gather all the necessary documents and information. These documents may include:
- PAN (Permanent Account Number) card
- Aadhar card
- Bank statements
- Form 16 (TDS certificate from your employer)
- Form 16A/16B/16C (TDS certificates for other income sources)
- Details of other income sources (rent, investments, etc.)
- Details of deductions and exemptions
- Previous year’s ITR copy
- Saving and investment details (e.g., PPF, ELSS, insurance)
- Details of foreign income and foreign assets (if applicable)
Choose the Correct ITR Form
Select the appropriate ITR form based on your income sources and financial situation. As of my last knowledge update in January 2022, there are different ITR forms, such as ITR 1, ITR 2, ITR 3, ITR 4, etc., for various types of taxpayers. Ensure you pick the right form to avoid errors.
Fill in the ITR Form
Open the downloaded ITR form on your computer and fill in the required details. Ensure accuracy and completeness in providing your income, deductions, and other financial information. The form typically includes sections for personal information, income details, deductions, tax computation, and verification.
Who can file ITR 1 (Sahaj)
If you’re a salaried individual with income from one house property, income from other sources like bank interest, dividends, and agricultural income up to Rs. 5,000, and your total income is less than Rs. 50 lakh, then this form is for you.
Before you proceed to file ITR 1, make sure you’re prepared for the process. Ensure that you have certain documents handy.
Documents required for filling ITR 1
ITR forms are annexure-less, meaning you don’t need to attach documents like proof of investment or TDS certificates along with your return. However, it’s essential to keep documents like Form 16, house rent receipts, investment proofs, and insurance premium receipts handy in case you need to produce them before tax authorities.
Additionally, ensure you are a registered user on the e-Filing portal with a valid user ID and password. Your Permanent Account Number (PAN) should be active and linked to your Aadhaar. Once you are ready, you can proceed with filing your income tax.
Step-by-Step Guide to File ITR 1
Here are steps that you can use to file ITR:
Step 1: Log in to the e-Filing portal using your user ID and password.
Step 2: On your Dashboard, click “e-File” > “Income Tax Returns” > “File Income Tax Return.”
Step 3: Select the Assessment Year as 2023–24 and Mode of Filling as online, then click “Continue.”
What is a revised income tax return
If any person after filing the original return of income finds any mistake in declaring the income, tax, deduction and exemption etc , he can file a revisited income tax return by amending the original return of income. This can be done before the completion of assessment or within assessment year which is earlier.
Why, when and how to file a revised income tax return
You should file a revised income tax return (also known as an amended return) when you need to correct errors or provide updated information on your original return. Common reasons include reporting additional income, claiming deductions or credits you initially missed, or correcting personal information. You should do this as soon as you discover the error or omission. To file a revised return, obtain the appropriate IRS or tax agency form (e.g., Form 1040X in the U.S.), complete it accurately, and submit it by mail. Be sure to include any necessary supporting documents. Filing an amended return can help you avoid potential penalties or interest charges associated with underreporting income or claiming incorrect deductions.
Verify Your Identity
After uploading the XML file, you’ll be required to verify your identity. There are multiple methods for identity verification, including Aadhar OTP, EVC (Electronic Verification Code), or sending a signed physical copy of the ITR-V to the Centralized Processing Center (CPC) within 120 days of e-filing.
Aadhar OTP: If you have linked your Aadhar with your PAN, you can choose this method. You’ll receive an OTP on your registered mobile number, which you’ll enter for verification.
EVC: You can also use EVC, which is a one-time code sent to your registered mobile number or email address. Enter the EVC to verify your identity.
Should I file income tax returns
Yes, Every individual and business owner should file ITR.
Following are some of the cases where the taxpayers are required to file their Income-tax returns-
- To claim a refund:- Tax is deducted by an employer on the salary received by the taxpayer during a Financial year. Here, the taxpayer is required to disclose other incomes viz. Salary from a previous employer, House property income, Interest income etc. to his current employer. He is also required to disclose the eligible tax-saving deductions such as life insurance premium, contribution to PPF, PF, NPS etc., health insurance, term deposits etc.
The employer has to consider these details while deducting TDS on salary. It might happen that the taxpayer fails to submit the documents of the eligible deductions in time, leading to an excess deduction of tax on salary. In such cases, the taxpayer is required to consider such deductions while filing his Income-tax return to claim the refund.
2. To carry forward loss:- Taxpayer may suffer losses during the financial year viz. house property loss, capital loss or business loss. Such loss could be set off against the incomes earned during the financial year. However, if the loss still persists, then the taxpayer is required to file his return to carry forward the loss to the next financial year.
In some cases, the taxpayer is required to file his Income-tax return within the due date. If he fails to file the return within the due date, he cannot carry forward the loss to the next financial year.
3. Application for finance:- Filing of Income-tax returns reveals the credibility of the taxpayer. When a taxpayer applies to banks or financial institutions, he requires to submit a project report for future creditworthiness. However, for past tax records of the taxpayer, banks insist on providing copies of Income-tax returns from the taxpayer for at least the previous three financial years.
4. Application for visa:- Where the taxpayer is applying for a visa, his Income-tax returns are required to be submitted to the visa authorities.
5. Contribution to the sustainable development of the country:- Being a responsible citizens of India, it’s our duty to pay all the taxes and file the returns within due dates. The funds collected by the Government as taxes are going to be utilised for the faster growth and development of the country. Hence the taxpayers get the taxes paid in return in form of the latest infrastructure in India.
Verification of ITR
You must verify your ITR within 120 days of e-filing. You can verify your ITR through any of the following methods:
- Aadhar OTP
- Net Banking
- Electronic Verification Code (EVC)
- Physically sending signed ITR-V: If none of the electronic methods are available to you, you can print the ITR-V, sign it, and send it to the CPC within 120 days.
Additional Tips and Important Points:
- Ensure the accuracy of the information you provide in the ITR form to avoid penalties or legal consequences.
- Make use of available exemptions and deductions to minimize your tax liability legally.
- It’s advisable to e-file your ITR well before the due date to avoid any last-minute hassles or penalties.
- Stay updated with changes in tax laws and regulations, as they may impact the e-filing process.
- Keep copies of all documents and records related to your ITR for a minimum of six years.
- If you face any technical issues or require assistance, you can reach out to the Income Tax Department’s helpline or consult a tax professional.
Benefits of E-Filing ITR:
Convenience: E-filing can be done from the comfort of your home or office, eliminating the need to visit the Income Tax Department physically.
Accuracy: E-filing software often comes with built-in validation checks, reducing the likelihood of errors in your tax return.
Faster Processing: Electronic filing expedites the processing of your ITR. It usually results in quicker refunds, if applicable, and faster acknowledgment.
Access to Online Tools: The e-filing portal provides various tools and resources to assist taxpayers in filling out their ITR accurately.
Reduced Paperwork: E-filing eliminates the need for extensive paperwork, making it an eco-friendly and clutter-free option.
Verification Options: Multiple options are available for verifying your ITR electronically, including Aadhar OTP, EVC, and net banking, making the process more accessible.
Transparency: E-filing allows you to keep a digital record of your tax returns and acknowledgments, providing transparency and easy access to past records.
how auriga accounting help you to e-filing ITR.
Auriga Accounting, like many professional accounting and financial services firms, can assist you with e-filing your Income Tax Return (ITR) in India by providing a range of services and expertise to ensure a smooth and accurate filing process. Here’s how Auriga Accounting can help you with e-filing your ITR:
Tax Planning: Before the e-filing process begins, Auriga Accounting can help you with tax planning. They can provide advice on minimizing your tax liability through legitimate deductions, exemptions, and tax-saving investments. Proper tax planning can optimize your financial situation and reduce your tax burden.
Documentation Assistance: Auriga can guide you in collecting and organizing all the necessary documents and financial information required for accurate ITR filing. This includes documents such as Form 16, bank statements, investment details, and other income-related documents.
Selecting the Right ITR Form: Choosing the correct ITR form is essential to ensure accurate filing. Auriga can help you determine which ITR form is appropriate for your specific income sources and financial situation.
Filling Out the ITR Form: They can assist you in completing the ITR form accurately. This involves entering all the required information, including your personal details, income details, deductions, and exemptions.
Tax Computation: Auriga Accounting can help you calculate your total taxable income based on the information provided. They will ensure that all sources of income are accounted for, and deductions and exemptions are applied correctly.
Verification and Validation: The professionals at Auriga can validate your ITR for errors and inconsistencies, reducing the likelihood of mistakes in your tax return.
E-Filing on Your Behalf: Once your ITR is correctly filled out and verified, Auriga can electronically file your tax return on your behalf. They will use the official Income Tax Department’s e-filing portal to submit your return.
Audit Support: In the event of a tax audit by the Income Tax Department, Auriga can provide support and guidance, ensuring that the audit process goes smoothly. They can help you respond to queries and provide necessary documentation.
Notice Handling: If you receive any notices from the tax authorities, Auriga Accounting can assist you in understanding the nature of the notice and guide you on how to respond appropriately.
Tax Compliance: Auriga keeps track of changes in tax laws and regulations to ensure that your ITR is prepared and filed in compliance with the most current tax rules. This helps you avoid penalties and legal issues related to tax filing.