With the year 2020 drawing towards an end, the time for filing income tax returns for AY 2020-21 is closing in. Thankfully, unlike earlier, when taxpayers had to go through complicated procedures, the IT department has introduced e-filing through a dedicated income tax login portal, which simplifies the procedure considerably.
- The last date of ITR filing for AY 2020-21 has been extended till 30th November 2020.
- As per the IT Department, over 33.54 lakh taxpayers have received refunds of more than Rs.1.18 lakh between 1st April and 29th September, 2020.
Defining income tax returns filing
Filling IT returns denotes the procedure where taxpayers in India affirm their taxable income, tax payments, and deductions via a form. The process also includes the calculation of the total tax that the government owes from them. In case more tax is paid than required in a particular fiscal, the excess amount is refunded to the individual’s account after following a set procedure.
Mandatory in India, ITR e-filing signifies this same process undergoing online through the income tax return login portal.
- For FY 2019-20, the basic exemption rate for taxpayers below 60 years is Rs.2.5 lakh.
In India, tax payment ensures many benefits, including home loan tax exemptions for new and existing borrowers.
Other major perks of e-filing IT returns
- Prevention of tax notices
The IT department of India serves notices to taxpayers if return submissions are missed or delayed.
- Avoid paying late fees
Under Section 234F, individuals whose total income surpasses Rs.5 lakh can avoid a penalty of up to Rs.10,000 on missed or delayed IT filing.
- Claim tax return
On timely returns filing via the digital portal’s income tax login in India, you can easily claim a tax refund at the earliest.
- Serves as an income document
ITR receipts are valuable financial documents that serve as your income and tax payment proofs. Compared to Form 16, the receipts include complete details of all your income sources. These are also some of the authentic documents required for quick processing of home loans.
Most of the leading housing finance companies in India require IT returns as a vital home loan document needed for salaried as well as self-employed applicants. The secured credit can help you afford your dream home in any location effortlessly. Once you have the documents ready, you can apply via online application forms or through pre-approved offers.
Customised for existing customers, pre-approved offers simplify the credit application process and make it less time-consuming. These schemes are available on various financial products along with home loans, loans against property, etc. Provide some essential details online to check your pre-approved offer immediately.
Homes loans also offer tax savings and various other advantages to eligible borrowers.
- Carry forward financial losses
As per the income tax law, filing IT returns within the deadline enables you to carry forward the current fiscal’s financial losses to the next year.
- Hassle-free visa processing
During a visa application, a majority of the consulates and embassies ask for IT returns copies of past few years. Filing your returns in time makes this process faster and hassle-free in the future.
- The IT Department received ITR filing from over 5.65 crore taxpayers on 31st August 2019.
Steps for successful ITR e-filing online
Before proceeding with the income tax login, you need to register as a taxpayer on the official website of the IT department. Once done, follow the process below.
- Visit the e-filing portal and proceed with the income tax return login.
- On successful login, you will find ‘e-file’. Click the ‘Income Tax Return’ option from the drop-down list.
- Next, an online form will appear where you need to provide the following details accurately – PAN, assessment year, ITR form number, and submission mode. Recheck once and ‘continue’.
- Using pre-validate bank details, you need to select the authentication type from EVC or AadhaarOTP. Alternatively, you can opt for speed or normal post to send the signed ITR-V. Once done, click on continue.
- A new feature you’ll come across when filling some fields is the auto-population facility. On choosing this feature, you need not select or fill certain entries manually.
- The auto-populated feature also makes it essential to check the TDS details in ITR-1 online. The details should match those in your Form 26AS.
- Recheck all the information provided and then begin the ITR e-filing procedure using the right form.
Note that there are different ITR e-filing forms starting from ITR 1 (SAHAJ) to ITR 7. Once the ITR form is uploaded, an acknowledgement number is displayed if you have provided your digital signature. Make sure to note this number for future references. For forms without digital signatures, taxpayers receive ITR-V forms on their email addresses which need to be verified online or sent to the ITDCPC within 120 days of income tax e-filing.
Few changes in the revamped e-filing portal
The respective department has revamped the ITR e-filing portal, bringing the following changes:
- All documents related to income tax returns are no more password-protected.
- Taxpayers need not provide their date of birth during income tax login.
- The downloading procedure for Form 26AS has also changed. Now, you need to view your tax passbook in HTML and then proceed to ‘Export as PDF’.
Every citizen earning above a certain limit should mandatorily pay tax and complete income tax returns filing annually. Failing to pay the tax in time results in a penalty levy under the Income Tax Act. So, register yourself at the online portal and access the convenient e-filing facility with income tax login in India.
Additionally Read: ITR form: Who is eligible to file which tax return for FY 2019-20?