How to File Income Tax Return Online in India: A Comprehensive Guide

Introduction:

Every taxpayer must keep in mind the dates for filing income tax returns in India in order to avoid penalties under the Income Tax Act of 1961. As we all know that the time for filing your Personal Income Tax Returns is running out, this post contains a list of all the necessary deadlines and also detailed process on how to file your personal Income Tax for FY 2023–2024 (AY 2024–25).

What is the Income Tax?

Direct tax and indirect tax are the two forms of taxes levied on Individuals and business entities. Income tax is a type of direct tax where the assessee's income is directly linked to the tax. It includes revenue derived from a variety of sources, including capital gains, businesses, house property, salary, and other sources of revenue. If the assessee's total income exceeds the taxable income limit after deducting Chapter VI-A, income tax must be paid.

Step by step process on How to file Income Tax returns in India

Here's step by step guide on how to file your Income Tax online in India

After registering on the Income Tax Portal, the next essential steps involve calculating your taxable income and selecting the appropriate ITR form for filing. Follow these steps to ensure a smooth filing process:

Step 1: Log in to the Income Tax Portal using your ID and Password created during registration.

Step 2: Navigate to the 'e-file' tab and select the 'File Income Tax Return' option.

Step 3: Choose the relevant Assessment Year and click on 'Continue'.

Step 4: Opt for 'Online' as your filing mode. (Note: If you are an individual, select 'Individual').

Step 5: Pick the suitable ITR form based on your income and category.

Step 6: Specify the reason for filing your ITR.

Step 7: Enter your Bank Account details. If already provided, ensure they are pre-validated.

Step 8: Carefully validate your ITR summary to confirm accuracy.

Step 9: Complete the process by verifying your returns. If you are unable to e-verify, send a signed copy of ITR V to the Income Tax Department within 30 days of filing.

By following these simple steps, you can file your ITR. If you find the process challenging, you can seek assistance from our expert for precise and accurate filing.

What are documents required for ITR Filings ?

If you plan to start filing your Income Tax Return (ITR) this season, make sure to gather the necessary documents. The required documents can vary depending on your income sources, deductions, and financial transactions. Here is a general list of essential documents you will need:

1. PAN Card: Your Permanent Account Number (PAN) is crucial for filing an ITR.
2. Form 16: Provided by your employer, this form details your salary income and Tax Deducted at Source (TDS).
3. Forms 16A/16B/16C: These forms are for TDS on income from non-salary sources.
4. Bank Statements: Obtain statements from all your bank accounts, including savings and current accounts.
5. Investment Proof: Gather documents for investments in Provident Fund (PF), Public Provident Fund (PPF), Equity Linked Savings Scheme (ELSS), life insurance premiums, health insurance premiums, fixed deposits, etc.
6. Property Documents: Include documents related to any property you own.
7. Capital Gain Statement: Provide statements of any capital gains from stocks, mutual funds, or other investments.
8. Proof of Tax Payments: Include challans or receipts for any tax payments made.
9. Form 26AS: This is a consolidated tax statement showing tax deducted, collected, and paid.
10. Interest Certificates and TDS Certificates: Collect certificates for interest earned and TDS, including forms 990 and 1040.

By ensuring you have all these documents ready, you can simplify the process of filing your ITR accurately and efficiently.

When is The Last Date to File an ITR?

The deadline for filing ITRs for the FY 2023–24 (AY 2024–25) is July 31, 2024. In case you missed to file return on time you can file belated returns until December 31, 2024 after paying penalty as decided by the government.

Income Tax Filing Due Dates for FY 2023-24 (AY 2024-25)

What Happens if You Miss the ITR Filing Deadline?

Interest

In accordance with Section 234A, you will be required to pay interest on the amount of unpaid taxes at a rate of 1% per month or part month if your return is filed after the deadline.

Late fees

If you file after the deadline, Section 234F charges a Rs. 5,000 late fee. If your total income is less than Rs. 5 lakh, this fee is waived to Rs. 1,000.

Loss Adjustment

If you have losses from investments in stocks, mutual funds, real estate, or any of your businesses, you can carry those losses forward and deduct them from your income the following year. Your future tax liability is significantly decreased by this provision. However if you fail to file your ITR by the deadline, you will not be able to carry over these losses.

Belated Return

You can file a return after the deadline, known as a belated return, if you miss the ITR filing deadline. You cannot, however, carry forward any losses for future adjustments, and you will still be responsible for paying the interest and late fee. Unless the government extends the deadline, the assessment year's final day to file a late return is December 31st. For this year, therefore, you can file the late return no later than December 31, 2024.

Updated Return

If you meet the requirements stated in that document, you can still file the updated (ITR U) return even if you are unable to file it by the deadline of December 31.

What are the Benefits of Filling ITR under Due Date?

The following are the benefits of filling ITR under due date:

• It is more likely that you will be approved for a home loan, an auto loan, and other loans if your income tax returns are filed on time.
• ITRs can be used to demonstrate residency and income, which are prerequisites for obtaining a loan or visa.
• Most consulates and embassies require copies of your income tax returns for the previous two years when you apply for a visa.
• If you file your ITR on time, you will receive your refunds as soon as possible.
• Before filing an ITR, taxpayers must settle their outstanding taxes. Interest is payable at the rate of one percent per month beginning on the date the taxes are due and ending on the payment date, as stipulated by Section 234A. You can avoid paying additional interest if you file your tax return on time. Therefore, the longer you wait to file your returns and pay your taxes, the heavier your burden will be.

Conclusion:

It's super important to file your Incom taxes on time to avoid penalties and get cool benefits like getting loans easily, applying for visas, and getting your refunds faster. If you miss the deadline, you might have to pay extra fees. But don't worry, using stuff like direct debit or online portals can make paying taxes easier. Doing everything on time makes life simpler and helps you qualify for more stuff. Remember, staying on top of your taxes is key to financial peace of mind!

Frequently Asked Questions (FAQs)

Q: What is the last date of filing Income tax for FY 2023-24, AY 2024-25?

A: For the majority of individual taxpayers, 31 July 2024, is the deadline for filing income tax returns for FY 2023–2024. A penalty of up to Rs.5,000 may be assessed for filing returns beyond the deadline. The amount is only Rs.1,000, though, if the person's total income is less than Rs.5 lakhs. 

Q: How to pay income tax after the due date?

A: If you miss the tax payment and filing deadline, you can still pay later, but with penalties. A late filing fee of Rs. 5,000 applies, reduced to Rs. 1,000 for incomes below Rs. 5 lakh.

Q: What is an income tax audit?

A: It is the examination and inspection of an entity’s books of accounts to ensure compliance with the Income Tax Act, 1961. Only certain types of assesses need to get their tax audit done by a CA or a firm of CAs.

Q: Who needs to get an income tax audit report?

A: Any business with an annual turnover exceeding 1 crore and any professional with receipts above Rs 50 lakh has to get their tax audit done. 

Q: What is the due date for filling returns for companies?

A: For the Financial Year (FY) 2023–2024 returns, domestic companies must file them by 31 October 2024. If the corporation has any international transactions or certain domestic transactions and is obliged to file a report in Form Number 3CEB under Section 92E, the ITR is due on 30 November 2024.