In the era of Digital India when most of the mechanism of payments are cashless (for saving time, cost, and efforts) why not follow the practice of e-filing income tax returns (ITR). On June 7, the Government of India has launched a new e-filing web portal (having a feature of e-filing of ITR) that shall help in speedier processing and faster refunds. It is more interactive and user-friendly. To date, The statistics for the e-filing of ITR is as follows:
| Individual Registered Users on the web portal of Income Tax | 9,48,32,278 |
| E-Verified ITRs (AY 2020-21) | 6,01,46,901 |
And the aforesaid figures will increase with the digitization of the Indian economy in the forthcoming future.
How to Easily File ITR on the New Tax Portal?
Presently, ITR 1 and ITR 4 are available online for filing of ITR for individuals. And following steps are taken to file ITR electronically:
- Step 1: In the first step, you need to get registered yourself on the web portal of Income-tax. The link for registration on the web portal of Income Tax is as follows: https://www.incometaxindia.gov.in/Pages/tax-services/registration-e-filing.aspx if you are a first-time user. Use Permanent Account Number (PAN) to register yourself on the web portal of Income Tax. Your PAN shall be your user id and you can enter the password as per your choice. Thereafter you shall log in to the web portal.
- Step 2: Now click on the options tab e-file. And Then click on the option “File Income Tax Return”
- Step 3: Thereafter, you will need to choose the assessment year for which you have been filing the ITR and thereafter click on the option continue. Then the computer will ask “whether you want to file ITR online or offline”. Select the “online” option which is also the suggested mode of e-filing on the 2.0 portal.
- Step 4: In this step, you shall have to choose if you would have to file ITR as an Individual, HUF, or others. Choose an individual.
- Step 5: Here in this step, you need to select the ITR that you are eligible for filing. There are many different choices are attached to income tax return one can file. For instance, a salaried person with income up to INR 1 crore, one house property, and agriculture income of up to INR 10,000 can file ITR 1
- Step 6: In the next step, you have to provide the reason why you are filing ITR – whether because your Income is above the tax limit or because of the seventh provision under Section 139(1). As per Section 139(1), a person is liable to file ITR if he/she has (a) deposited more than Rs 1 crore in a single or multiple current accounts during the year, (b) spend Rs 2 lakh or more on a foreign trip, or (c) paid an electricity bill amounting Rs 1 lakh or more. Make sure to choose the right option.
- Step 7: In this step, you will have to provide the details of the bank account where you want to receive ITR refunds if you have not already provided that. Also, you’ll have to pre-validate the bank account if you haven’t done it before.
- Step 8: Now, you are ready to fill the ITR form. Most of the columns will be pre-filled with the information already available in your account and previous ITRs. Make sure to verify this information before you submit your ITR. After that, you can confirm and validate your ITR summary.
- Step 9: Lastly and Importantly, You shall need to verify the ITR. Remember this thing that the ITR filing process is not complete until and unless ‘verification of ITR
