E-filing of Income Taxes

What is e-filing?

Every individual earning income within the taxable range as an Indian citizen is required to pay tax. This is required by Section 139 of the Indian Income Tax Act, 1961. E-filing is when an individual pays their tax online on their own. 

Also Read: Income Tax Return Filing

One of the simplest ways to file returns is through electronic or e-filing. You can complete your own ITR e-filing as a taxpayer. For income tax e-filing, there are no print documents or long, complicated stages. You can easily file returns yourself if you know the income tax heads, matching incomes and deductions, and have digital documentation. You can also get professional assistance for income tax online filing if you are unclear how to do it on your own. The procedure is quick, easy, and painless in either case.

The significance of filing tax returns

If your income falls into the taxable range, you must file income tax returns as a law-abiding citizen of India. It makes no difference whether you file your income tax return manually or electronically. If your annual income falls within the taxable limit, you must file your taxes.

Individuals must file their IT returns on time because a late payment can jeopardize their prospects of obtaining a travel visa and potentially cause problems with their loan applications.

There’s also a chance that the IT department will take legal action against you. Indian tax regulations stipulate a minimum sentence of three years, with the possibility of a maximum sentence of seven years.

It is advisable to pay your taxes on time to avoid any of these problems. The method of e-filing an income tax return is really simple.

What ITR Form Should I Use for Electronic Filing?

When e-filing income tax returns, knowing which ITR form to use is crucial. You can choose from seven different tax return forms:

  • ITR 1: Individuals having salaried income, revenue from one house property, income from other sources, and agricultural income of up to $5,000 must file Form ITR 1 or SAHAJ. Additionally, your total income from all of these sources should not exceed Rs. 50 lakh.
  • ITR 2: This form is for individuals and Hindu Undivided Families (HUF) with income in excess of Rs. 50 lakhs from salary, pension, residential property, and other sources.
  • ITR 3: This is the form to use if you or your HUF make money from your business or profession. In this form, you can also enter income from a rental property, a salary, a pension, and other sources.
  • ITR 4: Individuals, HUFs, and Partnership firms who earn money through business or profession should use ITR 4 or SUGAM. It also applies to people who have chosen the government’s new presumed income arrangement. However, annual income cannot exceed Rs. 50 lakhs.
  • ITR 5: Firms, Limited Liability Partnerships (LLPs), Associations of Persons (AOPs), Bodies of Individuals, Artificial Juridical Person (AJP), Estate of the Deceased, Estate of the Insolvent, Business Trust, and Investment Fund should use this form.

Benefits of Electronic Filing of Tax Returns

Online tax filing is simple, convenient, and hassle-free as compared to traditional manual tax filing. It will not halt on holidays or weekends, and you may complete it whenever you choose from the comfort of your own home. The following are some of the other advantages:

  • All of your documentation must be uploaded to your online profile. This information will be saved for future online tax submissions. You won’t have to submit a copy over and over like you would with manual filing.
  • On the ITR website, you can check the progress of your income tax e-filing in real time, including the status of refunds.
  • With online tax filing, there are fewer mistakes.
  • Payment using electronic means is more convenient and quick.
  • You can easily obtain copies of your ITR for loan approval, visa applications, and other purposes by downloading them from the Internet.
  • For income tax e-filing, you can file your returns yourself or hire a professional.

ITR e-Filing Eligibility

It is mandatory to file taxes for all individuals (and businesses) who have an income that falls within the taxable threshold. Individuals can use an Income Tax calculator to see if they have taxable income and calculate their tax liability for free online.

Filing your taxes is required in the following situations:

  • If you have spent more than 2 lakhs on a trip to another nation, whether for yourself or for someone else,
  • If you have more than one crore deposited in one or more current accounts with any bank
  • You’ve spent more than a lakh on energy in a single financial year, you’re in trouble.
  • You have income or assets in another country, or if you have signing authority over any account outside of India
  • Companies must file income tax regardless of whether they make a profit or lose money.

Suggested Read: Income Tax Planning


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