Several industrialists and salaried individuals get tax scrutiny notice from the Income Tax Department every year. However, it has been noticed that there has been a reduction in this number that comes under scrutiny typically for not paying tax in time. According to data, 0.71% of taxpayers were under scrutiny in the year 2015-2016, whereby this percentage got reduced to 0.25% in 2018-2019.
The statistics prove the fact that several decisions taken by the government over the years has been beneficial and brought transparency in the system. With the updated e filing procedure, tax payment, as well as return filing, has become more convenient for individuals. They can now use the online portal and get complete information regarding the income tax return (ITR) filing process.
A look at efiling – What does it comprise?
eFiling refers to the process of providing the returns of the taxes paid using the electronic procedure. While you can use both online and offline methods for ITR filing, electronic filing has made doing so comparatively convenient due to the simple and hassle-free online process.
One can easily file the returns without having to invest much time on the traditional paperwork formalities. Further, with timely filing, the income tax documents so generated come in handy for various purposes. For instance, they can be used to document annual income when applying for home loans.
Since there are certain requirements when it comes to availing loans, keeping such documents ready often makes the process hassle-free, and one can easily get a home loan in India with a suitable income proof in place.
eFiling login process
Taxpayers need to register themselves to begin efiling of income tax return process. For that, they need to visit the Income Tax Department’s official site and complete a few required steps.
Step 1: Visit the official website of the Income Tax Department and provide PAN card details, your name, date of birth, and a password.
Step 2: Make a detailed calculation of the taxable income followed by tax liability calculation as per the current slab rate applicable to you.
Step 3: Depending on the source of income and type of profession, you will find several forms on the site. Choose the correct requisite form as per your earnings. ITR forms are distributed into a few categories such as ITR 1, ITR 2, ITR 3, 4 and 4S for suitable income source identification.
Step 4: Make sure you have the necessary documents with you to continue the process of income tax efiling. These documents include TDS certificate, Form 16, PAN card, details of insurance policies, home loans, etc.
Step 5: Fill up with appropriate details and upload the file. After the submission of your ITR form, you will be provided with an acknowledgement number. You need to preserve this number if the process was completed with the digital signature.
In case, a digital signature was not used, you would receive ITR-V at your registered email ID. Make sure your ITR-V is verified to complete the procedure.
Requirements for efiling of income tax return
Depending on the annual income, your eligibility to file ITR will be decided. Here are a few details on the parameters based on your age and yearly income to help decide your ITR filing requirements.
- Below 60 years of age: Annual income Rs.2.5 lakh or more.
- Between 60-80 years of age: Annual income Rs.3 lakh or more.
- Above 80 years of age: Annual income Rs.5 lakh or more.
Apart from this, factors like income sources, a loan or visa applications, and the type of business play a significant role in this determination. Individuals prefer keeping income tax efiling return procedure transparent as these documents can be used for several purposes. Individuals applying for a visa or even home loans can easily get past the required formalities by submitting copies of these documents.
For instance, availing home loans in India comes with multiple requirements since one is needed to follow several guidelines and keep certain documents ready. Not having sufficient documents prepared can affect your home loan eligibility.
Though, apart from the documentation part, getting home loans has become relatively easier with multiple housing finance companies providing attractive schemes and offers.
Top financial institutions have also introduced pre-approved offers to make financing less time-consuming and hassle-free. These offers are available on several financial products such as home loans, loans against property, etc. You can check your pre-approved offer by submitting basic details such as name and contact number.
Efiling of income tax returns involves following certain rules and providing the right information to complete the process. You also need to meet the strict deadline set by the Government of India to use the efiling login portal and file the returns. Since both the government and taxpayers can benefit from this system, it is advisable to maintain the rule of paying taxes in time and proceeding with ITR filing afterwards.