The deadline for filing Income Tax Returns in a financial year is July 31. Filing returns after the period will make the assessee liable to pay a late fee of up to Rs. 10,000. However, the Government of India has extended the date for FY 2018-19 to August 31. The time is applicable for smaller businesses like HUFs that do not require their accounts to be audited.
For larger organisations like companies and proprietorships, the last date to file ITR is September 30.
Learning how to file ITR will help you to get back the excess tax that you have paid in the form of TDS. Every tax-payer must file returns online. Only super senior citizens are allowed to file returns in paper format.
There are many benefits to maintain an ITR certificate. In case you try to avail a loan or a credit card, showing your ITR proof will improve your creditworthiness.
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Steps to file ITR online
E-filing is a highly convenient practice and can be executed quite easily from the confines of your home or office. Listed below are comprehensive steps that will help you know how to file ITR online.
Step 1: Collect the required documents
To file ITR, the assessee will have to collect the following documents about different income and TDS –
- TDS certificate (Form 16) – For salaried individuals, it is the single most important document. TDS is charged every month on your salary. Ask for a TDS certificate from your employer.
- For 26AS – Visit the official ITR website. Log into your account using your username and password. Click on the view 26AS in my account tab. You will be redirected to another website from where you will be able to download the form.
- Interest certificates – If you earn interests, you will have to provide this document proving tax deduction at source on these payments. Ask for this form from your respective financial institution.
- Capital gains certificates – Tax deducted from the sale of capital assets is also eligible for returns. However, you will also have to provide information about the buyer as well.
Note: It is mandatory to verify the TDS certificate (Form 16) using a Digital Signature Certificate (DSC).
Step 2: Compute taxable income
Total taxable income can be computed by adding all the revenue from the following sources –
- Income from salary.
- Income from house property.
- Income from capital gains (profit on the sale of capital assets).
- Income from business or profession.
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After summing up your annual income from the above sources, you will have to account for the deductions provisioned for in the Income Tax Act. The most popular sections to file deductions are listed below –
- 80C- Deduction on allowed investments.
- 80CCC- Payment of life insurance premium.
- 80CCD- Contribution to a pension fund.
- 80D- Payment of medical insurance premium.
- 80GG- House rent allowance.
Many other exempted expenses can be deducted from your total income. You must know about these deductions before learning how to file ITR.
Step 3: Collect documents for deductions
Once you have entered all the details about your deductible expenses, you will have to provide documents proving the same. Receipts of insurance premiums paid, investment certificates, and rent receipts must be attached at the appropriate sections of the e-filing page. For this, a scanned copy of the documents is required.
Once you confirm and verify your income and deduction details, an XML file will be generated by the system.
Step 4: Submit returns
In this step, the XML file will have to be uploaded to the ‘submit returns’ tab after due verification through a digital signature certificate. Once you have uploaded the XML file, the income tax department will verify your claims and intimate you regarding returns through your registered E-mail.
These are the steps that you have to follow to file an ITR via Form 16. Like e-filing, you can also learn how to pay your credit card bill online.