5 Things to Keep in Mind When E-Filing Income Tax Returns

e-filing income tax return

Online Income Tax Return Filing

The process of filing income tax returns is done every year; however, paying some caution and diligence while filing the ITR will go a long way in your favour. Here is the list of new changes and five most important facts that you should consider while income tax filing:

  1. Linking your Aadhaar Card with your PAN number is the most important change introduced this year. In absence of this phenomenon, you won’t be able to e-file tax. Also, it has become mandatory to cite your Aadhaar number in the ITR form. In case, you don’t have the Aadhaar card, but already have applied for it, you can also quote the Aadhaar enrollment ID in the form. Aadhaar number is a 12-digit entity and its enrollment ID is of 28-digit. This is the reason; you will find a 28-digit column to quote the Aadhaar number in the new income tax e filing form.
  2. You can e-file taxes through online as well as offline mode. However, offline ITR (paper return) can only be submitted in 2 cases:
  • If an individual/HUF (Hindu Undivided Family) has an income under Rs. 5 lakhs and s/he doesn’t have to claim any refund in her/his income return.
  • If an individual’s age is of 80 years or above

In all other scenarios, one has to go for online income tax e filing as it reduces the risk of errors & re-work. The mandatory checks in the online form ensure that there aren’t any mistakes done or wrong information updated by the tax filers.

The Finance Ministry of India has introduced some major changes in the income tax filing procedure this year. For instance, an individual who had filled ITR4 last year is supposed to file ITR3 in the current financial year. Similarly, if you have filed ITR3 last year, you’re required to file ITR2 in the current year. Hence, it’s pertinent to make sure that you are choosing the correct e-filing form. Also, to make the e-filing procedure further simpler and easier, the ITR1 form has been changed into a one-page form (meant for the salaried people whose income ranges up to Rs. 50 lakh).

  1. As per the new rule, it has become mandatory to cite all your bank accounts (anhttps://incometaxindiaefiling.gov.in/e-Filing/Services/DownloadItrLink.htmld its details) held by taxpayers in the previous financial year. Taxpayers have to provide income tax department with the name of the banks, bank account numbers, IFSC codes and whether it’s a current or savings account. However, you don’t need to share details of the bank accounts that aren’t operational since last 3 financial years.

Also, as a taxpayer you are required to share the total cash deposited in your bank account in the demonetization period (from November 9, 2016 to December 30, 2016). Income tax filing form has this new column where you can report the total cash deposited during the particular period. However, this information is only required if the taxpayer has deposited Rs. 2 lakh or more during the demonetization period.

  1. Almost, all of us have deposited our money in bank accounts, FDs, post office savings accounts and different schemes. The interest earned on this deposited amount needs to be reported while e-filing your income tax returns. However, most of us have a notion that since the tax has been already deducted on the earned interest; we don’t need to share this information in the respective ITR forms. But it’s still mandate to share the amount of interest earned on your deposited money because even though you aren’t required to pay taxes on it, mentioning it in the ITR form can help you get a deduction from the total tax payable amount.
  2. It’s important to understand that the income tax filing process isn’t taken to be completed till the time you verify your returns. The returns can be verified either by sending a signed copy of ITR-V acknowledgment receipt to CPC, Bangalore (within 120 days of filing the return) or through-e-verification. If you already have e-verified the returns, you don’t need to send the acknowledgement receipt. You can do e-verification through various options, e.g. through your bank account number, Aadhaar Number, Net banking and Demat Account.

You May Also Like to Read: Tips on Tax E-filing for First-Time Freelancers

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