E-filing ITR is extensively accessible today, making tax expertise more affordable with every passing day.
Let us find out about the three ways to e-file income tax returns.
Three Methods of Income Tax Return E-Filing!
- The first is to use a Digital Signature Certificate (DSC) for itr e filing. This acts as a digital version of a physical signature.
- The second option is to e-file without a DSC, which generates an ITR-V form, a one-page document that needs to be printed, signed, and submitted to the Central Processing Centre (CPC), Bangalore by post within 120 days from the date of e-filing, in case Aadhar details are not updated on the Income Tax site.
- The third option is to e-file without a DSC and verify it through an Aadhar number or bank. This option eliminates the need to submit the ITR-V form to CPC.
It is recommended to keep the following documents handy for various purposes when filling out the ITR form online. The documents comprise general details like PAN, Aadhaar (linked to PAN), and bank account information. For computing income from salary, documents like salary slips, rent receipts for claiming HRA, and Form 16 may be required.
To claim deductions, you may need interest certificates from savings and deposit accounts, insurance and home loan details, details about investments liable for deductions, and any other proof of income such as income from house property or capital gains.
It’s important to consult a Chartered Accountant or tax expert to ensure you are aware of all liable deductions and exemptions.
Fortunately, various online tax filing platforms can assist you throughout the process. Simply upload the required documents, and the rest will get taken care of.
Unfolding Ways for E-Verification of Your Filed ITR!
Once you submit your tax return (either by uploading it through the return utility or otherwise), you will receive an acknowledgment in the form of ITR-V. The first method is self-verification through the e-filing portal of the Income Tax Department using an Electronic Verification Code (EVC) generated by linking your Aadhaar card/number to your PAN. The EVC will be sent to your registered mobile number and you will not need to send the ITR-V to the Income Tax Department in Bangalore if you use this method.
The second method pertains to sending the ITR-V to the Income Tax Department in Bangalore. This is supposed to get done by post within 120 days from the date of ITR e filing to complete the verification process. Once your return is verified and you are eligible for a tax refund, it will be credited directly to your bank account. You will be informed about the refund by the Income Tax department.
Are the New ITR Forms Any Different?
The new forms resemble the previous ones, but with an additional feature, which is a separate schedule to report income from virtual digital assets (VDAs) like cryptocurrency. This VDA schedule requires specific information, such as the date of acquisition, date of transfer, and category of income tax (Capital Gain). Additionally, anyone who earns income from VDAs needs to provide information on the cost of acquisition, in case of a gift. From the fiscal year 2022-23, there are regulations in place for taxing virtual digital assets (VDAs). Income from transferring assets like cryptocurrencies and non-fungible tokens (NFTs) is subject to a 30% tax rate at the end of each fiscal year. Deductions are not allowed, except for the cost of acquisition, when reporting income from transferring digital assets. The VDA schedule is included in all Income Tax Return (ITR) forms, except for ITR1.
The most promising part about online tax filing platforms is their dedicated subscription models to serve different segments, such as freelancing, businesses, salaried income, HNIs, and more.