The arrival of online websites of income tax return filing and the income tax department’s persistent modification of its e-filing portal i.e. www. incometaxindiaefiling.gov.in have formed the process of income tax return filing relatively simpler in recent years, but for many taxpayers with individual salary and pensioners, it continues to be a feared activity which they hold off till the last minute, even after 31 July, the required date for filing the income tax return (ITR).
Although this year, such delaying will result in payment of the huge price. Rs 5,000 is the penalty paid for filing late, making it crucial to meet the deadline, which was the already passed date (31 July). If anyone delays the filing of ITR beyond 31 December, the fine charged will be higher than 5,000 i.e. 10,000. So, it’s best for everyone to start the procedure right away. Gaining information on what all you have to do for filing your return and some organized effort will lead you to the other side of 31 July without too many difficulties. Read further to find out more about filing ITR.
File Income Tax Returns yourself
Income tax returns can be filed straightly with the income-tax department. There are two ways of doing so which includes filing physically or online on the website: www.incometaxindiaefiling.gov.in. Although, according to the income tax rules, an individual person can file physical returns only if his or her yearly income is less than Rs.5 lakh in the prior year and there is no claim of refund. At the specific time, “those taxpayers should not have declared any tax relaxation for taxes paid abroad, and should not have income or assets kept in abroad,” Amol Mishra, tax head, myITreturn.com said.
If you are qualified and plan to file returns physically, get the necessary forms from the income tax office or upload it from its website. Then fill these forms and look for the ward or income tax office under whose administration you fall on the website of IT department, and after that submit there. “When the return is filed physically, the taxpayer should take a stamped and numbered appreciation,” Mishra said.
Filing of income tax return on the website of the IT department can be completed in two ways—partially and fully online. Firstly, you need to upload the necessary ITR form from the website and on your desktop, save it. Fill up the return offline and form an XML file and save it on the desktop. Then, register and make user ID and password by giving your PAN. Once you have made the account, log in and upload the return and after that submit it. The second process includes logging in with the applicant’s (your) user ID and password. Choose the ITR form relevant to you and fill in the needed details. The software is user-friendly and a short description of each column is also given.
After you have filled all the details, give the form. In both procedures, you will get an appreciation on submitting successfully. Earlier, in case the form was filed online without using a digital signature, the appreciation (ITR V) had to be issued through a post to the central processing unit of the IT department by the assessee. Although this year, if you give your Aadhaar card number during the filing of returns, you do not have to give the appreciation. Filing returns by your own, offline or online, is free of cost.
Preparers of Tax return
Those who think that filing ITR is hard to understand and want to file their returns can take the support of tax return preparers (TRPs), whom the I-T department appoints for helping the income tax assesses in preparation and filing of returns correctly. TRPs are appointed under the scheme of TRP and are being exercised to file returns for taxpayers. You can find a TRP in your area with the help of the website www.trpscheme.com. Only you need to enter the necessary information which includes state, pin code, and city and a list of submitted TRPs in your area will be shown along with their TRP ID, address, name, and details of the contact.
They are remunerated for each return filed according to the amount of tax paid by the assessee. The highest amount that can be levied by a TRP is Rs.250, and this pertains in case tax which had to be paid is zero. Otherwise, the TRP’s fee will decrease with respect to the increase in your tax. Make sure you have the information of the TRP which includes name, identification number, and countersignature on the form of ITR.
Aside from TRPs, there are a number of mediators who are permitted to e-file your IT returns. You can look for the list of authorized e-return mediators on www.tin-nsdl.com. Many of them monitor e-filing websites such as cleartax.in, Quicko.com, makemyreturns.com, myITreturn.com, and taxspanner.com. These provide several plans; you can select according to necessity. If you wish to file by yourself, you can use take help with most of these websites to do so and even for free. “Out of the total number of returns filed by our website, 80% are self-filed by assesses,” Vikram Ramchand claimed who is the co-founder and chief investment officer of makemyreturns.com. More people are taking authority and filing return by themselves. The number of such filers has been increasing year by year. If you are willing the mediator to e-file for you, charges for the same differs between Rs.200 and Rs.10,000, depending on the number of income sources and the difficulty of the return. Apart from the cost and features, look if the mediator is authorized for e-filing returns or not and that its privacy and confidentiality policy is suitable or not.
Apps of E-filing
With the rise in utilization of the Internet and smartphones, now there are mobile apps for filing returns too which include the apps made by portals of e-filing myITreturn.com, hellotax.co.in, and taxspanner.com. Although, most of these mobile apps offer the benefit to filing only Sahaj or ITR-1 (for assesses who have income from interest and salary). Some standard services which are refund status check and tax calculators are also handy on these apps. Most of these services are free of cost. Portals such as taxspanner.com give the taxpayers authority to send their Form 16 over WhatsApp, after which the justify procedure will be managed by their team.
In simple case prospects, for instance, the prospect where an assessee has just salary as the income source, it is simpler to self-file, and they will not require expert advice. “But in case of tax complexity, multiple sources, and tax audits of income and subtraction are anxious, one may require to consult a chartered accountant (CA),” Sudhir Kaushik said who is the co-founder and director of Taxspanner.com.
Charges or fee differs, determined by the source of income and difficulty of returns. Mostly, for easy returns, CA firms levies Rs.500-1,000 in cities such as Mumbai and Delhi. Charges rise with the complexity of returns. Online service providers also have experiences CA’s on their panel, to aid tax filers. “They may provide CA assistance through the phone by charging one-third the price,” Sonagara said.