An income tax return application is a form that allows a person to record their income, spending, tax deductions, investments, and taxes, among other things. The Income Tax Act of 1961 requires a taxpayer to file an income tax return in a variety of situations. The income tax return is a form used to disclose a taxpayer's annual income. Even in the lack of income, there may be several reasons to file an income tax return. A taxpayer may wish to submit an income tax return filing in order to declare his income for the fiscal year, carry forward losses, claim an income tax refund, claim tax deductions, and so on.

How to File for Income Tax Return Filing?

Form-16 is essential when it comes to Income Tax Return Filing
 

Form-16 is an important document that businesses present to employees that contain all of the vital information on tax deducted at source (TDS) & accurate wage breakdown. That is why it is the most fundamental form that people should collect. However, in rare situations, an individual can apply for IT files without submitting Form-16.

As a result, we've gone over both processes to clear up any confusion about how to file an ITR with and without Form-16.

Fill out Form-16 with your ITR
 

Section 203 of the Income Tax Act requires the issuance of the income tax form. 

This paper offers thorough information on salary, the elements paid by an employer, & the taxes that are not included in the salary. It is detailed here on how to submit an income tax return filing using Form-16.

Step 1: Visit the official e-filing website.

Step 2: If you haven't already, register yourself. Your PAN will serve as your user ID, & the date of birth will serve as your password.

Step 3: Create Form-26AS, which may be found on the NSDL-TIN website.

Step 4: Download the ITR-1 form from the income tax site (if your salary/pension income is less than 50 lakhs), or the ITR-2 form if your salary/pension income exceeds 50 lakhs.

Step 5: Complete the ITR form with the necessary information. For effective help, please see Form-16. Form-16 and Form-26AS can simply be used to request undeclared reports or other information.

Step 6: Enter your income information and finish the validation procedure with the aid of the required papers.

Step 7: Determine your tax liability.

Step 8: Navigate to the tab indicating the tax payment status (whether it has been paid, is being paid, or is being reimbursed). Fill out the bank information and confirm the declaration.

Step 9: Attach the papers and press the 'Submit' button.

Step 10: Create an ITR-V. (acknowledgement & verification document).

Step 11: E-verify the information.

File Income Tax Return without Form-16
 

You can proceed to submit an Income Tax Return filing if you have not acquired Form-16 from the employer for whatever reason. Here's how to file an ITR without Form 16.

Step 1: Identify all of your sources of revenue. Salary & pensions, capital gains, income from real estate, income from other sources such as fixed deposit interest, interest on refund, and so on may all be included.

Step 2: Get Form-26AS (may be referred to as a yearly tax statement) (can be termed an annual tax statement). It is available for download from the Income Tax Department's TRACES website.

Step 3: Compile data on different payments & investments and claim deductions under Sections 80C & 80D of the Income Tax Act, where appropriate.

Step 4: The next step in claiming House Rent Allowance (HRA) and other allowances is to file an income tax return without Form-16.

Step 5: Once the deduction and claim have been determined, the total taxable income must be computed. The entire taxable amount may be calculated by subtracting the total deductions (to be claimed) from the total amount of income (earned in the respective FY).

Step 6: After that, compute the tax liability based on the appropriate slab rate.

Step 7: Calculate the applicable tax.

Step 8: Once you have completed all of the preceding processes, you may go to the official e-filing portal.

Step 9: Submit ITR returns without Form 16.

Step 10: After you have finished completing your ITR, you must e-verify it.

How to file Income Tax Return both Offline & Online
 

In this blog, we will get to understand the step-by-step procedure of Income tax Return Filing in both offline and online modes. 

To submit an ITR, an individual must first download the appropriate form, fill in the required data offline, and then save & upload the freshly formed XML file.

However, this solution necessitates the installation of one of the following ITR utilities:

• Excel Utility
• Java Utility

To file an income tax return offline, follow the steps outlined below.

Step 1: Navigate to the official e-filing website.

Step 2: Download the appropriate ITR programme from the 'Download IT Return Preparation Software' section.

Step 3: Unzip the utility ZIP file that you got.

Step 4: Open that specific utility file.

Step 5: Fill out the IT returns form with the essential information.

Step 6: Confirm all tabs and calculate the tax.

Step 7: Construct & save the XML file.

Step 8: Enter your PAN and password to access the e-filing portal. After that, input the Captcha code.

Step 9: Choose e-file.

Step 10: Click on the 'Income Tax Return' link.

Step 11: Subsequently, submit information such as the Assessment Year and ITR Form Number. Put the filing type to 'Original/Revised' and the 'Submission Mode' to XML. The PAN will be auto-uploaded at this point.

Step 12: To confirm the ITR, choose from the available alternatives such as 'Aadhaar OTP,' 'EVC Through Bank Account Details,' 'Demat Account Details,' or 'Digital Signature Certificate.'

Step 13: Click 'Continue.'

Step 14: Upload the ITR XML file.

Step 15: You must attach/provide the relevant file depending on the chosen verification option. To be more specific,

• If you select DSC as a verification method, you must supply the signature file generated by the DSC software.
• If you choose Aadhaar one-time password verification, you must enter the OTP that was issued to your UIDAI-registered cellphone number.
• You must submit an EVC number provided to your associated mobile number with the bank or Demat account if you select 'EVC Through a Bank Account,' 'Bank ATM,' or 'Demat Account' as a verification option.
• If you select a different verification method, the ITR filing process will be completed; however, the process will not begin until the verification is finished. As a result, this is how you may file your income tax return.

Individuals must e-verify their ITRs utilising the My Account e-verify option. 

The paper must be delivered to the IT Department (CPC, Bengaluru) & signed by the person.

Step 16: Click the 'Submit' ITR button.

Step-by-Step Process to file for the ITR online
 

Step 1: Go to the portal of the Income Tax Department.

Step 2: Create a PAN account, which will serve as your user ID. Registered users can log in by clicking 'Login Here.'

Step 3: Go to e-file and choose 'Income Tax Return.'

Step 4: Select the ITR form number & AY from the drop-down menu. The filing type must be "Original/Revised Return," and the submission method must be "Prepare and Submit Online."

Step 5: Select 'Continue.'

Step 6: Fill in the required information on the ITR form.

Step 7: Determine the amount of tax due.

Step 8: Select the appropriate option from the 'Taxes Paid and Verification' menu.

Step 9: Next, choose ‘Preview & Submit.’

Step 10: Complete the verification procedure using Aadhaar OTP, electronic verification code through bank account details, bank ATM, & Demat account details, or send a completed ITR-5 (either fast post or regular mail) to the IT Department.

Step 11: To complete the submission, enter the OTP/EVC that was issued to your registered cellphone number during its validity time and follow the instructions.

Documents Required for Income Tax Return Filing
 

Listed below is a list of all the necessary documentation needed for Income Tax Return Filing based on your income category. Determine your income category & obtain the necessary documentation.

Salary Income
 

Form-16

Income for other sources
 

Bank account/passbook statement for saved interest, Rent agreement or TDS certificate (if necessary), Interest or TDS certificate for bank FD interest, Dividend warrant (if earning is produced from dividend), Other documentation proof (as required)

Investing in tax breaks
 

Medical insurance receipt, Life insurance premium payment receipt,  Donation paid certificate, Fixed deposit receipt, Education loan repayment certificate, Mutual fund consolidated account statement. Medical insurance receipt, Life insurance premium payment receipt,  

Income from capital gains
 

Contract note, Demat account statement, Purchase & sale deed of immovable property, Purchase & sale proof/receipts of all applicable capital assets, Contract note, Demat account statement

Income from profession or business
 

TDS certificates, balance sheets, audited financial documents (when needed), income tax payment challan copy (self-assessment tax/advance tax)

Allowance for travel on leave
 

Tickets and receipts for purchased tickets that are applicable

Medical expenses are tax-deductible
 

Bill for medical expenditures

Exemption from the HRA
 

Receipts for paying rent

In general, the following are the enclosures that must be submitted with IT returns:

Form-16

• Salary statements
• Bank and post office interest certificates
• Form-16A/Form-16B/Form-16C
• Form-26AS
• Proofs of tax savings-investment
• Deductions ranging from 80D to 80U
• Gains in capital
• Bank and NBFC home loan statements
• Aadhaar Card

Benefits of Income Tax Return Filing
 

Easy loan approval- Filing IT returns aids in the easy approval of various financial products such as two-wheeler or four-wheeler loans, business loans, and so on. While verifying the documents, major financial institutions may request a copy of the IT returns.

Fast visa processing- If you want to travel abroad, the foreign consulate will require ITR receipts from the past two years at the time of the interview. Furthermore, some embassies need the preceding three years' IT returns. As a result, completing an IT return will allow for smoother immigration processing.

Income and address evidence- Another significant advantage of submitting an IT return is that it may sometimes serve as address verification.

Avoid penalties- If you are required to file an IT return but have failed to do so, you may face a substantial penalty. As a result, filing IT returns on time can save significant money.

Claim tax deductions- You can get a refund if you paid more than your real tax due.

Carry forward losses- Unless you have filed an IT return, you cannot carry over losses from the current fiscal year to the following fiscal year. Therefore, it is vital to perform the same inside the due date.

Deductions for high-value investments- The information is sent to the IT Department when you buy a home. Hence, when you pay income tax & file IT returns, you can claim a deduction on the payment.

Conclusion
 

The income tax return is a form on which taxpayers disclose their tax due and deductions based on the category and demand of the form. The form is available in the following ranges: ITR-1 to ITR-7. When a person completes the appropriate form and sends it to the Income Tax Department, a person has filed an income tax return. An income tax return can be submitted both online and offline.

The specialists at Online Legal India are here to assist you in submitting your Income Tax Return filing in a timely manner.