Income Tax

Income tax is a direct tax that is levied by the Government of India on the income of every person. The provisions governing the Income-tax are covered in the Income-tax Act, 1961.

The task of administration, control, and supervision of Income-tax has been entrusted to the Central Board of Direct Taxes (CBDT). The CBDT is a part of the Department of Revenue in the Ministry of Finance.

Income-tax is levied on the annual income of a person and for that, you can visit E tax filing India portal for more information regarding income tax. The year under the Income-tax Law is the period starting from 1st April and ending on 31st March of the next calendar year. The Income-tax Law classifies the year as (1) Previous year, and (2) Assessment year. The year in which income is earned is called as the previous year and the year in which the income is charged to tax is called an assessment year.

e.g., Income earned during the period of 1st April 2018 to 31st March 2019 is treated as income of the previous year 2018-19. The income of the previous year 2018-19 will be charged to tax in the next year, i.e., in the assessment year 2019-20. For further consultancy e tax filing India portal, will sort out your queries related to income tax terms. 

Income-tax is to be paid by every person and this could be done by e tax filing India portal. The term ‘person’ as defined under the Income-tax Act under section 2(3) covers in its ambit natural as well as artificial persons. For the purpose of charging Income-tax, the term ‘person’ includes Individual, Hindu Undivided Families [HUFs], Association of Persons [AOPs], Body of individuals [BOIs], Firms, LLPs, Companies, Local authority and any artificial juridical person not covered under any of the above.

Taxes are collected by the Government through three means by various E tax filing India portal: a) voluntary payment by taxpayers into various designated Banks. For example, Advance Tax and Self-Assessment Tax paid by the taxpayers, b) Taxes deducted at source [TDS] from the income of the receiver, and c) Taxes collected at source [TCS]. It is the constitutional obligation of every person earning income to compute his income and pay taxes correctly.

 

Income Tax Return filing Through E tax filing India Portal

ITR means Income Tax Return. Online ITR return filing in India is a prescribed form through which the particulars of income earned by a person in a financial year and taxes paid on such income are communicated to the Income-tax Department. It also allows carry -forward of loss and claims refund from the income tax department.

​​​​Under the income tax Law, different forms of returns are prescribed for different classes of taxpayers with varied nature of income. The return forms are known as ITR forms. These forms can be downloaded from www.incometaxindia.gov.in or you may visit E tax filing India portal.

The forms of return prescribed under the Income-tax Law for online ITR filing of return of income for the assessment year 2018-19 (i.e., the financial year 2017-18) are as follows:

ITR – 1 Also known as SAHAJ is applicable to an individual having salary or pension income or income from one house property (not a case of brought forward loss) or income from other sources (not being lottery winnings and income from race horses, income taxable under section 115BBDA or income referred in section 115BBDA or income referred in section 115BBE) you can file this ITR through e tax filing India portal.

ITR – 2 It is applicable to an individual or a Hindu Undivided Family not having income chargeable to income-tax under the head “Profits or gains of business or profession” for this ITR one can file via E tax filing India portal.

ITR – 3 It is applicable to an individual or a Hindu Undivided Family who has any income chargeable to tax under the head business or profession. Online ITR return filing in India is now done with ease by the introduction of e tax filing India portal.

ITR – 4 Also known as SUGAM is applicable to individuals or Hindu Undivided Family or partnership firm who have opted for the presumptive taxation scheme of section 44AD/ 44ADA/44AE. In order to file this ITR above individuals can visit E tax filing India portal.

ITR – 5  Form can be filed through e tax filing India portal this form is used by a person being a firm, LLP, AOP, BOI, artificial juridical person referred to in section 2(31)(vii), cooperative society and local authority. However, a person who is required to file the return of income under section 139(4A) or 139(4B) or 139(4C) or 139(4D) or section 139(4E) or section 139(4F) shall not use this form (i.e., trusts, political parties, institutions, colleges, investment fund etc.)

At E tax filing India portal, one can file ITR – 6 It is applicable to a company, other than a company claiming an exemption under section 11 (exemption under section 11 can be claimed by a charitable/religious trust).

ITR – 7 It is applicable to a person including companies who are required to furnish return under section 139(4A) or section 139(4B) or section 139(4C) or section 139(4D) or section 139(4E) or section 139(4F) (i.e., trusts, political parties, institutions, colleges, investment fund etc.). Above mention individual should visit E tax filing India portal for easy filing.

ITR – V It is the acknowledgment of filing the return of income.

 

Know the Difference between Direct Tax and Indirect Tax on E tax filing India Portal

To better understand Income Tax, first, we need to understand the difference between direct and indirect taxes. In simple words, direct taxes are taxes that are directly paid to the government by the taxpayer. It is a tax applied to individuals and organizations directly by the government. At E tax filing India portal taxes which are paid under Direct Tax include Income Tax, Capital Gains Tax, Securities Transaction Tax, Corporate Income Tax, Marginal Tax, Rate Tax on Agricultural, etc are done with ease.

Indirect Taxes are those taxes which are applied to the manufacture or sale of goods and services. These are initially paid to the government by an intermediary or one may refer to e tax filing India portal, who then adds the amount of the tax paid to the value of the goods/services and passes on the total amount to the end user.

The prime difference between a direct tax and indirect tax is the ability of the taxpayer to shift the burden of tax to others. Direct taxes include taxes such as income tax, corporate tax, wealth tax, gift tax, expenditure tax, etc. While indirect tax includes taxes like sales tax, excise duty, GST, customs duty, etc. For more consultancy related to Online ITR filing India, you may visit E tax filing India portal.

 

Online Income Tax Return Filing through E tax filing India Portal

The Online ITR Return Form can be filed with the Income-tax Department or through e tax filing India portal in any of the following ways, –

 (i) by filing the return in a paper form;

(ii) by filing the return electronically via e tax filing India portal under digital signature;

(iii) by conveying the data in the return electronically under electronic verification code;

(iv) by conveying the data in the return electronically and thereafter submitting the verification of the return in Return Form ITR-V

Where the return of income is filed in the manner given at (iv) without digital signature, then the taxpayer should take two printed copies of Form ITR-V. One copy of ITR-V, duly signed by the taxpayer, is to be sent (within the period specified, i.e., 120 days) by post to “Income-tax Department – CPC, Post Bag No. 1, Electronic City Post Office, Bangalore-560100 (Karnataka). The other copy may be reserved by the taxpayer for his record.

​​​​Income-tax Department has set up a portal for e-filing of return of income such as e tax filing India portal where you can look for other queries related to online itr filing India. The taxpayers can log on to www.incometaxindiaefiling.gov.in.  for tax return filing online or E tax filing India portal.

Due date of online ITR return filing in India

S. No. Status of the taxpayer Due date
1. Any company other than a company who is required to furnish a report in Form No. 3CEB under section 92E (i.e. other than covered in 2 below) can file their ITR through e tax filing India portal. September 30 of the assessment year
2. Any person looking for online ITR filing in India by E tax filing India portal (maybe corporate/non-corporate) is required to furnish a report in Form No. 3CEB under section 92E November 30 of the assessment year
3. Any person (other than a company) whose accounts are to be audited under the Income-tax Law or under any other law September 30 of the assessment year
4. A working partner of a firm whose accounts are required to be audited under this Act or under any other law. September 30 of the assessment year
5. Any other assessee July 31 of the assessment year.

 

​​Eligibility to file an Income Tax Return in India Through E tax filing India Portal

The applicable online ITR return file of income shall be furnished by a person mentioned under the conditions specified and, in the manner, specified as in the table –

Sl. Person Condition Manner of furnishing return of income
1 Individual or Hindu undivided family
(a) Accounts are required to be audited under section 44AB of the Act;
Electronically under digital signature;
(b) Where total income assessable under the Act during the previous year of a person,-
(i) being an individual of the age of 80 years or more at any time during the previous year; or
(ii) whose income does not exceed five lakh rupees and no refund is claimed in the return of income,
and who furnishes the return in Form No. SAHAJ ITR-1 or Form No. SUGAM (ITR-4)
(A) Electronically under digital signature; or
(B) Transmitting the data electronically in the return under electronic verification code; or
(C) Transmitting the data in the return electronically and thereafter submitting the verification of the return in Form ITR-V; or
(D) Paper form;
(c) In any other case
(A) Electronically under digital signature; or
(B) Transmitting the data electronically in the return under electronic verification code; or
(C) Transmitting the data in the return electronically and thereafter submitting the verification of the return in Form ITR-V]
2 Company In all cases. Electronically under digital signature.
3 A person required to furnish the online ITR return file in india in Form ITR-7
(a) In case of a political party;
Electronically under digital signature;
 
(b) In any other case

 

(A) Electronically under digital signature; or
 
(B) Transmitting the data in the return electronically under electronic verification code; or
     
(C) Transmitting the data in the return electronically and thereafter submitting the verification of the return in Form ITR-V.
4 Firm or limited liability partnership or any person (other than a person mentioned in Sl. 1 to 3 above) who are required to file return in Form ITR-5
(a) Accounts are required to be audited under section 44AB of the Act;
Electronically under digital signature;
 
(b) In any other case.
(A) Electronically under digital signature; or
 
(B) Transmitting the data in the return electronically under electronic verification code; or
     
(C) Transmitting the data in the return electronically and thereafter submitting the verification of the return in Form ITR-V

 

Various Income Tax Slab Rates in E tax filing India Portal

Below are the various tax slabs for Online ITR return filed for the assessment year 2018-19 on E tax filing India portal.

  1. Income Tax Slab Rate for AY 2018-19 for Individuals:
  • Individual (resident or non-resident), who is of the age of fewer than 60 years on the last day of the relevant previous year:
Taxable income Tax Rate
Up to Rs. 2,50,000 Nil
Rs. 2,50,000 to Rs. 5,00,000 5%
Rs. 5,00,000 to Rs. 10,00,000 20%
Above Rs. 10,00,000 30%

 

  • Resident senior citizen, i.e., every individual, being a resident in India, who is of the age of 60 years or more but less than 80 years at any time during the previous year:
Taxable income Tax Rate
Up to Rs. 3,00,000 Nil
Rs. 3,00,000 – Rs. 5,00,000 5%
Rs. 5,00,000 – Rs. 10,00,000 20%
Above Rs. 10,00,000 30%

 

  • Resident super senior citizen, i.e., every individual, being a resident in India, who is of the age of 80 years or more at any time during the previous year:

 

Taxable income Tax Rate
Up to Rs. 5,00,000 Nil
Rs. 5,00,000 – Rs. 10,00,000 20%
Above Rs. 10,00,000 30%

Surcharge: 10% of tax where total income exceeds Rs. 50 lakhs
      15% of tax where total income exceeds Rs. 1 crore

Education cess: 3% of tax plus surcharge 

Note: A resident individual is entitled to rebate u/s 87A if his total income does not exceed Rs. 3,50,000. The amount of rebate shall be 100% of income-tax or Rs. 2,500, whichever is less.

 

  1. Detailed Income Tax Rates for HUF/AOP/BOI/Any other Artificial Juridical Person on E tax filing India portal:
Taxable income Tax Rate
Up to Rs. 2,50,000 Nil
Rs. 2,50,000 to Rs. 5,00,000 5%
Rs. 5,00,000 to Rs. 10,00,000 20%
Above Rs. 10,00,000 30%

 

Surcharge: 10% of tax where total income exceeds Rs. 50 lakhs
                 15% of tax where total income exceeds Rs. 1 crore

Education cess: 3% of tax plus surcharge 

 

  1. Tax Rate for Partnership Firm and LLP:

A partnership firm (including LLP) is taxable at 30%.

Surcharge: 12% of tax where total income exceeds Rs. 1 crore

Education cess: 3% of tax plus surcharge 

 

  1. Income Tax Slab Rate for Local Authority:

A local authority is taxable at 30%.

Surcharge: 12% of tax where total income exceeds Rs. 1 crore

Education cess: 3% of tax plus surcharge 

 

  1. Tax Slab Rate for Domestic Company:

A domestic company is taxable at 30%. However, the tax rate is 25% if turnover or gross receipt of the company does not exceed Rs. 50 crores.

Surcharge: 7% of tax where total income exceeds Rs. 1 crore

                        12% of tax where total income exceeds Rs. 10 crore

Education cess: 3% of tax plus surcharge 

 

  1. Tax Rates for Foreign Company:

A foreign company is taxable at 40%

Surcharge: 2% of tax where total income exceeds Rs. 1 crore

                5% of tax where total income exceeds Rs. 10 crore

Education cess: 3% of tax plus surcharge

 

  1. Income Tax Slab for Co-operative Society:
Taxable income Tax Rate
Up to Rs. 10,000 10%
Rs. 10,000 to Rs. 20,000 20%
Above Rs. 20,000 30%

Surcharge: 12% of tax where total income exceeds Rs. 1 crore

Education cess: 3% of tax plus surcharge 

 

Process of Online ITR Filing in India by E tax filing India Portal 

To Upload Income Tax Return one can visit E tax filing India portal, please follow the below steps:

  1. Download the ITR preparation software for the relevant assessment year to your PC / Laptop.
  2. Prepare the Return using the downloaded Software.
  • One can gather all the information regarding your income, tax payments, deductions, etc. at E tax filing India portal.
  • Pre-populate the personal details and tax payments/TDS by clicking on the ‘Pre-fill’ button. Compare with the information you have to ensure that nothing is left out.
  • For online ITR return filing in India just Enter all data on E tax filing India portal and click on ‘Calculate’ to compute the tax and interest liability and final figure of Refund or Tax payable
  • If Tax is payable- remember to pay immediately and enter the details in the appropriate schedule. Repeat above step so that tax payable becomes zero
  • Generate and save the Income Tax Return data in XML format in the desired path/place on your PC/Laptop.
  1. Login to e tax filing India portal or (https://www.incometaxindiaefiling.gov.in/home ) with a User ID, Password, Date of Birth /Date of Incorporation and enter the Captcha code.
  2. Go to e-File and click on “Upload Return”.
  3. Select the appropriate ITR, Assessment Year and XML file previously saved in Step 2.
  4. Upload Digital Signature Certificate (DSC), if applicable.

Please ensure the DSC is registered with e tax Filing India.

  1. Click on the “Submit” button.
  2. On successful submission, ITR-V would be displayed (if DSC is not used). Click on the link and download the ITR-V. ITR-V will also be sent to the registered email. If ITR is uploaded with DSC, the Return Filing process is complete. 
    OR
    The return is not uploaded with DSC, the ITR-V Form should be printed, signed and submitted to CPC within 120 days from the date of e-Filing. The return will be processed only upon receipt of signed ITR-V. Please check your emails/SMS for reminders on. non-receipt of ITR-V.

Upload Income Tax Return process is complete now.

Then the next step is to prepare and submit ITR Online. To Prepare and Submit ITR Online, please follow the below steps:

  1. Login to e-filing website or E tax filing India Portal (https://www.incometaxindiaefiling.gov.in/home )website with a User ID, Password, Date of Birth /Date of Incorporation and Captcha.
  2. Go to e-File and click on “Prepare and Submit ITR Online”.

Only ITRs 1 and 4S can be filled online

  1. Select the Income Tax Return Form ITR 1/ITR 4S and the Assessment Year.
  2. Fill in the details and click the “Submit” button.
  3. Upload Digital Signature Certificate (DSC), if applicable.

Please ensure the DSC is registered with e-Filing.

  1. Click on the “Submit” button.
  2. On successful submission, ITR-V would be displayed (if DSC is not used). Click on the link and download the ITR-V. ITR-V will also be sent to the registered email. If ITR is uploaded with DSC, the Return Filing process is complete. 
    OR
    The return is not uploaded with DSC, the ITR-V Form should be printed, signed and submitted to CPC within 120 days from the date of e-Filing. The return will be processed only upon receipt of signed ITR-V. Please check your emails/SMS for reminders on .non-receipt of ITR-V.

This completes the process of preparing & submitting ITR Online by Taxpayer. ​​

 

Major Reasons in E tax filing India Portal for Income Tax return Filing in India 

  • You cannot recompense your expenses/losses in the previous financial year to the current, unless you file the ITR. As per the income-tax provisions, if tax returns are not filed on time, unadjusted losses cannot be carried forward to future years. Hence, to ensure that the losses are carried forward for future adjustment, a tax return would be required to be filed in given certain time. If this concern you most you can even file Income Tax return via e tax filing india portal.
  • To avoid penalties or scrutiny from the tax department one could opt hassle-free environment at e tax filing india portal for income tax return filing online. From Financial Year 2017-18 Rs 10,000 would be levied for non-filing of ITR.
  • A lot of time visa authorities ask for copies of past tax returns, hence to apply for a visa a tax return would be required to be filed and that can be done easily via e tax filing india portal. Embassies, especially those of US, UK, Canada etc. when processing your foreign visa application, are particular about your tax-compliance.
  • If insurance companies have reasons to believe that you are a tax-evader, they will not give you policies with more cover.
  • As the ITR receipt is sent to your registered address, it can be used as an address proof.
  • It makes easier for banks to assess your source of income when you apply for loans like a loan. Hence, Helps the bank loan documentation process easier.
  • If ITR is not filed, the belated return could lead to extra interest at 1% per month for the remaining tax payable by you. For example, banks would deduct tax from interest on fixed deposits exceeding a certain threshold. To claim a refund of tax deducted by the bank on the interest income, a tax return would be required to be filed regardless of the taxable income.
  • Banks can reject your credit card application if you haven’t filed your ITR.
  • Freelancer or self-employed people don’t have Form16. This is the only document they have to show that he has filed the ITR. Without this, they can face funding issues and transactional problems.

Benefits in Opting Online ITR return file in India via E tax filing India Portal as a Professional like a CA or accountant

  • The Income Tax Laws are governed by the Income Tax Act 1961. Most of the general public are not acquainted with the laws and can make mistakes. Hence, it is important to hire someone who is an expert in this field.
  • To understand the pros and cons and the tax implications relating to any complex transaction like set off and carry forward of losses, the mandatory cases of getting accounts audited. It will be the safest route to hand over this task to an expert of the field.
  • Calculating taxes can be a very confusing task and you might end up paying more tax. A professional can make you save a lot of money.
  • Taxation is not all about filing return only. You have to keep a tab on verification of return, your refunds and reply to any notices received. There are people who can efficiently take care of all such tasks while you focus on running your business or working on your job.
  • Professionals will help you in making the best use of deductions and tax planning.

 

Documents required for ITR Filing in India 

Only Pan number and Aadhar number are required for Income Tax filing in India.

Other than that, ITR return forms are attachment fewer forms, therefore, the taxpayer is not required to attach any document along with the return of income (whether filed manually or filed electronically).

However, these documents should be retained by the taxpayer and should be produced before the tax authorities when demanded in situations like assessment, inquiry, etc.

However, in some cases, a taxpayer who is required to furnish a report of the audit shall furnish it electronically on or before the date of filing the return of income.

 

Various Advantage of filing Income Tax Return on Time via E tax filing India Portal 

  • Filing your returns closer to the due date may lead to a delay in processing. When e-filing your returns, during days closer to the deadline the servers are being accessed by many people at a time so it may slow down due to numerous requests closer. Avoid the rush and possible delays by filing your tax returns early.
  • If you file your claim in advance, then your tax refunds may get processed faster. Refund processing usually takes more time than processing forms with a tax due. If you file later, it may get delayed due to the rush. Furthermore, if your refund amount is greater than 10% of the tax payable, you are paid an interest @6% p.a. calculated from the date of filing the return. You lose this benefit if you file the returns after the due date.
  • Although the tax filing process has been simplified at e tax filing India portal, don’t underestimate the time required to file your returns. Once you start the process, you may realize that additional documentation is required. Documents such as interest certificates, loan repayment statements, TDS certificates, Form 26AS, etc., need to be in order. By starting your income tax preparation early, you will have enough time to request these documents from the bank or from the appropriate sources.
  • If you file your returns early through e tax filing India portal, you will get enough time to root out errors. In a haste to meet the deadline, you may forget to include certain sources of income or miss claiming a deduction.
  • Tax returns filed after the due date attracts a penalty and interest. Under Section 234F of the Income Tax Act, there will be two sets of penalties; first, a Rs 5,000 penalty for belated returns filed on or before December 31 for that assessment year, and second, Rs 10,000 for any other case. For small taxpayers whose total income does not exceed Rs 5 lakh, the penalty amount is reduced to Rs 1,000. Apart from this, under Section 234A, interest would be levied @1% per month, calculated from the due date. 

 

FAQ’s about Income Tax Return Filing in India through E tax filing India Portal

No, late filing fee under section 234F not leviable in case you are not required to file ITR as per section 139 but filing it voluntarily though after the due date.
​​​​​The excess tax can be claimed as refund by filing your Income-tax return. It will be refunded to you by crediting it in your bank account through ECS transfer. The department has been making efforts to settle refund claims at the earliest.
Your income-tax returns validate your credit worthiness before financial institutions and make it possible for you to access many financial benefits such as bank credits, etc. Furthermore, filing of return is your duty and earns for you the dignity of consciously contributing to the development of the nation.
​​E-filing can be done from any place at any time and it saves time and efforts. It is simple, easy and faster. The e-filed returns are generally processed faster as compared to returns filed manually. ​​
​​If you have sustained a loss in the financial year, which you propose to carry forward to the subsequent year for adjustment against subsequent year(s) positive income, you must make a claim of loss by filing your return before the due date.
​​​E-payment is the process of electronic payment of tax and e-filing is the process of electronically furnishing of return of income. Using the e-payment and e-filing facility, the taxpayer can discharge his obligations of payment of tax and furnishing of return easily and quickly.
​​​​Income-tax Department has established independent portals for e-filing of return of income one such portal is e tax filing India. The taxpayers can log on to www.incometaxindiaefiling.gov.in for e-filing the return of income.
​​​At this moment (i.e., for the financial year 2017-18​) Individual, HUF, AOP, and BOI having income below Rs. 2,50,000 need not pay any Income-tax. In respect of resident individuals of the age of 60 years and above but below 80 years, the basic exemption limit is Rs. 3,00,000 and in respect of resident individuals of 80 years ​and above, the limit is Rs. 5,00,000. For other categories of persons such as co-operative societies, firms, companies, and local authorities, no basic exemption limit exists and, hence, they have to pay taxes on their entire income chargeable to tax.
Section 14​ of the Income-tax Act has classified the income of a taxpayer under five different heads of income, viz.: Salaries, Income from house property, Profits and gains of business or profession, Capital gains & Income from other sources​​
​​Total income of a taxpayer from all the heads of income (as discussed in the previous FAQ) is referred to as Gross Total Income.

 

Company vakil provides all services regarding Income Tax Return filing in India at E tax filing India Portal. Please visit our website when you need any assistance. For further information regarding income tax return filing in India refer to our other blogs on this topic as well as E tax filing India Portal.