Income Tax return Filing

Income Tax is a tax deducted by the central government from every eligible taxpayer. Income Tax Returns Filing or ITR filing may be a process during which the taxpayer can use to say tax deductions, net liabilities , and to document the gross taxable income. It is mandatory for individuals to understand how to file income tax returns online India and get help from experts to avoid unwanted disputes.

Why file IT returns?


The advantages of filing for IT returns are:

Loans: Bank loans like education loans, vehicle loans, personal loans, are often availed easily as they require last three year’s IT returns.

Visa: As Immigration centres scrutinize many documents and IT returns proofs is a mandatory document for visa applicants.

Avoid penalties: Hefty amounts would be charged for non-filing of tax returns and hence it's always better to file it to avoid legal repercussions.

How to file your income tax return online?

A Detailed Process

  • To file your IT returns, gather all documents like bank statements, last year’s return and Form 16
  • Log on to
  • Register at the website using the PAN number. It becomes your ID.
  • View Form 26AS. It shows the tax deducted by the employer. The TDS on Form 16 should match this amount.
  • Download the ITR Form that's applicable to you. If you are doing not know the proper form, consult Vakilsearch.
  • Complete the whole form by filling within the required details then submit it.
  • Click the Calculate Tax button, to understand your payable amount.
  • If applicable, pay the required tax.
  • Enter the challan details on the income tax return section of the shape .

Step by step procedure to File IT Returns

Steps to file ITR without Form 16

Although Form 16 is one among the foremost important documents required to file tax Returns (ITR) for salaried individuals, it's possible to file the returns without Form 16 also . There could be circumstances where the assessee won't get a Form 16. The possible reasons behind which will be the employer closing the business or the assessee quitting the work without the completion of the prescribed exit formalities. Either way, not receiving the shape 16 cannot stop a private from filing their returns. There are many other documents which may be used as a reference while filing the returns. The following steps are to be followed to file tax Returns (ITR) without Form 16:

Step 1 - Computation of Income from Salary

The first and foremost step is to calculate the Income from Salary. The computation of the salary can be done with the help of salary slips, which will act as the main source of reference for the salary earned by the individual during the financial year. Thus, it's important to gather all the salary slips from all the employers for whom a private has worked during the year. For the returns filed from this year, that's fiscal year 2019-20, a private is required to furnish the entire breakup of his/her salary within the tax Returns (ITR). Some of the fields that are needed to be furnished are income from salary or pension, allowances which are not exempted, deductions that are claimed under Section 16, profits arising from salary, and therefore the price of perquisites received by the assessee. Nevertheless, quite few companies don't furnish the price of the perquisites and therefore the amount of profits arising from salary. In such cases, the assessee should get in-tuned with the Human Resource (HR) or the concerned accounts department of the corporate to urge the above details. Other than the factors mentioned above, the allowances provided by the employer, contributions made towards provident fund (PF), and therefore the tax deducted at source (TDS), etc. are furnished on the salary slips. It is also recommended to furnish and use the allowances provided by the employer to lower the liabilities . Allowances may include House Rent Allowances (HRA), Leave Travel Allowances (LTA), Transport Allowances (TA), etc. However, it's to be kept in mind that certain allowances are fully exempt under the act while others are partially exempt.

Step 2 - Tallying the Tax Deducted at Source (TDS) with Form 26AS

The Form 26AS is that the form which contains the small print of all the taxes that are deducted from the salary of the assessee also as the other source of income. Before proceeding to the filing of returns, the assessee should confirm that the figures reflecting on Form 26AS are in correspondence to the Tax Deducted at Source (TDS). In case the figures don't match and therefore the returns are filed, the assessee are going to be receiving a notice from the tax Department (ITD). Thus, just in case of discrepancies, it's recommended to urge in-tuned with the deductor of the tax to urge a transparent picture of the deduction.

Step 3 - Computation of income from house property

In the event where an assessee receives a rent by letting a house property owned by him/her, he/she would be required to report the income under the ‘Income from house property’ head. In addition to that, if the assessee has availed any housing loan (on the let out property or on the self-occupied property) and is paying interest on such advances, then he/she are going to be eligible to urge deductions under an equivalent head for the interests being paid. Further, if the assessee is that the owner of two or quite 2 house properties, then he/she must check the deemed let-out concept. In case of rental income being earned, an assessee can claim a deduction of 30% as well as a deduction of the municipal taxes paid from the rental income.

Step 4 - Computation of income from capital gains

An assessee are going to be eligible to say exemption on the gains earned from the sale of equities or equity-oriented mutual funds, provided they were held for quite a year and sold on or before 31st March of the respective fiscal year . However, as a document of proof, the summary statement of the equities or equity-based mutual funds has got to be collected by the assessee from the broker. In case of gains arising from the disposal of land or building, the assessee should have the acquisition and sale deed with him/her to ask it and have the accurate amounts for calculation.

Step 5 - Computation of income from other sources

The income from other sources is additionally required to be furnished within the tax Returns (ITR). Income from other sources include incomes such as interests earned on different bank accounts (including savings account, recurring deposits account, fixed deposits, etc.), interest earned on income tax refunds, dividends received, income from rented machinery, plant, or furniture, income from pension or annuity, etc. The details with regard to interest earned on tax refund are often found in Form 26AS. The details concerning the income from interest from bank accounts are often found within the respective bank passbook.

Step 6 - Computing and claiming available deductions

The next most vital step for an assessee would be to work out all the available deductions which will be claimed by him/her. As per the provisions of the tax Act, there are various sections under which a private can claim deductions. These sections are Section 80C, 80D, 80CCC, 80CCD, etc. The most common deductions like life assurance , equity-linked savings schemes, Provident Fund (PF), Public Provident Fund (PPF), repayment of principal amount of home equity credit , etc. fall under Section 80C. Medical insurance premium, on the other hand, falls under Section 80D. The tax Act features a prescribed limit supported which the claims for deductions are often made. For example, under Section 80C, deductions are often claimed to the extent of Rs.1.5 lakh. Thus, it's necessary for an assessee to calculate all the deductions that he/she can avail so as to save lots of on tax payment.

Step 7 - Computation of total taxable income

Once all of the above steps are completed, an assessee can find out his/her total taxable income. To ascertain the total taxable income, all the deductions have to be subtracted from the total income arising from various sources. The end result is the total taxable income.

Step 8 - Calculation of income tax liability

For an assessee, it's also important to determine the entire tax liability that he/she has. There are variety of third-party websites on the general public domain that gives the choice to determine the tax liability with the assistance of tax calculator. These tax calculators are often employed by an assessee to seek out out the ultimate tax liability.

Step 9 - Making payment for extra liabilities

After checking out the ultimate tax liability, if the quantity of tax paid as per the figures reflected in Form 26AS is a smaller amount than the particular liability, the taxpayer will be required to pay the balance amount of tax to the Income Tax Department (ITD). However, if the quantity reflected in Form 26AS is sufficient or quite the particular liabilities , the assessee isn't required to form any extra payment.

Step 10 - Filing the ITR

This is the ultimate step of e-filing without Form 16. Once all of the above steps are successfully administered , the assessee can login to his/her profile on the e-filing portal and file his/her tax Returns ITR Filing. However, it's important to e-verify the returns within 120 days from the date of e-filing.

The steps mentioned above are often followed to e-file tax Returns (ITR) without Form 16. Keeping all the documents listed above handy will make the method of e-filing easier and hassle-free. It is also important to file the returns before the due date to avoid late fees under Section 234F.