Every Individual, including an NRI, must file an Income tax return where Gross Total Income exceeds the basic exemption limit. For both tax regimes, this basic exemption limit is 2.5 lakh for the individual filing income tax return till (FY 2022-23(AY 2023-24). Senior citizens (individuals aged 60 years or above but less than 80 years) and super senior citizens (individuals aged 80 years or above) are required to file an ITR if their gross total income exceeds Rs. 3 lakhs and Rs. 5 lakhs, respectively, in a financial year.

ITR filing is important for those cases also where the income is below the exemption limit for the following conditions:-

• Deposited an amount or aggregate of over Rs.1 crore in one or more current accounts maintained with a bank or a cooperative bank.
• Incurred an aggregate expenditure of over Rs.2 lakh for yourself or any other person for traveling to a foreign country.
• Incurred aggregate expenditure over Rs.1 lakh towards payment of electricity bill.
• The sales turnover of a business exceeds Rs 60 lakh during the year.
• Total professional gross receipts exceed Rs 10 lakh during the financial year.
• Total TDS or TCS exceeds Rs 25,000 during the financial year. This limit is Rs. 50000 for senior citizens.
• The amount deposited in one or more savings accounts is Rs 50 lakh or more during the financial year.

You can file an Income Tax Return (ITR) in India through the following methods:

1. Online via the Income Tax Department’s e-Filing Portal:

Visit the official Income Tax e-Filing portal at www.incometaxindiaefiling.gov.in. Here, you can register, fill in the necessary details, upload documents, and file your Income Tax Return. The process is straightforward and can be completed from the comfort of your home.

2. Through a Tax Consultant or Chartered Accountant (CA):

If the tax filing process seems complex, you can seek the assistance of a tax consultant or a chartered accountant who will file the ITR on your behalf. They will guide you through the documentation and ensure compliance with tax regulations.

3. Using Third-Party Tax Filing Platforms:

Several online platforms such as ClearTax, TaxBuddy, and others offer tax filing services. These platforms simplify the tax filing process by providing user-friendly interfaces and step-by-step guidance.

4. Income Tax Department’s Facilitation Centers:

The Income Tax Department also has facilitation centers across various cities where you can visit in person to file your ITR.

Choose the method that is most convenient and suitable for you based on your individual needs.

If you miss the due date for filing your Income Tax Return (ITR) in India, there are a few consequences and actions you should be aware of:

1. Late Filing Penalty

•Under Section 234F, you may be liable to pay a penalty for late filing:

•₹1,000 if your total income is up to ₹5 lakh.

•₹5,000 if your total income is above ₹5 lakh and you file the return after the due date but before December 31st of the assessment year.

•If you file after December 31st but before March 31st, the penalty remains ₹5,000. However, the penalty will not exceed ₹1,000 if your income is below ₹5 lakh.

2. Interest on Tax Due

•If you have any outstanding tax liability, you will be required to pay interest under Section 234A at 1% per month or part of the month on the unpaid tax amount from the original due date until the date of filing.

3. Loss of Certain Benefits

•Carry Forward of Losses: If you miss the due date, you will not be allowed to carry forward losses (other than house property loss) to future years, which could have helped you offset future income.

4. Delay in Refund

•If you are eligible for a refund, filing late can delay the processing of your refund and the credit of that amount to your bank account.

5. Prosecution in Severe Cases

•If you have a substantial tax liability and deliberately avoid filing your return, the Income Tax Department may initiate prosecution proceedings for tax evasion. This could result in imprisonment for a term ranging from 3 months to 2 years, depending on the severity of the case.

6. Filing a Belated Return

•Even if you miss the due date, you can still file a belated return until March 31st of the relevant assessment year. However, this return will attract penalties and interest as mentioned above.

7. Revised Return Not Possible After March 31st

•If you file a belated return, you have the option to revise the return if you discover any errors, but this can only be done until March 31st of the relevant assessment year. After that, the return becomes final, and no revisions can be made.

Therefore, it is always advisable to file your return on or before the due date to avoid penalties, interest, and loss of certain tax benefits.

Filing your Income Tax Return (ITR) online in India, also known as e-filing, is a convenient and efficient way to fulfill your tax obligations. Here’s a step-by-step guide to help you file your ITR online through the Income Tax Department’s official e-filing portal.

Step 1: Register on the Income Tax e-Filing Portal

•Visit the official e-Filing website: Go to the Income Tax Department’s e-filing portal at www.incometaxindiaefiling.gov.in.

•Create an account: If you’re a first-time user, you will need to register using your PAN (Permanent Account Number), which will act as your User ID. Provide details such as your name, date of birth, and address.

•Log in: If you are already registered, log in using your PAN (User ID), password, and the Captcha code.

Step 2: Select the Appropriate Income Tax Return (ITR) Form

•Determine which ITR form you need: Depending on your income sources (salary, business, capital gains, etc.), you need to select the appropriate ITR form. Common forms include:

•ITR-1 (Sahaj): For individuals with income from salary, one house property, and other sources (excluding lottery winnings and racehorses), with total income up to ₹50 lakhs.

•ITR-2: For individuals with income from salary, capital gains, multiple house properties, or foreign income.

•ITR-3: For individuals and HUFs having income from a business or profession.

•ITR-4 (Sugam): For individuals opting for the presumptive income scheme under Section 44AD, Section 44ADA, and Section 44AE.

Step 3: Download or Use the Online Form

•Use the online form: For simpler tax returns, you can fill out the ITR form directly on the portal via the “File Income Tax Return” option.

•Download the ITR utility: For more complex tax situations, you may download the Excel or Java utility from the e-filing website, fill it offline, and then upload the XML file back to the portal.

Step 4: Fill in the Form

•Enter your personal details: Fill in basic information such as your name, address, PAN, Aadhaar number, and email ID.

•Provide income details: Enter details about your income from various sources, such as salary, property, business income, or capital gains. You will also need to provide details of your deductions (under Section 80C to 80U), as well as details of any taxes paid (like TDS or advance tax).

•Pre-filled data: The government provides pre-filled information on salary income, tax deducted at source (TDS), and certain other details based on data submitted by employers, banks, and other sources. Ensure that the pre-filled information is accurate and update it if necessary.

•Verify your tax payable/refundable: After entering all details, the system will automatically calculate the amount of tax payable or refundable.

Step 5: Upload Documents (If Applicable)

You generally do not need to upload any documents, but you must keep relevant documents, such as Form 16, TDS certificates, and investment proofs, handy. These documents should be retained for future reference in case of any inquiries or audits from the Income Tax Department.

Step 6: Review and Validate

•Review the details: Go through the entire form to ensure that all details are correctly entered, and there are no mistakes.

•Validate the form: Once all the details are filled in, click on the “Validate” button. This will highlight any missing or incorrect data, allowing you to make corrections.

Step 7: Generate and Submit

•Generate XML (if using offline utility): If you are filing via the downloaded utility, click on “Generate XML” after validation. You will need to upload this XML file to the e-filing portal.

•Submit your return: If you are filing directly online, click on “Proceed to E-Verify” to submit the form.

Step 8: E-Verification of ITR

After submitting your ITR, you need to verify it. E-verification can be done through the following methods:

•Aadhaar OTP: Link your Aadhaar with your mobile number to receive an OTP, which can be used to e-verify your ITR.

•Net Banking: Most banks offer e-verification services via net banking.

•Electronic Verification Code (EVC): You can receive an EVC through your registered mobile number and email ID.

•Digital Signature Certificate (DSC): If you have a DSC, you can use it to e-verify your return.

Alternatively, if you’re unable to e-verify, you can send a signed physical copy of the ITR-V (acknowledgment form) to the Centralized Processing Center (CPC) in Bengaluru within 120 days of filing your return.

Step 9: Acknowledgment and Refund (If Any)

•Acknowledgment: Once the verification is completed, you will receive an acknowledgment from the Income Tax Department, confirming that your ITR has been successfully filed.

•Refund (if applicable): If you are eligible for a refund, it will be processed and credited directly to your registered bank account after the verification is complete and the return is processed by the Income Tax Department.

Tips for a Smooth Filing Process

•Ensure all details are correct: Double-check your personal details, income information, and deductions before submission to avoid errors.

•File before the due date: Filing your ITR before the due date helps you avoid penalties and interest.

•Save acknowledgment: Keep a copy of your acknowledgment and other related documents for future reference.

Conclusion

Filing your Income Tax Return online is a straightforward process, especially with the government’s push toward digitalization and ease of access. By following these steps, you can complete your ITR filing efficiently. It is crucial to stay compliant with tax regulations and file your returns on time to avoid penalties and ensure that your tax records remain in good standing with the Income Tax Department.

Form 16 is a crucial document for salaried individuals in India as it contains all the necessary details regarding salary, deductions, and TDS (Tax Deducted at Source) that help you file your Income Tax Return (ITR). Here’s a detailed guide on how to e-file your ITR using Form 16.

What is Form 16?

Form 16 is a certificate issued by your employer, summarizing the total salary paid to you during a financial year and the TDS deducted on it. Form 16 is divided into two parts:

•Part A: Contains details about the employer and employee, such as PAN, TAN, and TDS deductions.

•Part B: Contains detailed salary breakdown, deductions under Chapter VI-A (like Section 80C, 80D), and taxable income.

Step 1: Gather the Required Documents

Before you start e-filing your ITR, ensure that you have the following documents ready:

•Form 16 from your employer(s).

•Bank statements: For interest income from savings accounts or fixed deposits.

•Details of other income: Such as rental income, capital gains, etc.

•Investment proofs: If you’ve made investments for deductions not reflected in Form 16, such as life insurance, PPF, NSC, or others.

•Aadhaar card: Linking Aadhaar with your PAN is mandatory for e-filing.

•TDS certificates: For tax deducted at source on any other income.

Step 2: Register/Login to the Income Tax e-Filing Portal

•Visit the e-Filing website: Go to www.incometaxindiaefiling.gov.in.

•Login/Register: If you’re a first-time user, register using your PAN. If you’re already registered, log in using your PAN, password, and Captcha code.

Step 3: Select the Appropriate ITR Form

•Choose the correct ITR form: Based on your income and other sources, select the appropriate form. For salaried individuals, the common forms are:

•ITR-1 (Sahaj): For individuals with income from salary, pension, one house property, and other sources (excluding lottery income).

•ITR-2: For individuals with income from salary and capital gains, or more complex tax situations.

You can file the return online directly on the portal or download the Excel/Java utility, fill it offline, and upload the XML file.

Step 4: Pre-Filled Data in the ITR Form

The Income Tax Department offers pre-filled ITR forms that automatically populate details such as your salary income, TDS, and some other sources of income. The data is fetched from the employer’s filing, so it’s important to cross-check the pre-filled data with your Form 16.

•Access the pre-filled form: Once logged in, go to “File Income Tax Return,” select the assessment year, and opt for “Online.”

•Verify the details: Check whether the pre-filled data (e.g., salary income, TDS, PAN details) from Form 16 matches your Form 16. If any discrepancies are found, correct them manually.

Step 5: Fill in the Income Details from Form 16

1. Income from Salary:

•Part B of Form 16 shows your gross salary (including allowances, bonuses, etc.), exemptions, and taxable salary. Enter the taxable salary details in the relevant fields of the ITR form.

2. Deductions under Chapter VI-A:

•Form 16, Part B also details your deductions under Chapter VI-A, like:

•Section 80C: Investments in PPF, EPF, life insurance premiums, etc.

•Section 80D: Medical insurance premiums.

•Section 80G: Donations to eligible charitable institutions.

•Enter these deductions as reflected in Form 16. If you have additional deductions not covered in Form 16 (e.g., personal investments), add them here.

3. Other Income:

•If you have additional income not included in Form 16, such as interest income from savings accounts, rental income, or capital gains, fill in the relevant details under the respective sections.

4. Tax Deducted at Source (TDS):

•Part A of Form 16 will have the details of TDS deducted by your employer. Cross-check the TDS data with your Form 26AS (available on the e-filing portal). Ensure that the TDS mentioned in Form 16 is correctly reflected in the ITR form.

Step 6: Verify Tax Payable or Refund

•After entering all income and deductions, the system will automatically calculate the tax payable or refund based on your income slab.

•Verify the tax amount and ensure it aligns with your expectations.

Step 7: E-Verify Your ITR

Once you are satisfied with the information entered in your ITR form, submit it, and then e-verify your return. E-verification can be done via:

•Aadhaar OTP: Link your Aadhaar to your mobile number to receive a one-time password (OTP) for verification.

•Net Banking: Most banks offer e-verification services.

•Electronic Verification Code (EVC): You can generate an EVC through your bank account or by using a pre-validated bank account and Demat account.

•Digital Signature Certificate (DSC): You can use a digital signature to e-verify your return.

If you are unable to e-verify, you can send a signed physical copy of the ITR-V acknowledgment to the Centralized Processing Center (CPC) in Bengaluru within 120 days of filing your return.

Step 8: Submission and Acknowledgment

After e-verification, the Income Tax Department will process your return. You will receive an acknowledgment via email confirming successful submission of your ITR.

Step 9: Wait for Refund (If Applicable)

If you are eligible for a refund, the refund will be processed and directly credited to your bank account within a few weeks, once the return has been verified and processed by the Income Tax Department.

Conclusion

E-filing your Income Tax Return using Form 16 is a relatively simple and straightforward process for salaried individuals in India. By following these steps, you can ensure that your tax return is accurately filed, helping you stay compliant with tax laws while claiming eligible deductions and refunds. Always review your Form 16 carefully and cross-check the details in the ITR form to ensure everything is correct before submitting.

Yes, you can e-file your Income Tax Return (ITR) without Form 16. While Form 16 is a convenient document provided by your employer that contains details of your salary income and tax deducted at source (TDS), it is not mandatory for e-filing your ITR. Form 16 is simply a certificate issued by your employer that consolidates your income and tax-related information, making the filing process easier.

If you do not have Form 16, you can still e-file your ITR by gathering relevant financial information on your own. Here is a step-by-step guide on how to do so:

Steps to e-File ITR Without Form 16

Step 1: Collect Your Salary Information

Even without Form 16, you will need to calculate your total salary income for the financial year. You can do this by referring to:

•Salary slips: These provide monthly details of your earnings, including your basic salary, allowances, bonuses, and other benefits.

•Bank statements: Cross-check the amounts credited to your account by your employer. Ensure that you include any bonuses, leave encashment, or other special payouts.

Make sure to categorize your salary components into taxable and non-taxable parts. Some common tax-exempt allowances include House Rent Allowance (HRA) and Leave Travel Allowance (LTA), subject to conditions.

Step 2: Determine Your Taxable Salary

To determine your taxable salary, subtract the exempt components from your total gross salary. For example:

•House Rent Allowance (HRA): You can claim an exemption for HRA if you live in rented accommodation. This requires calculating the eligible exemption based on actual HRA received, rent paid, and your salary.

•Other exemptions: Some components like transport allowances or medical reimbursements (before they were replaced by Standard Deduction) may also be exempt, subject to limits.

Ensure that you apply the correct exemptions for these allowances, which are based on Income Tax laws.

Step 3: Check Your Tax Deducted at Source (TDS)

Even without Form 16, you can still access information regarding TDS by referring to Form 26AS. This form is a consolidated tax statement available on the Income Tax Department’s e-filing portal and provides details about taxes deducted on your income, such as salary, interest, or rent. Follow these steps to check Form 26AS:

1. Log in to the Income Tax e-filing portal: Visit incometaxindiaefiling.gov.in.

2. Go to ‘My Account’: Click on ‘View Form 26AS (Tax Credit)’ under the ‘My Account’ section.

3. Download Form 26AS: Review the TDS deducted and ensure that it matches your records.

This will help you determine how much tax has already been deducted by your employer and other payers, and whether any additional tax payment is required.

Step 4: Calculate Deductions and Exemptions

Just like with Form 16, you need to calculate the deductions you can claim under various sections of the Income Tax Act, such as:

•Section 80C: Deductions for investments in PPF, EPF, LIC premiums, tax-saving fixed deposits, ELSS mutual funds, and other eligible schemes, up to ₹1.5 lakh.

•Section 80D: Deductions for medical insurance premiums paid for self, family, or parents.

•Other Sections (80G, 80E, etc.): Deduction for charitable donations, education loan interest, and other eligible expenses.

Gather the necessary proofs of these investments and expenses to ensure you claim the correct deductions.

Step 5: Use an Income Tax Calculator

Once you have calculated your total taxable income, you can use an online Income Tax calculator to compute your tax liability. This will help you estimate whether you need to pay additional taxes or if you are eligible for a refund.

Step 6: File Your ITR Online

•Choose the right ITR form: Based on your income sources, select the appropriate ITR form. For salaried individuals with no business income, ITR-1 (Sahaj) is generally applicable.

•Fill in the details: Enter your salary details, tax deductions, and TDS information in the relevant sections of the form.

•Verify the tax payable/refundable: After entering all details, the system will automatically calculate the tax payable or refundable.

Step 7: E-Verify Your Return

After filing your ITR, you need to verify it. You can e-verify your return using:

•Aadhaar OTP

•Net Banking

•Electronic Verification Code (EVC)

•Digital Signature Certificate (DSC)

Alternatively, you can physically sign and send the ITR-V to the Income Tax Department’s Centralized Processing Center (CPC) in Bengaluru within 120 days of filing.

Conclusion

In summary, e-filing ITR without Form 16 is possible if you gather all the relevant financial information, including salary details, TDS, and deductions, on your own. While Form 16 makes the process easier by consolidating this information for you, it’s not essential. With proper preparation and by referring to your salary slips, bank statements, and Form 26AS, you can still accurately file your Income Tax Return and remain compliant with tax laws.

Always ensure that the information you provide in your ITR is correct and consistent with your records to avoid discrepancies and potential issues with the Income Tax Department.

Penalties for Not Filing Income Tax Return in India

Filing your Income Tax Return (ITR) on time is crucial to avoid penalties and other consequences as per the Income Tax Act in India. Here’s a short guide on the penalties for failing to file your ITR on time:

1. Late Filing Fees under Section 234F

If you miss the due date for filing your ITR, the Income Tax Department imposes late fees as follows:

•₹5,000: If the return is filed after the due date but before December 31 of the assessment year.

•₹10,000: If the return is filed after December 31 of the assessment year.

•₹1,000: For taxpayers with a total income of up to ₹5 lakh, the late fee is capped at ₹1,000.

2. Interest on Tax Payable under Section 234A

If you have outstanding tax liability, interest at 1% per month (or part of a month) will be charged on the unpaid tax amount from the original due date until the date of filing.

3. Loss of Interest on Refund

In case you’re eligible for a refund, filing your ITR late can result in the loss of interest on the refund amount. The refund interest is calculated from the date of filing, so delays reduce the benefit.

4. Loss of Carry Forward of Losses

Filing ITR on time is essential to carry forward certain losses (such as business losses, capital losses, etc.) to future years. If you miss the deadline, you forfeit this right, meaning you cannot set off these losses against future income.

5. Prosecution and Penalty under Section 276CC

If your total tax payable exceeds ₹10,000 and you fail to file your ITR, the Income Tax Department may prosecute you under Section 276CC. This can result in imprisonment ranging from 3 months to 7 years, depending on the tax amount involved. Additionally, a penalty of up to 100% of the tax due may be levied.

6. Notice from the IT Department

If you fail to file your ITR, you may receive a notice from the Income Tax Department under Section 142(1) or 148, asking you to explain the reason for non-filing. Ignoring these notices can lead to further scrutiny, penalties, and assessments.

Conclusion

Not filing your Income Tax Return on time can result in various penalties, including late filing fees, interest on unpaid taxes, loss of benefits, and even prosecution in extreme cases. To avoid these consequences, it’s crucial to file your ITR before the due date, even if you have no outstanding tax liability.

After successfully e-filing your Income Tax Return (ITR), the process is not complete until certain subsequent steps are followed to ensure the return is processed smoothly by the Income Tax Department. Here are the key steps you should take after e-filing your ITR:

1. Verification of Income Tax Return

After you have e-filed your return, the most crucial step is verifying it. The Income Tax Department will not process your ITR until it is verified. You have 120 days from the date of filing to verify your return.

There are two ways to verify your ITR:

a. E-Verification (Recommended)

You can e-verify your ITR through the following methods:

•Aadhaar OTP: Link your Aadhaar to your PAN and verify your ITR using the OTP sent to your registered mobile number.

•Net Banking: Log in to your net banking account and use the e-verification feature offered by most banks.

•Electronic Verification Code (EVC): You can generate an EVC using your bank account, Demat account, or bank ATM.

•Digital Signature Certificate (DSC): If you have a DSC, you can use it to e-verify your ITR.

b. Physical Verification

If you prefer not to e-verify, you can send a signed copy of the ITR-V (Acknowledgment) form to the Centralized Processing Center (CPC), Bengaluru via regular post or speed post within 120 days. Ensure that the ITR-V is signed and sent without any attachments or corrections.

2. Acknowledgment from CPC

Once your ITR is verified, you will receive an acknowledgment from the Income Tax Department’s Centralized Processing Center (CPC). If you e-verify your return, the acknowledgment will be sent via email. If you send a physical ITR-V, you will receive the acknowledgment after the CPC processes it. The acknowledgment confirms that your return has been successfully filed and verified.

3. Processing of ITR by CPC

After verification, the CPC processes your return to check for any discrepancies between the income declared by you and the information available with the Income Tax Department, such as TDS, Advance Tax, or Self-Assessment Tax paid.

You will receive an Intimation under Section 143(1) of the Income Tax Act once the return is processed. This intimation will either:

•Confirm that the return filed by you is correct (No further action needed).

•Show any discrepancies in the form of tax payable or refundable, along with explanations.

•Request clarification if there are any mistakes or mismatches.

4. Refund (If Applicable)

If the CPC determines that you have paid excess tax, you will receive a refund. The refund will be credited directly to your bank account if you have provided the correct account details and pre-validated your bank account on the Income Tax e-filing portal.

Refunds are generally processed within 2 to 6 months of the return being verified and processed. You can track the status of your refund on the e-filing portal under the “Refund Status” option.

5. Respond to Notices (If Any)

If there are any discrepancies or if the Income Tax Department requires further information, you may receive a notice under various sections of the Income Tax Act (e.g., Section 139(9) for defective returns, Section 143(2) for scrutiny).

In such cases, respond to the notice within the specified time frame by providing the requested documents or explanations. You can respond to notices online via the e-filing portal.

6. Rectification of Return (If Required)

If you discover an error or omission in your return after filing, you can file a Revised Return under Section 139(5) before the end of the relevant Assessment Year or before the assessment is completed, whichever is earlier.

Additionally, if there are mistakes made by the CPC during processing, you can request a rectification under Section 154.

7. Maintain Records

Ensure that you keep a copy of your ITR, acknowledgment, and other relevant documents (Form 16, TDS certificates, investment proofs, etc.) for at least 6 years. These records may be required in the event of an audit or assessment by the Income Tax Department.

Conclusion

After e-filing your Income Tax Return, verifying your ITR is a critical next step to ensure the return is processed. Monitor the status of your return for processing, any potential notices, and refunds. Keeping track of these steps helps ensure that your tax filing is complete, compliant, and avoids any unnecessary issues or delays.

e-Verification of ITR is an important step in tax filing and needs to be completed online or offline. Many users prefer to do it by entering a simple OTP. This step is done after your return has been submitted by yourself or anyone else (e.g. myITreturn) and it basically ensures the Income tax Department (ITD) that you have checked the return and confirm the contents of it.  

If you have not e-verified your return and you have filed your Income-tax return from my IT return using the OTP authentication, you can e-verify from your filer dashboard page after login. If you have filed your return by uploading a JSON file on Income-tax portal, you will have to e-verify from the Income-tax portal only.

You need to check what is the current status of your return first. Refer this guide to check status - click here. If there is no such relevant update, you are suggested to raise a grievance with the Income-tax Department to process it soon. You can contact the Income-tax Department from this page - click here. You can also opt for Expert assistance with my IT return.

To check if you have received any notice, follow these steps. First, login to the Income-tax portal - click here. Then after you login, from the top menu, select Pending Actions > e-proceedings. You will find the list of all the years for which you have filed. You can check each year to see if you have received any Income Tax Notice.

You might have also got a notice for some non compliance.To check that follow these steps. Login to Income-tax portal - click here. Once you login, from the top menu, select Pending Actions > compliance portal. Select the year to check if you have any compliance pending from Dipartment of Income Tax.