As an Indian citizen, every individual earning income within the taxable range has to pay tax on their incomẹ This is mandated under Section 139 (1) of the Income Tax Act, 1961 of India. When an individual pays this tax online on their own, it is called e-filing.
Electronic or e-filing is one of the easiest ways of filing returns. As a taxpayer, you can do ITR e-filing all on your own. There are no print documents involved or long, convoluted steps for income tax e-filing. As long as you know the income tax heads, corresponding incomes and deductions, and have scanned proofs, you can easily file returns yourself. If you are unsure of how to do it on your own, you can also seek professional help for income tax online filing. Either way, the process is quick, simple, and hassle-free
As a law-abiding citizen of India, it is mandatory to file income tax returns if your income is in the taxable bracket. Whether you do it manually or you take the e-filing income tax return does not matter. It is compulsory to file your taxes if you an individual whose annual income falls within the taxable limit.
Usually, for individuals, the due date for filing income tax returns, manually or ITR online, is the end of July (31st) every year. Missing this deadline will incur penalties.
It is important for individuals to file their IT returns on time because a missed payment could hamper your chances of getting a visa for travel and even mess with your loan applications.
There is also the possibility that the IT department could launch legal action against you. Indian tax laws allow a minimum of 3 years of imprisonment that could extend to 7 years.
To avoid any of these hassles, it is best to pay your taxes on time. With income tax return e-filing, the process is really easy
3. How to choose the right ITR form for E-File returns
Knowing which ITR form to choose when e-filing income tax returns are important. Otherwise, it may be considered invalid. There are 7 different income tax return forms to choose from:
ITR 1 – ITR 1 or SAHAJ is the form for individuals with salaried income, income from one house property, income from other sources as well as agricultural income of up to ₹5,000. Also, your total income from all these sources should not exceed ₹50 lakhs.
ITR 2 – This form is for individuals and Hindu Undivided Families (HUF) who have income from salary, pension, house property, and other sources in excess of ₹50 lakhs. Individuals or HUFs having a business or professional income should not use this form.
ITR 3 – For individuals or HUFs making profits from business or profession, this is the form to use. You can also include income from house property, salary, pension, and other sources in this form itself.
ITR 4 – ITR 4 or SUGAM is for individuals, HUFs, Partnership firms that make income through business or profession. It is also for those who have opted for the government’s new presumptive income scheme. However, income cannot exceed ₹50 lakhs a year.
ITR 5 – This form is for firms, Limited Liability Partnership (LLPs), Association of Persons (AOPs), Body of Individuals, Artificial Juridical Person (AJP), Estate of deceased, Estate of insolvent, Business trust, and investment fund.
ITR 6 - All companies (except the ones claiming exemption under section 11, i.e. income from property held for charitable or religious purposes) can use this form. This form is available exclusively for ITR filing online.
ITR 7 – This form is for individuals and companies filing returns under Section 139(4A) or Section 139(4B) or Section 139(4C) or Section 139(4D) or Section 139(4E) or Section 139(4F)
Section 139(4A) – income from property held for charitable or religious purposes
Section 139(4B) – to be filed by a political party
Section 139(4C) – to be filed by scientific research associations, news agencies, associations, or institutions referred to in section 10(23A), etc.
Section 139(4D) – for university, college, or other institutions
Section 139(4E) – every business trust that does not furnish income or loss under other provisions
Section 139(4F) – Investment funds referred to in section 115UB