Income tax return (ITR) filing is one of the essential responsibilities of all the tax residents in India as it helps in complying with the tax laws in the country. Filing requires one to declare all the sources of income and expenditures as well as all the tax due to the tax authority for every Financial Year. The due date for the filing of Income Tax Return for the Financial Year 2023-24 (Assessment Year 2024-25) is July 31, 2024, without paying any penalty.
Filing ITR well in advance reduces the chances of making mistakes and overcoming all last minute technical hitches thus facilitating an easier process of submission. At Auditor Shiva, we make it easy to e file ITRs so that you are able to ITR returns online. Our services make each and every step easier thereby ensuring that ITR e-filing online in Trichy is done faster and in a more safe and efficient manner.
With professional help at every step, Auditor Shiva also guarantees that your ITR e-filing process will be simple and that taxes will be paid with no difficulty on your end.
what is Income Tax Return (ITR)?
An Income Tax Return (ITR) is a form used for ITR e-filing online in Trichy with the income tax department where taxpayers disclose their income details and tax paid. The electronic filing of income tax returns is done using ITR forms ITR 1 to ITR 7. The form that a taxpayer will use is dependent on several factors such as the type of sources of income, total income, as well as the type of taxpayer (individual, Hindu Undivided Family (HUF), corporate among others). In order to abide by taxation laws, each tax payer is expected to dutifully fill up his or her income tax file and submit it by a stipulated period.
Who Needs to File an Income Tax Return?
In addition to being required by law, submitting an income tax return is also a financial obligation that varies depending on the situation and applies to different groups. Here is a thorough examination of who must file income taxes electronically:
- Salaried Individuals: In the event the total income before deductions under Sections 80C to 80U exceeds the basic exemption limit, there is an obligation of income tax return filing.
- Businesses: All corporate entities, including private limited companies, LLPs (Limited Liability Partnerships), and conventional partnerships, are required to e file their income tax returns every year regardless of their profit or loss.
- Partners and Directors: People who are partners in limited liability partnerships (LLPs) or directors in private limited firms must file income taxes that reflect their earnings and business financial operations.
- Dividend Earners: In case a person earns any dividend income from mutual funds, bonds, equities, fixed deposits or any interest then such a person should also do ITR e filing. This is because this income tax filing serves the purpose of ensuring all income irrespective of where it has come from is declared and taxed as required.
- Charity and Religious Trusts: Voluntary incomes earned from the operation of charitable trust, religious activities and similiar activities are also subject to the Income tax e filing refurbishments to avoid issues of tax compliance.
- Tax Refunds: Individuals and businesses who qualify for tax refunds should file their income taxes online in order to get reimbursements for taxes that they overpaid in the past.
- NRIs and Tech Professionals: If their income from India exceeds the exemption threshold or includes certain financial activities, non-resident Indians (NRIs) and technology professionals are required to file income taxes.
Eligibility for ITR E-Filing online in Trichy
In India, there are a number of situations which make it compulsory for the taxpayer to submit their ITR in the electronic form. There is a particular provision that permits tax payers to file their income taxes electronically and that is when their gross total income goes over the age wise basic exemption limits:
- Individual below the age of 60 years: Rs 2.5 Lakhs
- Individuals who belongs to age group of 60 to 80 years: Rs 3.0 Lakhs
- Individuals above the age of 80 years: Rs 5 Lakhs
Nonetheless, certain specific other situations that are related to the ITR e-filing online in Trichy are also there even when the income is below these limits:
Transactions of a high value: One is required to do imposition of tax on oneself for there has been:
- The person has deposited rupees 1 crore and above in one or more current bank accounts.
- One or more savings bank accounts bearing a sum equal to or greater than 50 Lakhs.
- Spent an amount exceeding two hundred thousand rupees on overseas travel.
- Has an annual spend on electricity in excess of one hundred thousand rupees.
Such persons who has TDS or tax deduction at source or TCS tax collection at source of more than 25000 rupees for persons below the age of 60 years or of 50000 rupees for senior citizen aged 60 years and above respectively.
Business and Professional Income:
Businesses: For Businesses: Compulsory if the gross sales or receipts in the financial year exceeds Rs 60 lakhs.
Professionals: Applicable when the total income for a financial year does not reach 10 lakhs rupees or more.
Income Tax Return Filing Forms in Trichy
ITR e-filing online in Trichy is made simpler with various forms meant for different categories of taxpayers. Let’s look at all these income tax return forms in detail:
- ITR-1 (SAHAJ): This Income tax return is applicable to individuals whose total income from one or two house property and salary or pension does not exceed Rs. 50 lakhs.
- ITR-2 (Beyond Business): Apart from the resident tax payers, foreigners, companies’ directors and shareholders of a given private company can also use this ITR whenever a claim for capital gains is lodged or foreign income, two or more house properties are owned and the income exceeds Rs. 50 lakhs.
- ITR-3 (Professionals and Proprietorships): This ITR form Suitable for professionals and individuals running their practice or business as sole proprietors in India.
- ITR-4 (Presumptive Taxation Enrollees): This Income tax return form is for any individual who has opted for the presumptive taxation model and whose business turnover is less than Rupees one hundred crores or professional receipts are below Rupees fifty lakhs.
- ITR-5 (Partnerships, LLPs, and Others): This income tax return form will be applicable primarily for filing by partnership firms, Limited Liability Partnerships (LLPs), associations and bodies of individuals.
- ITR-6 (Companies): The entities that can use this form for ITR e filing are companies incorporated in India.
- ITR-7 (Special Entities): This particular ITR form is for e-filing in the case of trusts that are either charitable or religious, political parties, colleges or universities, scientific research organizations, etc.
Due Date for ITR E-Filing Online in Trichy
For the Assessment Year (AY) 2024-25, section 139(1) of the income tax filing (Income tax Returns) prescribe the last date of the ITR e-filing online in Trichy, as July 31, 2024 the government may however extend this date for taxpayers. It should be noted by the tax payers that the tax remit is not the only requirement that they should meet and thus insist on timely compliance of income tax e filing in order to avoid unnecessary penalties. With effect 2017-18 financial year, such fee is now applicable for ITRs filed after the specified deadline.
Below is a brief on the important Income tax e filing last dates or deadlines of different types of taxpayers for the Financial Year (FY) 2023-24.
- ITR Filing for Individuals and Entities Not Liable for Tax Audit: Due by July 31, 2024.
- ITR Filing for All Other Taxpayer Excluding Transfer Pricing: Due by October 31, 2024.
- ITR Filing for all Taxpayers Who Are Covered Under Transfer Pricing: Due by November 30, 2024.
- Last Date for Filing Revised/Belated Return of Income for the Assessment Year 2023-24 – December 31, 2024.
Advantages of ITR E-Filing Online in Trichy
ITR e-filing online in Trichy helps in many financial and legal aspects. Following are some of the clear benefits of ITR e-filing:
- Legal Documentation: ITR or Income tax returns is a document which records the income of a person and taxes paid, thus determining how much this person should pay in case of any legal proceedings.
- Proof of Identity: Many government and financial institutions accept this document as proof of identity.
- Proof of Income: This contains information on all the amounts earned and the sums which have been deducted. This is useful for processing certain transactions such as purchase of real estate or application of a loan.
- Claim Tax Benefits: With the introduction of ITR e-filing online in Trichy, individuals can now opt for tax deductions and tax exemptions contained in different provisions of the Income Tax Act, thus minimizing their tax burden.
Essential for Financial Transactions
ITRs are usually needed for the following reasons:
- Loan Applications: A bank or other financial institution usually asks for the past few years’ ITR’s for proof of income.
- Visa Applications: For most countries, ITRs are among the many financial documents required in visa application to confirm the applicant’s capability to support himself.
- Avoid Penalties: Having income for a given year and not paying and/or filing them attracts penalties, and judgments from IRS and State. If income taxes are e-filed timely, it helps to mitigate such wastage.
- Carry Forward Losses: All financial losses, if incurred, can be carried forward for the forthcoming years to set balance against the profits made in the succeeding years, availing this advantage is subject to the condition that you filed the income tax return.
- Quick Loan and Card Approvals: Taxation records maintained online and provided on request indicate that the client is reliable and has a steady source of income hence expeditious processing of credit card and loan applications.
- High-Value Investments and Transactions: For certain transactions involving high values, lodging an ITR return is made compulsory like in the case of a real estate purchase or an insurance cover with a high premium.
- Refund Claims: To return back the extra tax that has been paid rather than been assessed as payable, following years of overpayment which had deductions for instance TDS, then e-filing becomes key. In e-filing taxes, seeking refund is very easy and the processing is fast too.
- Compulsory If Meeting Certain Criteria: In certain situations such as when your utility bills on electricity or overseas trips cost a certain threshold, it becomes obligatory to ITR e-filing online in Trichy irrespective of any income level.
While you do ITR e-filing online in Trichy, it is not only following the rules but also strengthening your base, which can be helpful in many ways to manage and maintain your financial responsibilities.
Documents Required for ITR E-Filing Online in Trichy
Income Tax Return e-Fling online in Trichy has to be preceded by certain process; one of which is obtaining all the appropriate documents to facilitate an accurate e-filing process. Below is an all-encompassing compilation of the documents that you may need for e filing income tax.
General Documents for ITR E-Filing Online in Trichy
PAN: Permanent Account Number is mandatory for all transactions and any taxation matters.
Aadhaar Linked to PAN: Related proof to verify the tax payer and link it to the records.
Bank Account: This is necessary to process any refund or even validate any financial information.
Income-Related Documents
- Salary Slips: To verify your income from employment.
- Rent Receipts: If you are claiming House Rent Allowance (HRA).
- Form 16: Issued by your employer, detailing the tax deducted at source on your salary.
- Form-16A: For TDS on Income other than salary.
- Form-16B: For TDS on the sale of the property.
- Form-16C: For TDS on rent.
- Form 26AS: Your tax credit statement, which shows all taxes that have been deposited against your PAN.
Deductions and exemptions-related documents
- Interest Certificates: Such certificates are provided by banks and post offices concerning savings account and term deposit interest.
- Home Loan Details: Relevant if one considers tax benefits due to home loan interest payments.
- Proof of Tax Saving Investments: Covers life and health insurances, PPF, NSC, ELSS mutual funds, etc.
- Income from Capital Gains: Related to documents for movements of selling and/or purchasing of stocks and property, respectively.
- Rental Income: If you have any such property, then lease agreements and rent receipts to support the claims.
- Foreign Income and Dividend Income Proofs: Proofs showing earnings from overseas and distributions from shares of the company owned by such individual.
Penalty for Late Filing Income Tax Returns
While submitting the Income Tax Return (ITR), one has to file it well before the end of the ITR e-filing last date so as to avert consequences and enhance returns:
- Interest: Late filing of an Income Tax return results in a 1% interest charge per month or any fraction of a month for the unpaid tax amount under Section 234A.
- Late fee: In India, Section 234F of the Income Tax Act, 1961 prescribes a penalty for late filing of ITR. The penalty is laid down as Rs. 5,000 which is however Rs. 1,000 for individuals whose total income is less than Rs. 5 lakhs.
- Loss Adjustment: Timely income tax e filing helps you file losses on schemes or business activities and that can be carried forward and adjusted against any income tax payable in the future. Missed deadlines in filing your Income tax returns leads to the loss of this advantage.
Procedure for ITR E-Filing Online in Trichy
ITR e-filing in Trichy can be done in two broad categories, offline to online and completely online. Here’s a step-by-step guide on how to file income tax return online and offline to online:
e-Filing ITR Offline to Online Method:
- Download the Appropriate ITR Form: Visit the official Income Tax Department website. Accordingly, use the available Excel Utility or Java Utility on the portal to download the right ITR form as per the sources of income and your category.
- Fill Out the Form Offline: After downloading, fill the form on your computer. This gives you an opportunity to go through your tax particulars as well as do the calculations with no rush and without having to connect to the internet.
- Save the Form in XML Format: After filling the form, the next step is saving the form in xml format, since that is the format that is acceptable for uploading to the e-filing portal.
- Upload the XML File to the e-Filing Portal: Log in to your e-filing portal account. Go to the section where you can upload the XML file and file in your ITR.
E-Filing of Income Tax Returns Online
ITR e-filing online in Trichy is based on simple steps as soon as the registration at the Income Tax e filing portal, as well as the required documents, is completed. Follow these steps for your e file Income tax return efficiently:
Step 1: Access the Portal
Go to the Income Tax Department’s e-filing website and look for the “Login” button at the right hand corner at the top.
Step 2: Provide Your Login Information
Enter your registered username (which is mostly the PAN) and the password as indicated. The password is case sensitive so pay attention. Click on “Continue” to move further on.
Step 3: Avail E-Filing Services
Subsequently after logging in, on the dashboard look for the tab ‘e-File’ then click on ‘File Income Tax Return’ from the available options to start e file income tax return.
Step 4: Assesment Year and Mode of Filing Out
As of the page “Income Tax Return Filing”, choose for the return that you intend to file the Assessment Year. In this case, for example, AY 2024-25 will be for the income declared for the period from the 1 st day of April 2023 to the 31 st day of March 2024.
Select Online Mode of Filing: An offline filing is possible in limited cases by using the “Income Tax Utility”.
Step 5: Specify Taxpayer Category
Choose whether you are filing as an Individual, a Hindu Undivided Family (HUF), or some other type of entity. After selection click “Continue”.
Step 6: Choose the Right ITR Form
According to your taxpayer category and income, appropriate ITR forms will be recommended in the portal. Choose the one that suffices for you according to your income sources:
ITR-1 (Sahaj) form is applicable for all salaried persons earning a salary, one house property, and other interest income.
ITR-2 is available to Individuals and HUFs who possess Capital Gains or Foreign income but do not have business /profession income.
ITR-4 (Sugam) form is for individuals with business income as well as businesses which have presumptive income because of professions.
Step 7: Reason for ITR Filing
Choose why you have decided to pay your income tax electronically. Options may include filing of regular assessment, claim of refund, or filing of return of income – revised.
Step 8: Review and Edit Pre-Filled Information
In the portal, certain sections may be pre-filled based on information derived from employers, banks, etc. Ensure that every entry is checked for correctness, and if there is an entry that is wrong, change it before going to the next stage.
Step 9: Review and Confirm ITR Return Details
Review a detailed display of your ITR, including income, deductions, and tax liability. Ensure all data is correct before proceeding further.
Step 10: Make Tax Payment
If there are taxes payable, pay it through the e-payment portal. Choose the bank and the mode of payment such as netbanking, debit or credit card.
e-verify your return
The ITR e filing process does not end with the ITR e filing itself, there is one more significant step which is e verifying your return. This is a very important step in the ITR e filing process as it helps in verifying your submission to the Income Tax Department. There are various ways to e-verify your ITR:
Electronic Verification Code: You can generate an EVC using your bank account, demat account or registered mobile number and email.
Aadhar OTP: A password sent to the mobile number registered with one’s Aadhar for the purposes of authentication.
Mailing an ITR-V form after signing it: If electronic verification is not an option, a ITR-V form (Income Tax Return Verification) may be printed after 120 days from the date of e-filing, signed and sent to centralised processing centre located in Bengaluru via regular or express mail.
Auditor Shiva is here to help beat the deadline for filing ITR with complete assistance.
Steps to Take If You Miss the ITR Filing Deadline
In the case one fails to make timely submission of Income Tax Return (ITR), measures to remedy the inaction exist:
Belated ITR E-Filing Online in Trichy
Per the provisions of the Income Tax Act, Section 139(4), it is possible to submit a belated return for the Financial Year 2023-24 (Assessment Year 2024-25) up to and including December 31, 2024. In addition to that, remember that there are consequences in terms of penalties and interest for late filing. Also, generally most of the loss other than losses for house property do not survive for reliefs in further resolution of disputes when you do belated e filing of income tax return.
File an ITR-U (Revised Return)
The Finance Act of 2022 introduced the ITR-U, whereby the taxpayers are allowed to modify the tax returns within two years after the relevant assessment year. This comes in handy to make good omissions or wrong details in the returns that are ffiled including the late ones. However, additional tax liabilities arise for submission of an updated ITR return: tax and interest of 25% where return is filed after the first year and 50% return filed within the second year after the due date of the primary filing.
To eliminate the pressure and further expenses that come with that, it is advisable to begin your ITR e filing process at an early stage.
Common Mistakes While ITR e-Filing Online in Trichy:
While ITR e-filing online in Trichy, there are several common mistakes which can make the process difficult or result in penalties. Knowing about these traps can help one to have an easy ITR e filing:
- Selecting the Wrong Tax Form: Various ITR forms are assigned for use based on the sources of income of a taxpayer and their rating. Therefore, it is very important to utilize the right income tax return form that is suitable for the type and scope of income one has indicated on the website of the Income Tax Department.
- Wrong PAN or Personal Information: Wrong presentation of your PAN, name, address, date of birth or any other personal information may result in a rejection or a delayed processing of your tax return.
- Inaccurate Bank Account Information: This can result in delays on your ITR refunds. Pay particular attention to your bank account number, IFSC code and related information.
- Not Filing All Possible Claim: Many taxpayers are aware that their tax liabilities can be reduced but do not know that all possible claims for allowances for savings, investments and certain expenditures as provided under The Income Tax Act 1961 have to be made.
- Looking Over Any Source of Revenue: All the income earned in a year needs to be reported. Failed to report such income sources constitutes tax evasion and attracts penalties.
- Not E-verifying the Return: On successful submission of your ITR i.e. income tax return, it has to be e-verified within the specified duration. E-filing a return without expiring it is tantamount to not filing the return.
- Filing after the Due Date: Normally, submissions beyond the deadline are subject to penalties and fines. There
- Exemption of Capital Gains from Mutual Funds: Capital gains which include both long-term and short-term from mutual funds are also subject to taxation. Make sure that such gains are included in your tax reports to avoid inconveniences with the tax authorities.
If these mistakes are kept in check, you can have an ITR filing process that is free from any form of discrimination as far as the tax laws are concerned of which is assurance of your peacefulness. At Auditor Shiva, our experts can help you navigate the complexities of post filing compliance.
