We have two types of taxes in India – Direct Tax and Indirect tax.
Direct Tax is a tax that is calculated directly on your Income e.g. tax on salary etc. Income tax is a Direct Tax.
Indirect Tax is a tax that is indirectly charged. And is put on goods or services. So if you are purchasing a mobile phone or a new suit. Most indirect taxes have now come under Goods and Services Tax (GST).
Income Tax (Direct Tax)
Anyone earning an income above a certain amount is subject to income tax. The income could be from salary, rent, and interest income from savings, income from mutual funds, sale of property or business or professional income. Income tax rates are decided at the start of the financial year in the Union Budget (in the Parliament of India). The tax paid on these incomes is called the income tax.
Income Tax Return
It is simply a form to be filed with the Income Tax Department. A Form to be filed as a statement of income earned. It is arranged in such a way that calculating tax liability, scheduling tax payments, or requesting refunds for the overpayment of taxes has been made convenient for the taxpayers. They must, first, determine the type of Income Tax Return (ITR) Form they need to fill before actually filing their Returns. Which Form is to be filled, depends on the income that the taxpayer earns. Its purpose is to report our income and taxes paid thereon to the government.
Our Pricing Plans
Special Filers of E-Return Rs 399
- Unemployed
- Widow with family pension
- Student
- Retired
Income from Salary Rs 500
- Salary/Pension upto Rs. 10,00,000
- Deductions
- TDS from Salary
- TDS other than salary (Bank Interest upto Rs. 10,000)
- Self Assessment Tax
Income from Salary and/or House Property Rs 800
- Salary/Pension income
- Deductions
- TDS from Salary
- TDS other than salary (Bank Interest upto Rs. 10,000)
- Self Assessment Tax
- Income from House Property
- Rental income
Income from Salary and/or House Property, Capital Gain, Agriculture income Rs 1200
- Salary/Pension income
- Deductions
- TDS from Salary
- TDS other than salary (Bank Interest upto Rs. 10,000)
- Self Assessment Tax
- Income from House Property
- Rental income
- Sale/ Purchase of property or any asset
- Agriculture income
Income from salary and/or Other Sources (Trading income) Rs 1500
- Salary/Pension income
- Deductions
- TDS from Salary
- TDS other than salary (Bank Interest upto Rs. 10,000)
- Self Assessment Tax
- Trading in shares & stocks
- Trading in crypto
Income from PGBP & Other Sources without Audit Rs 2000
- Income from Business
- Income from Profession
- Trading in shares & stocks
- Trading in crypto
Income from PGBP without Audit and Capital gain Rs 2500
- Income from Business
- Income from Profession
- Sale/ Purchase of property or any asset
Income from PGBP and House property/ Salary Rs 2500
- Income from Business
- Income from Profession
- Income from House Property
- Rental income
- Salary/Pension income
- Deductions
- TDS from Salary
- TDS other than salary
- Self Assessment Tax
Step 1: Visit the e-filing website or Contact us on 880-880-0320
Step 2: Register or Login to e-file your returns
- In case you have registered yourself on the portal earlier, click on the ‘Login’ Here’ button.
- In case you have not registered yourself on the portal, click on the ‘Register’ Yourself’ button.
Step 3: Click on ‘Taxpayer’ and then enter the details of your PAN and click on ‘validate’. Next, click on ‘Continue’.
Step 4: Provide details such as your name, address, gender, residential status, date of birth, etc.
Step 5: Provide your Email ID and registered mobile number.
Step 6: Once the form has been filled up, click on ‘Continue’.
Step 7: You will have to verify the details following which a 6-digit One Time Password (OTP) will be sent to your registered mobile number and Email address.
Step 8: Enter the OTP follow the instructions given to complete the registration process successfully.
Step 9: Once the OTP has been verified, a new window will open where you will have to verify the details provided by you. In case any detail given is incorrect, you can change it, following which another OTP will be sent to validate the change.
Step 10: The final step will be set up a password and secure login message.
Step 11: Click on ‘Register’ following which you will receive an acknowledgment message stating that the registration process has been completed successfully.
1. PAN Card
This is the first and foremost prerequisite if you are filing an income tax return. Your name on the income tax PAN card must be the same as the one stated in ITR. PAN is also required for deduction of TDS and should be linked with your bank account for direct credit of income tax refund (if any). It is issued by the Income Tax Department and a salaried employee can find the PAN number either on a PAN card, Form 26AS, Form 16, Form 12BB etc. However, as per the recent amendment by the Govt, taxpayers can also file the ITR with the Aadhaar number instead of the PAN number.
2. Aadhar Card
According to Section 139AA of the Income Tax Act, individuals need to provide his/her Aadhaar card details while filing the returns. If you do not have your Aadhaar card but have applied for the same, then you would be required to provide the enrolment ID in your IT returns. Linking of PAN and Aadhar helps in verifying your income tax return online through an OTP.
Aadhar card is issued by UIDAI.
3. Form 16
This form consists of the details of the salary of the employee and the amount of TDS deducted from the salary. Form 16 consists of two different parts, Part A and Part B. Part-A contains the details of the amount of tax deducted by the employer during the financial year along with the PAN and TAN details of the employer. The Part B of the form consists of TDS calculations like gross salary breakup, exempt allowances, perquisites etc. Remember this year, both Part-A and Part-B will bear the TRACES logo and unique ID as well.
The allowances which you have forgotten to disclose to your employer like HRA, will not reflect in Form 16 but can still be claimed at the time of filing ITR.
Please note that form 16 is issued by the employer. It is a vital document for filing ITR by a salaried individual.
4. Form-16A/ Form-16B/ Form- 16C
Form-16A is issued for TDS deducted on payments other than salaries such as income received from recurring deposits, fixed deposits etc. If a person sells his property, then Form-16B is issued. It has details pertaining to TDS deducted on the amount which is paid to the seller. Form 16C is a TDS certificate that reflects the TDS deducted on rent @5% by an individual or HUF under section 194IB.
Form 16A is issued by deductors like banks, contractors etc. Form 16B, on the other hand, is issued by the buyer. Further, a person deducting TDS on rent is required to furnish Form 16C to the payee within a period of 15 days from the date of furnishing the Challan cum statement in Form 26QC.
The details of TDS can alternatively be fetched from your Form 26AS.
5. Bank Account details
Disclosures of all active bank accounts are mandatory in the ITR. Bank account details like your bank name, account number, IFSC, number of accounts you hold are necessary to be quoted in the return for income. Also, one account shall be selected as primary to assist the Income Tax Department in refunding your tax refund by electronic transfer to such account. Bank details are used to check your income disclosures, high volume transactions etc. These details can be easily found from bank passbook, cheque book, statement, net banking account etc.
· Processing of Loans & Visa: If you apply for any loans such as a home loan, car loan, etc., the eligibility and quantum of loan would depend on your income. This can be established through filed ITRs. ITR will help your lender to assess your repayment capacity.
If you plan to travel overseas, proof of earning is required. If you are salaried then a certificate from the employer will work. But if you are self-employed then income proof & details need to be submitted.
· Claiming Refund: There could be some TDS cut on some investment. And you will have to file the ITR to claim a refund of the same. Or you may have paid excess tax on your income. To get this refund, you must file ITR.
Many salaried individuals don’t file ITR as they think that the tax on their income has already been deducted and they have Form 16. But your employer may have paid more tax on your behalf. Not taking into consideration your actual house rent, children’s school fees, tax-saving investments, or insurances. So, the filing of ITR will enable you to get a refund from the IT department.
· Carry-forward Losses: As per Income tax rules, losses are allowed to be carried forward and set off against capital gains. But this applies only to those individuals who file ITR in the relevant assessment year. If you have incurred losses for a year and you have earned below the exemption limit. You must file your returns to be able to carry forward the losses you have incurred. And it gets balanced against future gains and income.
The capital losses can be carried forward for 8 consecutive years, as per the IT Act.
· Establishing Income in Compensation Cases: Although the Motor Vehicles Act does not make it compulsory to present the ITR while calculating the compensation in case of accidental death or disability, the procedures approved by Delhi High Court mention the need for ITR for self-employed persons.
This helps to establish the income of the person to arrive at appropriate compensation.
· Self-Employed Individual Filing for Tenders: Businessmen, consultants, and partners do not get any Form 16. For such self-employed individuals, ITR receipts become an important document. ITR is the only proof of income and tax payment for them, in all sorts of financial transactions. And if they want to take up some contract or tender, they may be asked to show their tax return receipts of the previous 3 to 5 years.
· Being a Responsible Citizen: Staying on the right side of law helps. Similarly, keeping the income tax department informed about your income and taxability helps too. This is only possible when you file your ITR. Those who earn less than the prescribed slab of income can file returns voluntarily. Filing returns are a sign that you are a responsible taxpayer