How to File Income Tax Returns in India: A Guide to Income Tax India e-Filing

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Filing Income tax returns in India is important for both people and businesses. It helps you follow the law and get tax benefits. It also lets you ask for refunds and keep your money clear. By filing on time, you avoid extra fees. This process helps you track income and expenses well. It gives you a clear view of your finances.

This guide talks about why Income tax returns in India matter. It covers types of taxes, filing steps, and benefits. It also explains the fines for missing deadlines. Knowing this helps you stay on top of your taxes.

An Income Tax Return in India: What Is It?

A paper filed with the tax authorities that details income received during a fiscal year is called an income tax return. It contains information about tax obligations, exemptions, deductions, and income from many sources. For tax rules to be followed and fines to be avoided, an appropriate income tax return must be filed.

Why Is It Important to File an Income Tax Return?

1. Adherence to the law

Individuals and companies whose income exceeds the tax rules’ exemption threshold are required to file an income tax return. Penalties and legal repercussions may follow noncompliance.

2. Making a Refund Claim

By submitting their income tax return, taxpayers who paid more tax than they were required to during the fiscal year can request a refund. This guarantees they don’t incur needless losses.

Why Is It Important to File an Income Tax Return?

3. Making Use of Tax Advantages

Filing an income tax return helps taxpayers reduce their tax by claiming deductions. Section 80C lets you claim for tax-saving investments.

4. Evidence of Income

An income tax return is often needed as proof of income. It helps when applying for loans, visas, or insurance.

Who needs to file Income tax returns in India?

Age, taxpayer type, and income level are some of the variables that affect the need to file an income tax return. The following are some broad rules:

Individuals:

- Residents under 60 years of age who earn more than ₹2,50,000.
- Elderly people (60–80 years old) earning more than ₹3,00,000.
- Super senior citizens (those over 80) who earn more than ₹5,00,000.

Professionals and Enterprises
Self-employed professionals and businesses with taxable income must file an income tax return.
Other Entities
All businesses, trusts, and firms must file income tax returns, regardless of their income.

Income Tax Return Types

To file income tax returns, the Income Tax Department offers a number of forms. The type of taxpayer and the type of income determine which form is best. These are the most typical types:

1. ITR-1 (Sahaj)

For people who make money from a salary, pension, a single residence, or other sources (not including lottery or gaming).

2. The ITR-2

For Hindu Undivided Families (HUFs) and individuals who earn money from foreign assets, capital gains, or multiple home properties.

3. The ITR-3

for people and HUFs who make money via a profession or private business.

4. ITR-4 (Sugam)

For individuals, HUFs, and businesses using the presumptive taxation scheme, there is ITR-4 (Sugam).

5. ITRs 5 and 6 and 7

For organizations, trusts, and businesses with particular needs.

Get started with the online filing of your income tax return

Here are detailed steps for filing an online ITR:

Log in to the Income Tax India e-filing portal: Log in to www.incometaxindiaefiling.gov.in for e-filing. Then register using your PAN (Permanent Account Number), which will be your user ID.
Download the relevant IT form: Go to downloads, go to e-filing under the required assessment year, and then select the relevant ITR form. In case you are a salaried individual, download the ITR-1 (Sahaj) return software.
Fill form 16: Open the downloaded return preparation software (Excel utility), follow instructions, and fill in the details from your form 16 to complete your Income Tax India e-filing process.
Calculate all the tax liability: Calculate tax payable, pay tax, and enter the challan details in the tax return. However, you can skip this step if you don’t have a tax liability.
Confirm the details: Confirm the details filed by you and generate an XML file for Income Tax India e-filing, which gets automatically saved on your PC.
Submit your return: Go to the section-submit Return’ and upload the XML file.
Give your digital signature: You can digitally sign the file on being prompted. You can skip the step if you don’t have a digital signature.
Confirmation form ITR verification: A confirmation message of successfully Income Tax India e-filing flashes on your screen. An acknowledgment form–ITR verification is generated and can be downloaded. You also have this in your registered email ID.
E-verify your tax return: E-verify your return in any of the following modes:
- Netbanking
- Bank ATM
- Aadhar OTP.
- Demat Account Number.
- Registered Mobile Number and Email ID.

How can you download your Income Tax returns in India?

To avoid last-minute stress and penalties, always file your Income Tax returns in India on time. When you file your ITR, the IT department generates an income tax verification form to validate and legitimate e-filing. It applies to those taxpayers who don’t have a digital signature.

Download the ITR-V form in easy steps:

Log in to the Income Tax India portal
Click on the ‘View Returns/Form option to view your e-filed returns.

Select the options income tax return

Click on the acknowledgment number to download the ITR-V.
Download ITR-V
To open the downloaded document, enter a password- the PAN number in the lower letter with your date of birth.

How to Check Your Income Tax Return (ITR) Status in India?

Filing an Income Tax Return (ITR) is an essential financial responsibility for individuals and businesses in India. After successfully filing your ITR, it is important to check its status to ensure that it has been processed by the Income Tax Department. Here’s a step-by-step guide on how to check your ITR status in India.

1. Ways to Check Your ITR Status

There are two main ways to track your ITR status:

Without Logging In – Using the Income Tax Department’s e-filing portal.
By Logging In – Using your e-filing account for detailed tracking.

A. Checking ITR Status Without Logging In

If you do not wish to log in, follow these steps:

Visit the Income Tax e-Filing Portal.
Navigate to the “Income Tax Return (ITR) Status” section.
Enter Your Details: Provide your PAN (Permanent Account Number), Acknowledgment Number, and a security code.
View Your ITR Status: The system will display the status of your filed ITR.

B. Checking ITR Status by Logging In

For a more detailed status update, follow these steps:

Log in to the e-Filing Portal.
Enter Your Credentials: Use your PAN, Aadhaar, or User ID and password.
Go to the “View Filed Returns” Section: Under the “e-File” menu, click on “Income Tax Returns” → “View Filed Returns.”
Check the Status: The system will display the status of your ITR, such as:
- Return Uploaded – Successfully submitted but not yet verified.
- Verified – The return has been verified but is pending processing.
- Processed – The return has been successfully processed.

2. Understanding Your ITR Status

Once filed, your return may show different statuses, including:

Return Submitted & Pending Verification – The ITR has been filed but not verified. You need to complete e-verification using Aadhaar OTP, net banking, or by sending a signed ITR-V to the designated address.
Return Verified & Under Processing – The return has been received and verified but is still under review.
ITR Processed – The return has been processed successfully. If applicable, a tax refund will be initiated.
Defective Return – There are discrepancies in the return, requiring corrections.
ITR Rejected – If the return is incomplete or incorrect, it may be rejected, and you need to refile it.

3. Checking ITR Refund Status

If you are expecting a tax refund, you can check the status through:

Income Tax e-Filing Portal: Log in and check under the “Refund Status” section.
Tax Information Network: Use your PAN and assessment year to track the refund progress.

Advantages of Timely Income Tax Return Filing

Avoiding Penalties: Section 234F imposes penalties for late submission, which can reach ₹10,000.
Carrying Forward Losses: Losses can be carried forward and deducted from future income by taxpayers who file their returns on time.
Quicker Refund Processing: Refunds for early filers are frequently processed more quickly.
Better Creditworthiness: Filed returns improve creditworthiness for loans by acting as evidence of income.

Penalties for Failure to Comply

There are several consequences for breaking income tax regulations, including:

Section 234F Penalty for Late Filing: Up to ₹10,000.
Interest on Overdue Taxes: Sections 234A, 234B, and 234C interest.
Prosecution: In extreme circumstances, prosecution for tax evasion or intentional default.

What are the ways to get better tax returns in India?

Make Contributions Towards Public Provident Fund (PPF):
Start investing small amounts from your savings. You can begin with the lowest amount and grow it over time. With an interest rate of 8% per year, your investments will grow. PPF earnings, including gains and withdrawals, are tax-free.

Make Investments in NPS to Get an Additional Tax Deduction:
Invest in the National Pension Scheme (NPS) for extra tax savings. You can invest up to ₹ 50,000 to get a tax deduction. This is for both employees and the self-employed. It is in addition to the ₹ 1.5 lakh limit under Section 80C. This helps you lower your tax bill. However, 40% of the maturity amount must be used to buy an annuity. The remaining 60% can be withdrawn. Money invested in Provident Funds is tax-exempt when withdrawn.

Secure Insurance by Creating an Emergency Fund:
It’s smart to get insurance based on your needs when filing your Income Tax returns in India. You can choose a single premium plan or pay once for full coverage. Health insurance investments allow you to claim up to ₹ 25,000 under Section 80D. Life insurance premiums are also eligible for tax deductions up to ₹ 1.5 lakh under Section 80C. Family floater health plans are a great option for family coverage.

Home Loan & House Rent Allowance (HRA):
If you have a home loan, you can claim up to ₹ 2 lakh in interest deductions. This is under Section 24 for a self-occupied house. You can also claim up to ₹ 1.5 lakh for the principal repayment under Section 80C. For a second home, you can claim the full interest amount as a deduction. For rented homes, you can claim HRA if it is part of your salary.

Filing Income tax returns in India is required by law. It is also smart for both people and businesses. By knowing the steps, meeting deadlines, and getting help, taxpayers can stay compliant. They can also get refunds and avoid stress.

Meru Accounting has the experience to help with Income Tax India e-filing and the tax filing process. They ensure accuracy, efficiency, and full compliance. Meru makes the process simple for you, whether you are an individual or a business.

With Meru Accounting, you get a trusted partner for your financial needs, including Income Tax India e-filing. Get expert help now to protect your financial future. File your income tax return with confidence.

FAQs

Who needs to file an income tax return in India?
Individuals earning above ₹2,50,000, professionals, businesses, and trusts must file a return. Senior citizens and super senior citizens have higher exemptions.

What is the penalty for late filing of an income tax return?
Section 234F imposes penalties up to ₹10,000 for late filing. Additional interest may apply on overdue taxes.

How can I check the status of my filed income tax return?
Log in to the e-filing portal or use your PAN and acknowledgment number without logging in.
Can I claim tax deductions for health and life insurance premiums?
Yes, claim ₹25,000 for health insurance under Section 80D. Claim up to ₹1.5 lakh for life insurance premiums under Section 80C.
What forms do I need to file an income tax return?

ITR-1 for salaried individuals.
ITR-2 for foreign assets.
ITR-4 for businesses with presumptive taxation.

What is the NPS tax deduction?
Invest up to ₹50,000 in NPS. Claim a deduction under Section 80CCD (1B) in addition to ₹1.5 lakh under Section 80C.
How do I download my ITR-V form after filing?
Log in to the e-filing portal. Go to “View Returns/Form” and select your return. Click on the acknowledgment number to download your ITR-V.