Introduction to New Income Tax portal. A stepwise process on how to login or register on the ITR e-filing portal. Know how to calculate Income Tax Liability, and the provisions of the Income Tax Laws.
A form used to calculate a taxpayer’s annual income is called an income tax return. There are a number of reasons to file an income tax return, even if you don’t have an income. A taxpayer may file an income tax return in order to carry forward losses, report their pay for the fiscal year, claim an income tax refund, claim tax deductions, and so on. ITR e-filing is possible both online as well as offline.
The Income Tax Department has offered the option of an electronic income tax return. Before delving into the steps of how to file ITR, a taxpayer must keep the documents used for calculation and reporting data in Income Tax Return filing.
E-Filing | Introduction To New Income Tax Portal
Before getting into How to file ITR let’s have a look at the new Income Tax Portal. E-filing is an abbreviation for electronic income tax filing. E-filing is electronically filing your income tax returns online for a specific year. And hence no need to go to the nearest Income Tax Department Office to file your returns. Instead, you log on to the internet and do the e-filing ITR.
How To Login Or Register On The E-Filing ITR Portal?
The steps below walk you through the process used while registering or logging you into the efiling ITR portal.
Income and Tax Calculation
- The taxpayer must calculate their income in accordance with the income tax laws that apply to them
- The calculation should include salary, freelancing, interest income, and all sources of revenue. A taxpayer can claim the Tax-saving investments under section 80C. Credit for TCS, TDS, or any advance tax paid is also needed to be considered by the taxpayer.
Certificates of TDS(Tax Deducted at Source) and Form 26AS
- The taxpayer needs to total his TDS amount on the TDS certificates they received for all four quarters of the fiscal year
- Form 26AS summarizes the TDS and tax paid during the fiscal year to the taxpayer
- The taxpayer must find the income tax form/ITR Form used to file his income tax return
- The taxpayer can carry on with the filing of the income tax return after determining the income tax form
- Now you can do Income Tax Return filing online and offline. The online mode for taxpayers’ login is only available for ITR 1 and ITR 4, it is not accessible for forms for other categories of individual taxpayers. The offline mode (generating XML and uploading) is available for all types of income tax forms.
Obtain the Income Tax Return utility from the Income Tax return filing Portal
- Go to the official site at www.incometax.gov.in and choose Downloads from the top menu bar
- Then choose the Assessment Year and download the offline utility software, such as Microsoft Excel, Java, or JSON, depending on your preferences. e-filing ITR. The income tax department will discontinue the Excel and Java utilities in the fiscal year 2020-21
Now fill in all your information on the downloaded file
- First, download the offline utility
- Then enter the relevant details of your income and check the payable tax or receivable refund based on the utility’s calculation
- Now you can use the downloaded form to fill out the details of an income tax challan.
Verify the Data You’ve Entered
- Most important step
- You will find a few buttons on the right-hand side of the downloaded form
- Now, tap on the validate control to ensure if every information has been entered or not.
Save the file in XML format
- After validating the file, click the Generate XML button on the right-hand side of the file to convert it to XML file format. (XML format is necessary for ITR e-filing)
Submit the XML file to the E-Portal of Income Tax Return
- Log in to the official income tax e-filing portal and select the Income Tax Return option located under the E-File tab
- Enter the required information, such as assessment year, PAN, ITR form number, and submission mode. Remember to select Upload XML from the drop-down menu next to Submission Mode
- Enter the XML file from the computer and click the Submit button
- Select one of the verification methods available: Aadhaar OTP, electronic verification code (EVC), or sending a manually signed copy of ITR-V to CPC, Bengaluru. And you are done with your ITR e-filing.
How To Calculate Income Tax Liability As Per The Provisions Of The Income Tax Laws
A simple tool that allows you to estimate your taxes based on your earnings after the Union Budget presents. This calculator is an updated tool to reflect the proposed income tax changes in the Union Budget 2022-23. The steps for using the tax calculator are as follows:
Step 1: Select the fiscal year for which you want your taxes calculated
Step 2: Choose your age wisely. In India, tax liability varies according to age group
Step 3: Select Go to Next Step
Step 4: Enter your taxable salary, which is your salary, after deducting various exemptions like HRA, LTA, standard deduction, and so on. Alternatively, enter your salary without exemptions such as LTA, HRA, professional tax, standard deduction etc.
Step 5: In addition to taxable salary, you must enter interest income, rental income, interest paid on home loan for rented property, and interest paid on loan for self-occupied property
Step 6: Enter the net income (sale consideration less acquisition cost) for Income from Digital Assets; such income tax is 30% plus applicable surcharges
Step 7: Click ‘Go to Next Step’ once more
Step 8: To calculate your taxes under the old tax slabs, you must enter your tax-saving investments under sections 80C, 80D, 80G, 80E, and 80TTA
Step 9: To calculate your tax liability, click the ‘Calculate’ button. You will also be able to compare your pre-budget and post-budget tax liability (old tax slabs and new tax slabs).
You can enter “0” in any field that is not applicable
This is how you can calculate your income tax liability as per the provisions of the income tax laws. and that too without consulting any professional of the Income Tax Department. The new income tax portal is really convenient for Income Tax Return Filing. Hopefully, this article answers all your questions related to how to file ITR.