Unit III: E-FILING

FILING OF INCOME TAX

RETURNS

Persons liable to file income tax return

As per income tax laws, ITR must be mandatorily filed if a resident individual's total income
( gross total income) during the financial year exceeds the basic exemption limit before
various deductions available for various investments and expenses under chapter
chapter VIA ( which
comprises Section 80C to 80 U) . The basic exemption limit for an individual depends on
his/her age. For FY 2019-20,
20, the basic exemption limit is as follows:

Mandatory filing of income tax returns when gross total income does not exceed basic
exemption limit

The Income-tax Act, 1961 amended

amen via the Finance Act, 2019 make ITR filing mandatory in
certain cases, even if the gross total income does not exceed the
th exemption
tion limits as
mentioned above, if:

a)Individual has spent an amount or aggregate of amounts exceeding Rs 2 lakh for

himself/herself or any other person for travel to a foreign country;

b)Individual has deposited an amount or aggregate of amounts exceeding Rs 1 crore in one or

more current accounts maintained with a bank or co-operative
co bank;

c)Individual has paid electricity bill exceeding Rs 1 lakh in a single bill or on aggregate basis
during the financial year;

d)Ordinarily resident individual having income from foreign countries and/or assets in
foreign countries and/or having signing authority in any account outside India; and
e)If an individual's gross total income exceeds the exemption limit before claiming tax
exemption on capital gains under section 54, 54B, 54D, 54EC, 54F, 54G, 54GA or 54GB.

Advantages of filing of income tax returns

1. Easy Loan Approval

2. Claim Tax Refund

3. Income & Address Proof

4. Quick Visa Processing

5. Carry Forward the Losses

6. Avoid Penalty and Prosecution

Due dates for filing returns of income

Under the Explanation 2 to Section 139(1), the due dates for furnishing returns of income
are as under :
a. Where the assessee is a company: 30th September of the assessment year
b. Where the assessee is a person (other than a company whose accounts are required to
be audited under any law): 30th September of the assessment year
c. Where the assessee is a working partner of a firm, whose accounts are required to be
audited under any law: 30th September of the assessment year
d. Assessee who is required to furnish a report u/s 92E, i.e, assessee having international
transactions: 30th November of the assessment year
e. Any other assessee : 31st July of the assessment year

Applicability of Form ITR-1 for A.Y. 2021-22 / F.Y 2020-21

Form ITR-1 (Sahaj) is for Individuals being a Resident (other than not ordinarily resident)
having total income upto Rs. 50 lakhs, having Income from Salaries, one house property,
other sources (Interest, etc.), and agricultural income up to Rs. 5,000. This form is not for an
individual who-

a) has assets (including financial interest in an entity) located outside India; or

b) has signing authority in any account located outside India; or

c) has income from any source outside India; or

d) is a Director in any company; or

e) has held any unlisted equity share at any time during the previous year; or

f) owns more than one house property, the income of which is chargeable under the head
“Income from House Property”; or

g) has income under the head “Income from Other Sources” in the nature of:-

(i) winnings from lottery;

(ii) activity of owning and maintaining race horses;

(iii) income taxable at special rates under Section 115BBDA or Section 115BBE; or

h) has any brought forward loss or loss to be carried forward under any head of income; or

i) is assessable for the whole or any part of the income on which tax has been deducted at
source in the hands of a person other than the assessee.

Different modes of submission of returns

Return Forms can be filed with the Income-tax Department in any of the following ways:

(i) By furnishing the return in a paper form physically

• An individual of the age of eighty years or more at any time during the previous year,
and
• An individual or HUF whose income does not exceed Rs 5 lakhs and who has not
claimed any refund in the return of income

The Income Tax Department will issue an acknowledgement at the time of submission of
physical paper return.

(ii) by furnishing the return electronically under digital signature;

(iii) by transmitting the data in the return electronically under electronic verification code
[through net banking/aadhaar OTP/Bank Account details];
(iv) by transmitting the data in the return electronically and thereafter submitting the
verification of the return in Return Form ITR-V
ITR
The taxpayer should take two printed copies of Form ITR-V.
ITR One copy of ITR-V,
V, duly signed by the
taxpayer, is to be sent (within the period specified in this regard, i.e., 120 days) by ordinary post or
speed post to “Income-tax
tax Department – CPC, Post Bag No. 1, Electronic City Post Office,
Bengalore–560100
560100 (Karnataka)".
(Karnataka)". The other copy may be retained by the taxpayer for his record.

(v) e-File
File the Income Tax Return through an e-Return
e Return Intermediary (ERI) with or without
Digital Signature Certificate (DSC). "Electronic Furnishing of Return of Income Scheme,
2007" enables authorized intermediaries to electronically file Income Tax returns on behalf of
the taxpayers. This scheme is available to any taxpayer who is assessed or assessable to tax.

What is e-filing
filing of tax returns?
returns

E-filing
filing or electronic filing is the process of submitting tax returns and incidental tax-
tax
related matters over the Internet using tax preparation software.
Mandatory e-filing of return
Following individual taxpayers shall file their return of income only through e-filing mode:

Where accounts are required to be audited under section 44AB [the return is required to
be e-Filed under digital signature (DSC)];
Where the above is not applicable and
The return is furnished in ITR - 3 or in ITR - 4 or in ITR - 7; or
The individual/HUF being a resident (other than not ordinarily resident) has Assets,
including financial interest in any entity, located outside India, or signing authority in
any account located outside India, or income from any source outside India;
Any relief in respect of tax paid outside India under section 90 or 90A or deduction
under section 91 is claimed.
Where an assessee is required to furnish an Audit Report specified under sections
10(23C) (iv), 10(23C) (v), 10(23C) (vi), 10(23C) (via), 10A, 10AA, 12A(1) (b), 44AB,
44DA, 50B, 80 - IA, 80 - IB, 80 - IC, 80 - ID, 80JJAA, 80LA, 92E, 115JB, 115VW or
give a notice under section 11(2)(a) shall e-File the same. These Audit Reports are to be
e-Filed and any person required to obtain these Audit Reports are required to e - File the
return.
Total income exceeds five lakh rupees or any refund is claimed [other than Super Senior
Citizen (an individual of the age of 80 years or more at anytime during the previous year)
furnishing ITR1 or ITR2]
In cases where accounts are not required to be audited under section 44AB, the
return is required to be e - Filed using any one of the three manners namely i)
Digital Signature Certificate (DSC) or ii) Electronic Verification Code (EVC),
or iii) Verification of the return in Form ITR - V.

Website for Filing Income Tax Return

Search for: income tax portal------

https://www.incometax.gov.in/iec/foportal/
REGISTRATION PROCESS FOR INDIVIDUAL USER

Go to Income tax Directorate website (https://www.incometax.gov.in/iec/foportal/ )

Click on Register------Register as "Taxpayer"/"Others" ------Enter PAN-----Validate-------

Confirm "Individual Taxpayer (Yes/No)"------Continue

Step 1> Enter Basic Details : Surname, Middle Name, First Name, Date of Birth, Gender,
Residential Status -----Continue

Step 2> Enter Contact Details ---- Landline Number, Primary Mobile Number, Secondary
Mobile Number, Primary Email ID, Secondary Email ID), Address of Individual (Country,
Flat/Door/Building, Road/Block/Sector, Pin Code, Area/Locality, Post Office,
District/City, State) ------Continue

OTP1 will be sent to primary mobile number and OTP2 to primary email ID which are
required to complete the registration process.

Enter the OTPs ------Continue

Step 3> Verify Details ---- check if the details are correct or click edit if need to change any
detail entered in previous steps ------Click Confirm

Step 4> Set Password (password is case-sensitive, needs to be within 8-14 characters, a
combination of upper and lower case letters without space, must contain atleast one
alphabet, one number and one special character), confirm the password, set Personalised
Message (maximum 25 characters) which will be shown and need to be confirmed every time
while logging in to e-filing website after registration -------Register

[ fields written in red colour indicate mandatory fields]

Assignment 1. > Register as an individual (you need to complete the process till Step 3,
no need of submitting Confirm Button).
 Filing of Income Tax Returns and Forms :
To submit the Income Tax Returns (ITR) and other forms electronically.

Option A

Log in ----- E-file ----Income Tax Returns --- File Income Tax Return --- Select
relevant Assessment Year (2021-22) --- Select Mode of Filing (Online/Offline) ----
Continue --- Start New Filing ***--- select the status (Individual/HUF/Others) ---
Continue --- Select ITR Form --- Proceed --- Select reason for filing the income tax
return --- Continue ---
Step 1 Validate Returns breakup (Pre-filled):
• Personal Information (Profile: First Name, Middle Name, Last Name, PAN,
DOB, Aadhaar, Contact: Address, Mobile Number, email address, nature of
employment, filing section, Opting for new tax regime u/s 115BAC: Yes/No,
Bank Details --- Edit (If required) & Confirm
• Gross Total Income --- Eligible for various Salary Exemptions (in respect of
expenditure incurred on cost of travel on tour or transfer Special
Compensatory Allowance, Children Education Allowance, Hostel Allowance,
House Rent Allowance, Leave Travel Allowance, etc: Yes/No--- Continue ---
Income from Salary, House Property, Other Sources: Add/Edit Details of
Break-up+ Save, Give details of Exempt Income only for reporting purposes --
- Confirm
• Total Deductions : Select Applicable Deductions--- provide the amount to
be claimed for deduction(Separate Schedule are required to be filled for
80G, 80GG, 80D, 80TTA)--- Continue --- Verify your deductions --- Confirm
• Taxes Paid : Details of Tax Deducted at Source (TDS) on Salary Income,
Income Other than Salary, Tax Deducted at Source [As per Form 16C
(income received as rent from tenant) furnished by the Payer(s)], Tax
Collected at Source (TCS), Advance tax and Self-Assessment tax payments -
-- Show Details --- Add Another giving mandatory tax payment details (If
required) ---- Confirm Total Taxes Paid
• Total Tax Liability : Verify Computation of Income & Computation of Tax ---
Claim Relief u/s 89 (when salary, gratuity, etc. is paid in arrears or in advance
by filling up Form 10E) (If required) ---Confirm
⇒ PROCEED
Step 2 Confirm your Return Summary
Step 3 Verify & Submit your Return

Option B

Step 1 Go to https://www.incometax.gov.in/iec/foportal ---- Download --- Select

relevant Assessment Year (2021-22) --- Common Offline Utility (ITR 1 to ITR 4) ---
Download Utility --- Run Set up --- Open Desktop Utility --- Continue --- File Returns -
-- Download/Import pre-filled data --- File Return (Follow the steps mentioned in
Online submission mode ***
Step 2 Log in ----- E-file ----Income Tax Returns --- File Income Tax Return --- Select
relevant Assessment Year (2021-22) --- Select Mode of Filing (Online/Offline) ----
Select Filing Type & ITR Type ---- Continue --- Upload .json file --- Proceed to
verification

Assignment 2. > Mr X, who is a person with disability submits the following information
relating to A.Y 2020-21:

(i) Salary (per annum) Rs. 8,05,000

(ii) Dividend from Co-operative Society Rs. 30,000
(iii) Bonus received from LIC Policy Rs. 10,000
(iv) Interest on Savings Bank Deposits Rs. 7,000
(v) Interest on Government securities Rs. 5,000
(vi) Deposit under PPF Scheme Rs. 1,35,000
(vii) Payment made by cheque for Mediclaim policy of self Rs. 20,000 and wife Rs.
15000
(viii) Re-payment of loan, with interest to Bank of Baroda, which was taken for pursuing
approved higher education Rs. 35,000 (Principal amount Rs.25,000 + 10,000 interest)
(ix) Donations to:
Prime Minister’s Drought Relief Fund Rs. 3,000
National Fund for Communal Harmony Rs. 4,000
(x) Tax deducted at Source by his employer Rs. 30000.
Prepare his return (as on 21.07.2021) using appropriate ITR Form. (Use Income & Tax
Advance Calculator in Quick Links

FEW OTHER SERVICES AVAILABLE IN E-FILING WEBSITE (AFTER

LOGGING IN)
• View Tax Credit Mismatch : Users can view the details of non-matched amount of
TDS claimed in the Income Tax Return. Also, as per online Tax statement (Form
26AS) TDS detail has been reflected.
Services----Tax Credit Mismatch ---- Enter A.Y (PAN is pre-filled) ---Submit

• Rectification of Order/Intimation : During the processing of the Income Tax

Return request, there might be scenarios where the Income Tax Department might
find certain discrepancies in data, errors in calculations, wrong entry of certain data,
etc. and will issue a notice otherwise known as Intimation Order.
Services------ Rectification ----- New Request ---- Select A.Y ----Continue

• Refund Re-issue: Refund shall be issued to the pre-validated bank account only. In
case of refund failure and intimation received from Income Tax Department, taxpayer
can raise the service request in e-Filing portal upon receiving communication from
CPC.
 Services ----Refund Reissue--- Select return ---- Select bank account Select method
of verification ----- Verify ---- Submission of Request
• Condonation Request: after filing of Income Tax Return, the assessee has to
complete the verification process within 120 days from the date of filing Income tax
Return. Now if the assessee failed to verify the return within 120 days from date of
filing of return, then in such case he/she can provide the reason for delay in
submission of ITR-V or e-Verification through Condonation Request. In addition, the
assessee will be given an option to e-verify the return after 120 days by giving reasons
for delay.
• Generate e-Verification Code : The process of verifying an item electronically using
Electronic Verification Code (EVC) or Aadhaar OTP or Digital Signature Certificate.
Verification is mandatory to accept the items for further processing. EVC is a 10
character unique alphanumeric code to confirm the identity of the person.
Services --- Generate EVC --- Select Mode (Through Net Banking/ Bank Account/
Demat Account) --- Continue --- the generated EVC will be sent to verified mobile
number and email ID
• Annual Information Statement : provides a comprehensive view of information to a
taxpayer with a facility to capture online feedback. The new AIS includes additional
information relating to interest, dividend, securities transactions, mutual fund transactions,
foreign remittance information etc. If the taxpayer feels that the information is incorrect,
relates to other person/year, duplicate etc., a facility has been provided to submit online
feedback.
Services ---AIS --- Proceed --- Download Taxpayer Information Summary (which provides
category wise aggregated information summary) / Annual Information Statement ( which
provides information regarding TDS/TCS, Specified Financial Transaction, Payment of
Taxes, Demand & Refund other information) or Upload AIS Feedback file

• View Tax Credit Statement (Form 26AS):

The following details have been provided in 26AS statement:
Advance tax, Self-Assessment Tax and Regular Assessment Tax paid by self
Tax paid through Tax Deducted at Source (TDS) or TCS on behalf of users own
presence
Refund issued by the Department to self
Information received from various agencies on high value transaction carried by self.
This statement is presented yearly, which reflects the transaction of the concerned
year.
e-file--- income tax returns----view form 26AS----Confirm----Agree to Usage/
Acceptance ---- Proceed-----View Tax Credit---Select Assessment Year/View As
format (HTML/text)

• Manage your Profile : Taxpayer can edit the details such as Address, Contact details,
password. For updating the contact details, OTP authentication is required. However,
user can view the Name, DoB, Gender, PAN details, Aadhaar details.
 Individual Icon-----My Profile------edit Profile (Citizenship, Residential Status, Valid
Passport Number)/ edit Contact details ---Update details & Save

My Profile ----My Bank Accounts----Add Bank Account/Remove Bank

Account/View Bank Account Details/Enable EVC/Revalidate/Nominate for Refund

Profile Settings----change password

• e-filing Vault Higher Security : To shield e-Filing account against any fraudulent
activity, a new facility has been introduced named as e-Vault. It adds a second level
of authentication for logging into e-Filing account through various options as well as
changing password such as:
through Net Banking
using DSC
Using OTP on Mobile Number Registered with Aadhaar
Using Bank Account EVC
Using Demat Account EVC

My Profile----e-Filing Vault Higher Security---- Select Higher Security Option(S)-----

Confirm------Update Successfully

FEW OTHER SERVICES AVAILABLE IN E-FILING WEBSITE

(WITHOUT LOGGING IN)
Link Aadhaar with PAN:
Go to website---Quick Links ------ Link Aadhaar --- enter details (PAN & Aadhaar)----
Validate ---- Verification---- Status

Following categories are exempted from Aadhaar-PAN linking

(i) NRIs
(ii) Not a citizen of India
(iii) age > 80 years as on date
(iv) state of residence is ASSAM, MEGHALAYA or JAMMU & KASHMIR

ASSIGNMENT-3.> Link your Aadhaar with PAN

Verify Your PAN

Go to website-- Quick Links ------ Verify Your PAN --- enter details (PAN, Full Name,
DoB, Mobile Number)----Continue ---- Verification (provide the OTP sent to the
given Mobile Number) ---- PAN Status
 Know Your Jurisdictional Assessing Officer
Go to website-- Quick Links ------ Know Your Jurisdictional Assessing Officer ---
enter details (PAN, Mobile Number)----Continue ---- Verification (provide the 6 digit
OTP sent to the given Mobile Number) ---- Jurisdictional A.O. Details

ASSIGNMENT-4.> Show your Jurisdictional A.O

Instant e-PAN: e-PAN is a digitally signed PAN card issued in electronic

format based on e-KYC data of Aadhaar.
Online Payment of Income Tax

Step-1

To pay taxes online, Go to http://www.tin-nsdl.com > Services > e-Payment: Pay taxes
online /e-TDS/e-TCS: Pay Taxes Online : Click to pay tax online

Direct Link: https://onlineservices.tin.egov-nsdl.com/etaxnew/tdsnontds.jsp

Step-2

Select the relevant Challan *** ----- Proceed

Step-3
Enter PAN / TAN (as applicable) and other mandatory challan details like accounting head
under which payment is made, address of the tax payer and the bank through which payment
is to be made etc.

Step-4
On submission of data entered, a confirmation screen will be displayed. If PAN / TAN is
valid as per the ITD PAN / TAN master, then the full name of the taxpayer as per the master
will be displayed on the confirmation screen.

Step-5
On confirmation of the data so entered, the taxpayer will be directed to the net-banking site of
the bank.

Step-6
The taxpayer has to login to the net-banking site with the user id / password provided by the
bank for net-banking purpose and enter payment details at the bank site.

Step-7
On successful payment a challan counterfoil will be displayed containing CIN, payment
details and bank name through which e-payment has been made. This counterfoil is proof of
payment being made.

*** CHALLAN NO./ITNS 280 ***

Payment of Advance tax, Self-Assessment tax, Tax on Regular Assessment, Surtax, Tax on
Distributed Profits of Domestic Company and Tax on Distributed income to unit holders.

Mandatory Fields:
Tax Applicable: Corp Tax/Income Tax
 Type of Payment: Advance Tax/ Self Assessment tax/ Tax on Regular Assessment
Mode of Payment:
• Net-banking (Axis Bank, Bank of Baroda, Bank of Maharashtra, Canara Bank,
Central Bank of India, Dena Bank, HDFC, ICICI, IDBI, Indian Bank, Indian
Overseas Bank, J&K Bank, Punjab & Sind Bank, Punjab National Bank, State Bank
of India, Uco Bank, Union Bank, Vijaya Bank)
• Debit Card (Debit Cards of following banks are accepted---Bank of Baroda, Canara
Bank, HDFC Bank, ICICI Bank, Indian Bank, Punjab National Bank, State Bank of
India)
PAN
Assessment Year
City/District
State
Pin Code

Enter Captcha Code------Proceed

Verify Details------Check Consent------Submit to Bank ---- Login with personal

details----- Add Payment Details (Break-up of Nature of Payment i.e, tax, surcharge,
education cess, interest, penalty, others) ----- Next ---- Enter Bank Net Secure Code
---- Confirm

ASSIGNMENT-5.> Pay Advance Tax/Self Assessment Tax of an individual (upto Submit

to Bank step

*** CHALLAN NO./ITNS 281 ***

Payment of TDS/TCS by Company or Non Company Deductee
Mandatory Fields:
Tax Applicable: Company Deductees/Non-Company Deductees
Type of Payment: TDS/TCS payable by Taxpayer/ TDS/TCS Regular Assessment
 Nature of Payment: Interest on Securities. Dividend, Interest other than Interest on
Securities, Payment to Govt employees other than Union Govt employees, Payment
of Employees other than Govt Employees, Payment of Contractors & sub-contractors,
winning from lotteries and crossword puzzles, commission or brokerage, rent, fees for
professional or technical services etc.
Mode of Payment:
• Net-banking (Axis Bank, Bank of Baroda, Bank of Maharashtra, Canara Bank,
Central Bank of India, Dena Bank, HDFC, ICICI, IDBI, Indian Bank, Indian
Overseas Bank, J&K Bank, Punjab & Sind Bank, Punjab National Bank, State Bank
of India, Uco Bank, Union Bank, Vijaya Bank)
• Debit Card (Debit Cards of following banks are accepted---Bank of Baroda, Canara
Bank, HDFC Bank, ICICI Bank, Indian Bank, Punjab National Bank, State Bank of
India)
TAN
Assessment Year
City/District
State
Pin Code

Enter Captcha Code------Proceed

Verify Details------Check Consent------Submit to Bank